Godawari Power & Ispat Limited (GPIL) has released its investor presentation for Q2H1 and FY26, highlighting financial performance, strategic updates, and future growth plans. The presentation emphasizes the company’s integrated steel business, capacity expansion, and commitment to sustainability, showcasing its resilience and growth potential in the steel sector. Key financial data and strategic initiatives are detailed, underscoring GPIL’s focus on long-term value creation.
Q2 FY26 Performance Highlights
GPIL’s financial performance for Q2 FY26 includes:
- Revenue: Rs. 1,308 Cr
- Operating EBITDA: Rs. 260 Cr
- PAT: Rs. 162 Cr
The operating EBITDA margin stands at 20%.
H1 FY26 Performance Highlights
Key financial figures for H1 FY26 are:
- Revenue: Rs. 2,631 Cr
- Operating EBITDA: Rs. 584 Cr
- PAT: Rs. 378 Cr
The operating EBITDA margin for this period is 22%.
Key Strategic Updates
Recent strategic activities include:
- Completion of land acquisition (452 acres) for setting up an integrated steel plant and CRM Complex.
- Successful completion of public hearing for expansion in mining capacity at Ari Dongri Iron Ore Mines from 2.35 MTPA to 6 MTPA.
- Board approval for establishing a 0.7 MnT CRM Complex.
- Resumption of operations at Boria Tibbu Mines.
Business Model Overview
GPIL’s business model is built on:
- Strong foundations in iron ore mining and pellets.
- Alignment with India’s infrastructure goals through structural steel and galvanized products.
- New initiatives including non-ferrous metal recycling and battery storage.
Investment Thesis
Key investment highlights include:
- Captive iron ore mines with 165 MnT reserves.
- High-grade pellet production commanding a premium in the market.
- A strong net cash balance sheet.
Capacity Expansion
Capacity expansion plans are underway, targeting increased iron ore mining and pellet production. Future projects involve a CRM complex and an integrated steel plant.
ESG Initiatives
GPIL is focused on reducing its carbon footprint, with initiatives including solar power projects and waste heat recovery. The company is committed to sustainability with a Net Zero carbon goal by 2050.
FY26 Guidance – Status Check
Here is the status of different product volume sales as a function of FY26 guidance:
- Iron Ore Mining: 1.29 MnT of 3.0 MnT goal, 43% attained.
- Iron Ore Pellets: 1.34 MnT of 3.0 MnT goal, 45% attained.
- Sponge Iron: 0.312 MnT of 0.594 MnT goal, 53% attained.
Source: BSE