Godawari Power & Ispat (GPIL) released the transcript of its Q3 FY26 Earnings Call, detailing strong operational momentum despite softer realizations. Key highlights include robust EBITDA margins sustained at 20% for Q3, significant growth in iron ore mining production (up 46% Y-o-Y), and major strategic advancements in backward integration, including doubling of the Ari Dongri mine capacity to 6 million tons.
Q3 and 9M FY26 Financial Performance
For the 9 months of FY ’26, GPIL reported a steady performance with a slight revenue decline, primarily due to softer realization across most products. However, operational efficiency kept EBITDA and PAT margins strong, at 22% and 14% respectively, for the 9-month period. In Q3 alone, EBITDA margin expanded to 20% (from 17% in Q3 FY ’25), with margins sustained at 20% (EBITDA) and 13% (PAT) quarter-on-quarter, reflecting resilient operational efficiency.
Pellet sales saw a temporary dip in Q3 due to an accident in September ’25. Conversely, value-added steel products sales grew 15% Y-o-Y over 9 months.
Strategic Growth and Integration Updates
Management detailed several significant achievements aimed at driving volume and profitability in FY ’27:
- Iron Ore Mining Capacity Doubled: GPIL received environment clearance to increase the Ari Dongri mine capacity from 2.35 million to 6 million tons. The consent to operate is expected shortly, allowing commercial operations to commence soon, strengthening raw material security.
- Beneficiation Plant: Environment clearance received for a 5.4 million ton crushing and beneficiation plant, expected to be completed by the end of Q2 FY ’27.
- Pellet Capacity Expansion: An additional 2 million ton iron ore pellet plant was commissioned in December ’25, taking total capacity to 4.7 million tons.
- CRM Complex: Construction on the 0.7 million ton CRM complex is set to begin in April 2026, with commissioning targeted for March ’27.
Renewable Energy and ESG Initiatives
GPIL is aggressively expanding captive solar capacity by over 3x, from 165 MW to 540 MW, targeting completion between March ’26 and March ’27. Furthermore, the company plans to set up 45 MWh of battery energy storage capacity to optimize power costs for the high-tariff iron ore mine. The company also confirmed its intention to venture into manufacturing Battery Energy Storage Systems (BESS) with an initial capacity of 20 GW, targeting Q4 FY ’27 commissioning.
On the ESG front, the company achieved a score of 76.6 from CARE Edge and continues progress toward its net-zero carbon emission goal by 2050.
Capital Expenditure and Outlook
The finalized capex plan extends until the end of FY ’27, covering solar, BESS, and CRM projects, totaling approximately INR2,000 crores (plus/minus INR200 crores) for FY ’27. The company maintains a strong cash reserve of around INR1,000 crores.
Management indicated that the decision regarding the proposed INR5,000 crore steel plant (1 million ton capacity) will be finalized by the next Annual Board Meeting in April/May, pending clarity post-mining EC receipt.
Looking ahead, total projected turnover by FY ’28, once all capacities are fully operational (including steel complex, BESS, and CRM), is estimated to be between INR12,000 crores to INR15,000 crores. A projection for 2030 turnover was roughly estimated at INR25,000 crores.
Source: BSE
