Lloyds Metals and Energy Limited reported a milestone quarter, crossing INR 11,000 crores in consolidated revenue, with EBITDA and PAT matching this growth trajectory. Management highlighted structural margin improvements driven by value-added products and the slurry pipeline benefit. The company detailed progress on its DRC copper project, targeting 10,000 tons of integrated output by FY27, alongside commissioning the second pellet plant in Q2 FY27. Guidance remains buoyant for the remainder of the year.
Q3 FY26 Financial Highlights and Milestones
Lloyds Metals and Energy Limited announced its Q3 and 9M FY26 results via a conference call held on February 04, 2026. Management highlighted crossing the INR 11,000 crores consolidated revenue mark, a significant milestone. The performance in Q3 and 9M FY26 was noted as the best ever in terms of revenue, profitability, and margins.
On a standalone basis:
- Q3 FY26 Total Income: Approximately INR 3,875 crores, up 129% YoY.
- Q3 FY26 EBITDA: INR 1,317 crores, up 137% YoY.
- 9M FY26 Total Income: INR 8,859 crores, up 59% YoY.
- 9M FY26 EBITDA Margin: Roughly 33.8%, an improvement of almost 280 basis points YoY.
The margin improvement is attributed structurally to a higher share of value-added products (which accounted for 35% of standalone revenues for 9 months) and the benefit of the slurry pipeline.
Operational Performance and Logistics
Operational efficiency across mining, pellet, and DRI segments remains a key focus. Iron Ore dispatches were 4.1 million tons in Q3. Pellet production reached 1.14 million tons in Q3, achieving target run rates within 3 to 4 months of commissioning, realizing about INR 10,289 per ton.
Logistics remains a critical pillar, with the first 85km pipeline running smoothly. The company is now planning a Second Slurry Pipeline from Hedri to Chandrapur, aiming to increase capacity to 9 million tons by June, eventually covering all 26 million tons of dispatch through pipeline routes. The total envisaged cost for this pipeline expansion is around INR 8,000 crores, phased over time.
Copper Project in DRC (Katanga)
Management expressed optimism regarding the entry into copper, calling it a “new gold for the new age economy.” The project in the Democratic Republic of Congo (DRC) is poised to be a significant milestone. The area is described as the world’s second-largest copper producer after Chile.
The company holds 18 leases, covering over 100 square kilometers. Initial findings show copper grades between 1.5% to 2%, with oxides available. The goal is an integrated operation of around 30,000 tons per annum within 2-3 years, with an expected 10,000 tons of integrated output by FY27. This will involve cathode production with anticipated margins of 30% to 32%.
Forward Guidance and Future Projects
The company remains buoyant on ferrous operations, expecting Iron Ore volumes to grow in line with environmental clearance limits in Q4 and FY27. FY27 is earmarked for the formal entry into steelmaking.
Expansion timelines include commissioning the second pellet plant by Q2 FY27 and the 1.2 million ton wire rod mill by Q4 FY27. The capacity of the existing pellet plants is being optimized to increase combined output from 8 million tons to 10 million tons.
Regarding the BHQ plant, engineering and ordering are complete, with commissioning tentatively expected around December 2027. Royalty savings are projected to offset processing costs, with a premium expected on the higher-grade ore.
Thriveni (MDO Business) Outlook
The management reaffirmed guidance for Thriveni’s EBITDA for FY26, standing by the INR 2,000 crores to INR 2,200 crores target despite 9M performance being at INR 1,100 crores. Revenue guidance for Thriveni is set at over INR 7,500 crores for FY26 and INR 10,000 crores plus for FY27. Future EBITDA for Thriveni in FY27 is expected to be close to INR 3,000 crores.
The MoU with Tata Steel involves two parts: the executed BRPL SHA and conversion contract, and future exploration of opportunities, potentially including joint bidding in Gadchiroli or acting as an MDO contractor in Eastern India.
Source: BSE
