LLOYDSMENSEQ1FY26August 13, 2025

Lloyds Metals And Energy Limited

7,945words
157turns
16analyst exchanges
4executives
Management on call
Rajesh Gupta
MANAGING DIRECTOR – LLOYD METAL AND ENERGY LIMITED
Riyaz Shaikh
CHIEF FINANCIAL OFFICER – LLOYD METAL AND ENERGY LIMITED
Chintan Mehta
CHIEF INVESTMENT OFFICER
Prateek Singh
DAM CAPITAL ADVISORS
Key numbers — 40 extracted
4 million
a fantastic quarter of milestones for us. We have successfully commissioned the pipeline and the 4 million ton pellet plant in Konsari, both are among the fastest execution in India. We have received the
26 million
fastest execution in India. We have received the environmental clearance to expand the mining to 26 million to 55 million tons per annum, up from 10 million tons. We completed the acquisition of the remain
55 million
tion in India. We have received the environmental clearance to expand the mining to 26 million to 55 million tons per annum, up from 10 million tons. We completed the acquisition of the remaining MDO operat
10 million
environmental clearance to expand the mining to 26 million to 55 million tons per annum, up from 10 million tons. We completed the acquisition of the remaining MDO operations, integrating cost efficiency a
8%
rong steel demand and capacity expansions across the country. Steel demand continues to remain at 8%, 9% growth. India steel trajectory is driving sustained iron ore uptake. And therefore, the pelle
9%
steel demand and capacity expansions across the country. Steel demand continues to remain at 8%, 9% growth. India steel trajectory is driving sustained iron ore uptake. And therefore, the pellet de
9.5 million
the Indian pellet industry. Last year, we were 0. Right now, we are 9.5 million. And next year, we'll be at 13.5 million tons capacity. We are now well geared to cater to both d
13.5 million
Last year, we were 0. Right now, we are 9.5 million. And next year, we'll be at 13.5 million tons capacity. We are now well geared to cater to both domestic and export markets fobr pellets.
INR24,084 million
rong operational execution, translating into robust financial delivery. Our total income stood at INR24,084 million, broadly flat year-on-year, but registering a sharp 99% increase sequentially. On the profitabi
99%
. Our total income stood at INR24,084 million, broadly flat year-on-year, but registering a sharp 99% increase sequentially. On the profitability front, EBITDA came in at INR8,087 million, up 12% yea
INR8,087 million
ut registering a sharp 99% increase sequentially. On the profitability front, EBITDA came in at INR8,087 million, up 12% year-on-year and an impressive 188% quarter-on-quarter. EBITDA margins expanded to 33.6%,
12%
arp 99% increase sequentially. On the profitability front, EBITDA came in at INR8,087 million, up 12% year-on-year and an impressive 188% quarter-on-quarter. EBITDA margins expanded to 33.6%, reflect
Advertisement
Guidance — 20 items
Rajesh Gupta
opening
“And next year, we'll be at 13.5 million tons capacity.”
Rajesh Gupta
opening
“At Ghugus, the wire rod mill project is in advanced stages.”
Rajesh Gupta
opening
“With these strategic developments, we are confident of delivering growth ahead, which will be similar, if not exceeding our growth in last 4 years.”
Riyaz Shaikh
opening
“With the projects under implementation and the benefit from TEIL consolidation from next quarter, we remain confident of sustaining momentum through the rest of FY '26.”
Rajesh Gupta
qa
“Once that will change over a period, then that asset will be more viable.”
Amit Dixit
qa
“I mean, preferably there will be some good buyers for it in export market as well?”
Vikash Singh
qa
“Sir, my first question pertains to our guidance of 22 million tons of iron ore mining.”
Rajesh Gupta
qa
“Out of the 2 million tons will be evacuated -- 2.5 million tons will be evacuated by pipeline to the Konsari plant.”
Rajesh Gupta
qa
“We hope to sell some concentrate from there as well.”
Riyaz Shaikh
qa
“Yes, if there is a requirement of taking over that, we will be able to do that.”
Risks & concerns — 5 flagged
And what is the evacuation plan on -- because evacuating 8 million to 9 million tons in the last quarter would be difficult, right?
— Vikash Singh
So exactly, that is why my concern was since we don't have control and we are -- ourselves is a very dominant player in that space, what was the need to just go and buy minority stake?
— Vikas Singh
Now, I'm seeing the DRI is still under pressure and margins are still under pressure, still positive over and above iron ore price or pellet price for that matter, but under pressure.
— Rajesh Gupta
Margins will remain under pressure for the next 6 to 8 months, I see.
— Rajesh Gupta
Wherever we feel there is a shortage or wherever we feel there would be a stress is when we are planning and going ahead with that.
— Riyaz Shaikh
Advertisement
Q&A — 16 exchanges
Q
Congratulations for a good set of numbers. Just a couple of questions from my side. The first one is regarding your recent strategic investment. So, while Brahmani River pellet makes sense around 50%, but just wanted to understand the rationale for acquisition of 19.4% stake in MRPPL. What is the rationale behind it? It doesn't give us any control over material or a meaningful stake as well. So if you could explain the rationale behind it? And whether the recent pellet strategic investments signify that we are going to be a meaningful player in the pellet market or later on as our steel capaci
Rajesh Gupta
Could you repeat the second part of the question? I couldn't understand it. Yes. The second part of the question is that what is the final -- what you're looking at basically after the acquisition, whether you want to be a meaningful player in the external pellet market or this pellet investment, essentially these pellet plant will feed into your own steel plant? So let me answer the first question -- the second question first. With 25 million tons of regular mining and sellable -- 26 million tons of regular mining and around 5 million tons of steel production, we'll always have a 16 million t
Q
Sir, my first question pertains to our guidance of 22 million tons of iron ore mining. We did 3.5 million and currently monsoon is going. So, our asking rate for the second half could be anywhere between 7 million to 8 million tons per quarter, assuming some impact for the monsoon in 2Q. So, just wanted to understand how confident we are on this? And what is the evacuation plan on -- because evacuating 8 million to 9 million tons in the last quarter would be difficult, right?
Rajesh Gupta
Right. So having completed the 2 quarters, let's say, around 8 million tons -- 7.5 million to 8 million tons, we'll be left with around 14 million tons in the 2 quarters. Out of the 2 million tons will be evacuated -- 2.5 million tons will be evacuated by pipeline to the Konsari plant. We hope to sell some concentrate from there as well. And balance is around 12 million tons, 11.5 million to 12 million tons, which leaves around 45,000 to 50,000 tons a day of transportation by truck to customers as well as by truck to the railway sidings. We have got 3 railway sidings fully operational with ful
Q
Sir, my first question pertains to the entire cost optimization. Considering our per ton EBITDA has been better compared to the hike in ASP or realization, is it fair to assume that we have started getting some benefit from Thriveni already and this will continue going forward? Further, you have mentioned on one of the slides, if I'm not mistaken, Slide 19, that once 85- kilometer completely wraps up the slurry pipeline, you would have about INR500 to INR600 per ton kind of a cost saving and captive logistics would be about INR100 to INR150 per ton. So is it fair to assume that this about INR2
Rajesh Gupta
The benefit of Thriveni would come in automatically with the consolidated figures. The slurry pipeline advantage for 10 million tons out of 26 million tons will be there. So therefore, the advantage would be INR500 into 10 by '26. So, that will be a little lesser. I hope that answers the question. Yes, no. So just wanted to understand, does this INR2,200 EBITDA per ton include anything or does it -- has it started including anything from the Thriveni benefit or it will completely accrue in Q2? See, the Thriveni benefit will start coming in only in the next quarter, the running quarter because
Q
Sir, first on the operational performance, can you give a split between the fines and the lumps this quarter in terms of volume and the realization?
Riyaz Shaikh
It was around 11% of lumps and balance was fines. And realization for both? The realization was INR6,500 for the lumps and around INR 5,900 for the fines. Sir, secondly, for this quarter, how are we looking at the realization? The markets have -- I think if I look at the average price, it will be a little INR200 more at the moment, our current market price, and we see that it will continue. Nobody can really predict the iron ore pricing. But given the fact that steel demand growth is 8%, 9%, production is similar 9% and iron ore is up by 8%. We see the continuous gap increasing and also seeing
Q
Sir, congratulations on overall good set of numbers and getting EC raised to 26 million tons. Overall, good...
Management
Q
Can you hear me now?
Rajesh Gupta
Yes. Yes. Sir, congrats on overall numbers and getting a EC limit to 26 million tons. So just a few questions. I think just a follow-up on the earlier one. Annual capex, you said INR7,500 crores to INR8,000 crores for next 3 years, next 2 years? Per year. For the projects, which are already going on? Per year, yes. That would be per year. Okay. So for the projects, which are already going on for expansion of steel and pellets, so we are pending -- it would get over in INR24,000-odd crores. Correct. Right. And this includes a greenfield 4 million pellet capex also to Ghugus, which is there in t
Q
I had a couple of questions. Could you tell me about what our IPS benefit will come on stream? Is it from this year or next year?
Rajesh Gupta
The IPS paperwork has started. We will be able to credit the IPs for the pellets in this year itself. And sir, how much are we expecting? I don't have the figures on hand. But essentially, the pellet plant divided by 12, and also the DRI plant when it gets commissioned. Okay, sir. And sir, I had one operational question. Sir, we completed our pellet plant in 18 months, whereas industry size is around 3 to 4 years. What gives us the moat to complete the plant in such a fast pace? One of the reasons is focus, focus, focus. Number two is we have got our own internal company. When I say internal m
Q
Congratulations on the great set of numbers. Sir, firstly, in Q1, our total production was around 4 million tons. And in Q2 due to monsoon, it is expected to be around 2 million tons. So, we are left with around about 16 million tons, which translates to around 2.7 million tons per month. So, my question is, do we have the capability and the resources or the machineries to produce 2.7 million tons per month?
Rajesh Gupta
Actually, it is 4 million tons in this quarter as well. And this question has been answered earlier, including the pipeline and the fact that we have done 50,000 to 60,000 tons on a single week -- on a daily basis on a single week, we are very, very confident that we can evacuate the full 22 million tons that is required under the EC in this financial year. Sure, sir. That was helpful. And second, sir, I just wanted to know about the price hike. So, were there any price hikes in this quarter? Or do we expect any price hikes in coming quarters as well? There has been a price hike around 15 days
Q
Sir, first question is that we are envisaging investment of around INR600 crores in Dubai. So if you can elaborate about the time line and what kind of opportunities are we foreseeing there?
Riyaz Shaikh
We were just -- as Rajesh ji has also mentioned, we are looking into other geographies and other minerals and all those stuff, what we are looking in for expanding. So, this is just a preparation for that. We can -- we incorporate a company. And if any opportunity is available, then we can go through it on a quicker note. That's why this company is happening. Okay. And sir, we have raised... Nothing specific at the moment. Yes. Sorry. Can you come again? Nothing specific at the moment. Okay. Okay. And sir, we have raised -- we are raising INR2,500 crores through debentures. And last year, we h
Q
Yes. So sir, I have two questions. First is like we are projecting our top line to be somewhere around INR40,000 crores in a matter of 4, 5 years down the line. So coming on to our backward integration, that is slurry pipelines and the acquisition of Thriveni. And today, as of now, our EBITDA margins were like somewhere around 33% in the quarter. So, do we expect the operating margins to be somewhere north of around 40 percentage in next 4, 5 years?
Rajesh Gupta
No, I think the steel margins would normally be much lesser. I don't have the figures off-hand. The cost saving -- with all the cost saving steps what we are taking, we are trying to achieve, if not beyond 40%, we'd like to close to 40%. Close to 40%. And we will compound these figures more properly as the industry is progressing as our macro improves. Yes, sir. And sir, second is like this -- on the pellet pricing, so are we planning to supply pellets towards Raipur market as well? I mean from the industry sources, there is a lot of DRI capacity that is coming over there. So, do we have any p
Q
I just have a follow-up question on the iron ore production. Like we are guiding for 22 million tons in FY '26. So correct me if I'm wrong. Like 4 million tons is going for pellet plant, 0.5 million tons will be going for DRI. So, we are left with around 17.5 million tons over the -- for the open market side, right?
Rajesh Gupta
A little more because it's not 4 million tons, it's annualized 4 million tons. It's around 2.5 million tons for the pellet and around 800,000 tons for the DRI. For the DRI? 800,000 tons. So, we are left with 3.3 million tons, which is around 18 million tons. And we are not seeing any issue on the demand side like absorption side over there? No, I'm not seeing that at all. Okay. Okay. And sir, one more question, like over the DRI part, just wanted to know like how do we see going forward because we have seen realization have come down despite of volume going up. So, can you just comment over li
Q
One more question I had is since we have moved towards 100% green mining, are there any plans to venture into green steel as well?
Rajesh Gupta
Definition of green steel is not fully understood by me. The taxonomy revised by the government of India, our steel plant would be in the 5-star rating.
Q
Sir, my first question is pertaining to the couple of coal blocks, which were auctioned in the nearby vicinity. I believe those blocks are not yet operational. So, any chances those would come out for reauction and you would be able to participate in that because they're in very close vicinity to the existing mine?
Rajesh Gupta
Ore or coal? Ore. Iron ore. Iron ore. There were six blocks, which were auctioned in the past. I have no exact status of what is the exact status of that. Those were exploratory consolidated blocks. I have no idea what is the status of those blocks. Okay, sir. Sir, my last question is pertaining to the capex. I believe you said that your yearly capex for next 3 years is about INR7,500 crores to INR8,000 crores. Just wanted to know, in the near term, you're going to see some amount from the warrants. And I just wanted to check like would we be open to take debt just to fund these capex or it wi
Q
So, I just had a question on Thriveni Earthmovers Limited. So, I just wanted to understand whether we'll be using this company for our captive purposes? Or will it also have its own outside business?
Rajesh Gupta
It already has outside contracts. They are operating in -- we are operating in Odisha for iron ore around 14 mines, in Jharkhand with the NTPC mines, in Indonesia, in Andhra in 2 mines, 1 mine in Barite. So, we are already doing that. We continue to do that, and we'll also continue to look at other MDO opportunities and any international assets as well. If we go into that, the asset will be owned by Lloyds Metal and the MDO would be done by Thriveni. So, we have the double engine growth for future projects is what we are planning. So sir, like what kind of margins does the company earn on thes
Q
Just a last bookkeeping question and following up from the earlier question. So, earlier when we had announced acquiring 80% in Thriveni, so we had given projections for the next few years basis, existing business operations. So, are we at a point where we can give a new estimate if we have won any new order wins? Or should we still assume the same numbers given earlier?
Rajesh Gupta
Since the last quarter, they have not won any new contracts. They are all busy in consolidating these 2 companies and getting the right mix of people. And the integration of 2 big companies is always not an easy job. So, we are all busy there. That integration process is well underway, and we are very happy with the way the integration is going and... We are looking for new opportunities. And new opportunities are being looked at.
Q
Thank you, everybody. Hope we have replied to all your questions, all your queries. If anything else remains pending, you can always get in touch with us. Mr. Chintan Mehta, he is the Investor Relations Officer. You can always get in touch with them, and he'll be providing with you all the replies. Thank you.
Management
Speaking time
Rajesh Gupta
51
Riyaz Shaikh
24
Moderator
18
Bhavin Chheda
13
Parthiv Jhonsa
8
Siddharth Gadekar
6
Aditya Agrawal
6
Vikas Singh
5
Amit Dixit
4
Vinit Thakur
4
Advertisement
Opening remarks
Prateek Singh
Thanks, Shruti. Good morning, everybody, and thank you for joining us today. We at DAM Capital are pleased to host Lloyds Metals and Energy's First Quarter FY '26 numbers. We have with us today from the management, Mr. Rajesh Gupta, Managing Director; Mr. Riyaz Shaikh, CFO; and Mr. Chintan Mehta, CIO. Without further ado, now I would like to invite Mr. Rajesh Gupta to initiate the proceedings for the call. Thanks. And over to you, sir.
Rajesh Gupta
Thank you, Prateek. Good morning, everyone, and a warm welcome to the Q1 FY '26 earnings call of Lloyds Metals. I would like to express our gratitude to DAM Capital and Dharmesh bhai for graciously hosting this call. To begin with, let's say this, Q1 has been a fantastic quarter of milestones for us. We have successfully commissioned the pipeline and the 4 million ton pellet plant in Konsari, both are among the fastest execution in India. We have received the environmental clearance to expand the mining to 26 million to 55 million tons per annum, up from 10 million tons. We completed the acquisition of the remaining MDO operations, integrating cost efficiency and boosting long- term profitability and further strengthening our mining business performance and margins. Our construction of the steel plant in Ghugus is well underway, with the pre-commissioning of the DRI cables already started. To briefly touch upon the market scenario for iron ore and pellets, the domestic iron ore pellet
Riyaz Shaikh
Thank you, Rajeshji, for the brisk and insightful strategic update. I will now take you through our quarter 1 FY '26 financial and operational performance, along with key highlights on execution and capital expenditure. Starting with overall financial performance. The first quarter of FY '26 has been marked by strong operational execution, translating into robust financial delivery. Our total income stood at INR24,084 million, broadly flat year-on-year, but registering a sharp 99% increase sequentially. On the profitability front, EBITDA came in at INR8,087 million, up 12% year-on-year and an impressive 188% quarter-on-quarter. EBITDA margins expanded to 33.6%, reflecting both better iron ore realization and operational efficiencies. Profit after tax stood at INR6,346 million, up 14% year-on-year and over 3x higher quarter-on-quarter, with PAT margins of 26.35%. These numbers underscore the resilience of our integrated business model even in the face of commodity price variation. Now s
Advertisement
← All transcriptsLLOYDSME stock page →