Analyst Concall
Lloyds Metals mulling raising capacity at new steel plant
This story was originally published at 18:22 IST on 11 August 2026
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--Lloyds Metals: Pellets realisation per tonne at INR 11,783 in Q1
--CONTEXT: Lloyds Metals mgmt's comments in post earnings call with analysts
--Lloyds Metals: Iron ore realisation per tonne at INR 6,068 in Q1
--Lloyds Metals: Iron ore FY27 production volume 26 mln tn
--Lloyds Metals: Pellet production volume for FY27 at 7.75-8 mln tn
--Lloyds Metals: Exports accounted for 25% of pellet production in Q1
--Lloyds Metals: Internal consumption of iron ore increased in Q1
--Lloyds Metals: Aim to maintain 27-30?ITDA margin going ahead
--Lloyds Metals: See capex of INR 110 bln for next two years
--Lloyds Metals: Considering raising planned capacity at upcoming steel plant
By Astha Oriel and Avishek Rakshit
NEW DELHI/KOLKATA – Lloyds Metals and Energy Ltd. is considering increasing capacity at its new steel plant at Chandrapur in Maharashtra although it is yet to take a final decision. The company had initially planned a capacity of 1.2 million tonnes for the plant, which is expected to be commissioned in the March quarter of the current financial year. The company feels encouraged enough to step up the initial capacity, a senior company official said Tuesday.
"For the second one (steel plant), the original one, which was estimated at around 3 million tons in Pune city... we have put that on the study block, studying how we can get maximum retail of the land that has already been allotted to us, already in our possession, and whether we can increase our capacities in that area, given that we already have the iron ore availability and that the operations are going very smoothly, we might be increasing the capacity. No decision has yet been made on that," the official said at a post-earnings conference call with analysts.
The company has a capital expenditure plan of INR 85 billion for FY27. Of this, the company has incurred INR 30.05 billion in the June quarter. The company expects capital expenditure of INR 110 billion over the next two years, the official said. "... and a bit higher, around INR 15,000 (INR 150 billion) to INR 20,000 crores (INR 200 billion) in the year after that, so the third year," the official said.
For the June quarter, the company reported a consolidated net profit of INR 17.27 billion on revenues of INR 73.54 billion. The company's pellets realisation per tonne and iron ore realisation per tonne were at INR 11,783 and INR 6,068, respectively, for the June quarter. The company's iron ore production volume was 6.05 million tonnes, up 53% on year. The internal consumption of iron ore increased for the quarter, the official said. Pellet production for the June quarter was 1.69 million tonnes. Of this, exports accounted for 25%, the official said.
The company reported its highest-ever EBITDA margin for the quarter at 39.2%. Going ahead, the company aims to maintain its EBITDA margin of 27-30% for FY27, the official said. "We are confident of getting there as cash flows conclude and as volumes scale throughout the year," he added.
Tuesday, the metal and mining major's shares closed 3.2% lower at INR 1,986.20 on the National Stock Exchange. End
Edited by Saji George Titus
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