GPIL - GODAWARI POWER AND ISPAT LTD. Share Price

Godawari Power & Ispat Limited's management provided a positive outlook during the Q3 FY '26 earnings call held on February 9, 2026. They reported a steady performance despite a slight decline in revenue, with an EBITDA margin of 22% and a PAT margin of 14%. Notably, iron ore mining production increased by 46%, with slight growth in pellet and value-added products.

Management highlighted several important forward-looking points:

1. Capacity Expansion: The company received environmental clearance to increase the iron ore mining capacity from 2.35 million tons to 6 million tons at the Ari Dongri mine. They expect to receive consent to operate soon, with commercial operations ramping up possibly this month.

2. New Projects: An additional 2 million ton iron ore pellet plant commenced operations in December 2025, increasing overall capacity from 2.7 million to 4.7 million tons. A 5.4 million ton crushing and beneficiation plant is also set to be completed by the end of Q2 FY '27.

3. Future Revenue Projections: For FY '27, the anticipated revenues are projected to be around INR 6,500 to 7,000 crores from their steel complex, alongside approximately INR 5,000 crores from battery energy storage systems (BESS) operations.

4. Significant Capex Plans: The total capex for FY '27 is estimated to be about INR 2,000 crores, driven by investments in various expansions including solar projects, BESS, and the CRM complex.

5. Market Outlook: The domestic steel demand is expected to grow steadily, bolstered by a budget allocation of INR 12.2 lakh crores towards infrastructure capex for FY '26, providing strong demand visibility.

Management remains optimistic about leveraging their competitive strengths in raw material security and operational efficiencies to sustain growth and profitability.

Questions and Answers from the Earnings Call

Question 1: "How should one think about the capex over the next 3 years? What would be the cash outflow over '26, '27 and '28?"

Answer: "Our capex until the end of FY '27 includes solar projects with a capacity nearing 500 megawatts. We expect approximately INR2,000 crores in FY '27 capex. We've spent around INR600 to INR700 crores this year. Future capex beyond FY '27 has not been finalized yet."

Question 2: "Now given that we are expecting the CTO also coming in, how should we think about the mining volumes for FY '27?"

Answer: "We're hopeful to receive the CTO soon, which will enable slight production increases this fiscal year, but for FY '27, we're targeting a capacity of 5 million tons, ramping up to 6 million the following year, focusing on quality production alongside."

Question 3: "Are we going to see some excess supply in the iron ore space in the domestic market?"

Answer: "There will be increased supply due to competitors entering the space. However, domestic demand remains strong, supported by ongoing DRI kiln commissions. While volumes may fluctuate, our unique product quality allows us to maintain performance."

Question 4: "What impact has the new labour laws had on GPIL?"

Answer: "The new employee code has created some marginal increases in expenses, primarily affecting contract labor. The estimated impact is about INR7-8 crores annually, which is manageable for us."

Question 5: "What is our expected turnover for the company by 2030?"

Answer: "We project a total turnover of about INR25,000 crores by 2030, driven by the expansion of our operations and capacity enhancements in mining and production."

These summaries encapsulate the key questions and answers from the earnings call while staying within the specified character limit.