Godawari Power

Godawari Power & Ispat Limited reported stable revenue for FY26, with a strong 41% quarter-on-quarter growth in Q4 FY26, driven by production ramp-up and improved realizations. FY26 EBITDA remained stable at INR 1,253 crores, while Q4 FY26 EBITDA saw a significant 91% Q-o-Q increase to INR 439 crores, maintaining a 23% margin for the full year. PAT for FY26 stood at INR 802 crores, with Q4 PAT rising to INR 280 crores, reflecting a 15% margin. The company also improved its cash flow from operating activities by 29% to INR 1,157 crores, ending FY26 with a healthy cash position of INR 837 crores.

GPIL is actively pursuing several capacity expansion projects. Environmental approval was secured for Ari Dongri Mines to increase capacity from 2.35 to 6 million tons, with a 10-fold expansion of the iron ore beneficiation plant targeted for commissioning by Q3 FY27. The company commissioned a 2-million-ton iron ore pellet plant in December '25, bringing total pellet capacity to 4.7 million tons. The 0.7-million-ton CRM Complex project is expected to commission by July FY26, and a 20-Gigawatt BESS project is slated for commissioning by March FY27.

The Board approved a 1-million-ton integrated steel plant for structural steel and wire rods, with construction anticipated to begin in October '26, entailing a CAPEX of INR 7,000 crores. This plant will utilize a blast furnace route, chosen for its cost-effectiveness. Concurrently, GPIL is expanding its captive solar power capacity from 165 MW to 540 MW, with 25 MW commissioned recently and an additional 100 MW expected by July '26, to support its growing energy needs and reduce reliance on external power.

For FY27, GPIL guides for 3.4 million tons of net usable iron ore, with actual mining production projected at 4-4.25 million tons, aiming for 4.5 million tons usable by FY28. Management noted a softening of steel value chain prices by approximately 10% in Q1 FY27 post-April, attributed to war effects and seasonal factors. Despite this, benchmark 62% Fe iron ore prices are expected to remain above $100/ton for the year, and demand for premium-grade pellets is strengthening globally, positioning GPIL to explore export opportunities with its gas-based pellet plant.

GPIL plans a CAPEX of INR 1,500-2,000 crores for FY27, with significant investments already made in CRM and BESS projects (40-50% invested). The company's long-term vision targets a PAT of INR 3,000 crores by 2031, driven by new projects. These include BESS (projected top-line of INR 15,000 crores), the new integrated steel plant (INR 6,000 crores top-line), and CRM (INR 3-4,000 crores top-line). While these new ventures are expected to be lower-margin businesses (7-10%), they are anticipated to drive substantial top-line growth.

Reinforcing its commitment to Net Zero Carbon Emission by 2050, GPIL has completed most of its energy efficiency and decarbonization projects. As part of an EV-led transition, the company invested in 10 EV dumpers, 24 EV loaders, and 15 EV excavators during the year. This shift has already reduced operating costs by nearly 75% and lowered carbon emissions by 88% compared to conventional diesel vehicles. GPIL plans to further transition its existing transport fleet to EVs to achieve additional cost savings and environmental benefits, with diesel prices potentially rising to INR 1,150-1,200.