Lloyds Metals delivered a strong Q3 and 9M FY26, marked by record revenues and robust profitability across its standalone and Thriveni operations. The company is aggressively expanding its core iron ore and pellet capacities, enhancing logistics with new slurry pipelines, and making a strategic entry into copper mining in the DRC. Management expressed confidence in achieving ambitious growth targets, supported by disciplined execution and a focus on value-added products, despite some sequential margin compression in pellets due to export mix.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| Standalone Total Income (Q3) | ₹3.9K Cr | +129.0% YoY |
| Standalone EBITDA (Q3) | ₹1.3K Cr | +137.0% YoY |
| Standalone PAT (Q3) | ₹889 Cr | +128.0% YoY |
| Standalone EBITDA Margin (Q3) | 34% | — |
| Standalone Total Income (9M) | ₹8.9K Cr | +59.0% YoY |
| Standalone EBITDA (9M) | ₹3.0K Cr | +74.0% YoY |
Segment Breakdown
| Metric | Latest | Trend |
|---|---|---|
| Revenue Growth(yoy) | 0.03 | |
| EBITDA(crores) | 808.7 |
| Category | Headline | |
|---|---|---|
Capex | Capex disclosed INR6,000 crores from debt, balance from internal accruals | |
Debt | Net ₹7,100 crores · 1.0x EBITDA | |
M&A | Tata Steel (BRPL pellet plant) joint venture · signed | |
M&A | DRC Copper Project joint venture · announced |
| Category | Target | Priority |
|---|---|---|
| Volume | Iron Ore Volume→20-22 million tons | High |
| Volume | Iron Ore Volume (exit run rate)→20+ million tons | High |
| Volume | Copper Operations→10,000 tons | High |
| Volume | Thriveni Odisha Volumes Growth→40% | High |
| Volume | Thriveni Iron Ore (non-Lloyds) Growth→40% | High |
| Volume | Thriveni External Coal (NTPC) Growth→15% | High |
| Capacity | Pellet Plant Capacity→10 million tons | High |
| Capacity | Slurry Pipeline Capacity→16 million tons | High |
| Profitability | Copper Project EBITDA Contribution→INR500-700 crores | Medium |
| Profitability | Thriveni EBITDA→INR3,000 crores | High |
| Margin | Copper Project EBITDA Margin→30-32% | High |
| Project Timeline | BHQ Plant Commissioning→December '27 | High |
| Growth | Thriveni MDO Business Top Line Growth→15-20% | High |
| Growth | Thriveni MDO Business Bottom Line Growth→35% | High |
| Revenue | Thriveni Revenue→INR7,500+ crores | High |
| Revenue | Thriveni Revenue→INR10,000+ crores | High |
| # | Metric | |
|---|---|---|
| 01 | Slurry Pipeline Phase 1 Completion | |
| 02 | Thriveni FY27 EBITDA | |
| 03 | Thriveni FY27 Revenue | |
| 04 | Copper Project (DRC) Initial Production | |
| 05 | BHQ Plant Commissioning |
| Severity | Risk |
|---|---|
medium | Political stability in DRC for copper project Analyst raised concerns about working in Congo; management stated the Katanga area is economically stable and major players operate there, with good political stability in the southern part. Analyst |
low | Cost overrun in BHQ project Analyst questioned if processing BHQ would lead to cost overruns; management explained royalty savings and higher grade premium would offset processing costs. Analyst |
low | Government intervention on iron ore auction premiums Analyst asked about potential government caps on auction premiums; management believes in a free market and has seen no policy changes indicating such caps. Analyst |
Lloyds Metals delivered a strong financial performance in Q3 FY26, with standalone total income reaching INR3,875 crores, a 129% YoY increase. EBITDA for the quarter stood at INR1,317 crores, up 137% YoY, and PAT was INR889 crores, a 128% YoY growth. For the nine months ended FY26, standalone total income was INR8,859 crores (up 59% YoY), EBITDA was INR2,994 crores (up 74% YoY), and PAT was INR2,129 crores (up 71% YoY). The 9M EBITDA margin improved by 280 basis points to 33.8%, driven by a higher share of value-added products and benefits from the slurry pipeline.
The company is making a strategic entry into copper mining in the Katanga area of the Democratic Republic of Congo, recognizing copper as a 'new gold' for the new age economy. They have secured 18 mining leases covering over 100 square kilometers and have identified copper at good depths, with grades ranging from 0.8% to 2%. The long-term vision is an integrated operation producing around 30,000 tons per annum, with an initial target of 10,000 tons of operations in FY27. This project is expected to contribute INR500-700 crores in EBITDA next year with margins of 30-32%.
Lloyds Metals is rapidly expanding its pellet operations, with the second pellet plant commissioned in Q2 FY27 and a 1.2 million ton wire rod mill by Q4 FY27. The company plans to increase the capacity of both pellet plants from the current 8 million tons to 10 million tons. To enhance logistics and cost efficiency, the first 85km slurry pipeline is operating smoothly, and a second slurry pipeline from Hedri to Chandrapur is planned. This expansion will increase total slurry capacity to 16 million tons, providing direct access to railways near Chandrapur and saving INR850 per ton on sales material.
Thriveni reported a strong Q3 FY26 with a total income of INR2,200 crores and EBITDA of INR550 crores, achieving a 25% margin. For the nine months, revenue stood at INR5,480 crores with EBITDA of INR1,080 crores, resulting in a 20% margin. The improvement is attributed to better operating leverage, higher equipment utilization, and cost discipline. Thriveni's PB West coal mining operations received a 5-star rating. Odisha volumes are projected to grow by nearly 40% YoY in FY27, supported by faster statutory clearances and improved infrastructure. Overall, Thriveni's FY27 EBITDA is guided to be close to INR3,000 crores, with revenue exceeding INR10,000 crores.
The company has signed a non-binding Memorandum of Understanding (MOU) with Tata Steel for multiple collaborations. This includes a shareholder agreement for the BRPL pellet plant and a conversion pellet agreement, ensuring a steady cash flow in BRPL. The MOU also explores future opportunities in the Eastern belt, such as acting as an MDO contractor or developing pipeline infrastructure. In the Gadchiroli area, the companies are looking at joint bidding for future expansions and leveraging government tendering systems for better pricing and commercials, emphasizing a partnership approach for rapid development.
Standalone capital expenditure for 9M FY26 amounted to INR4,236 crores, primarily allocated to pellet plant 2, DRI expansion, the 1.2 million ton steel plant at Chandrapur, and the first module of the beneficiation plant. The total estimated cost for the slurry pipeline project is INR8,000 crores, with the first phase up to Chandrapur costing INR2,000-2,500 crores. Consolidated net debt as of December 31 was INR7,100 crores. The company projects a peak debt of INR10,500-10,600 crores by FY28, with a target net debt to EBITDA ratio of 1:1. Funding for capex will involve INR6,000 crores from debt, with the balance from internal accruals.
The BHQ (Banded Hematite Quartzite) plant project is progressing well, with land procurement, engineering, and equipment ordering completed. Commissioning is anticipated by December 2027. Management expects that royalty savings, based on existing and future government policies, will offset the cost of processing the BHQ ore. Furthermore, the beneficiation process will upgrade the ore grade from 62-64% to 66-67%, which commands a significant premium, thereby improving the overall value-added mix and margin stability.