Lloyds Metals

Lloyds Metals reported an outstanding Q4 FY26, with standalone total income soaring 310% YoY to INR4,977 crores, contributing to a full-year FY26 income of INR13,838 crores, up 104% YoY. Standalone PAT for the full year reached INR3,194 crores, a 120% YoY increase, while consolidated PAT stood at INR3,829 crores. The company maintained a robust EBITDA margin of 33.73% in Q4, expanding 1000 bps YoY, and achieved a full-year standalone EBITDA margin of 33.77%, an improvement of 418 bps YoY, demonstrating structural cost efficiencies and a higher value-added product mix.

The company achieved significant volume growth, with iron ore production for FY26 reaching 21.96 million tons, a 120% YoY increase, and sales volume at 16.18 million tons. The newly commissioned pellet plant demonstrated exceptional execution, achieving 100% capacity utilization within just four months and producing 3.03 million tons for FY26. DRI sales volume for FY26 grew 56% YoY to 480,000 tons. The monthly iron ore run rate in April 2026 already stands at approximately 2 million tons, indicating strong momentum for FY27.

Lloyds Metals has invested INR13,500 crores in capex over the last four years, with INR8,100 crores in FY26 alone, focusing on future growth. Key projects include two pellet plants with a combined capacity of 8 million tons per annum, an 85-kilometer slurry pipeline already delivering cost savings, and a 1.2 million tonne wire rod steel plant in Chandrapur, which is well underway for commissioning in the last quarter of FY27. The BHQ beneficiation project is progressing towards first phase readiness by December 2027, targeting 30 million tons input and 12 million tons output.

The company has strategically expanded into the critical copper sector, defining a pathway to increase its Surya copper plant capacity to 30,000 tons per annum. Furthermore, Lloyds Metals acquired a 49% stake in CHEMAF Group, a significant copper-cobalt platform in the Katanga belt, aiming for a combined 100,000 tons of copper production from CHEMAF and Surya over the next 3-5 years. The Surya plant, commissioned in March 2026, is expected to produce 9,000-10,000 tons of copper in FY26, with initial sulfuric acid supply issues expected to be resolved within three months.

Thriveni delivered a transformational FY26, reporting total income of INR7,997 crores and an EBITDA of INR1,990 crores, achieving a 25% EBITDA margin. The environmental capacity at Surjagarh mines has been significantly increased from 10 million tons to 55 million tons per annum. Thriveni's Odisha operations are projected to increase volumes by 39% YoY to 34-35 million tons in FY27, driven by new mining leases and enhanced environmental clearances, while lower-margin Indonesian coal operations are being scaled down.

The company's standalone net debt stood at a manageable INR3,901 crores as of March 31, 2026, supported by strong EBITDA generation. Future capex plans include INR10,000-11,000 crores for FY27 and INR12,500 crores for FY28, to be funded through a mix of internal accruals and debt, targeting a net debt to EBITDA ratio of 1-1.5x. The acquired debt of CHEMAF, initially $800 million, was significantly reduced by $475 million through negotiations, with the remaining $330 million being non-recourse to Lloyds Metals.

Lloyds Metals is committed to cost optimization, projecting annual cost savings exceeding INR2,000 crores by March 2028, primarily driven by maturing logistics and sustainability initiatives. The slurry pipeline is expected to reduce iron ore logistic costs by over INR500 per ton. The strategic shift towards value-added products is evident, with their contribution to FY26 standalone revenues rising to 32% (from 20% in FY25) and to EBIT contribution increasing to 30% (from 11% in FY25), indicating a focus on higher-margin offerings.