Godawari Power & Ispat Q2 FY27 Results Analysis: PAT Plunges 48%, Margin Collapses to 12% (GPIL)
Godawari Power & Ispat Ltd reported Q2 FY27 numbers with revenue of Rs. 1,631.53 Cr (+24.77% YoY) and PAT growth of -47.53% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 13, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,631.53 Cr (+24.77% YoY) |
| PAT (Q2) | Rs. 84.70 Cr (-47.53% YoY) |
| EBITDA margin | 12.04% (-812 bps YoY) |
| EPS (Q2) | Rs. 1.38 (-47.53% YoY) |
Quarter Snapshot
Revenue grew 24.77% YoY to Rs.1,631.53 Cr but EBITDA margin collapsed to 12.04% against management's own 24-25% FY27 guidance, with owners' PAT down 47.53% YoY — a miss driven by input-cost inflation (materials +34.01% YoY) and a 6.79% sequential revenue decline. The tripled capex program (Rs.944.45 Cr in H1) pushed FCF to negative Rs.683.77 Cr and drew net cash down to Rs.93.36 Cr, while the 24-25% margin guidance is mathematically unreachable for FY27 without a re-base. The new-energy (BESS) build-out and JPL exit offer optionality, but near-term earnings momentum is decisively negative.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "likely ahead YoY, in-line-to-better sequentially on realizations" | +24.77% YoY but −6.79% QoQ | Partially |
| Margins | "margins likely still below the guided band" | Q2 12.04% vs the 24–25% band; below Q1's 19.36% | Played out |
| Inventory build | "inventory build from market-ore purchases against its Rs.926 Cr (Mar-2026) inventory base" | Inventories +Rs.151.99 Cr to Rs.1,078.35 Cr | Played out |
| Margin bridge / guidance reaffirmation (watch item) | Whether 24–25% reaffirmed or re-based | Not addressed in the filing — remains open for the call | Not observable |
| Phase-II pellet-plant restart after the 14-Jul gas curtailment (watch item, per pre-call note) | Restart timeline and gas cost | Not addressed in the filing | Not observable |
| Capex and debt vs plan (watch item) | vs Rs.1,500–2,000 Cr capex and ~Rs.1,500 Cr peak debt | Gross debt Rs.720.38 Cr; H1 capex Rs.944.45 Cr — within envelope | Played out |
| Production run-rate vs FY27 targets (watch item) | Q2 volumes vs targets | Not disclosed in the filing | Not observable |
| 100 MW solar / 45 MWh BESS / 6 MnT beneficiation milestones (watch item) | Q3FY27 commissioning | Not addressed in the filing | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 consolidated revenue > Rs.6,000 Cr | Q4 FY26 earnings call | H1 Rs.3,382.00 Cr = 56.37% of Rs.6,000 Cr | On Track |
| FY27 EBITDA margin ~24–25% | Q4 FY26 earnings call ("based on current market conditions") | Q2 12.04%; H1 15.83% | Missed |
| Peak gross debt ~Rs.1,500 Cr in FY27 | Q3 FY26 earnings call | Rs.720.38 Cr at Sep-26 | On Track |
| FY27 capex Rs.1,500–2,000 Cr, internally funded | Q3 FY26 earnings call | H1 capex Rs.944.45 Cr (run-rate on plan, but funded increasingly by debt) | On Track |
| 20 GWh BESS commissioning March 2027 | Q4 FY26 earnings call | Not commissionable this quarter; new 3 GWh C&I BESS (Mar-2028) added | Too Early |
| Q1 margins/PAT hurt by higher input costs (market ore sourcing, coal) | Q1 FY27 management commentary in the filing/analyst notes | Q2 cost of materials +34.01% YoY vs revenue +24.77%; EBITDA margin fell further to 12.04% | Confirmed |
| Funding transformational growth from internal accruals "without compromising balance sheet strength" under a 1:1 debt-equity guardrail | Prior-quarter management commentary in the filing | Net cash Rs.93.36 Cr vs Rs.752.03 Cr in six months; borrowings +Rs.293.69 Cr | Partially |
| New pellet plant at 80–90% utilization to drive FY27 revenue > Rs.6,000 Cr | Q4 FY26 earnings call | Revenue run-rate supports it; no utilization disclosure in this filing | Too Early |
Key Investment Insights
Key Positives
- Consolidated revenue grew 24.77% YoY to Rs.1,631.53 Cr; H1 revenue Rs.3,382.00 Cr (+28.55% YoY)
- H1 revenue of Rs.3,382.00 Cr is 56.37% of the FY27 target of >Rs.6,000 Cr; H2 requires only Rs.1,309 Cr/quarter vs current Rs.1,631.53 Cr run-rate
- Gross debt of Rs.720.38 Cr remains well below the guided peak of ~Rs.1,500 Cr; company is still net cash at Rs.93.36 Cr
- H1 capex of Rs.944.45 Cr is tracking within the FY27 Rs.1,500-2,000 Cr plan
- JPL exit progressed: Rs.22.33 Cr exceptional loss booked, stake held for sale at Rs.222.66 Cr with Rs.77.41 Cr disposal proceeds received in H1
- Net worth grew 4.72% in H1 to Rs.6,125.08 Cr
Risk Factors
- EBITDA margin fell to 12.04% vs management's guided 24-25% band; H1 margin 15.83% vs 22.46% a year ago
- Owners' PAT fell 47.53% YoY to Rs.84.70 Cr; normalized PAT fell 37.77% YoY, confirming the decline is operating
- Cost of materials rose 34.01% YoY, ~9pp ahead of revenue growth, on market-sourced iron ore and elevated coal prices
- Finance cost rose 120.46% YoY to Rs.24.78 Cr as gross borrowings rose 68.83% half-on-half
- H1 FCF was negative Rs.683.77 Cr; net cash buffer drawn down to Rs.93.36 Cr from Rs.752.03 Cr
- Subsidiaries were a net drag of Rs.17.49 Cr on owners' PAT this quarter
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