Godawari Power & Ispat Ltd Q4 FY26 Earnings Call: Guides Rs. 6,000+ Cr Revenue, Approves Rs. 7,000 Cr Steel Plant

Godawari Power & Ispat Ltd held its Q4 FY26 earnings call on May 15, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record quarterly EBITDA of Rs.439 Cr; operating cash flow up 29% for the year

• FY26 EBITDA of Rs.1,253 crores— stable YoY; PAT at Rs.802 crores (stable YoY); operating cash flow at Rs.1,157 crores (up 29%); net cash position of Rs.837 crores.
• Q4 FY26 EBITDA of Rs.439 crores— up 38% YoY and 91% QoQ; PAT at Rs.280 crores; revenue grew 41% QoQ.
• Q4 inventory gain of ~Rs.20 crores— recorded on 90,000 tonnes of unsold pellet stock carried from the prior quarter.
• Production exceeded 100% of targets— for sponge iron, structural rolled products, and ferro alloys in FY26; mining at 92%, pellets at 95%, billets at 96% of targets.
• Consolidated exceptional net loss of Rs.17 crore in FY26— comprised of a Rs.17 crore gain on Ardent Steel stake sale (equity method) offset by a Rs.36-37 crore write-off of Godawari Energy pre-operative costs.
• Domestic steel demand showing weakness— Indian pellet prices at Rs.9,500/mt with a ~10% decline in recent weeks; management is exploring exports as an alternative.

Mining scaling to 4 MTPA in FY27; beneficiation plant on track for Q3 commissioning

• FY26 actual mining of 2.35–2.4 million tonnes— FY26-27 to date reached 2.7–2.8 million tonnes aided by EC received in February; Bori Tibbu mine contributed only 0.2 lakh tonnes in its first year.
• FY26-27 mining guidance of 4 million+ tonnes— yielding 3.4 million tonnes usable ore after beneficiation; FY27-28 target: 6 million tonnes mined, ~4.5 million tonnes usable (post 20–25% tailings loss).
• New 6 million tonne beneficiation plant— expected to commission by Q3 FY26-27; a 0.6 million tonne plant started in FY25-26; freight savings of Rs.150 per tonne from Q3 FY26-27 by shifting beneficiation from Raipur to the mine site.
• Pellet production guidance for FY26-27 at 4 million tonnes— captive consumption ~0.9-1 million tonnes, merchant sales ~3 million tonnes; 2 million tonne pellet plant commissioned Dec 2025 using India's first natural-gas-based grate kiln.
• Pellet pricing constrained in Q4 by EC restriction— forced 63% grade commercial pellets instead of high-grade premium (~Rs.1,000+ premium); from Q3 FY26-27 onward, higher production expected to enable shift to high-grade pellet mix.
• Long-term mine expansion at Boretipoo— the company plans to “increase iron ore mining capacity at Boretipoo from 0.7 MTPA to 4 MTPA over ~3 years”, expected operational by FY30, yielding usable output of ~1.5 million tonnes.

Rs.7,000 Cr steel plant approved; CRM targeting 50% utilization by FY27-28

• Board approved 1 million tonne integrated steel plant— blast furnace route with 1.1-1.2 million tonne BF, 0.5 million tonne non-recovery coke oven, and 1 million tonne sinter plant; construction expected to begin October 2026. EBITDA margin guided at >20% at full capacity.
• Steel plant CAPEX revised to Rs.7,000 crores— management acknowledged wrong estimation on the previous Rs.4,000 crore cost estimate; 1:1 debt-equity ratio expected from FY27-28 onwards.
• CAPEX phasing— Rs.1,500–2,000 crores in FY26-27 (residual CRM, BESS, solar); ~Rs.3,000 crores in FY27-28 and ~Rs.3,000 crores in FY28-29 for the steel plant. Steel plant CAPEX only ~10% in FY26-27 (mainly equipment ordering).
• CRM complex targeting 50% utilization by FY27-28(~3-3.5 lakh tonnes) — first line commissioning by end of Q4 FY26-27 or early Q1 FY27-28; ramp to ~90% guided for FY28-29.
• Rolled product capacity of ~3.7 lakh tonnes for FY26-27— comprising 2.2 lakh tonnes billet (partially rolled into 1.1 lakh tonnes HB wire) and 1.2-1.3 lakh tonnes structural products; supported by a ~6-month order book at RR Ispat.

20 GW project with EVE tie-up; first line commissioning by March 2027

• First line of 20 GW BESS commissioning by end of Q4 FY26-27(March 2027); ramp: FY27-28 at 5-6 GW (30-40% utilization), FY28-29 at ~12-14 GW (70%), FY29-30 onwards 17-18 GW (90%).
• Conservative margin guidance of 7-8%— on container price of Rs.80 lakh/MWh; current market margins have risen to 12-13%. At 16 GW utilization and 7-8% margin, total margin projected at ~Rs.7-8 crore.
• Long-term index-based pricing agreement with EVE— Chinese tier-1 supplier; lithium cell price increase from $37-38/watt to $55/watt passed through to customers. India container pricing rising from Rs.70 lakh/MWh to Rs.85 lakh/MWh.
• Key tie-ups: Fimer (Italy) for PCSand a Gujarat-based developer for EMS; long-term supply agreements secured for tier-1 components. Management plans to approach the market by end of Q2 FY26-27 (September 2026).
• Phase 2 not factored into 2031 capacity plan— Phase 1 must first run at full capacity before any decision on Phase 2 direction (volume expansion vs. backward integration with technology tie-up).
• FY27-28 capacity target of 6-7 GWh termed "very conservative"— reflecting a cautious ramp-up approach.

FY27 revenue guided at Rs.6,000+ Cr; 2031 PAT target of Rs.3,000 Cr

• FY26-27 revenue guidance of Rs.6,000+ crores— driven by the new pellet plant operating at 80-90% capacity; EBITDA margin guided at 24-25% at current market levels.
• 2031 PAT guidance of Rs.3,000 crore— management confirmed “FY2031 PAT guidance of Rs.3,000 crore” implies a ~10% PAT margin, compressed by lower-margin BESS (7-8%) and CRM (7-10%) businesses. The 2031 revenue includes contributions from the steel plant, BESS first phase, and CRM complex.
• Long-term vision of ~Rs.30,000 crore top line by ~FY30-31— management targets “total top line of ~Rs.30,000 crore” from battery storage (~Rs.15,000 crore from ~15 GW), new steel plant (Rs.6,000 crore), CRM (Rs.3,000-4,000 crore), and pellet capacity crossing 4 million tonnes in FY27.
• Iron ore prices expected above $100/tonne for FY26-27— management cites international reports and Chinese demand; Q1 FY26-27 pricing softened ~10% from Q4 FY25-26 levels due to summer heatwave and reduced demand.
• Coal cost headwinds from Q2 FY26-27— imported coal costs may rise 15-20% due to higher sea freight (from $15-16 to >$20) and a weaker rupee (Rs.93-94 → Rs.97). Q1 average coal cost is well covered at ~Rs.12,500-13,000/tonne.
• Export optionality emerging— the domestic-export spread is <USD 10/mt; management expects to start exporting in the near term due to a lull in Indian steel demand. The gas-based pellet plant makes the company CBAM-compliant and export-ready.

Conversion cost advantages; EV transition targeting ~350 trucks at full capacity

• Conversion cost from mining to pellet at Rs.2,000/ton— from pellet to DRI, operating cost is ~Rs.1,500/ton (including thermal coal). DRI production cost breakdown (~Rs.20,000/ton): iron ore pellets ~40%, coal ~35%, operating costs ~Rs.1,500/ton.
• Current pellet production cost of Rs.55-58 per tonne(including beneficiation,period unspecified for current operations).
• Freight savings of Rs.150 per tonne from Q3 FY26-27— beneficiation shift from Raipur to mine site removes waste before transport; current freight cost of Rs.1,000/tonne.
• Diesel transportation cost at Rs.900/tonne— expected to rise to Rs.1,150-1,200/tonne if diesel prices increase; management aims to transition the road transport fleet to EVs.
• EV fleet plan: ~350 trucks at full capacity— total capex of ~Rs.350 crores (including charging infrastructure,period unspecified). Already deployed 10 EV dumpers, 24 EV loaders, and 15 EV excavators, reducing operating costs ~75% and carbon emissions ~88% vs. diesel.
• Solar power expansion from 165 MW to 540 MW— 25 MW commissioned; additional 100 MW expected by July 2026. The company targets “net-zero target by 2050”.
• Natural-gas-based pellet plant under a 7-year GAIL MOU— saves ~Rs.100 crore in capex vs. coal gasification and enables CBAM-compliant exports.