Q2 FY27 results analysis · November 03, 2026
Lloyds Metals & Energy Ltd (LLOYDSME) Q2 FY27 Results Analysis: PAT Surges 84%, Margins Expand 418 bps
+83.6%PAT year on year, Rs. 1,111.89 Cr
Source: Quarterly results filing (BSE)
Quick summary
Lloyds Metals & Energy Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 4,132.03 Cr (+62.17% YoY) and PAT growth of +83.61% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 03, 2026 |
|---|---|
| Revenue (Q2) | Rs. 4,132.03 Cr (+62.17% YoY) |
| PAT (Q2) | Rs. 1,111.89 Cr (+83.61% YoY) |
| EBITDA margin | 37.22% (+418 bps YoY) |
| EPS (Q2) | Rs. 19.75 (+71.10% YoY) |
Quarter Snapshot
Q2 FY27 delivered standalone revenue growth of 62.17% YoY and PAT growth of 83.61% YoY with EBITDA margin up 418 bps YoY to 37.22%, though margins fell 771 bps QoQ on a consolidated basis amid energy-cost pressure and monsoon-season volume trough. The VAP mix shift to 45.1% of segment revenue and copper's first positive quarter support the growth thesis, but the MDO margin of 6.80% versus guided 27-30% and net debt doubling to Rs.8,952.55 Cr in six months are the key watch items.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Margin | "the 39% Q1 margin looks hard to hold… flat-to-compressing" | Standalone 37.22% (−195 bps QoQ, +418 bps YoY); consolidated 31.32% | Played out |
| Revenue/volumes | "in-line to modestly behind on volumes… seasonally weak" | Standalone RevOps −23.66% QoQ / +62.17% YoY; consolidated −20.67% QoQ | Played out |
| Value-added/pellet tailwind | "spot pellet surge… tailwind for the value-added mix" | VAP revenue +40.6% QoQ to Rs.3,189.99 Cr; 45.1% revenue share | Played out |
| Energy cost headwind | "lands on DRI/pellet EBITDA/t" | Other expenses +16.3% QoQ consolidated; margin compression; unit KPIs undisclosed | Partially |
| Funding & encumbrance | net-debt trajectory vs 1.0–1.5x; board agenda vs "no dilution" | Net debt Rs.8,952.55 Cr standalone; debt raised (Rs.700 Cr NCD + USD 130 Mn bonds); no equity raised; encumbrance 26.30% | Played out |
| Volume run-rates vs guides | ore vs 26 MnT; pellets vs 7.75–8 MnT; DRI vs 825 KT | Filing discloses no volumes — open for the call | Not observable |
| Seaborne downswing into Q3 | "exit state into Q3 is a clear downswing" | Filing silent on realizations — remains open for the call | Not addressed in the filing |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| MDO EBITDA margin 27–30% through FY27 | Q3 FY26 earnings call | Consolidated MDO segment margin 6.80% (Q1: 21.06%) | Missed |
| Thriveni revenue Rs.10,000+ Cr FY27 | Management presentation, Aug 2026 | MDO segment revenue Rs.4,779.26 Cr in H1 (gross, incl inter-segment) | On Track |
| Capex ~Rs.15,000 Cr FY26–27; Rs.8,500 Cr India FY27 | Management presentations, Feb & Aug 2026 | H1 consolidated PPE Rs.7,619.83 Cr; standalone Rs.6,059.96 Cr | On Track |
| Net debt/EBITDA 1.0–1.5x | Management commentary, FY26–FY27 calls | Standalone net debt Rs.8,952.55 Cr vs H1 EBITDA Rs.3,658.28 Cr (~1.2x of H1, ~2.4x of the H1 run-rate annualized) | Stretch |
| Debt raising (USD 300 Mn notes/NCDs; USD 130 Mn bonds; Rs.700 Cr NCD) | Board approvals 3 Nov 2026; Oct 2026 announcements | Rs.700 Cr raised 7 Aug (nil deviation); USD 130 Mn allotted 29 Oct | On Track |
| Copper 8–10 KT FY27; larger asset by Q1 FY28 | Management calls, FY26–Q1 FY27 | First positive segment quarter; no volumes disclosed | Too Early |
| Steel (WRM) Q4 FY27; BHQ Dec 2027/Mar 2028 | Management presentation, Aug 2026; prior calls | No update in the filing | Too Early |
| "The margin improvement is not one-off. It is structural" | Prior earnings calls (per prior-quarter notes) | Q2 standalone margin 37.22% — +418 bps YoY, but −195 bps QoQ and −771 bps consolidated; other expenses up double-digit QoQ on falling revenue — YoY structural gains hold; the Q1 39% peak did not | Partially |
| VAP/mix shift drives earnings | Prior calls | VAP = 45.1% of gross segment revenue (26.0% in Q1); Steel segment result Rs.960.19 Cr | Confirmed |
| Execution at "breathtaking pace" (pellet plant 2, slurry savings) | Prior calls | Pellet-2-led VAP revenue +40.6% QoQ; but no project-milestone updates in the filing | Too Early |
Key Investment Insights
Key Positives
- Standalone revenue grew 62.17% YoY to Rs.4,132.03 Cr; H1 revenue up 93.73% YoY
- Standalone PAT grew 83.61% YoY to Rs.1,111.89 Cr; consolidated PAT-to-owners up 88.05% YoY to Rs.1,045.62 Cr
- Standalone EBITDA margin expanded 418 bps YoY to 37.22%; H1 margin 38.33% (+542 bps YoY)
- Steel/VAP revenue rose 40.6% QoQ to Rs.3,189.99 Cr, becoming 45.1% of gross segment revenue with Rs.960.19 Cr segment result
- Copper segment posted its first positive quarter: Rs.18.24 Cr result on Rs.333.93 Cr revenue after Q1's Rs.(55.51) Cr loss
- CFO/PAT conversion of 1.22x standalone and 1.47x consolidated
- Rs.700 Cr NCD raised 7 Aug 2026 with nil deviation in fund utilization; NCD security covers of 1.60 and 1.27 vs 1.10 contractual minimum
Risk Factors
- MDO segment margin collapsed to 6.80% from 21.06% in Q1, far below management's stated 27-30% FY27 guidance
- Consolidated EBITDA margin compressed 771 bps QoQ to 31.32%; other expenses rose 16.3% QoQ on falling revenue amid energy/coal cost pressure
- Standalone net debt rose Rs.4,405.77 Cr in H1 to Rs.8,952.55 Cr; FCF negative at Rs.(2,847.79) Cr standalone and Rs.(3,505.15) Cr consolidated
- First material associate loss of Rs.(27.17) Cr in Q2, driven by Nexus Holdco FZCO at Rs.(52.14) Cr
- LGRF subsidiary lost Rs.(245.22) Cr in H1 (Rs.(74.81) Cr in Q2), the principal consolidated drag
- Promoter encumbrances rose to 26.30% of holding; NTPC receivable of Rs.321.44 Cr remains unresolved before the Delhi High Court
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.