Godawari Power PAT Falls 25 per cent, Announces Rs 16 Bn Capex
ECONOMY & POLICY

Godawari Power PAT Falls 25 per cent, Announces Rs 16 Bn Capex

Godawari Power & Ispat Ltd (BSE: 532734; NSE: GPIL), a fully integrated steel manufacturer, has announced its consolidated financial results for the quarter ended 30 June 2025 (Q1 FY26).

Q1 FY26 Financial Performance
  • Revenue from operations stood at Rs 13.23 billion, down 1 per cent year-on-year and 10 per cent quarter-on-quarter, primarily due to a decline in realisations.
  • EBITDA was reported at Rs 3.24 billion, reflecting a 2 per cent increase QoQ, but a 20 per cent decline YoY.
  • Profit After Tax (PAT) came in at Rs 2.16 billion, a decline of 2 per cent QoQ and 25 per cent YoY.
  • EBITDA and PAT margins remained strong at 24 per cent and 16 per cent, respectively.

Operational and Strategic Updates
  • Volume Guidance Progress: GPIL achieved 25 per cent of its FY26 rolled products volume guidance and 30 per cent for ferro alloys. Other segments are between 20–23 per cent of target.
  • New Capital Expenditure: The Board approved Rs 16 billion in new capital expenditure across two projects, to be funded via 40:60 equity-debt mix.
  • CRM Complex: A 0.7 million-tonne Cold Rolling Mill (CRM) facility with Rs 9 billion capex, including pre-operational expenses and working capital margins.
  • Storage Battery Plant: A 10 GW plant with Rs 7 billion capex through wholly owned subsidiary Godawari New Energy Pvt. Ltd.

Ongoing Capex:
  • Mining expansion approvals expected by Q3 FY26, operations to start in Q4 FY26.
  • Pellet plant trial production to begin in October 2025.
  • PGCIL Approval: GPIL has secured approval from Power Grid Corporation of India (PGCIL) to supply steel billets for transmission project structures.
  • Mining Resumption: Operations at Boria Tibu mines resumed in May 2025 following approval of a revised five-year plan by the Indian Bureau of Mines.
Commenting on the performance, Mr B.L. Agrawal, Chairman and Managing Director, stated, “Despite lower realisations in Q1 FY26, we maintained robust margins. Our new CRM and battery ventures will drive diversification and long-term synergies. With a strong net cash position and strategic investments in mining and pellets, GPIL is well-poised for sustainable growth.”
The company continues to leverage operational efficiency, solar-led cost reduction, and captive iron ore access to reinforce its competitive edge and long-term growth prospects. 

Godawari Power & Ispat Ltd (BSE: 532734; NSE: GPIL), a fully integrated steel manufacturer, has announced its consolidated financial results for the quarter ended 30 June 2025 (Q1 FY26).Q1 FY26 Financial PerformanceRevenue from operations stood at Rs 13.23 billion, down 1 per cent year-on-year and 10 per cent quarter-on-quarter, primarily due to a decline in realisations.EBITDA was reported at Rs 3.24 billion, reflecting a 2 per cent increase QoQ, but a 20 per cent decline YoY.Profit After Tax (PAT) came in at Rs 2.16 billion, a decline of 2 per cent QoQ and 25 per cent YoY.EBITDA and PAT margins remained strong at 24 per cent and 16 per cent, respectively.Operational and Strategic UpdatesVolume Guidance Progress: GPIL achieved 25 per cent of its FY26 rolled products volume guidance and 30 per cent for ferro alloys. Other segments are between 20–23 per cent of target.New Capital Expenditure: The Board approved Rs 16 billion in new capital expenditure across two projects, to be funded via 40:60 equity-debt mix.CRM Complex: A 0.7 million-tonne Cold Rolling Mill (CRM) facility with Rs 9 billion capex, including pre-operational expenses and working capital margins.Storage Battery Plant: A 10 GW plant with Rs 7 billion capex through wholly owned subsidiary Godawari New Energy Pvt. Ltd.Ongoing Capex:Mining expansion approvals expected by Q3 FY26, operations to start in Q4 FY26.Pellet plant trial production to begin in October 2025.PGCIL Approval: GPIL has secured approval from Power Grid Corporation of India (PGCIL) to supply steel billets for transmission project structures.Mining Resumption: Operations at Boria Tibu mines resumed in May 2025 following approval of a revised five-year plan by the Indian Bureau of Mines.Commenting on the performance, Mr B.L. Agrawal, Chairman and Managing Director, stated, “Despite lower realisations in Q1 FY26, we maintained robust margins. Our new CRM and battery ventures will drive diversification and long-term synergies. With a strong net cash position and strategic investments in mining and pellets, GPIL is well-poised for sustainable growth.”The company continues to leverage operational efficiency, solar-led cost reduction, and captive iron ore access to reinforce its competitive edge and long-term growth prospects. 

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