Financial Performance Highlights (Q2 FY27)

  • Operating income: ₹182 crores, representing 25.3% YoY growth
  • Operating EBITDA: ₹35 crores with margin of 19.2%
  • Profit after tax: ₹22 crores, growing 42.7% YoY
  • PAT margin: 11.1%, improving by 76 basis points YoY
  • ROCE (annualized): 10% as of September 30, 2026
  • ROE (annualized): 9.7% as of September 30, 2026
  • Net debt: ₹835 crores with net debt-to-equity ratio of 0.70x

Bokaro Greenfield Expansion Project

  • Total project outlay: ₹803 crores (₹500-550 crores debt, balance from internal accruals)
  • Capital deployed as of September 30, 2026: ₹516 crores (₹209 crores internal accruals, ₹307 crores debt)
  • Additional ₹60 crores capitalized on October 5, 2026
  • Colour coating line received Consent to Operate on October 5, 2026
  • Commissioning timeline:
  • Galvalume: Q4 FY27
  • ZAM and GI: H1 FY28
  • Project COD: September 2027
  • Total saleable capacity: 5.5 lakh tons (including 2 lakh tons colour-coated)
  • Product mix: Galvalume, galvanized, ZAM, colour-coated

Growth Guidance

  • Consolidated revenue CAGR FY25-FY28: 70-75%
  • Operating EBITDA CAGR FY25-FY28: 40-45%
  • PAT CAGR FY25-FY28: 35-40%
  • Expected margin stabilization by FY28:
  • EBITDA margin: 12-13%
  • PAT margin: 5-6%

Operational Updates

  • Current business model: Conversion business where customers supply raw material free of cost
  • Other income includes gain on asset sale from monetization of underutilized assets
  • Peak debt expected: ₹800-900 crores (including working capital needs)
  • Additional working capital requirement: 60-65 days
  • Sales strategy: B2B focus, not retail
  • Export market: Opportunistic approach, not immediate focus

Management Commentary

  • Expect most capacity ramp-up by Q3-Q4 FY28
  • Peak revenue estimate: ₹3,000-3,500 crores (at 5.5 lakh tons, ~₹90,000/ton realization)
  • Debt repayment: PLI incentives and capital subsidies will be used for提前 repayment
  • ROCE excluding Bokaro capital deployment: approximately 13%+
  • Market context: India coated steel market expected to reach $35-40 billion by FY30

Q&A Highlights

  • Product differentiation: Focus on alloy-coated facilities (Galvalume, ZAM) rather than colour-coated
  • Raw material sourcing: Initially alloy-coated base product, moving to HR coils from Eastern India suppliers
  • Margin profile: Existing conversion business has higher margins (24-25%) vs new integrated business (7-8%)
  • Competitive landscape: Company positioned as small player in large growing market
  • Appointment of Rajat Kulshrestha as Chief Business Officer for coated business

Capital Structure Impact

  • Transition from pure conversion business to integrated manufacturing
  • Significant capital deployment for growth expansion
  • Debt utilization for project financing with planned deleveraging post-commissioning