Financial Performance (Q1 FY27)

The company reported a Total Income of ₹1,164 Crore for Q1 FY27, a 3% increase Year-over-Year (YoY) from ₹1,135 Cr in Q1 FY26, but a 5% decrease Quarter-over-Quarter (QoQ) from ₹1,229 Cr in Q4 FY26.

Profit After Tax (PAT) was ₹124 Crore, a significant 29% decrease YoY from ₹174 Cr, but nearly flat (1% increase) QoQ from ₹123 Cr.

PAT Margin stood at 10.8%, which improved by 60 basis points QoQ.

EBITDA per tonne was reported at ₹8,787, which increased by 1.07% QoQ.

Key Financial Metrics Breakdown

Other Income: ₹18 Cr, a 168% increase YoY from ₹68 Cr, but a 25% decrease QoQ from ₹25 Cr.

Total Expenses: ₹999 Cr, a 9% increase YoY from ₹918 Cr, but a 6% decrease QoQ from ₹1,068 Cr.

Cost Breakdown:

  • Cost of raw materials consumed: ₹9 Cr, a 50% decrease YoY from ₹17 Cr, but a 16% increase QoQ from ₹8 Cr.
  • Employee benefits expense: ₹39 Cr, a 24% increase YoY from ₹31 Cr, but a 7% decrease QoQ from ₹42 Cr.
  • Finance cost: ₹8 Cr, a 50% increase YoY from ₹6 Cr, but a 38% decrease QoQ from ₹14 Cr.
  • Depreciation & amortization expense: ₹30 Cr, a 5% decrease YoY from ₹32 Cr, and a 10% decrease QoQ from ₹34 Cr.
  • Other expenses: ₹90 Cr, a 15% increase YoY from ₹78 Cr, but a 21% decrease QoQ from ₹113 Cr.

Tax Expense: ₹41 Cr, a 3% decrease YoY from ₹43 Cr, and a 6% increase QoQ from ₹39 Cr.

Operational Performance (Q1 FY27)

Production Volumes (Total):

  • Power: 116 MWH, a 4% increase YoY from 111 MWH, but a 1% decrease QoQ.
  • Pellets: 112.3 KT, a 36% decrease YoY from 174.5 KT, and a 49% decrease QoQ from 221.6 KT.
  • Sponge Iron (DRI): 236.4 KT, a 2% increase YoY from 234.5 KT, but a 3% decrease QoQ from 244.5 KT.
  • Billets: 231.4 KT, a 1% increase YoY from 229.1 KT, but a 2% decrease QoQ from 235.2 KT.
  • TMT Bars: 196.2 KT, a 0.15% decrease YoY from 196.5 KT, and a 7% decrease QoQ from 210.2 KT.

Sales Volumes (Total):

  • Pellets: 0 KT, a 100% decrease QoQ from 7.5 KT; no sales in Q1 FY26.
  • Sponge Iron (DRI): 12.3 KT, a 43% decrease YoY from 21.8 KT, and a 65% decrease QoQ from 35.6 KT.
  • Billets: 26.7 KT, a 13% increase YoY from 26.7 KT, and a 38% increase QoQ from 19.3 KT.
  • TMT Bars: 191.8 KT, a 1% increase YoY from 191.8 KT, but an 8% decrease QoQ from 207.5 KT.

Management Commentary & Strategy

Raw Material Cost Impact: EBITDA per tonne was impacted by a 9.0% YoY increase in raw material costs. This was attributed to higher coal prices and a production impact at the Pellet Plant due to an annual maintenance shutdown. The shutdown resulted in lower in-house pellet availability, necessitating procurement of iron ore from the open market.

Capex Program: A ₹3,000 Crore capital expenditure program is underway. A capex of ₹137 Crore was incurred in Q1 FY27. The total capex incurred to date (as of June 30, 2026) is ₹775 Crore. This capex is entirely funded through internal accruals without relying on incremental debt. The focus is on capacity expansion, improving operating efficiencies, and strengthening raw material self-reliance through backward integration.

Growth Foundations: The company highlighted its strategy built on a 'Mines-to-Mill' advantage (developing three virgin iron ore mines), energy self-sufficiency (129 MW captive power, including WHRS and solar), locational advantage (plants in Kutch, Gujarat, and Gorakhpur, UP), and a debt-free capital structure (Debt/Equity near zero).

Market & Industry Context

The presentation provided a global and Indian steel outlook. Key points include:

  • Global steel demand for 2026F is forecast at 1,773 MT, up 1.3% YoY.
  • India's crude steel production was 165 MT in 2025, up 10.4% YoY.
  • India's steel demand is expected to grow 8–8.5% in 2026, driven by infrastructure and manufacturing.
  • The National Steel Policy targets 300 MT crude steel capacity by FY31.
  • The company holds a 25% market share in its addressable geographies in Uttar Pradesh.

Capital Structure & Shareholding

As of June 2026, the number of shares outstanding was 24,12,80,945.

The share price as of June 30, 2026, was ₹690.65, giving the company a market capitalization of ₹16,575.6 Crore.

The company emphasized its debt-free capital deployment, noting that ₹1,200 Cr of past capex was funded through internal accruals over a 5-year period.

Other Updates

ESG & CSR: The company reported a total CSR spend of ₹47 Crore over the past 5 years, supporting community development, hunger alleviation, education, tribal upliftment, sports for the differently-abled, and animal welfare.

Branding: Ajay Devgn is the brand ambassador, which has reportedly led to a ~35% increase in brand awareness.