Gallantt Ispat Limited – Investor Presentation Summary

Key Operational Highlights

  • Total power production: 116 MWH in Q1 FY27, up 4% YoY
  • Total pellet production: 112.3 KT in Q1 FY27, down 36% YoY
  • Total DRI – Sponge Iron production: 236.4 KT in Q1 FY27, up 2% YoY
  • Total billets – Steel Melt Shop production: 231.4 KT in Q1 FY27, up 1% YoY
  • Total TMT Bars – Rolling Mills production: 196.2 KT in Q1 FY27, down 0.15% YoY
  • Key drivers: Annual maintenance shutdown impacted pellet plant production, necessitating open market iron ore procurement

Segment-wise Performance

Gorakhpur Plant Performance:

  • Power Plant: 73 MWH in Q1 FY27, up 4% YoY
  • Pellet: 112.3 KT in Q1 FY27, down 36% YoY
  • DRI – Sponge Iron: 147.7 KT in Q1 FY27, up 2% YoY
  • Billets: 141.6 KT in Q1 FY27, up 9% YoY
  • TMT Bars: 126.7 KT in Q1 FY27, down 1% YoY

Kutch Plant Performance:

  • Power Plant: 43 MWH in Q1 FY27, up 5% YoY
  • DRI – Sponge Iron: 88.6 KT in Q1 FY27, up 2% YoY
  • Billets: 89.8 KT in Q1 FY27, down 9% YoY
  • TMT Bars: 69.4 KT in Q1 FY27, up 2% YoY

Financial Highlights

Q1 FY27 Financials:

  • Revenue: ₹1,146 Cr (2% YoY growth, -5% QoQ)
  • EBITDA: Not specified in absolute terms
  • PAT: ₹124 Cr (-29% YoY, 1% QoQ)
  • PAT Margin: 10.8% (60 bps QoQ improvement)
  • EBITDA per tonne: ₹8,787 (1.1% QoQ improvement)

FY26 Full Year Financials:

  • Revenue: ₹4,419 Cr (2.9% YoY growth)
  • PAT: ₹484 Cr (20.8% YoY growth)
  • PAT Margin: 10.8%
  • EBITDA: ₹776 Cr (9.3% YoY growth)
  • EBITDA Margin: 17.6% (102 bps YoY improvement)
  • EBITDA per tonne: ₹8,784.7

Drivers of financial performance: Raw material cost up 9.0% YoY due to higher coal prices and lower in-house pellet availability

Geographical Revenue Split

  • Domestic vs Export: Not specified
  • Regional Breakdown: Stronghold in UP and Gujarat with 25% serviceable market share

Balance Sheet Snapshot

  • Debt/Equity ratio: Near zero
  • Net Debt: Not specified
  • Reserves: Not specified
  • Current Assets/Liabilities: Not specified
  • Financial Health Insights: Debt-free capital deployment, funded through internal accruals

Capex & Cash Flow Health

  • Capital Expenditure: ₹137 Cr incurred in Q1 FY27; ₹775 Cr total incurred till 30th June 2026
  • Planned Capex: ₹3,000 Cr program
  • Free Cash Flow: Not specified
  • Operating Cash Flow: Not specified
  • Investment Rationale: Expanding capacities, improving operating efficiencies, strengthening raw material self-reliance

Strategic & R&D Initiatives

  • Developing three virgin iron ore mines to move from secondary to quasi-primary producer
  • WHRS & solar plant installation for energy self-sufficiency
  • Value-added products: Gallantt Advance premium grades (Fe 550D, Fe 600)
  • Expected impact: Boost EBITDA per tonne through mines-to-mill advantage
  • Strategic Rationale: Expanding into high-growth markets, reducing operational costs

Industry Trends & Business Environment

  • Global Steel Demand (2026F): 1,773 MT (+1.3% YoY)
  • India Steel Demand Growth: 8-8.5% in 2026
  • India Crude Steel Production (2025): 165 MT (+10.4% YoY)
  • Policy Support: ₹12.2 lakh cr FY26 Union Budget Capex, National Steel Policy target of 300 MT capacity by FY31
  • Impact on Company: Infrastructure spending driving steel demand, locational advantage in high-growth markets

Management Commentary & Growth Outlook

  • Strategic Outlook: Building foundations to sustain and compound operating leverage
  • Capex Guidance: ₹3,000 Cr program deployed over next 2-3 years
  • Growth Trajectory: Phased capacity expansion focusing on backward integration
  • Risks: Raw material price hikes, global trade protection measures, China export overhang

ESG Updates

  • Environmental: ₹47 Cr total CSR spend over 5 years
  • Social: 7 lakh meals served annually, 3,000+ students supported, 100+ Para athletes empowered, 50,000+ lives touched
  • Governance: Board includes Mr. Chandra Prakash Agrawal (Chairman & MD), Mr. Mayank Agrawal (CEO), and independent directors

Additional Business Highlights

  • Dealer Network: 3,000+ active dealers, 34 distributors, 80% sales via dealer network
  • Branding: Ajay Devgn as brand ambassador, ~35% increase in brand awareness
  • Market Position: Largest producer of Rebars in Uttar Pradesh with 25% market share
  • Capacity: 1.0 MTPA steel capacity across Kutch and Gorakhpur Plants, 129 MW captive power