Gallantt Ispat Limited held an earnings conference call on October 27, 2026, to discuss its financial and operational performance for Q2 and H1 FY27, ended September 30, 2026. The call was moderated by Vanessa Fernandes of Adfactors PR, with management participants including Vice Chairman Dindayal Jalan, CEO Mayank Agarwal, and CFO Amit Jalan.

Financial Performance

Q2 FY27 Results:

  • Revenue from operations stood at ₹1,146 crore, a 13% increase from ₹1,013 crore in Q2 FY26 and flat compared to ₹1,146 crore in Q1 FY27.
  • EBITDA was ₹111 crore (margin of 9.64%), a significant decline from ₹185 crore (16.19%) in Q1 FY27 and ₹135 crore (12.91%) in Q2 FY26.
  • EBITDA per ton was ₹6,150, down from ₹8,010 in the previous quarter.
  • Profit Before Tax (PBT) was ₹83 crore, compared to ₹165 crore in Q1 FY27 and ₹103 crore in Q2 FY26.
  • Profit After Tax (PAT) was ₹61 crore (PAT margin 5.3%), down from ₹124 crore (10.8%) in Q1 FY27 and ₹89 crore (8.8%) in Q2 FY26.
  • Earnings Per Share (EPS) for the quarter was ₹2.51.
  • Other income for the quarter was ₹18 crore.
  • Employee costs were ₹42 crore (up from ₹39 crore in Q1), and finance cost was stable at ₹9 crore.

H1 FY27 Results:

  • Revenue from operations grew 7% to ₹2,292 crore from ₹2,141 crore in H1 FY26.
  • EBITDA was ₹296 crore (margin 12.91%), down from ₹382 crore (17.85%) a year earlier.
  • PAT was ₹184 crore, compared to ₹263 crore in H1 FY26.
  • EPS for the half year was ₹7.63 per share.

Balance Sheet & Capex (as of September 30, 2026)

  • Net worth stood at ₹3,487 crore, up from ₹3,316 crore as of March 2026.
  • Borrowings were ₹592 crore, described as mostly working capital facilities with no term loans for projects.
  • The company held ₹426 crore in bank balances and liquid investments, plus ₹266 crore in short-term treasury deployment, making it net cash positive.
  • Inventory rose to ₹669 crore from ₹551 crore in March 2026.
  • Capital work-in-progress increased to ₹598 crore from ₹349 crore in March 2026.
  • Capex during H1 FY27 was ₹278 crore (₹141 crore in Q2), all funded through internal accruals.
  • Cumulative spend of the approved ₹3,000 crore capex program is ₹650 crore as of September 2026.
  • A final dividend of ₹2 per share for FY26 was approved at the AGM held on September 30, 2026.

Operational Performance & Strategic Updates

Volume & Utilization:

  • TMT sales volume for Q2 was 165,000 tons, lower than the 192,000 tons in Q1 FY27, primarily due to a planned shutdown at the Gorakhpur plant for capacity expansion integration.
  • Rolling mill utilization at the Kutch, Gujarat unit was 68% in Q2, a slight improvement from 66% in Q1.

Capacity Expansion:

  • The Gorakhpur plant expansion from 1.0 to 1.23 million tons per annum (MTPA) is complete and is expected to be operational by November 10, 2026. Management expects a ramp-up to 85-90% utilization within 1-1.5 months.
  • The expansion included adding 22 MW to the existing 78 MW captive power plant at Gorakhpur.

Raw Material Security – Coal & Iron Ore Blocks:

  • The company was awarded a coal block in Singrauli in August 2026, as previously disclosed to exchanges.
  • This, alongside its existing iron ore blocks in UP and Rajasthan, secures both key raw materials for steelmaking.
  • The iron ore blocks are under exploration with environmental clearances in process; the target for becoming operational remains FY28.
  • Once operational, the captive iron ore mines are expected to contribute approximately ₹2,000 per ton to EBITDA.
  • The coal block is in the due diligence phase; production is estimated to start in 2-3 years. It is expected to eliminate the need for imported South African coal at the Gorakhpur unit, reducing costs.

Cost Initiatives & Renewable Energy:

  • An unplanned extension of a shutdown at the Gorakhpur power plant (for turbine maintenance) raised power costs in Q2. The plant is set to resume operations within a week of the call.
  • An 18 MW solar plant at Siddhpur, Gujarat, is completed and set to be operational by November 2026.
  • A 60 MW solar plant at Prayagraj, UP, remains on track for Q4 FY27 commissioning.
  • Together, these solar plants are expected to save ₹30-40 crores annually in power costs.
  • Upstream debottlenecking at the Gujarat unit is on track for completion in FY27.

Market Commentary & Outlook:

  • Domestic finished steel consumption in India grew 7.5% to ~85 million tons in H1 FY27.
  • India remained a net importer of finished steel.
  • TMT prices firmed up from August, with September prices about 21% higher YoY, driven by infrastructure, housing, and urbanization demand.
  • Input costs, particularly coal and metallics (sponge iron, pig iron), remained elevated.
  • Management expects a strong construction season post-monsoon to support prices and margins in H2 FY27.
  • The company commands a 5-6% price premium over unbranded players in UP and a 3-4% premium in Gujarat, supported by branding with ambassadors Ajay Devgn and Janhvi Kapoor.

Medium-Term Growth Plan & Funding:

  • Management postponed detailing a new medium-term growth plan to Q4 FY27. The recent coal block award has enabled evaluation of a larger greenfield opportunity built around the raw material base.
  • The plan's size and funding mix (internal accruals vs. external) are under evaluation, but the company's historical philosophy relies heavily on internal accruals.
  • The current ₹3,000 crore capex program continues to be funded entirely through internal accruals.

Q&A Session Highlights

  • Inventory Increase: The ₹118 crore rise in inventory in H1 was attributed to the Gorakhpur shutdown and stockpiling for the new capacity. Normalization is expected in Q3.
  • FY27 Capex: The remaining capex for FY27 is approximately ₹500 crore, allocated as ~₹400 crore for Gorakhpur, ~₹240 crore for mines, ~₹170 crore for solar, and ~₹100 crore for Kutch.
  • Gujarat Debottlenecking: Benefits from power plant efficiency improvements are expected in Q3/Q4 FY27, while a new sponge iron plant (for backward integration) is expected to commission in Q4 FY27, with full benefits in FY28.
  • Digital Initiatives: The company is implementing AI and IT integrations (e.g., gate entry, weighbridges with SAP) to improve efficiency and plug leakages, though savings are not quantified.