Iron Ore: Production of 6.05 million tons (up 53% YoY); Sales of 5.46 million tons (up 58% YoY); Realization of INR 6,068/ton; EBITDA of INR 2,230/ton.
DRI & Power: DRI sales volume of 183,920 tons (up 133% YoY); Realization of INR 27,376/ton; EBITDA of INR 6,273/ton.
Pellets: Production of 1.69 million tons; Realization of INR 11,783/ton; EBITDA of INR 5,803/ton. The second pellet plant was commissioned in May 2026 and reached 100% capacity utilization within 4 months.
Sales Mix: 75.3% domestic, 24.7% export (markets include Kenya, South Korea, Indonesia, China).
Cost Savings: The slurry pipeline provided a saving of INR ~550 per ton on pellet costing.
Key Financial Performance (Consolidated - Including Thriveni)
Consolidated Revenue: INR 7,354 crores.
Consolidated Net Debt: ~INR 19,000 crores. A significant portion pertains to the Chemaf copper acquisition, which management is working to renegotiate on more favorable terms.
Thriveni Earthmovers Performance (Subsidiary)
Revenue from Operations: INR 2,672 crores, up 63% YoY.
EBITDA: INR 658 crores, up 145% YoY.
EBITDA Margin: 24.63%, an expansion of 827 basis points YoY.
Cash PAT: INR 447 crores, up 145% YoY; Cash PAT margin of 16.72% (up 522 bps).
Operational Volumes:
Iron ore (including BHQ): 19.09 million tons (nearly doubling from 9.87 million tons in Q1 FY26).
Coal (Indian operations, including overburden): 26.02 million cubic meters.
Overseas operations: 5.93 million cubic meters.
Baryte: 2.14 million cubic meters.
Gadchiroli Operations: ROM handling capacity enhanced from 10 MTPA to 55 MTPA following environmental clearances. Production was 12.83 million tons (including BHQ) in the quarter. 88 electric equipment units are operational.
New Projects: Laserda-Pacheri mining (Odisha) commenced in Q1 with a 1.5 MTPA target. Dalpahar mines (Odisha) expected in Q2 with a 3 MTPA target. Odisha volumes expected to grow 39% YoY to 34-35 million tons in FY27.
Logistics Business: Has 150 electric and LNG vehicles; plans to add 200 more (50 LNG, 150 EV). 20 charging stations installed, with 30 more planned, targeting 30-40% cost savings.
Gold Mining: Geomysore, India's first privately integrated gold mining operation, was inaugurated in July '26. Q1 ROM production was 0.17 million tons.
Guidance: EBITDA margin guidance of 28-30% for the full year remains intact.
Capital Expenditure (Capex) and Debt
Historical Capex: INR 13,513 crores incurred from FY24 to FY26.
Q1 FY27 Capex: INR 3,005 crores.
Future Capex: ~INR 11,000-11,500 crores planned over the next two years, and INR 15,000-20,000 crores in the third year. This includes the integrated steel plant and downstream projects.
Standalone Net Debt (as of 30th June): INR 5,616 crores.
Project Updates and Strategy
Steel Plant: The first 1.2 million ton long product steel plant is under execution and expected to be commissioned by March 2027. A larger 3 million ton plant in Konsari is under study for a potential capacity increase.
BHQ Beneficiation Plant: Expected commissioning by March 2028. Planned throughput capacity of 30 million tons with an expected saleable output of 16-17 million tons at a recovery rate of 38% (up from originally assumed 35%). Finished product grade will be 66-67% Fe with gangue (alumina & silica) below 3%.
Copper Business (Chemaf Acquisition):
One operating asset producing ~800 tons/month (~2,400 tons/quarter). $130 million capex already completed.
A larger JV asset requires a total capex of $300+ million to complete, with $300 million to be spent over the next 9 months. Target operational date is Q1 FY28.
The company is in discussions with financial institutions for funding (part equity, part debt) and expects financial closure in the next 3-4 months.
Tata Steel JV: Reported EBITDA of INR 99 crores from a long-term conversion contract. Evaluating MDO contracts and slurry pipeline projects on a BOT model for Tata Steel's mines.
PNG (Panguna Mines): Project is in a very early, pipeline stage under study. No investment figures or timelines are available.
Other Income and Provisions
Other Income: Stood at INR 128 crores for the quarter, attributed partly to IPS (Incentive on Production Scheme) from the government and interest.
NTPC Wage Receivable: An amount of ~INR 300 crores remains outstanding. Management stated no provision is intended as they are in negotiations with NTPC and are hopeful for a resolution in the next 2-3 months. The relationship with NTPC remains strong, and new contracts have been awarded.
Market Context and Guidance
Management highlighted crossing a market capitalization of INR 100,000 crores as a significant milestone.
Margins are considered structural due to captive ore, captive logistics (slurry pipeline), and a shift to a value-added product mix.
The company chases realization over volume by expanding its geographic sales reach.
Commodity pricing is acknowledged as cyclical and unpredictable, but the company's integrated model is designed to protect margins.
