Summary
Lloyds Metals and Energy Limited - Q3 FY 2026 Earnings Call Summary Wednesday, February 04, 2026 4:00 PM IST
Event Participants
Executives 4 Chintan Mehta (CIO), Rajesh Gupta (Managing Director), Riyaz Shaikh (CFO), S.K. Naredi (Director Finance - Thriveni Earthmovers)
Analysts 8 Amit Dixit (GS Financial), Divya Agarwal (Ficom Family Office), Hardik Gori (Abans Investment Managers), Harsh Shah (Seven Rivers Holding), Jashandeep Singh Chadha (Nomura), Karthik Srinivas (Unifi Mutual Fund), Prateek Singh (IIFL Capital), Vikas Singh (ICICI Securities)
Financials & KPIs (Standalone)
| Metric | Reported | Commentary |
|---|---|---|
| Total Income | ₹3,875 crores | +129% YoY; Highest ever quarterly revenue driven by pellet volume ramp-up. |
| EBITDA | ₹1,317 crores | +137% YoY; Margins improved by 280 bps YoY to 34%. |
| PAT | ₹889 crores | +128% YoY; Driven by strong operational discipline and value-added mix. |
| Iron Ore Production | 5.49 million tons | +YoY growth; On track to reach the 55 MTPA EC capacity limit. |
| Iron Ore Dispatches | 4.10 million tons | Includes external sales; supported by the 85km slurry pipeline performance. |
| Pellet Production | 1.14 million tons | Achieving optimal utilization within 4 months of commissioning. |
| Pellet Realization | ₹10,289 per ton | Average realization impacted by higher export mix in Q3. |
| DRI Volumes | 0.12 million tons | Operations stabilizing post-extension commissioning during the quarter. |
| Consolidated Net Debt | ₹7,100 crores | Strong internal accruals funding capex; Net Debt/EBITDA target maintained at 1.0x. |
Geographic & Segment Commentary
- Mining Operations (Gadchiroli): Environmental Clearance (EC) increased from 10 MTPA to 55 MTPA. Focus remains on logistics debottlenecking, with January dispatches reaching a run-rate of 2.5 million tons per month.
- Thriveni MDO (Domestic): Achieved 5-star rating for PB West coal mine; December saw record coal production of 1.77 million tons. Odisha volumes are projected to grow by 40% YoY in FY27 due to faster clearances and infrastructure improvements.
- International Operations: Currently rationalizing lower-margin operations in Indonesia to redeploy equipment to higher-return projects. Entry into Democratic Republic of Congo (DRC) via copper cathode project in Katanga is a key medium-term growth engine.
Company-Specific & Strategic Commentary
- Copper Entry: Acquired 16 leases over 100 sq km in Katanga, DRC; targeting 10,000 tons of copper cathode production in FY27 at anticipated 30-32% margins.
- Logistics Leadership: Planning a second 16 MTPA slurry pipeline from Hedri to Chandrapur with a ₹2,000-₹2,500 crore Phase 1 capex to eliminate truck-rail inefficiencies and save ~₹850-₹1,250 per ton.
- Capacity Expansion: Increased target capacity for pellet plants to 10 MTPA (from 8 MTPA) through debottlenecking; second pellet plant commissioning set for Q2 FY27.
- Strategic Partnerships: Signed non-binding MoU with Tata Steel for collaboration in Eastern India and Gadchiroli, alongside a shareholder agreement for the BRPL pellet plant conversion.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Iron Ore Dispatches | 20 - 22 million tons (FY26) | Based on current monthly run-rates of 2.4 - 2.5 million tons achieved in January. |
| Thriveni Revenue | ₹10,000+ crores (FY27) | Driven by 40% growth in external iron ore and commencement of gold mining. |
| Thriveni EBITDA | ~₹3,000 crores (FY27) | Management reaffirmed strong margins despite seasonal impacts in H1. |
| Console Peak Debt | ~₹10,500 crores (FY28) | Peak debt coinciding with the final stages of integrated steel plant capex. |
Risks & Constraints
| Risk | Context |
|---|---|
| Logistics Bottlenecks | Current mining capacity exceeds evacuation capability; failure to commission the second slurry pipeline on time could cap dispatch volumes. |
| Geopolitical Risk | Entry into DRC (Congo) involves operational and regulatory risks, though management mitigates this via experienced project leadership. |
| BHQ Processing | Beneficiation of Banded Hematite Quartz (BHQ) is a newer technology in India; any technical failure could impact the planned high-grade (67%) output. |
Q&A Highlights
Tata Steel MoU
- Question: Why partner with Tata Steel given your regional strength? (Amit Dixit)
- Answer: Future collaboration focuses on the Eastern belt and joint bidding for new assets; it does not impact current Gadchiroli assets or the independent steel plant project (Rajesh Gupta).
Copper Margins
- Question: What are the expected economics of the Congo project? (Harsh Shah)
- Answer: Targeting 10,000 tons of cathode production in FY27 at realizations of $11,000-$12,000/ton with ~30% EBITDA margins (Rajesh Gupta).
Iron Ore Pricing
- Question: Is there margin pressure from falling domestic benchmarks? (Jashandeep Singh Chadha)
- Answer: Benchmark prices remain seasonally strong in India; Lloyds’ captive ore and grade premiums (66-67% post-BHQ) provide significant insulation (Rajesh Gupta).
Thriveni Performance
- Question: Will Thriveni meet its FY26 EBITDA guidance of ₹2,000-2,200 Cr? (Divya Agarwal)
- Answer: Yes, we stick to the guidance; Q3 showed a return to normal strike rates following monsoon disruptions (S.K. Naredi).
Key Takeaway
Lloyds Metals delivered a record-breaking Q3 FY26, surpassing ₹11,000 crores in consolidated 9-month revenue with standalone EBITDA margins reaching a structural high of 34%. The company is successfully transitioning into a value-added player, with pellets now contributing 35% of standalone revenue. Strategically, the firm is doubling down on logistics via a new 16 MTPA slurry pipeline to mitigate truck-rail inefficiencies and diversifying into “new gold” metals with a copper cathode project in the DRC. Management guided for 20-22 million tons of iron ore dispatches for FY26 and expects Thriveni’s revenue to scale beyond ₹10,000 crores by FY27. While aggressive capex will lead to peak debt of ~₹10,500 crores by FY28, the company remains focused on maintaining a 1.0x Net Debt/EBITDA ratio through robust internal accruals.
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