Lloyds Metals & Energy Ltd
(BOM:512455)
₹
1,899.4
+8.5 (+0.45%)
Market Cap: 1.07 Tn
Enterprise Value: 1.25 Tn
PE Ratio: 22.27
PB Ratio: 7.70
GF Score: 88/100 
Q1 2027 Lloyds Metals and Energy Ltd Earnings Call Transcript
Aug 11, 2026 / 10:00AM GMT
Release Date Price:
₹1988.2
(-3.18%)
Key Points
Positve
- Record Q1 FY27 results with revenue of INR7,354 crore (consolidated) and INR5,413 crore (standalone), up 127% YoY, and EBITDA margin of 39.2%, the highest ever.
- Successful commissioning of the second pellet plant in May 2026, achieving 100% capacity utilization within four months, boosting pellet production to 1.69 million tonnes.
- Structural cost savings from the slurry pipeline (INR500-550 per tonne) and a shift to LNG fuel, enhancing margins and reducing logistics costs.
- Value-added products now contribute 41% of standalone revenue and 40% of EBIT, up from 13% and 2% a year ago, indicating a structural re-rating of the earnings base.
- Strong growth in Thriveni's mining operations, with iron ore volumes nearly doubling to 19.09 million tonnes and EBITDA margins expanding 827 bps YoY to 24.63%.
- Expansion of export reach to Kenya, South Africa, South Korea, Indonesia, and China, improving realizations and market diversification.
- Robust project pipeline including BHQ beneficiation (yield improved to 38%), third pellet plant, and a 1.2 million tonne steel plant, expected to drive future growth.
- Gadchiroli mine's ROM handling capacity enhanced from 10 to 55 million tonnes per annum, with full-scale operations commenced at Central Hill.
- Green logistics initiative with 150 electric and LNG vehicles, aiming to add 200 more, expected to reduce costs by 30-40% and increase EBITDA margins in logistics.
- Successful renegotiation of Chemaf debt, with a potential 40-50% reduction in consolidated net debt, improving the balance sheet.
Negative
- Consolidated net debt remains high at INR19,000 crore, primarily due to the Chemaf acquisition, though renegotiation is underway.
- Thriveni's margins were impacted by higher fuel costs due to the Gulf crisis, with pass-through negotiations still pending.
- Iron ore EBITDA per tonne remained flat YoY despite higher volumes, as internal consumption increased and sales realizations stayed stable.
- The company faces uncertainty in commodity pricing, with management unable to provide clear guidance on sustainable margins.
- CapEx intensity is high, with INR11,000-11,500 crore planned over the next two years and INR15,000-20,000 crore in the third year, which could strain cash flows.
- The NTPC wage receivable of INR300 crore remains unresolved, with no provision made, and the matter is sub judice, posing a potential risk.
- The larger steel plant capacity expansion is still under study, with no finalized plans, creating uncertainty about future growth timelines.
- Copper projects, including Chemaf and Panguna, are at early stages, with financial closure and commissioning timelines not yet confirmed.
- The company's reliance on exports exposes it to geopolitical and market risks, such as the DRC's copper export ban, though management says it has no impact.
- The fund raise in Thriveni Earthmovers (INR650 crore) is aimed at reducing high-cost debt and funding CapEx, indicating existing debt levels are a concern.
Operator
Ladies and gentlemen, good day, and welcome to Lloyds Metals and Energy Limited Q1 FY27 earnings conference call hosted by Nomura. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Jashandeep Chadha from Nomura. Thank you, and over to you, sir.
Jashandeep Chadha
Nomura Securities International Inc - Analyst
Thank you. Good afternoon, everyone, and thank you for joining us today. We at Nomura, are pleased to host Lloyds Metals and Energy 1Q FY27 earnings call. From the management, we have with us today Mr. Rajesh Gupta, Managing Director; Mr. Riyaz Shaikh, CFO; Mr. S.K. Naredi, Director of Finance from Thriveni; Mr. Hemankur Upadhyaya, Director of Finance, International Strategy and Operations; and Mr. Chintan Mehta, IRO.
Now, without much ado, I would like to invite Mr. Rajesh Gupta for his opening remarks. Over to you, sir.
Rajesh Gupta
Lloyds Metals and Energy Ltd - Managing Director, Executive Director
Good evening, Jashandeep,
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