Lloyds Metals & Energy Ltd held its Q2 FY27 earnings call on November 03, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.
Record H1 on Every Line, Margin Structure Re-Rated
Q2 FY 2026-2027 standalone revenue of Rs.4,132 crore (+62% YoY) — H1 FY 2026-2027 revenue of Rs.9,545 crore (+94% YoY) was a record first half on revenue, EBITDA and PAT on both standalone and consolidated bases.
Q2 EBITDA of Rs.1,538 crore (+83% YoY) — H1 EBITDA of Rs.3,658 crore (+126% YoY), driven by higher iron ore EC limits, faster-than-planned pellet plant ramp-up and improved DRI volumes.
Q2 PAT of Rs.1,112 crore (+84% YoY) — H1 PAT of Rs.2,639 crore (+113% YoY).
H1 EBITDA margin of 38.33% (+542 bps YoY) — best-ever half-year margin; Q2 margin at 37.22% (+419 bps YoY), helped by slurry pipeline commissioning, higher realizations and richer value-added mix.
Value-added products at 61% of standalone revenue and 67% of EBIT in Q2 FY 2026-2027 — vs 43% and 49% in Q2 FY 2025-2026; management called this a structural re-rating, not a cyclical spike.
Q2 profit dip in mining and Triveni MDO — attributed to monsoon-season output drop with unchanged costs plus a geopolitical spike in HSD and explosives prices; Q2 is historically the weakest quarter. Cost pass-through is now underway.
Iron ore production of 3.95 MT in Q2 (+15.5% YoY) and 10 MT in H1 (+35% YoY) — monthly run-rate above 2 MT; EBITDA of Rs.2,082/ton (Q2) and Rs.2,239/ton (H1); realization stated at ~Rs.670/ton (as stated on the call).
DRI sales of 160.6 kilotons in Q2 (+81% YoY) and 343.1 kilotons in H1 (+104% YoY) — Q2 realization Rs.31,040/tonne with EBITDA of Rs.9,231/tonne; power volumes up 82% (Q2) and 85% (H1) YoY.
Pellet production of 2.11 MT in Q2 and 3.81 MT in H1 — both 4 million ton plants running in excess of rated capacity after the second plant's commissioning in May 2026; sales mix 71% domestic / 29% export; debottlenecking and a third pellet plant are underway (period unspecified).
First slurry pipeline running at full capacity — a longer, larger pipeline network is being extended to nearly eliminate fine-ore trucking; the 1.2 million ton integrated wire-rod steel plant is progressing toward commissioning (period unspecified).
26 million tons of iron ore available till 2051 — management said it is not expanding downstream value-added products beyond iron ore availability, and is "not chasing volume for its own sake."
Iron ore pricing set internally — MD Rajesh Gupta said the current Rs.6,700/ton reflects ore quality among the best in the country and believes it "can sustain over a period quite easily" (no specific horizon given).
Q2 margin dip vs the historical ~23-25% EBITDA range — S.K. Naridi (Director of Finance, Triveni) cited the seasonally weak monsoon quarter, heavy rains in Odisha and Jharkhand, and geopolitical HSD/explosives inflation; H2 is expected to be materially higher than H1.
Pass-on mechanism now in place with the mine owner and NTPC — management is hopeful high costs will be absorbed and does not foresee challenges in achieving projected EBITDA; no specific sustainable margin was endorsed (analyst asked whether ~25-26% is sustainable long term).
Q2 volumes: 11.22 million tons iron ore incl. BHQ and 18.82 million cubic meters coal incl. overburden — plus 1.66 million cubic meters barite (Q2) and 0.17 million tons gold (H1).
88 electric equipment units operational at mines and 20 at the railway siding as of Q2 — FY27 equipment mobilization completed on schedule; a 100-ton diesel dumper converted to LNG hybrid as part of the green fleet build-out.
Gold mining plan approved at 1.5 million tons per annum — for erstwhile Geo Mysore India Private Limited (renamed Triveni Lloyds Vandigiri Private Limited), with matching processing capacity (approval disclosed Q2 FY 2026-2027); Tata Joda West manganese and DC Jain Dalpahar (October FY 2026-2027) operations commenced.
FY27 Copper Target Cut; Bougainville Still Early Days
FY 2026-2027 copper production target cut to 5,850 tons (full year, slide 20) — down from the 8,000 tons disclosed in Q1 FY 2026-2027; Hemankur cited challenges at Surya and the shift of effort toward completing the Shemaf plants. The slide-15 range of 8,000-10,000 tons was flagged by Ritesh Bhagwati (Alpha Plus Capital) and resolved to 5,850 tons.
Surya Mines ore problem is structural, not short-lived — Hemankur said third-party ore sourcing leaves the mining margin with the mine owner; production is also limited by sulfuric acid cost/availability and diesel at $3.2/liter (~3x India) due to the West Asia crisis.
Copper volume split: Surya Mines targeted ~12,000 tons vs Itoil and Motoshi mines targeted ~75,000 tons of copper plus 20,000 tons of cobalt (both period unspecified) — Lloyds' owned share is ~12 out of 87 (thousand tons); at full potential the two CAMAF complexes will produce 74,000 tons of copper and 20,000 tons of cobalt a year (period unspecified).
Chamaf projects expected complete by end of FY 2026-2027 with production in FY28 — dedicated sulfuric acid plants, captive mines within a 5 km radius and state government power allocations lock in all three raw-material inputs.
No targets or projections for Panguna (Bougainville) — MD Rajesh Gupta clarified the 1,75,000 tons figure "refers to what was produced 40 years back at that operation"; management stated it "has made no target, has not signed any contract, and has no projections for PNC" and it is very early days to quantify operations.
Copper framed as transformational — management positioned the shift from domestic iron ore, to steel, to "a relevant player in energy-transition minerals"; copper is highly profitable at the ~$14,500 price cited during the call (Nov 2026).
Borrowings Clarified; Shimap Restructuring Targeted Before FY-End
Standalone borrowings of ~Rs.9,500 crore (Q2 FY 2026-2027) — CFO Riyaaz Sheikh rejected the analyst's Rs.22,500 crore figure against ~Rs.18,100 crore of CWIP; the ~Rs.25,000 crore figure reflects planned future projects rated together for credit-rating purposes.
Shimap debt restructuring targeted to close within 3-4 months, before end of FY 2026-2027 — net debt at Shimap expected to decline from ~$800 million to ~$500 million in the longer run (period unspecified), inclusive of plant-completion capex and settlement of past creditors; management said this is not the ~$250 million the analyst suggested.
Shemab debt settlement estimated at around 250-300 million or less (period unspecified) — renegotiation is active based on executed settlement agreements; consolidation will flow 51% of profitability out as minority interest with 49% attributable to Lloyds.
H1 FY 2026-2027 capex of ~Rs.6,000 crore (Rs.6,052 crore per CFO) — FY 2026-2027 guided at ~Rs.13,000 crore; FY 2027-2028 guided at around Rs.10,000 crore or more, majority toward the bigger steel plant; projects planned at ~60-65% debt-to-equity funding (period unspecified).
Debt kept within ~1x and targeted at 1-1.5x of trailing 12-month EBITDA — the CFO did not commit a debt-reduction timeline by FY 2027-2028; standalone net debt at Rs.9,316 crore as of 30 September 2026, consolidated net debt below Rs.20,000 crore.
$300 million NCD raising is an enabling resolution (period unspecified) — CFO said the resolution is already in place to keep the company ready if an opportunity arises, with proceeds intended for capex.
H2 Volume Momentum, But Commissioning Slippage on Steel
FY 2026-2027 India volumes guided above 8 million tons; FY 2027-2028 guided at around 9.5 million tons — a 20% capacity add-on from 8 to 9.6 million tons is targeted over the next 3-4 months (by ~Q4 FY 2026-2027).
Blast furnace and Coco1 expected to start in Q4 FY 2026-2027 — steel plant and wire rod mill expected in Q1 FY 2027-2028, with the steel plant delayed by about a quarter; management expects commissioning "within 2 years of the EC."
Beneficiation volumes/benefits expected only in FY29 (FY 2028-2029), not FY 2027-2028 — usable iron ore volumes to remain at 26 million tons per annum until then; BH2 ore being mined also assists the 26 million tons mined annually.
H2 FY 2026-2027 outlook: Lloyds Metals volumes "will go up for sure," MDO volumes rising, DRI "very strong" — copper operations will be slower in H2 FY 2026-2027; the MD left overall H2 financial extrapolation to analysts.
Tata Steel MDO via BRPL: at least 12-14 million tons of iron ore and 1.5-1.8 million tons of manganese expected from FY 2027-2028 onwards — for Tata Steel mines whose leases expire in 2030; rates still under negotiation (advanced stage, not finalized); Tata Joda West scale-up expected from December 2026 with per-tonne economics to be outlined in Q3 FY 2026-2027.
Services business delivered ~80% EBITDA margin in H1 FY 2026-2027 — full-year FY 2026-2027 margin expected higher, though management called it the least EBITDA-accretive business; management declined to rank segments by lucrativeness and provided no three-year capex figures. MD declined to quantify the war's impact on H1, stating "wars and violence helps no one."
Disclaimer: This earnings call summary is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.
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