Gallantt Ispat Ltd

Key financials

• Revenue from operations ₹1146 Cr in Q1 FY27, up 2% YoY.
• EBITDA ₹203 Cr; EBITDA margin 18% in Q1 FY27.
• PAT ₹124 Cr; PAT margin 11% in Q1 FY27.
• QoQ revenue fell 5% to ₹1205 Cr in Q4 FY26.
• EBITDA per tonne ₹8787 in Q1 FY27, down from ₹11068.
• PBT ₹165 Cr; PAT ₹124 Cr in Q1 FY27.

Operational highlights

• Pellet production 112.3 KT; down 36% YoY due to maintenance.
• DRI – Sponge Iron 236.4 KT; +2% YoY.
• Billets 231.4 KT; +1% YoY.
• TMT Bars 196.2 KT; flat YoY.
• Power Plant (MWH) 116; +4% YoY.
• Pellet plant shutdown weighed on volumes; maintenance completed.

Outlook and capex

• ₹3,000 crore expansion to 1.23 MMTPA on track for H2 FY27.
• Captive iron ore blocks in Rajasthan and UP targeted for FY2028.
• Integrated model supports cost position and raw material security.
• Geopolitical developments remain a risk to fuel prices and freight.

Business Overview

• Integrated steel producer with Gorakhpur and Kutch plants.
• Total installed capacity targeted at approximately 12.3 lakh MT.
• 129 MW captive power supports energy self-sufficiency.
• Mines-to-mill strategy with three virgin iron ore mines.
• Capex plan of ₹3,000 Cr funded through internal accruals.
• Backward pellet-plant integration; in-house rail siding and rakes.
• Energy self-sufficiency via WHRB and planned solar capacity.
• Board comprises Chairman & MD and independent directors.

Operational Highlights

• Capacity expansion to total installed ~12.3 lakh MT across two plants.
• Capex ₹1,500 Cr for Sonbhadra mines.
• Capex ₹300 Cr for 78 MW solar plant.
• Capex ₹1,200 Cr for steelmaking infrastructure.
• Pellet plant backward integration at Gorakhpur.
• Two railway rakes acquired; private siding at Gorakhpur.
• 60 MW WHRB thermal power operational.
• Todupura Iron Ore Block declared preferred bidder.
• SAP implementation and digital marketing tools adopted.
• 60 MW solar plan; 18 MW at Sidhpur.

Financial Performance

• Q1 FY27 revenue from operations ₹1,146 Cr; up 2% YoY.
• Total income ₹1,164 Cr; up 3% YoY.
• EBITDA ₹203.4 Cr; EBITDA margin 17.8%.
• PAT ₹123.7 Cr; PAT margin 10.8%.
• Capex incurred in Q1 FY27 ₹137 Cr; total ₹775 Cr.
• Debt-to-equity near zero; capex funded by internal accruals.
• FY26 revenue ₹4,419 Cr; EBITDA ₹776 Cr; ROCE ~85.7%.

Capital Structure & Liquidity

• Capex program of ₹3,000 Cr; funded internally.
• Debt/equity near-zero; low external financing reliance.
• Long-term rating: IND AA-/Stable.
• Promoters hold 70.03%; Public 29.87%.

Strategic Priorities & Outlook

• EBITDA margin expansion target of ~1,000 bps.
• Revenue CAGR 27%; EBITDA CAGR 30% (FY22–FY26).
• Mines-to-mill advantage; energy self-sufficiency; cost discipline.
• Capex growth funded by internal accruals; capacity additions planned.
• Decarbonization through pellets, DRI, WHRB, and solar; water recycling.

Risks & Mitigation

• Risks: earnings volatility, project delays, regulatory shifts.
• Mitigation: captive resources, self-funding; diversified revenue mix.

Governance & Leadership

• Chairman & MD: Mr. Chandra Prakash Agrawal; board includes WTDs.
• Independent directors present; promoter stake ~70%.

Appointment of CFO and KMP

• Appointment of Amit Jalan as CFO and KMP approved by the Board, effective 27 July 2026.
• Full-time employment from the effective joining date, under Companies Act 2013 and SEBI LODR 2015.
• Amit Jalan: 25+ years in finance; previously Chief Accounts Officer at Gallantt Ispat.
• Current association: Amit Jalan has been with the company since incorporation and is CAO.
• Remuneration details not disclosed in the filing.
• Annexure A contains regulatory disclosures per SEBI LODR Regulation 30.

Resignation of Statutory Auditor

• Resignation of M/s. Maroti & Associates as Statutory Auditor effective 27 July 2026.
• Reason: resignation letter states no other material reasons.

Appointment of Singhi & Co. as Statutory Auditor

• Appointed as Statutory Auditor to fill casual vacancy caused by resignation of Maroti & Associates.
• Term: hold office until the ensuing AGM.
• Profile: Singhi & Co. is a pan-India firm with ~85 years' experience.
• Disclosures: no relationship with directors disclosed.

Appointment of Amit Jalan as CFO and KMP

• Appointed as CFO and KMP of the Company.
• Effective 27 July 2026; full-time from joining date.
• Profile: 25+ years in finance; former CAO; IND-AS, budgeting, internal audit.
• Association with the Company since incorporation; currently CAO.

Auditor resignation

• Resignation of Maroti & Associates as statutory auditors accepted by the Board on 27 July 2026.
• Resignation letter dated 21 July 2026; Audit Committee noted no concerns.

Auditor appointment

• Singhi & Co. appointed to fill casual vacancy, subject to AGM approval.
• They will hold office until the ensuing AGM.

Financials

• Standalone Q1 FY27 revenue from operations ₹1,145.67 cr; PAT ₹123.66 cr; EPS ₹5.13.
• Consolidated Q1 FY27 total income ₹1,163.98 cr; PAT ₹123.56 cr; EPS ₹5.13.

Governance & Auditors

• Board accepted the resignation of M/s Maroti & Associates as statutory auditors.
• CFO and KMP Amit Jalan appointed from 27 July 2026.
• Limited review report by Maroti & Associates with unmodified opinion.

Business & Segment

• Primary business: steel and allied products; single reportable segment.
• Product mix includes pellet, sponge iron, TMT bars; power generation.

Meeting Details

• Date and time: Tuesday, July 28, 2026 at 04:00 PM IST.
• Type and mode: group earnings conference call, virtual.
• Event: Q1 FY2027 Earnings Call organized by Gallantt Ispat Ltd.
• Key participants: CEO; Vice Chairman.
• Purpose: discuss Q1 FY2027 results.