Godawari cuts FY27 mining target to 2.5 million tonnes

In FY27, Godawari Power and Ispat Limited cut its iron-ore mining guidance to 2.5 million tonnes from 3.4 million tonnes. Godawari produced 0.99 million tonnes in H1FY27, or 40% of the revised target, while it expects phased ramp-up at the expanded Ari Dongri mine to begin in Q4FY27 and full-scale operations from FY28.

What is Godawari's FY27 iron-ore mining guidance now?

Godawari's FY27 iron-ore mining guidance is 2.5 million tonnes, down 0.9 million tonnes from the earlier 3.4 million-tonne forecast. H1FY27 mining output was 0.99 million tonnes, leaving 1.51 million tonnes to be produced in the second half to meet the revised full-year plan. The H1 achievement rate was 40%.

The presentation does not assign one stated reason for the reduction from 3.4 million tonnes to 2.5 million tonnes. It says overburden-dumping permission is expected shortly and identifies Q4FY27 as the point for phased ramp-up of Ari Dongri. These disclosed milestones remain relevant to delivering the 1.51 million tonnes implied for H2FY27.

Godawari also cut its FY27 iron-ore pellet production guidance to 3.5 million tonnes from 4 million tonnes. Pellet production was 1.7 million tonnes in H1FY27, or 49% of guidance, compared with 0.35 million tonnes of sponge iron, or 54% of its 0.65 million-tonne target, and 52,001 tonnes of ferro alloys, or 55% of its 95,000-tonne target.

How much mining capacity has Godawari added at Ari Dongri?

Godawari reported total mining capacity of 6.70 million tonnes in FY26, compared with 3.05 million tonnes in both FY24 and FY25. The 3.65 million-tonne increase was added in February 2026, according to the presentation. Production rose from 2.31 million tonnes in FY24 and 2.34 million tonnes in FY25 to 2.75 million tonnes in FY26.

At Ari Dongri, Godawari received Consent to Operate from the Chhattisgarh Environment Conservation Board for capacity to increase from 2.35 million tonnes to 6 million tonnes in February 2026. Godawari says the expanded mine will ramp up in phases from Q4FY27, with full-scale operations targeted from FY28. The presentation characterises the expansion as supporting captive iron-ore security.

The revised FY27 mining target of 2.5 million tonnes is 0.25 million tonnes below FY26 production of 2.75 million tonnes, despite the FY26 capacity increase to 6.70 million tonnes. The reported figures distinguish installed capacity from annual production. Godawari has not provided an FY27 quarterly mine-production schedule beyond the Q4FY27 phased-ramp-up statement.

When will Godawari commission its beneficiation expansion?

Godawari targets commissioning its beneficiation plant by Q3FY27, with approvals secured and orders placed, according to the presentation. Mine-based beneficiation capacity is planned to increase to 6 million tonnes in FY27 from 0.6 million tonnes in FY26. At-plant beneficiation capacity is listed at 3.3 million tonnes in both years.

Total beneficiation capacity is therefore planned at 9.3 million tonnes in FY27, up from 3.9 million tonnes in FY26. Godawari reported capital expenditure of Rs 258 crore on the project up to September 30, 2026. The presentation describes the project as an ore-quality upgrade roadmap and says permission for overburden dumping is expected shortly.

The planned 9.3 million tonnes of beneficiation capacity exceeds the 2.5 million-tonne FY27 mining guidance by 6.8 million tonnes, but the measures address different stages of the operating chain. The source identifies beneficiation as ore-quality processing and mining as extraction. It does not disclose expected beneficiation throughput, recovery rates, or the financial impact of commissioning in FY27.

How does Godawari's mining revision compare with its pellet plan?

Godawari reduced FY27 pellet guidance by 0.5 million tonnes to 3.5 million tonnes, compared with a 0.9 million-tonne cut in mining guidance to 2.5 million tonnes. Its pellet capacity was expanded by 74% to 4.7 million tonnes after capital expenditure of Rs 600 crore. The presentation says operations at the new pellet plant are fully established.

Godawari expects utilisation of the 4.7 million-tonne pellet plant to ramp up to 75% in FY27. That rate corresponds arithmetically to 3.525 million tonnes, close to the 3.5 million-tonne pellet-production guidance. The 1.7 million tonnes produced in H1FY27 represented 49% of pellet guidance, against 40% for mining.

The presentation frames the Ari Dongri expansion around captive iron-ore security and cost leadership, but it does not disclose a per-tonne ore cost, captive-ore saving, or pellet margin from the project. The operating milestones disclosed are beneficiation commissioning by Q3FY27, the expected overburden-dumping permission, and phased Ari Dongri ramp-up from Q4FY27.

How did Godawari's earnings change during H1FY27?

Godawari's consolidated net sales increased 29% year on year to Rs 3,382 crore in H1FY27, while consolidated EBITDA, or earnings before interest, tax, depreciation and amortisation, declined 9% to Rs 530 crore. EBITDA margin fell to 15.66% from 22.21% in H1FY26. Consolidated profit after tax from ordinary activities declined 19% to Rs 307 crore.

In Q2FY27, consolidated net sales rose 25% year on year to Rs 1,632 crore but fell 7% sequentially from Rs 1,750 crore in Q1FY27. Q2FY27 EBITDA was Rs 196 crore, down 25% year on year and 41% sequentially, while EBITDA margin was 12.01%, compared with 19.89% in Q2FY26 and 19.07% in Q1FY27.

Godawari's consolidated balance-sheet figures show cash and cash equivalents of Rs 704 crore at September 30, 2026, versus Rs 1,145 crore at March 31, 2026. Property, plant and equipment increased to Rs 4,154 crore from Rs 3,754 crore over the same period, while short-term borrowings rose to Rs 392 crore from Rs 189 crore.

Conclusion

Godawari's revised 2.5 million-tonne FY27 mining target is below the 2.75 million tonnes produced in FY26, even though total mining capacity reached 6.70 million tonnes after the Ari Dongri expansion. The H1FY27 output of 0.99 million tonnes, alongside a reduction in pellet guidance to 3.5 million tonnes, shows that reported capacity additions and planned production remain on different timelines.

The next disclosed milestones are commissioning of the beneficiation plant by Q3FY27, the expected overburden-dumping permission, and Ari Dongri's phased ramp-up from Q4FY27. Godawari targets full-scale Ari Dongri operations from FY28, while FY27 mine-based beneficiation capacity is planned to reach 6 million tonnes from 0.6 million tonnes in FY26.