Lloyds Metals FY26 results: FY27 volumes and ₹15,000 cr capex

FY26 at a glance: scale-up across mining and pellets

Lloyds Metals & Energy reported a sharp step-up in FY26, driven largely by mining volumes and a rapid ramp-up in value-added output. The company disclosed FY26 revenue of ₹13,838 crore, up 104% year-on-year, EBITDA of ₹4,673 crore, up 133%, and profit after tax (PAT) of ₹3,194 crore. Separately, it also reported consolidated total revenue of ₹17,306.40 crore for FY26, up 155%, with consolidated PAT of ₹3,828.64 crore, up 163%. Operationally, the centrepiece was iron ore production of 21.96 million tonnes (MT), up 120% from 10 MT in FY25. Pellet production in FY26 stood at 3.03 MT, with management highlighting that the pellet plant achieved 100% annualised capacity utilisation within four months.

Iron ore ramp-up: Gadchiroli production more than doubled

The company said iron ore output increased from about 10 MT in FY25 to 21.96 MT in FY26, a jump it linked to faster mining execution and improved evacuation. It described the four-month ramp-up as “world-class execution,” and pointed to Gadchiroli as one of India’s largest iron ore deposits. The scale-up was also visible in quarterly numbers, with Q4 FY26 iron ore volumes reported at about 9.1 MT, up 529% year-on-year. Lloyds Metals also reported FY26 iron ore sales volume of 16.18 MT, up 71% year-on-year.

Slurry pipeline commissioning improves evacuation

In its FY26 operational update and exchange commentary, the company cited slurry pipeline commissioning as a key factor supporting higher output. The pipeline was positioned as an enabler for more efficient ore evacuation, helping convert mined volumes into dispatchable material. Separately, management commentary also referenced a “doubled pipeline capacity,” indicating additional throughput support for higher guidance numbers. While the company did not quantify the pipeline’s contribution, it repeatedly linked logistics execution with the FY26 production surge.

Pellet plant: from zero to 3 MT and 100% utilisation

Pellet output of 3.03 MT in FY26 stood out because the plant ramped quickly and reached full annualised utilisation within four months, according to company statements. Management has framed pellets as a higher realisation product than raw ore, suggesting a potential mix change as pellet volumes rise. For FY27, the pellet target is 7.75-8 MT, which management described as a 160%+ jump from the FY26 base. If achieved, this would make pellets a much larger share of total shipments compared with FY26.

DRI and additional capacity: FY26 base and FY27 target

Lloyds Metals reported DRI production of 484,000 tonnes in FY26, up 57% year-on-year. It also said a new 360 KTPA DRI facility at Ghugus was commissioned in Q2 FY26. For FY27, management guided to DRI production of around 825,000 tonnes. This is a key part of the company’s stated plan to broaden beyond mining and pellets into further downstream products.

FY27 guidance: higher volumes, dispatches, and wire rod entry

FY27 guidance provided by the company sets out the next set of operational targets. Iron ore production guidance is 26 MT, up about 18% from FY26. Management also spoke about dispatches of 27 MT in FY27, alongside pellet production of 7.75-8 MT. In addition, it guided for first wire rod production, marking formal entry into steel making, with wire rod mill output indicated at around 150,000 tonnes, with another disclosure pointing to 0.15-0.2 MT.

Management also anchored the 26 MT iron ore target to visible run rates. It stated that the April 2026 run rate was already about 2 million tonnes per month, and called the 26 MT target “not aspirational” given the current trajectory.

New mines and ore processing: incremental levers

The company said the Dalpahar iron ore mine is a new mine expected to commence operations in Q1 FY27, with a FY27 production target of 3 MT. It also mentioned another mine with a FY27 production target of 1.5 MT. In addition, the company noted that mined ore production excludes 9.2 MT of banded hematite quartzite (BHQ), which it plans to process once beneficiation plants are commissioned. These disclosures indicate further moving parts in the supply chain, including beneficiation-linked upgrades that are yet to be commissioned.

Capex plan and funding: ₹15,000 crore program and no equity dilution

The company outlined a ₹15,000 crore consolidated capital expenditure program as part of its next phase. It also stated that this capex program is planned with no equity dilution. In an earnings interaction excerpt included in the provided text, management indicated that “next year” debt could be around ₹10,000-12,000 crore, though the context suggests this was discussed as part of forward funding needs rather than a reported closing debt figure.

Key numbers table: FY26 performance and FY27 guidance

Market impact: what the numbers change for investors

The FY26 data points highlight a shift from a mining-only scale story to a broader mix that includes pellets and DRI. The most immediate market-relevant change is the company’s ability to sustain higher iron ore output while growing dispatches, supported by logistics such as the slurry pipeline. FY27 pellet guidance, if delivered, could change the revenue mix because management explicitly positioned pellets as higher realisation than raw ore. The wire rod plan adds a new downstream category, but it starts at a relatively small base compared with mining volumes. Investors also tend to focus on whether the ₹15,000 crore capex can be executed without equity dilution, as stated, and what the associated debt trajectory looks like given management’s reference to ₹10,000-12,000 crore debt “next year” in an interaction.

Why this matters: execution, clear run rates, and the next scaling test

The FY26 ramp-up is notable because it combined volume growth, a quick pellet plant stabilisation, and expansion in DRI output. The company’s emphasis on April 2026 run rates of about 2 MT per month is important because it links guidance to observed execution rather than only long-range capacity statements. At the same time, FY27 targets extend beyond iron ore into pellets, DRI and steel, which increases operational complexity. The start-up of new mines in Q1 FY27 and the future beneficiation of BHQ add more moving parts that can influence production quality and product mix over time.

Conclusion: FY27 becomes the delivery year for mix change

Lloyds Metals’ FY26 results were anchored by a 120% jump in iron ore production to 21.96 MT and a rapid pellet ramp to 3.03 MT. For FY27, the company has guided to 26 MT of iron ore, 7.75-8 MT of pellets, 825,000 tonnes of DRI, and initial wire rod output as it enters steel making. The next milestones to track are Q1 FY27 progress at the new Dalpahar mine, dispatch levels toward the 27 MT commentary, and updates on the ₹15,000 crore capex execution plan.