Lloyds Metals H1FY27 EBITDA margin reaches record 38.33%

In the first half of FY27 (H1FY27), Lloyds Metals reported a record standalone earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 38.33%, up 542 basis points year on year, as revenue from operations rose 94% to Rs 9,544.9 crore and EBITDA increased 126% to Rs 3,658.3 crore.

What drove Lloyds Metals’ record H1FY27 EBITDA margin?

Lloyds Metals attributed its 38.33% standalone H1FY27 EBITDA margin to higher iron-ore EC limits, faster pellet-plant ramp-up, improved sponge-iron volumes, slurry-pipeline savings and a larger contribution from value-added products. EBITDA grew 126% year on year, exceeding the 94% increase in revenue from operations, while the margin increased by 542 basis points.

Standalone H1FY27 revenue of Rs 9,544.9 crore produced EBITDA of Rs 3,658.3 crore and profit after tax (PAT) of Rs 2,638.7 crore. Lloyds Metals also cited higher realisations across products and operating leverage, while saying domestic demand remained positive. The presentation does not provide a numerical demand or price outlook.

The slurry pipeline was a disclosed cost-saving mechanism. Lloyds Metals reported approximate savings of Rs 89 crore from slurry-pipeline efficiency in Q2FY27, alongside 3,800 kilolitres of diesel avoided. Its diversified power mix generated approximate Q2FY27 cost savings of Rs 26.1 crore, while replacement of low-sulphur heavy stock with liquefied natural gas for green pellets saved approximately Rs 10.6 crore.

How did Lloyds Metals’ Q2FY27 results compare with earlier quarters?

Lloyds Metals’ Q2FY27 standalone EBITDA margin was 37.2%, below 39.2% in Q1FY27 but above 33.0% in Q2FY26. Q2FY27 revenue was Rs 4,132 crore and EBITDA was Rs 1,538 crore, compared with Rs 5,412.9 crore and Rs 2,120.2 crore respectively in Q1FY27.

Against Q2FY26, Q2FY27 revenue increased 62%, EBITDA rose 83% and PAT grew 84%. The half-year margin of 38.33% therefore combined a 39.2% margin in Q1FY27 with a 37.2% margin in Q2FY27.

Which products shifted Lloyds Metals’ Q2FY27 sales mix?

Lloyds Metals’ Q2FY27 revenue mix shifted towards steel and related value-added products, which accounted for 61% of revenue, compared with 43% in Q2FY26. Their share of earnings before interest and tax rose to 67% from 49%, while mining’s revenue contribution fell to 39% from 57%.

Value-added-products revenue was Rs 2,841.5 crore in Q2FY27, higher than Rs 2,098.2 crore in Q1FY27, despite total standalone revenue declining sequentially. Value-added-products EBITDA reached Rs 1,096.1 crore in Q2FY27, exceeding iron-ore EBITDA of Rs 442 crore; its EBITDA margin was 38.57%, compared with 34.26% for iron ore.

Pellet production was 2.11 million tonnes in Q2FY27 and 3.81 million tonnes in H1FY27, following commissioning of the second pellet plant in May 2026. H1FY27 pellet realisation was Rs 11,520 per tonne and EBITDA was Rs 4,988 per tonne. Pellets sales were 71% domestic and 29% exports.

Direct reduced iron (DRI) sales volume was 160.60 thousand tonnes in Q2FY27 and 343.06 thousand tonnes in H1FY27, up 81% and 104% year on year respectively. H1FY27 DRI realisation was Rs 29,082 per tonne and EBITDA was Rs 7,593 per tonne, while power volumes increased 85% year on year.

How did Lloyds Metals’ standalone and consolidated H1FY27 results differ?

Lloyds Metals reported a consolidated H1FY27 EBITDA margin of 35.84%, below its 38.33% standalone margin. Consolidated revenue was Rs 12,822.6 crore and EBITDA was Rs 4,595.6 crore, up 112% and 151% year on year respectively, while the consolidated margin increased by 546 basis points.

Consolidated PAT was Rs 2,790.9 crore in H1FY27, compared with standalone PAT of Rs 2,638.7 crore. TEIPL’s H1FY27 revenue rose 43% year on year and EBITDA increased 85% to Rs 883.6 crore. The presentation also reported Q2FY27 copper production of 1,636 tonnes and earnings before interest and tax of US$4.86 million, while identifying high acid and logistics costs as constraints.

What do Lloyds Metals’ capex and debt figures indicate?

Lloyds Metals incurred standalone capital expenditure of Rs 6,052.3 crore in H1FY27, including Rs 3,047 crore in Q2FY27, after Rs 13,513 crore during FY24 to FY26. Standalone net debt was Rs 9,315.5 crore as of September 30, 2026.

Consolidated net debt was Rs 19,916.8 crore on September 30, 2026. In FY2025-26, the group and Virtus acquired 100% of Chemaf Group and its subsidiaries with approximately US$804 million of borrowings that Lloyds Metals said were fully non-recourse to it. Based on executed settlement agreements, management estimated a total Chemaf debt cash settlement of US$250 million or less.

Management said the estimated settlement could reduce group debt by approximately Rs 5,315.1 crore, taking group net debt to Rs 14,601.7 crore. This is a management estimate rather than a completed reduction, and the presentation does not disclose a settlement completion date.

Conclusion

Lloyds Metals’ standalone H1FY27 performance showed EBITDA growing faster than revenue, with EBITDA up 126% to Rs 3,658.3 crore against a 94% revenue increase to Rs 9,544.9 crore. The record 38.33% margin was associated with higher iron-ore EC limits, pellet ramp-up, DRI volume growth, pipeline savings and a 61% Q2FY27 revenue contribution from steel and related value-added products.

The next disclosures to watch are progress in the Rs 6,052.3 crore H1FY27 capex programme, continuation of the stated monthly iron-ore run rate of about 2 million tonnes or more, and the Chemaf debt settlement. Management’s estimated settlement would reduce consolidated debt by approximately Rs 5,315.1 crore if completed on the disclosed terms.