Lloyds Metals approves Rs 3,240 crore 360 MW plant at Konsari

Lloyds Metals and Energy Limited has approved a Rs 3,240 crore, 360 megawatt thermal power plant at Konsari, Maharashtra, comprising two 180 MW units for its integrated Hedri and Konsari operations. Lloyds Metals expects completion by March 2029, subject to necessary regulatory and statutory approvals, according to its 3 November 2026 board announcement.

What has Lloyds Metals approved at Konsari?

Lloyds Metals has approved a new 2 × 180 MW thermal power plant at Konsari, creating aggregate installed capacity of 360 MW. The company listed existing capacity and capacity utilisation as not applicable because this is a new thermal plant rather than an expansion of an operating unit.

The plant is intended primarily to meet the power requirements of Lloyds Metals' integrated operations at Hedri and Konsari. The announcement does not disclose fuel supply arrangements, generation technology, construction contractors, unit-wise commissioning dates, output allocation between the two sites, or whether electricity beyond internal requirements could be sold.

When will Lloyds Metals complete the Konsari thermal plant?

Lloyds Metals expects to complete the 360 MW Konsari plant by March 2029, subject to necessary regulatory and statutory approvals. The disclosed timing is an expectation rather than a fixed commissioning commitment, and the company has not identified individual approvals, a construction start date or interim execution milestones.

The board approval comes during a wider capital build-out. Standalone capital work-in-progress, or CWIP, was Rs 8,210.67 crore at 30 September 2026, compared with Rs 5,739.06 crore at 31 March 2026, an increase of Rs 2,471.61 crore in six months. CWIP records spending on assets under construction, but the filing does not separately identify expenditure for the newly approved Konsari project.

Standalone property, plant and equipment was Rs 8,541.58 crore at 30 September 2026, up from Rs 6,610.99 crore at 31 March 2026. Lloyds Metals includes CWIP in the steel and related value-added-products segment's assets, although those reported balance-sheet figures do not specify the share attributable to power generation at Konsari.

How will Lloyds Metals finance the Rs 3,240 crore plant?

Lloyds Metals proposes to finance the Rs 3,240 crore thermal project through a mix of debt, equity and internal accruals, with the final mix to be determined by the company. It has not disclosed a debt-equity split, lenders, financing cost, equity issuance plan or the amount of internally generated funds intended for the project.

Standalone long-term borrowings stood at Rs 7,709.20 crore on 30 September 2026, compared with Rs 2,096 crore at 31 March 2026. Current borrowings moved in the other direction, falling to Rs 1,872.06 crore from Rs 3,323.39 crore. The standalone debt-equity ratio was 0.66 at 30 September 2026, compared with 0.46 at the preceding year-end.

Lloyds Metals reported standalone net cash inflow from operating activities of Rs 3,212.17 crore for the half year ended 30 September 2026, while purchases of property, plant and equipment were Rs 6,052.32 crore. Net borrowing proceeds were Rs 4,161.88 crore in the same six-month period. These cash-flow figures predate the 3 November board approval and cover the company's wider activities rather than the new plant alone.

What do Lloyds Metals' recent results show?

Lloyds Metals reported standalone revenue from operations of Rs 4,132.03 crore for the quarter ended 30 September 2026, compared with Rs 2,547.98 crore a year earlier and Rs 5,412.91 crore in the June 2026 quarter. Profit after tax was Rs 1,111.89 crore, up from Rs 605.58 crore in the September 2025 quarter but below Rs 1,526.89 crore in the preceding quarter.

The year-on-year revenue increase was led by steel and related value-added products, whose segment revenue rose to Rs 2,934.95 crore from Rs 1,200.17 crore. Mining segment revenue was Rs 1,531.49 crore, marginally below Rs 1,594.87 crore a year earlier. Against June 2026, mining revenue fell from Rs 3,502.61 crore while steel revenue increased from Rs 2,195.18 crore, changing the mix of segment activity.

For the half year ended 30 September 2026, standalone revenue from operations reached Rs 9,544.95 crore, compared with Rs 4,927.86 crore in the prior-year period. Profit after tax rose to Rs 2,638.82 crore from Rs 1,240.16 crore, while the reported operating earnings before interest, tax, depreciation and amortisation margin was 38.33%, compared with 32.91% a year earlier.

What other power plans has Lloyds Metals disclosed?

Lloyds Metals has also granted enabling approval to evaluate investments in renewable-energy projects to procure 168 MW through the captive route. The company said potential investments and associated power-procurement arrangements could be implemented in one or more tranches to support long-term operational and energy requirements.

The renewable proposal remains at an evaluation and enabling-approval stage, unlike the Konsari plant, for which Lloyds Metals has disclosed Rs 3,240 crore of estimated capital expenditure and a March 2029 completion expectation. Project locations, investment amounts, counterparties and timing for the 168 MW proposal have not been disclosed.

Lloyds Metals said the terms of the renewable investments and procurement arrangements will be disclosed after further approval by the board or an authorised board committee. That leaves the precise structure of the captive renewable programme unresolved even as the company has set out the initial parameters of the 360 MW thermal facility.

Conclusion

The Konsari approval gives Lloyds Metals a defined Rs 3,240 crore plan to add 360 MW of thermal generation primarily for its Hedri and Konsari integrated operations. The decision follows a half year in which standalone steel and related value-added-products revenue reached Rs 5,130.12 crore, slightly exceeding mining revenue of Rs 5,034.10 crore, alongside higher CWIP and long-term borrowings.

The next developments to watch are the required regulatory and statutory approvals, the eventual debt-equity-internal-accrual funding structure and progress toward the March 2029 completion expectation. Lloyds Metals is also evaluating captive renewable projects for 168 MW, with project terms to be disclosed after further board or committee approval.