Lloyds Metals Expands Pellet and Energy Plans in 2026

A broader operating and investment agenda

Lloyds Metals and Energy is moving beyond its earlier identity as an India-focused iron ore and sponge iron producer. The company’s recent announcements point to a wider platform spanning iron ore, pellets, steel-linked operations, renewable power and investments in subsidiaries. Its commissioning of a second pellet plant at Konsari has lifted total pellet capacity to 8 million tonnes per annum, or MTPA. At the same time, Lloyds Metals has increased its stake in Thriveni Earthmovers and Infra Private Limited, or TEIL, and approved investments in captive renewable-energy projects. These decisions add operating scale but also increase the capital requirements and execution demands on the company. The company’s board has consequently approved multiple potential debt-raising routes.

The developments matter because pellets, captive power and mining services can shape costs and supply integration across a steel and mining business. Lloyds Metals has described its pellet operations as integrated with captive iron ore mines, allowing it to produce premium-grade pellets. The company is also pursuing renewable power for captive consumption, rather than presenting the transaction as a standalone electricity-sales venture. Its announced investments therefore need to be viewed as part of a larger effort to build an integrated industrial platform.

Konsari plant takes pellet capacity to 8 MTPA

Lloyds Metals commissioned its second 4 MTPA pellet plant at Konsari, Maharashtra, completing the project in 16 months. The new facility takes the company’s aggregate pellet capacity to 8 MTPA. According to the company, the plant is linked to captive iron ore mines and is intended to support premium-grade pellet production. The expansion positions Lloyds Metals among India’s larger merchant pellet producers, based on the company’s stated operating profile.

The company reported a sharp rise in pellet output in the first half of FY27. Pellet production rose 372% year on year to 3.8 million tonnes, with 100% capacity utilisation reported for the period. Iron ore production increased 36% year on year to 10 million tonnes. Direct reduced iron, or DRI, production rose 104% to 343,064 tonnes. These figures show the production impact of the company’s ongoing capacity build-out, although the disclosures do not provide corresponding revenue, profitability or realisation data.

Metso order supports ore filtration projects

Metso has received an order to supply filtration technology to Lloyds Metals’ iron ore concentrate filtration plants at Ghugus, Manikgarh and Konsari in Maharashtra. The disclosed scope covers filtration technology for the company’s iron ore concentrate operations. The announcement did not disclose the value of the order or the scheduled completion date. Still, the order is relevant to the company’s effort to build processing infrastructure around its mining and pellet operations.

Filtration is a supporting process in iron ore concentration and pellet-making chains. For Lloyds Metals, the projects at the three Maharashtra locations fit with the stated strategy of integrating ore resources with downstream pellet capacity. The available information does not specify expected production additions from these filtration plants. It also does not provide cost savings, recovery rates or commissioning milestones. Investors will therefore need to rely on future operational disclosures for measurable outcomes from the equipment deployment.

TEIL investment raises holding to 71.89%

On September 28, 2026, Lloyds Metals was allotted 35 million equity shares in TEIL through a rights issue or further issue of capital. The shares were issued at ₹173.36 each for a total consideration of ₹606.76 crore. The shares were credited to Lloyds Metals’ demat account on October 8, 2026, completing the announced investment. Following the allotment, Lloyds Metals held 735 million TEIL shares, equal to 71.89% of TEIL’s issued and paid-up equity share capital.

The company had earlier approved a further investment of up to ₹625 crore in TEIL. The completed ₹606.76 crore subscription is within that approved limit. A higher holding gives Lloyds Metals greater exposure to the subsidiary’s activities, while also committing more capital to a non-wholly owned operating unit. The supplied disclosures do not state TEIL’s financial performance, use of proceeds or future project targets. As a result, the immediate confirmed fact is the increase in Lloyds Metals’ ownership and the cash investment made for the share subscription.

Renewable power investments target captive use

Lloyds Metals entered into a Share Subscription and Shareholders Agreement on August 10, 2026 to acquire at least a 26% stake in Amplus Green One Power Private Limited. The transaction involves a cash consideration of ₹29.66 crore, while the stated transaction value is approximately ₹30 crore. The investment is intended for captive consumption of renewable wind power. It forms part of a wider initiative that also includes proposed stakes in Amplus Energy One Private Limited and Amplus Ceres Solar Private Limited.

The Amplus Green One Power transaction remains subject to compliance with the Electricity Act, 2003, and other regulations applicable to captive power generation in Maharashtra. It also requires approval by the relevant regulatory board or committee and the acquirer’s board approval of the offer. Lloyds Metals has indicated expected completion by the end of FY27. Separately, the company acquired an additional 12.27% stake in Hexa Energy MH3 Private Limited for ₹3.15 crore. That acquisition increased its holding in Hexa Energy MH3 to 29.72%, or 44,681 equity shares.

Earlier pellet acquisition adds another dimension

In August 2025, Lloyds Metals agreed to acquire a 49.99% stake in Brahmani River Pellets Limited for ₹486 crore. The stated consideration comprised ₹200 crore in cash and Lloyds Metals common equity valued at ₹286 crore. The transaction introduced an additional pellet-related investment alongside the company’s own Konsari capacity additions. The supplied material does not state whether the acquisition has completed or provide an updated ownership status.

The Brahmani River Pellets agreement shows that Lloyds Metals’ pellet strategy is not confined to organic capacity creation. It combines plant commissioning, mining-linked processing infrastructure and equity participation in another pellet company. This broadens the company’s exposure to the pellet market but makes the overall capital programme more complex. The available disclosures do not quantify the consolidated output or financial contribution expected from Brahmani River Pellets. No conclusion on its impact on earnings can therefore be drawn from the stated facts alone.

Funding plans point to a larger capital requirement

Lloyds Metals’ board approved issuance of non-convertible debentures, or NCDs, of up to ₹3,000 crore through private placement. It also approved raising up to $130 million through US dollar-denominated notes or other debt securities, with an option to upsize by an additional $50 million. The company subsequently described the approved foreign-currency fundraising limit as up to $180 million. Its filings also state that a previously planned ₹600 crore NCD issue was cancelled.

The planned instruments provide the company with potential funding avenues as it pursues mining, pellet, subsidiary and renewable-energy investments. However, approval to raise funds does not confirm that all securities will be issued or that the full approved amounts will be raised. The disclosures do not specify coupon rates, tenors, security, issue dates or final use of proceeds for the proposed debt. These details will be important in assessing the future balance-sheet effect of the expansion programme.

Environmental services contract begins in 2027

Harsco Environmental, a division of Enviri Corporation, announced a 10-year contract with Lloyds Metals in February 2026. Under the agreement, Harsco will design, build, commission, operate and maintain a metal recovery plant and associated slag-processing operations at Lloyds Metals’ integrated steel plant in Maharashtra. The contract is scheduled to begin in 2027. Harsco said the agreement is expected to create 54 jobs in the region.

The arrangement adds a waste-processing and metal-recovery element to Lloyds Metals’ steel-site operations. The announcement does not disclose the contract value, the planned processing capacity or an expected financial contribution to Lloyds Metals. It does, however, identify a defined operational step scheduled for 2027. Alongside the company’s renewable-power investments, the contract indicates that resource efficiency and operational support services are becoming part of the wider expansion programme.

What investors will need to monitor

Lloyds Metals has combined a substantial increase in pellet capacity with investments in renewable captive power, a larger stake in TEIL and prospective debt issuance. This changes the company’s profile from one centred mainly on iron ore and sponge iron to a more diversified mining, pellets, steel and energy-linked platform. The main confirmed operating indicator is the strong growth in iron ore, pellets and DRI production during H1FY27. The main financial issue is the scale and structure of capital required for the programme.

Near-term milestones include regulatory and corporate approvals for the Amplus Green One Power transaction, which is expected to complete by the end of FY27. Investors will also watch for terms and actual issuance of the proposed NCDs and US dollar-denominated securities. Further disclosures on the Metso filtration projects, the Harsco contract beginning in 2027 and the status of the Brahmani River Pellets transaction may provide greater clarity on execution. For now, the company’s announcements establish an expanding asset base alongside a larger financing and implementation agenda.