LLOYDSME — earnings call
The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.
Prepared remarks
Moderator · Conference Operator
MR. SIDDHARTH GADEKAR – EQUIRUS SECURITIES PRIVATE LIMITED Lloyds Metals and Energy Limited November 13, 2025
Ladies and gentlemen, good day, and welcome to the Lloyds Metals and Energy Limited 2Q FY
The next question is from the line of Hardik Gori from Abans PMS.
Hardik Gori
Congratulations on a great set of numbers.
Could you share the EBITDA per ton number for DRI in this quarter?
Riyaz Shaikh
The EBITDA per ton for DRI in this quarter has been -- H1 has been INR3,879.
Hardik Gori
Okay.
And what is the number for Q2?
Riyaz Shaikh
INR3,150.
Hardik Gori
Got it.
Got it.
And what was the IPS benefit in Q2 FY '26?
Riyaz Shaikh
IPS we got around INR94 crores as a benefit in Q2.
Hardik Gori
All right.
All right, sir.
And lastly, sir, if you could share the realized slurry benefit in this quarter?
Moderator · Conference Operator
The next question is from the line of Ritesh Bhagwati from Alfa Plus Capital.
Ritesh Bhagwati
My question pertains to our debt situation.
So from a stand-alone to consol, I see, we have increased to roughly around INR8,000 crores, that's like an addition of INR6,000 crores.
So is it like a project related mostly or it's primarily coming from Thriveni's consolidation?
That's my first question.
Riyaz Shaikh
Yes, it's actually coming from Thriveni's consolidation.
So INR6,000 crores -- including the RPS, the redeemable preference shares issued to the promoters for taking over of those accounts.
Ritesh Bhagwati
Okay.
And also, if you could share any comments on our negative cash conversion that we see on a consol basis?
Riyaz Shaikh
Could you repeat that question?
Lloyds Metals and Energy Limited November 13, 2025
Ritesh Bhagwati
If it's possible, can you share any comments on our negative cash conversion, CFO on our consol basis versus the stand-alone?
Riyaz Shaikh
Versus the standalone.
Part of it is because of the debt I mentioned.
Working capital might be a reason for that.
I think we'll get back to you, if you can just get in touch with us to Chintan or myself later on, then we'll get back to you on that in detail because as such, we're not able to get what are -- any negative guidance.
Ritesh Bhagwati
Sure, sir.
I'll do that.
Moderator · Conference Operator
The next question is from the line of Vinit Thakur from Plus91 AMC.
Vinit Thakur
I just wanted to know what is your estimated iron ore supply shortfall that you expect in current year 2026?
And what would be your time line for the third pellet plant?
Rajesh Gupta
The maximum that we can do in iron ore this year is around 22 million tons.
We would do a minimum of 20 million, 21 million tons of dispatches from the mine.
Part of that will be used internally for the pellet and the DRI, the balance will be sold.
We will not be having any stock to a large extent.
What was the second part of your question?
Riyaz Shaikh
Third pellet...
Vinit Thakur
What would be your timing for the third pellet plant?
Rajesh Gupta
Third pellet plant will be '28, '29 around the time that the third phase of the beneficiation plant is commissioned.
Vinit Thakur
Okay, sir.
Noted.
And has the IPS benefit been recognized?
And what is the total planned capacity of your pellet plants that you're expecting?
Riyaz Shaikh
Total capacity for my pellet plants would be 12 million tons, floating taking all 3 in those lines.
And IPS, yes, we've already started.
In this quarter, we've got INR94 crore, that has been identified.
Moderator · Conference Operator
The next question is from the line of Bhavik Shah from Invexa Capital.
Bhavik Shah
My question is related to the debt.
So, at the time of Thriveni acquisition, we were told the enterprise value was around INR5,000 crores, so around INR4,950 crores of debt.
But now when we see the September balance sheet, a gross debt stands at around INR8,000 crores -- INR7,980 crores versus INR756 crores in March.
So, there is an addition of almost, say, INR7,000-odd crores.
So, is this like you have extra debt from Thriveni?
Riyaz Shaikh
It's a console number, that INR7,900 crores is a consol number with Lloyds metals also in it.
So as in Lloyds -- as in for Thriveni, the number was around INR5,000 crores.
I don't -- when we had INR5,600 crores, which is now around INR6,000 crores, which is on account of the scaling up of the operations.
So that's a continuous business.
We have to go on for the equipment and - - plus we also have a cash balance of INR400 crores.
So the net cash would be always INR5,600 crores.
Lloyds Metals and Energy Limited November 13, 2025
Bhavik Shah
Okay.
So, we have taken around INR6,000 crores from Thriveni as debt, right?
Riyaz Shaikh
Yes, including BRPL.
Bhavik Shah
Understood, sir.
Understood.
And sir, regarding like capex, we have done around INR2,900 crores...
Riyaz Shaikh
INR2,400 crores in this half year.
Bhavik Shah
Okay.
So, what is the guidance for the remaining year?
Riyaz Shaikh
We should be doing around INR5,000 -- of INR4,500 crores to INR5,000 crores in this year.
And the next 2 years also should be around INR6,000 crores, INR6,500 crores.
Moderator · Conference Operator
The next question is from the line of Siddharth Gadekar from Equirus Securities Private Limited.
Siddharth Gadekar
Sir, my first question is on the Bharat Wire Ropes acquisition where we have acquired some CCPS.
Can you just share the rationale behind that?
And how do we see that conversion happening over the next 2, 3 years?
Riyaz Shaikh
See it was purely a financial investment.
There is no strategic direction attached to this transaction.
It is -- this company's position as an industry with a long-term potential.
For the risk-reward standpoint, the opportunity was compelling.
We are looking at around something around 18% to 20%.
And within 18 months is what's supposed to be converted.
So that is what we are looking at.
Siddharth Gadekar
Okay.
Sir, second question is on the Thriveni operations.
When we had done the acquisition we had given a road map where our mining expansion would go up to almost 123 million, 124 million tons once LMEL also ramps up.
Where do we stand on that?
And over the last 12 months, have we acquired any new projects?
Can you give some more color that how should we see '27 and '28 incrementally going ahead?
Rajesh Gupta
In the last year -- this year, we are expecting some increase in our mining operations in Odisha and two new projects which we are proposing to start is one is Indrani Patnaik mines and another is MGM Mines.
These are the 2 mines which we propose to increase in Odisha.
And in -- on the coal side, there is a -- we have got a contract from NTPC, it's 3 million tons.
So that we are also -- now the coal has been already taken out and it will start immediately in this financial year.
And the major impact would be the Surjagarh operations where earlier the capacity was 10 million, now we have got that capacity to increase to 26 million.
So these 2, 3 things taken together is going to increase the production this year.
Siddharth Gadekar
Sir, by FY '28, any guidance you want to give in terms of volumes for Thriveni?
Rajesh Gupta
FY '20...
Siddharth Gadekar
FY '27 or '28?
Rajesh Gupta
FY '27, we can just give you right now.
Lloyds Metals and Energy Limited November 13, 2025
Riyaz Shaikh
We'll come back to you by -- before the end of this conversation about '27.
We just total up all these figures, and we'll come back to you in the meantime, let's continue with the other questions.
Rajesh Gupta
FY -- revenue guidance of around INR7,800 crores to INR8,000 crores of top line.
Tons and cubic meter, I'll just work out and I'll share those things during this...
Moderator · Conference Operator
The next question is from the line of Tanmay Choudhary from Ventura Securities.
Tanmay Choudhary
My first question is on the -- can you just give me the ballpark number for the captive consumption like for the entire FY '26, like 22 million tons are targeting, how much goal for the...
Rajesh Gupta
Can you repeat the question, be a bit louder?
Tanmay Choudhary
Am I audible right now?
Rajesh Gupta
Yes, now it's better.
Tanmay Choudhary
Yes.
I'm asking like can you give me the ballpark number for the captive consumption over the open market side for the pellet and DRI side for the full year?
Rajesh Gupta
For the next year, the total market -- the self consumption would be around 8 million tons for the pellet plant give or take 0.5 million tons and around -- out of that 8 million ton, 1 million ton or 800,000 tons will be used internally and around 200,000 tons for the DRI, so around 1 point -- 1 million ton, 1.2 million tons will be used for DRI and 8 million ton for pellet.
Tanmay Choudhary
And for the open market iron ore?
Rajesh Gupta
The rest will be open, iron ore, which is, say, around 20 -- sorry, 18 million tons.
Tanmay Choudhary
Okay.
And sir, in the second half of the financial year, we're targeting for around 12 million to 14 million tons of -- so can you just throw some light of the evacuation plan and the customer concentration profile for the supply of it?
Rajesh Gupta
The customer profile for the iron ore has remains the same.
We are 100% serving our customers in the Chandrapur area, 100% -- not 100%, but out of the non-capital consumption in Raipur, most of the iron ore pellet producers are using from us around 70%, 75%.
A lot of the quantity around 40% -- 35%, 40% is going to JSW and JSPL, 100% of our product is going -- of their requirement is being fed by us to them and to Sunflag, which is more or less remained constant for the last 6, 8 months, so it's quite steady.
On the pellet front, we are, again, in our captive area of Chandrapur and Telangana is more or less 100%.
We are feeding to RINL.
We are feeding to Bhilai, also export around 70,000 tons, 60,000 tons per month we are exporting.
So by and large, that is the route we are looking at other markets also.
And we have zero stock at the moment.
Tanmay Choudhary
Understood, sir.
And sir, like what would be your framework for the evacuation like?
How much you are targeting per day of evacuation through transport and through rail and through pipeline?
Lloyds Metals and Energy Limited November 13, 2025
Rajesh Gupta
Look, by pipeline next year would be around 25,000 tons to 28,000 tons and around 60,000 tons by truck to the siding and to the rest of the market.
Moderator · Conference Operator
The next question is from the line of Dhiraj Khadilkar, an Individual Investor.
Dhiraj Khadilkar
Yesterday, we get an update regarding the purchase of 290 acres of land from Bilt Graphic Paper Product Limited.
The queries will -- what will be this land be used for?
Is it for a wire rod mill or something else?
And another query is regarding any update on coal mining block at Madhya Pradesh?
Rajesh Gupta
On the land, the land will be used, it's around 10 kilometer from our Konsari factory.
It will be used for 2, 3 purposes, including partly housing, which already exist on the land.
We'll also be using it as a switchyard station for the MSEDCL support system.
Regarding Madhya Pradesh mining, there is no update at the moment.
It is still under study and things like that.
Moderator · Conference Operator
The next question is from the line of Siddharth Gadekar from Equirus Securities Private Limited.
Siddharth Gadekar
Sir, just a couple of more questions.
So first, on the 1.2 million ton BHQ that you have mined, have you already booked these costs in the quarter?
And going ahead, will we see some more BHQ mining done before the BHQ plant comes online?
Rajesh Gupta
The costs have been booked and --- lying-in stock.
Siddharth Gadekar
And over the next 12, 15 months before the BHQ plant comes online, will we see more production on the BHQ side also?
Rajesh Gupta
Yes.
Yes, the mining plan indicates that.
The exact figures, we would know as the mining progresses.
Siddharth Gadekar
So this would be over and above the 22 million ton guidance that we are talking about, right?
Rajesh Gupta
This is over and above the 22 million tons.
Siddharth Gadekar
Okay.
Sir, secondly, on the BHQ plant, when do we expect the first plant to get commissioned and about the ramp-up also how should we think about that?
Rajesh Gupta
Next year, last quarter should be the first unit.
There are -- basically there are 3 units of 15 million ton input, each of these 3 units are -- have seen module of 5 million.
So basically, we have million 9 models of 5 million tons each.
And starting next -- last quarter of next year, we would be doing one, one module every month -- for the first 6 modules.
And then based on that, along with the steel plant, we'll be doing the last module.
Siddharth Gadekar
Sir, broadly by FY '28, we should have around 15 million coming from BHQ?
Rajesh Gupta
Output of 10 million tons, input of 30 million tons.
Siddharth Gadekar
Okay.
Got it.
Sir, secondly, on the pellets, incrementally with our second pellet plant coming in also next year, how should we think about the customer profile moving?
Lloyds Metals and Energy Limited November 13, 2025
Rajesh Gupta
Customer profile is increasing.
We are looking, like I said, at more markets towards the south of India and also more exports with CBAM and all that, we are looking to also export into Europe and things like that.
So we're looking at various options and -- we have done the overall working.
And at this moment, it's too early to divulge that in the public.
But we're very confident of the marketing strategy of that.
Like I said earlier, our cost of conversion, our captive mining, etcetera, makes us the lowest-cost producer.
Our market strength in India is there, and we hope to capture that also in the international market.
Right now, most of our exports are going to China, but we are looking at other areas in Far East, Middle East as well as Europe.
Siddharth Gadekar
Sir, lastly, this quarter, did we have any trading volumes also from pellets or only our own production?
Rajesh Gupta
Can you repeat that question, please?
Siddharth Gadekar
Did we have any trading volumes also from our associated companies on the pellet side?
Rajesh Gupta
So this quarter, the trading was around 2 lakh tons, but of iron ore -- pellet, sorry..
Moderator · Conference Operator
The next question is from the line of Vignesh SBK from Ksema Wealth.
Vignesh SBK
So just want to touch up on the debt numbers.
So considering the capex of INR6,000 crores, how should we see the debt numbers going forward...
Riyaz Shaikh
INR9,500 crores of an NCD issue.
That is what we have planned.
So going forward, that is something what we are planning to raise that debt over the next 6 months from now.
And working capital is something that we have now -- we've got sanctioned of around INR800 crores of working capital.
Vignesh SBK
So for FY '27, debt number should be around INR9,000 crores, like INR7,500 crores plus...
Riyaz Shaikh
It will be also repaying because the Thriveni loans are getting repaid also every quarter.
And even we start repaying from this month as the loans, what we have taken on a short-term basis will all start being repaid.
So it would be somewhere -- it should be around INR6,000 crores -- with the NCD is a big amount, so it should be around INR8,000 crores.
Vignesh SBK
Okay.
But any other plans for future, it should be around debt raising or mostly equity kind of thing which we are planning for?
Riyaz Shaikh
We are planning to do mostly, it should be the lease debt, so more of internal approvals as such, which will be continuously flowing in.
So we're planning aiming for a debt to EBITDA of 1, that's what our aim is, though it would be higher sometimes and it will be always a trailing the next year EBITDA.
So we're working on those lines.
Vignesh SBK
Okay.
That was helpful.
And just on the Thriveni EBITDA, any guidance for the next year?
Revenue, I guess it's around INR8,000 crores you are guided for?
How about the EBITDA number, sir?
Lloyds Metals and Energy Limited November 13, 2025
Riyaz Shaikh
INR8,000 crores and around 30%, 35% of opex EBITDA.
So I think INR2,000 crores is the right figure that we can look at given the vagaries in this year.
Vignesh SBK
Okay.
Okay.
And just regarding the IPS benefit from now on, annually, how much should we expect, sir, as a total amount, how much should be releasing?
Riyaz Shaikh
IPS would be around INR1,000 a ton for the pellet and around INR1,200 for the DRI's additional capacity.
So around INR350 crores to INR400 crores.
Vignesh SBK
Around -- annually, approximately INR400 crores.
Okay.
Rajesh Gupta
It keeps on increasing as we add on the new products.
Moderator · Conference Operator
The next question is from the line of Sumangal Nevatia from Kotak Securities.
Sumangal Nevatia
Sir, my first question is on the pellet.
So our margins at around INR5,000-odd per ton is much higher than the industry standard.
So if you can explain what are the economics here?
And assuming today's price, do we expect similar margins to continue on expanded volumes also in coming years?
Rajesh Gupta
So the level of margin is, like I mentioned earlier, amongst the highest in the country, 3, 4 reasons.
Number one is captive mine.
Number two, captive transfer by the slurry pipeline, saving of INR600 for us and INR1,000 for many other players.
Number 3 is an operating cost, which is around INR300 to INR400 lesser.
And number four, destination to destination our selling price is around INR200, INR300 higher than anybody else.
So given the factor of all of this, like I have kept saying that our company, we are building a cyclical group industry.
So the pellet industry, which is not having a very nice time in the rest of the player -- with the rest of the players.
Because of all these reasons, we are quite happy -- we can be happy, but we are quite happy with the progress.
The plant has performed very well as for textbook operations.
Our fuel cost is INR9.5.
We are going to further reduce our conversion cost by going green in the fuel by LNG in this year -- this month, maybe early next month.
25%, 35% of our power would be green in the next 6 months.
And all put together, we would save another INR100, INR150 per ton from these 2 factors alone.
So all focused on being cyclical proof.
That is our mantra, and we stand by it.
Sumangal Nevatia
Understood.
So say INR4,000 to INR5,000 range is sustainable.
That is what we can assume?
Rajesh Gupta
Given today's market, at least next to 3 months, I would say a little better or the same.
Yes.
Sumangal Nevatia
Understood.
Riyaz Shaikh
I don't see it going below INR4,000 because even at the export level it's INR4,000.
Lloyds Metals and Energy Limited November 13, 2025
Sumangal Nevatia
Okay.
Got it.
And sir, one last question on the BHQ plant.
Now given the mining has started, what are the reasons for the delay in the beneficiation plant?
Or is it some sort of inventory?
And are we looking at and then only we would commission...
Rajesh Gupta
Talking of first time industry in the country in one of the very difficult terrains.
One of the reasons is that we are waiting for the final clearance for the land.
Number 2 reason is that we are identified all the technology and doing the engineering in full depth so that when we go there, we can go full blast.
By that time, our pellet plant construction would also be over so that the team can fully focus on that side.
So with all of that, I think it's -- it's from the original schedule, we are plus/minus 6 months.
So it's within the thought process that we had originally.
Sumangal Nevatia
Understood.
And sir, margins would be similar, lower royalty will offset the higher mining costs, etcetera.
Is that the right understanding?
Rajesh Gupta
Yes.
Moderator · Conference Operator
As there are no further questions, I would now like to hand the conference over to management for closing remarks.
Rajesh Gupta
Thank you, everybody.
Thank you for all the support, and we hope to perform well with your blessing and the blessing of the market.
The steel industry is going through a tough cycle at the moment, and we hope to cross this by the time our steel plant starts so that when we are on the other side of a steel cycle, we are in full swing on the steel schedule as well.
Thank you again.
Moderator · Conference Operator
Thank you.
On behalf of Equirus Securities Private Limited, that concludes this conference.
Thank you for joining us, and you may now disconnect your lines. ****
Questions and answers
16:41:24 +05'30' · Research Analyst
“Lloyds Metals and Energy Limited
Riyaz Shaikh
Thank you, Rajeshji, for the strategic overview.
Good evening, everyone.
Let me take you through our consolidated financial and operational performance for the second quarter and first half of FY '26, followed by updates on key projects and strategic developments.
This quarter has been another strong step forward for Lloyds Metals.
We continue to build momentum across all business, translating operational execution into record financial performance.
Lloyds Metals and Energy Limited November 13, 2025 Starting with the stand-alone numbers.
To reiterate, the company has reported its highest ever quarter at half year revenue.
Our total income for quarter 2 FY '26 stood at INR25,754 million, up 75% year-on-year, driven by higher iron-ore dispatches, the commencement of pellet sales and improved logistics through the slurry pipeline.
For H1 FY '26, total income came in at INR49,838 million, higher by 28% year-on-year.
EBITDA for the quarter was INR8,693 million, up 95% year-on-year with margins at 33.75% expanding by 348 basis points.
For the half year, EBITDA stood at INR16,778 million with margins at 33.66% reflecting an improvement of 363 basis points.
Profit after tax came in at INR6,056 million for the quarter and INR12,402 million for the half year, both up 22% year-on- year.
These results highlight the growing strength of our integrated operations and the benefit of higher value-added contribution from pellets.
As mentioned by Rajeshji, we are getting more and more close towards creating a resilient business, which has minimum to least impact on account of steel cycle volatility.
Our margin improvement is both year-on-year and quarter-on- quarter is a validation of our approach.
Having said that now, moving to the segment performance.
In iron production for quarter 2 FY '26 stood at 3.42 million tons, while sales were 2.5 million tons up 77% and 10% year-on-year.
Realization averaged INR5,571 per ton stable sequentially.
EBITDA per ton improved to INR1,781, up 7% year-on-year.
These numbers have to be viewed in perspective that despite quarter 2 being the traditionally challenging quarter for mining, due to monsoon, we were able to report such robust growth in production and dispatches.
The newly commissioned pellet plant at Konsari has been ramping up well and has achieved full utilization within 4 months of commencement.
This is quite a significant milestone for us.
In quarter 2 FY '26 pellet production stood at 0.78 million tons, with realization at INR9,916 per ton and EBITDA per ton at INR5,039.
The slurry pipeline and captive ore supply has ensured cost efficiency and strong margins right from the start.
In the DRI and Power segment, DRI volumes stood at 88,200 tons, up 4% year-on-year.
Though realizations were muted due to market softness, power volumes were stable and lower, fuel cost -- and lower fuel costs helped maintain operating profitability.
On capital expenditure, our focus remains on disciplined execution.
We have commissioned our DRI expansion in Ghugus in this quarter, and the plant is ramping up well as we speak.
We have spent INR24,117 million during the first half of FY '26 with work progressing simultaneously across all active projects.
Let me also touch upon the Thriveni as well.
Thriveni is our subsidiary, which is engaged in MDO and its related services.
On a consolidated basis, Thriveni Earthmovers and Infra Private Limited delivered a steady performance.
Quarter 2 of the financial year is always a challenging quarter given the monsoon period.
This year, monsoon was extended across India, which affected volume to a large extent.
However, the team has been quite upbeat for remainder of the year.
Lloyds Metals and Energy Limited November 13, 2025 To sum up, quarter 2 FY '26 has been a milestone quarter, record revenues, margin expansion, new capacities coming online and successful strategic integration.
Each part of the business is now contributing meaningfully to our consolidated strength.
With continued execution discipline, the benefit of new capacities and operational synergy from Thriveni and the pellet plant ramp-up, we are confident of sustaining this momentum through the rest of FY '26.
Thank you very much.
And we can now open the floor for questions.
Moderator · Conference Operator
The first question is from the line of Vikash Singh from ICICI Securities.
Congratulations on good set of numbers.
Sir, just wanted to understand our iron ore selling strategy going forward, given that the iron ore prices in the domestic market are slightly under pressure.
So we are going to have almost 14 million, 15 million tons extra volume.
So would we push more volumes or the pricing is something which we keep in mind because that extra volume would further degrade our pricing scenario.
So I just wanted to understand overall scenario, how do you see this and the balancing between volumes and realization?
Riyaz Shaikh
So iron ore strategy, we would like to fill our full EC capacity, which this year stands to around 22 million tons.
Given the last few months of extra rain, we may have -- we reach between 20 million, 22 million tons.
In terms of pricing, pricing is a little down this last 2 months.
But prior to that, it has been a little better than the previous quarter year-on-year.
So it is not that it is entirely down.
It is softer in a softer regime.
And that is the cyclicality of the business, which we are addressing.
But we have well executed marketing strategy, including pelletization, including -- using internal DRI as well as captive or nearly captive consumers.
So we are quite comfortable in our marketing strategy.
Noted.
Sir, since we are selling more on the West Coast and international prices are on a declining trend, just wanted to understand your views.
Do you see further downside this to the pricing?
Or what is the discounts domestic prices are trading at versus the international imported landed price?
Riyaz Shaikh
International price versus domestic price, I think we are trading at a premium of around 35% to 45% roughly, yes, not at a discount to the international price.
International price currently, say, January is around $100 for a 61% grade, we are selling at a higher price ex people's factories.
So there is a premium.
So there...
Riyaz Shaikh
Sorry, there's a discount which is -- I'm sorry, there is a discount which is slightly lesser.
It's a steady thing.
And I think India is quite deviated from the international pricing in that way.
So I don't think that the further reduction has had any effect on the Indian pricing.
The pellet prices has come up and come down more because of the steel market, steel cycle being a little weak.
Noted.
So you don't foresee much of the risk going ahead?
Riyaz Shaikh
I don't foresee anything more than 2%, 3% market up or down in the next 6 months to 9 months.
Lloyds Metals and Energy Limited November 13, 2025
Noted.
And sir, regarding Thriveni, if I remember when we were doing the merger, our guidance for FY '26 was somewhere around INR8,000 crores with almost INR2,800 crores of EBITDA, first half seems to be on lopsided.
So, do we want to change the guidance on Thriveni?
And what caused this basically lower-than-expected achievement?
Rajesh Gupta
The guidance at the time of this merger, when we had bought in this guidance numbers, this was based on 26 million tons of EC of Lloyds metals itself, which we were expecting it to have getting it in the last quarter of the previous year.
That has -- which we received only in the month of June this year.
So first quarter, almost after -- at the end of the first quarter.
So accordingly, we have already changed this guidance.
Whenever we're talking on to everybody, it is -- it won't be those same numbers.
Our EBITDA should be anything around INR2,000 crores to INR2,000 crores -- for this year, it should be around INR2,000 crores to INR2,200 crores.
Noted.
And, sir, just lastly...
Rajesh Gupta
And all this additional EC and the ramp-up in Surjagarh mines as well as the other mines, will all happen in the second half of this year.
So we are very confident to getting reaching those numbers.
Noted.
Sir, just lastly on our upcoming integrated 3 million ton steel plant.
So sir, since you are talking about starting the project as soon as first quarter '27, could you give us the product mix which we are thinking of producing there?
Rajesh Gupta
The 3 million to 3 ton steel plant, we're not talking of starting the project...
Riyaz Shaikh
It is a half 50-50 product mix.
HR would be 50...
Rajesh Gupta
We will start the work in mid- to end '27, not the plant.
We are restarting the composition a little bit.
And the land is under acquisition right now.
We've given the detailed project study to be made to a big Chinese consultant to understand the full technology upheaval that has happened in the last 3, 4 years and take advantage of that.
So the product will ultimately be a mix between flat products, value-added flat products, value- added structural steel and color coated in terms of value-added HR coils and flat products.
It should be a mix between both.
Prior to that, in the next year, we should be able to commission our steel plant at Chandrapur, which will be 1.2 million of wire rod plant.
No. Actually, what I was coming from your Slide 23, where it has denoted that the construction work itself will start from Q1 FY '27.
So based on that, basically, I was just thinking our product profile, basically, how much of the HRC, how much of the TMT or if we are putting CRC, all these would have been...
Rajesh Gupta
Now 3 million tons of...
Already worked out.
So that's how I was actually questioning the...
Lloyds Metals and Energy Limited November 13, 2025
Rajesh Gupta
Around 3 -- the current project is based on around 3 million tons of HR coil with further downstream of 2 million tons of cold rolling and HR pickled and further downstream of around 0.5 million tons of color coated and galvanized, that was originally envisaged.
And we are under the process of restudying that mix and overall size of the plant, which will come back shortly.
We have not started anything other than land procurement at the present point of time.
Moderator · Conference Operator
The next question is from the line of Divy Agarwal from Ficom Family Office.
Divy Agarwal
A couple of questions from my side, sir.
Sir, firstly, on the gross margin front, so the gross margin has reduced around 79% in the current quarter versus an average of around 87%, 88% historically.
So I just wanted to know what led to this deduction?
And will it continue in the coming quarters?
Riyaz Shaikh
No, there is no such deduction in the gross margin in this quarter.
You're talking of the consol numbers or the...
Divy Agarwal
Stand-alone basis, sir.
Rajesh Gupta
Which is all improved and...
Riyaz Shaikh
It should improve further in the next quarter.
Divy Agarwal
Sure, sir.
And secondly, sir, on the Thriveni part.
So in the last quarter, it was mentioned that the EBITDA margin should be around 33%, while the numbers reported were around 16%.
So just wanted to know what are the -- what is because of this divergence?
Riyaz Shaikh
I'll request Mr. Naredi to address this question.