Lloyds Metals & Energy LtdQ1 FY27
Lloyds Metals & Energy Ltd Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹1,845P/E: 22.0Market Cap: ₹1.1L CrSector: Minerals & Mining
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
Yes
Order
N/A
Capex
Yes
2 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 2- →Thriveni expects revenue growth from ramping up production at two mines in Odisha and scaling up gold and PB coal mining operations.
- →Odisha volumes are forecasted to grow 39% year-on-year to 34-35 million tons in FY '27.
- →BHQ beneficiation plant commissioning by March '28 is expected to yield 16-17 million tons annually.
- →Iron ore production to reach 26 million tons and pellet production around 8 million tons in FY '27.
- →Approximately 2.4 million tons of iron ore and pellets will be consumed internally by FY '28 steel plants.
- →Lloyds anticipates full production at the 26-55 million ton iron ore plant with associated revenue gains.
- →Logistics fleet expansion with electric and LNG vehicles aims to improve EBITDA margins from 32% to 40%.
- →Copper production expected to increase 8x—from 8,000 to 96,000 tons in next years.
- →Capex of around INR11,000 crore over next 2 years to support growth; steel plant commissioning targeted by March '27.
Margin guidance
Category 3- →Thriveni aims to sustain 28%-30% EBITDA margins for the full year despite interim cost pressures, confident of margin recovery as pass-throughs conclude and volumes scale.
- →Iron ore volumes in Odisha expected to grow 39% year-on-year to 34-35 million tons in FY '27, contributing to volume-driven earnings growth.
- →New mining projects in Odisha (Laserda-Pacheri and Dalpahar) offer higher EBITDA margins (~40%), supporting profitability.
- →Capex guidance: Around INR11,000 crores for next 2 years, increasing to INR15,000-20,000 crores in the third year, aimed at downstream, beneficiation, and steel projects fueling growth.
- →The integrated steel plant is expected to start commissioning by March 2027, expanding steel production capacity and revenue streams.
- →Copper division projects (e.g., Chemaf and Panguna) foresee 8x growth in copper production over next few years, indicating future significant earnings contribution though margins remain cyclical.
- →Margin expansion driven by value-added product mix (41% revenue contribution) and efficiency gains like slurry pipeline and green logistics.
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Fundraise plans
Yes- →Thriveni Earthmovers and Infra is raising around INR 650 crores to reduce high-cost debt and fund capex, including converting conventional equipment to electrical and investing in overseas subsidiaries for mining operations (Page 15).
- →For the copper division JV asset, a capex of around $300 million is planned over the next 9 months, with funding through a mix of equity infusion and debt. Discussions are ongoing with U.S., African, and Indian financial institutions for financing. Financial closure is expected in about 3 months (Page 7).
- →No specific announcement of new equity fundraise outside these mentioned; capital markets confidence cited for potential future larger steel plant expansion, but no finalized Board-approved plan yet (Page 14).
- →The company aims to replace high-cost debt with these fundraises and optimize capital structure going forward (Page 15).
Order book
The transcript does not explicitly mention the current or expected order book or pending orders for Lloyds Metals and Energy Limited. However, relevant points indicating strong business momentum include:
- Gadchiroli operations ramping up with enhanced ROM capacity from 10 to 55 million tons per annum.
- Odisha volumes expected to grow 39% YoY to 34-35 million tons in FY '27.
- Commencement of new mining operations (Laserda-Pacheri and Dalpahar).
- Thriveni Sainik operations retaining 5-star rating and leading position among open-cast mines.
- Logistics segment expanding green vehicles fleet with cost savings and improved EBITDA.
- Ongoing projects including BHQ beneficiation, pellet plants, slurry handling systems, and steel plant commissioning.
- Active focus on contract negotiations and financial closure for copper projects (Chemaf and Panguna mines).
These points reflect a robust project pipeline and ongoing contract executions but no specific order book values were disclosed.
Capex plans
Yes- →Capex guidance of around INR 11,000 crores for the next 2 years, increasing to between INR 15,000 crores and INR 20,000 crores in the third year.
- →INR 8,500 crores capex planned this year for ongoing projects including the ISP in Konsari; INR 3,000 crores already spent in Q1.
- →$300 million capex planned for foreign operations, mainly for copper projects in Congo and Papua New Guinea, to be spent within the current financial year.
- →Investment for converting conventional equipment to electrical equipment, reducing high-cost debt, and funding subsidiaries for mining contracts (especially MDO contracts).
- →The BHQ beneficiation plant scheduled for commissioning by March 2028 with expected 16-17 million tons annual output.
- →Plans to raise INR 650 crores in Thriveni Earthmovers and Infra mainly to repay high-cost debt and support capex.
- →Exploration and studies ongoing for PNG copper project, with capex decisions expected after finalizing feasibility and financial closure.
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