India: Godawari records 2.45 mnt of pellet production in FY’25, eyeing 3 mnt output in FY’26

• Average sales realisation edges down q-o-q
• Iron ore output increases 31% q-o-q

Godawari Power and Ispat Limited (GPIL), a leading steelmaker in central India, witnessed an 11% increase in pellet production at 677,950 tonnes (t) in Q4FY’25 against 610,800 t in Q3. This was declared in the company’s Q4FY’25 results recently. Meanwhile, the company’s pellet production stood at 2.45 million tonnes (mnt) in FY’25, largely stable y-o-y as compared to 2.44 mnt in the year-ago period. The company is targeting 3 mnt of pellet output in FY’26.

Iron ore production in Q4 was at 708,739 t, up 31% q-o-q as compared to 541,509 t in Q3. Additionally, iron ore production increased marginally by 2% y-o-y to 2.34 mnt in FY’25 as compared to 2.31 mnt in FY’24.

Performance highlights

Financial 

EBIDTA up q-o-q: The company’s standalone EBITDA was recorded at INR 318 crore in Q4, a 44% hike as against INR 221 crore in the previous quarter.

PAT rises q-o-q: GPIL’s profit after tax (PAT) rose by 53% to INR 222 crore in Q4 from INR 145 crore in Q3. However, PAT decreased by 13% y-o-y to 813 crore compared to 936 crore in FY’24. Profitability declined due to reduced production of iron ore and pellets, along with lower realisations across most products, except ferro alloys. The decline in the company’s revenue, EBITDA, and PAT is primarily attributable to reduced realisation from finished products.

Average pellet sales realisation dips: GPIL’s average sales realisation stood at INR 9,528/t in Q4, decreasing by 4% from INR 9,974/t in Q3. The company is showing a smart and flexible approach by putting its greenfield steel project on hold. This allows it to adjust to market conditions and focus on investments that give better returns.

Upcoming capacities, projects

• Iron ore mining capacity expansion:  GPIL plans to enhance its iron ore mining capacity from the current 2.35 mnt strengthening backward integration and raw material security. Total capacity after expansion will reach 6 mnt.
• Commissioning of beneficiation plant: The company has commissioned a 0.6 mnt iron ore beneficiation plant at Ari Dongri, as part of the planned 6 mnt capacity to enhance ore quality and optimise feed for pellet product.
• Transition to natural gas in pellet plants: GPIL signed an MoU with GAIL to convert its upcoming pellet plant from coal gas to natural gas, targeting a 64% reduction in CO₂ emissions. Extension to other pellet units is under consideration based on commercial feasibility. The company reported Co2 emissions of 2.37 tCO2 per tonne of crude steel in FY’25 versus 2.49 in FY24.
• Operational ramp-up at captive mines: Mining operations have resumed at the Boria Tibu iron ore mine (0.7 mnt capacity).
• Increased domestic sales emphasis: With better realisations in the domestic market compared to exports, GPIL is now prioritising domestic pellet sales going forward, reducing exposure to volatile international pricing.