India: Godawari Power & Ispat aiming for 4 mnt pellet output in FY’27

•  New 2 mnt pellet plant boosts GPIL’s production volumes
• Beneficiation expansion to improve pellet feed quality and margins

Godawari Power and Ispat Limited (GPIL), a leading steelmaker in central India, achieved pellet production of 2.86 million tonnes (mnt) in FY’26, up 17% y-o-y compared to 2.45 mnt in FY’25. The company witnessed a sharp 51% increase in pellet production at 911,350 t in Q4FY’26 against 603,350 t in Q3.  Pellet capacity rose by 74% to 4.7 mnt with capex of INR 600 crore. Godavari’s is the first facility in India to integrate advanced natural gas-based grate-kiln technology, marking a significant shift from conventional carbon-intensive processes. The company targets 4 mnt output in FY’27.

Iron ore production in Q4 was at 673,452 t, down 15% q-o-q compared to 789,7879 t in Q3. Additionally, iron ore production increased by 18% y-o-y to 2.75 mnt in FY’26 compared to 2.34 mnt in FY’25.

Performance highlights

Financial

• EBIDTA up q-o-q: The company’s standalone EBITDA was recorded at INR 422 crore in Q4, a 97% hike as against INR 215 crore in the previous quarter.
• PAT rises q-o-q: GPIL’s standalone profit after tax (PAT) rose by 117% to INR 322 crore in Q4 from INR 149 crore in Q3, supported by higher pellet sales volumes, improved operational performance, increased mining activity, and better cost efficiencies following the ramp-up of the new pellet plant. On an annual basis, PAT increased 19% y-o-y to INR 919 crore in FY’26 compared to INR 770 crore in FY’25.
• Average pellet sales realisation dips: GPIL’s average sales realisation stood at INR 9,830/t in Q4, largely stable from INR 9,855/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. However, in FY’26 sales realisation dropped by 3% y-o-y.

Key projects

• Iron ore mining capacity expansion: Godawari is significantly enhancing its captive mining strength by increasing iron ore mining capacity to 6.7 mnt. The company received Consent to Operate (CTO) for the Ari Dongri mines expansion from 2.35 mnt to 6 mnt in February’26. The phased ramp-up is expected to begin in FY’27, while full-scale operations are targeted from FY’28. This expansion will strengthen raw material security and reduce dependence on external ore procurement.
• Iron ore beneficiation plant expansion: The company is developing beneficiation facilities to improve ore quality and enhance pellet feed efficiency. GPIL plans to expand beneficiation capacity from 3.9 mnt in FY’26 to 9.3 mnt in FY’27. Approvals have already been secured, equipment orders placed, and commissioning is targeted for Q3 FY’27. This project will help improve product quality and operating margins.
• Pellet plant expansion to 4.7 mnt: GPIL commissioned its new 2 mnt pellet plant in December, increasing total pellet capacity by 74% to 4.7 mnt. Q4FY’26 was the first full quarter post commissioning, where utilisation reached 78%, with further ramp-up expected to 85% in FY’27.
• 0.7 mnt cold rolling mill (CRM) complex: GPIL is entering value-added steel manufacturing through a 0.7 mnt CRM complex project with an estimated capex of INR 900 crore. The facility will manufacture coated and cold-rolled steel products. Land acquisition has been completed, major equipment orders have been placed, and commissioning is expected by March’27. Management expects around 50% utilisation in FY’28 and nearly 90% utilisation from FY’29 onwards.
• 1 mnt integrated steel plant (ISP): The company has approved a new 1 mnt Integrated Steel Plant for manufacturing structural steel and wire rods. The project involves a planned investment of INR 7,000 crore and aims to scale steelmaking capacity nearly three times from the current base. Construction is expected to begin from October26, while engineering discussions and supplier negotiations are underway. This expansion will strengthen GPIL’s forward integration strategy.
• Solar power capacity expansion to 540 MW: GPIL is aggressively expanding its captive renewable energy portfolio from 165 MW to 540 MW. The projects include 25 MW, 100 MW, and 250 MW solar plants to support mines, pellet plants, CRM, and steel operations. The 100 MW project is expected to be completed in Q2FY’27, while the 250 MW project is aligned with upcoming steel and CRM capacities.
• 20 GWh battery energy storage system (BESS) project: GPIL is diversifying into clean energy infrastructure through a 20 GWh BESS manufacturing project with a planned capex of INR 1,400 crore. The project is being developed through Godawari New Energy Pvt. Ltd. in Maharashtra. The company has already secured long-term agreements with EVE Power, ROCHE Energy, FIMER India, and Hopewind for cells and system components. Commissioning is expected by March’27.
• Green energy & decarbonisation projects: The company is focusing heavily on sustainability and carbon reduction initiatives. GPIL is transitioning pellet operations from coal gas to natural gas, which can reduce CO₂ emissions by nearly 2 lakh tonnes annually. The company is also implementing waste heat recovery projects, EV mining equipment deployment, and carbon capture initiatives in collaboration with IIT Mumbai. These projects support GPIL’s long-term target of achieving Net Zero Carbon Emissions by 2050.