Lloyds Metals Q1 FY27 Results (NSE: LLOYDSME)
Signal: Margin expansion
The read
The trajectory is still accelerating on scale and downstream integration: consolidated revenue reached ₹7354.4 crore, +208.6% YoY, and EBITDA margin was 39.6% versus 33% in Q1FY26, but the margin remains below the 42% recorded in Q4FY26 and EPS growth of +153.1% trails PAT growth of +169.1% after major equity issuance; the next thesis test is whether steel/value-added expansion sustains profit growth without further dilution and leverage escalation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹7,354.4 Cr | 208.6% | N/A |
| EBIT | ₹2,648.26 Cr | 234.5% | |
| Net profit | ₹1,726.59 Cr | 169.1% | |
| EPS | ₹30.68 | 153.1% | |
| EBIT margin | 39.6% |
P&L walk
Consolidated revenue increased to ₹7354.4 crore, +208.6% YoY, and EBITDA to ₹2909.78 crore, +253.8%, with EBITDA margin at 39.6%; EBIT rose +234.5% to ₹2648.26 crore and PAT rose +169.1% to ₹1726.59 crore, while other income of ₹128.32 crore remained non-dominant to PBT.
Segments
Standalone steel and related value-added products was the main incremental driver: revenue rose to ₹2195.18 crore from ₹316.80 crore YoY and segment result to ₹814.64 crore from ₹18.14 crore, while mining revenue grew 64.4% to ₹3502.61 crore and mining result grew 64.2% to ₹1205.22 crore.
Key positives
- Consolidated EBITDA was ₹2909.78 crore, +253.8% YoY, versus revenue growth of +208.6%, a 45.2 percentage-point growth gap, with EBITDA margin at 39.6%.
- Steel and related value-added products result increased to ₹814.64 crore from ₹18.14 crore YoY, showing a material downstream earnings inflection.
- Inventory days improved to 30.53 from 50.98 YoY while receivable days improved to 5.97 from 13.77 YoY.
- ₹1217.67 crore of QIP proceeds had been utilised by the quarter end, including ₹916.13 crore for the 4 MTPA pellet plant and ₹285.55 crore for general corporate purposes.
Key concerns
- Basic EPS of ₹30.68 grew +153.1% versus PAT growth of +169.1%, reflecting dilution after cumulative warrant conversions of 3,36,95,000 shares and ongoing ESOP activity.
- Debt-equity increased to 0.49x from 0.14x YoY, while finance cost rose to ₹100.33 crore from ₹14.47 crore YoY.
- Standalone gross margin fell to about 81.6% from about 89.0% YoY as disclosed material, purchase and inventory costs rose to about 18.4% of revenue from about 11.0%.
- The company approved up to ₹625 crore of additional investment in Thriveni Earthmovers and Infra and multiple renewable captive-power arrangements, increasing capital-allocation and execution requirements.
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