Lloyds Metals & Energy Ltd (BOM:512455) Q2 2026 Earnings Call Highlights: Record Revenue ...

This article first appeared on GuruFocus .

Release Date: November 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Lloyds Metals & Energy Ltd ( BOM:512455 ) reported its highest ever quarterly and half-year revenue, with total income for Q2 FY26 up 75% year on year.

• The company achieved 100% capacity utilization at its parent plant, producing over 350,000 tons in October.

• The newly commissioned pellet plant at Konsari reached full utilization within four months, contributing significantly to profitability.

• The slurry pipeline has resulted in structural cost reduction, lower carbon footprint, and efficient ore movement, safeguarding margins.

• EBITDA for the quarter increased by 95% year on year, with margins expanding by 348 basis points, reflecting strong operational execution.

Negative Points

• Iron ore prices in the domestic market are under pressure, which could impact future pricing strategies.

• The DRI and secondary steel market are currently experiencing low realizations due to market softness.

• The company's gross margins have reduced to around 79% in the current quarter, down from historical averages of 87-88%.

• The EBITDA margin for the previous quarter was lower than expected at 16.5%, due to low production and fixed costs.

• There are concerns about the delay in the commissioning of the beneficiation plant, which is crucial for future operations.

Q & A Highlights

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Q: What is Lloyds Metals & Energy Ltd's strategy for iron ore sales given the current market conditions? A: Rajesh Gupta, Managing Director, explained that the company aims to fill its full EC capacity of around 22 million tons this year. Despite recent price softness, the company has a well-executed marketing strategy, including prioritization and using internally for DRI and captive consumers, ensuring comfort in their approach.

Q: How does the company view the international versus domestic iron ore pricing trends? A: Rajesh Gupta noted that domestic prices are trading at a premium of around 35-45% compared to international prices. He mentioned that the domestic market has deviated from international pricing, and he does not foresee significant further reductions affecting Indian pricing.

Q: What are the expectations for Triveni's performance, and has there been any change in guidance? A: The guidance was adjusted due to delays in receiving EC capacity, with expectations now set at around 2000 to 2200 crores for the year. The company is confident in increasing production in the second half of the year.