Synopsis: The company delivered strong Q2FY26 growth with sharp increases in revenue and profits, driven by better margins and rising value-added product share. Capacity expansions across beneficiation, pellets, and steel, supported by an integrated slurry pipeline, position the business for sustained long-term scalability.
The shares of the sponge iron manufacturer gained up to 5 percent from the intraday low after the company’s net profit and revenue zoomed 88 percent and 154 percent, respectively, in Q2FY26.
With a market capitalization of Rs 68,014.48 crore, the shares of Lloyds Metals and Energy Ltd were trading at Rs 1,291.55 per share, decreasing around 2.35 percent as compared to the previous closing price of Rs 1,322.60 apiece.
Q2FY26 Highlights
The shares of Lloyds Metals and Energy Ltd have seen volatility after announcing its mixed financial performance in Q2FY26, in which revenue increased by 154 percent on a year-on-year basis from Rs 1,436 crore in Q2FY25 to Rs 3,651 crore in Q2FY26. However, on a Quarter-on-Quarter basis, revenue increased by 53 percent from Rs 2,384 crore in Q1FY26 to Rs 3,651 crore in Q2FY26.
Moreover, net profit increased by 88 percent on a yearly basis from Rs 301 crore in Q2FY25 to Rs 567 crore in Q2FY26, meanwhile, on a quarter-on-quarter basis, net profit plummeted by 12 percent from Rs 642 crore in Q1FY26 to Rs 567 crore in Q2FY26.
Additionally, Earnings before interest, tax, depreciation and amortisation (EBITDA) surged 153.5% to Rs 1,042.9 crore from Rs 411.4 crore in the same quarter last year. Meanwhile, EBITDA margin remains flat at 29%.
According to the recent data, 352,886 shares exchanged hands at an average price of Rs 1,305.20 on the BSE. Morgan Stanley Asia (Singapore) Pte. emerged as the buyer, while UBS AG offloaded the same quantity, indicating a targeted institutional transaction rather than broad market-driven activity.
Lloyds Metals’ revenue mix is shifting strongly toward value-added products. VAP contribution rose to 47% in Q2FY26, up from 26% in Q2FY25 and 13% in Q1FY26, indicating rapid scaling. This shift supports stronger margins and reduces dependence on pure iron ore sales.
Lloyds Metals is progressing on major capacity expansions aimed at boosting value-added output. Iron ore capacity remains 26 MNT, while BHQ beneficiation will scale to 45 MNT. Pellet capacity doubles from 4 MNT to 8 MNT, and DRI stands at 0.70 MNT. The 85 km slurry pipeline supports integration, with steel (WRM) adding 1.2 MNT post-expansion.
Lloyds Metals and Energy Ltd is a growing integrated mining and metals company focused on iron ore, pellets, and DRI production. With expanding capacities, a strong value-added product mix, and efficient logistics like its slurry pipeline, the company is rapidly scaling to become a significant player in India’s steel value chain.
Written by Abhishek Singh
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