The company is an integrated iron and steel company engaged in iron ore mining, beneficiation, pelletisation and DRI production. The company operates its iron ore mining business through the Surjagarh mines in Maharashtra and has DRI manufacturing facilities at Ghugus and Konsari.
The shares of Lloyds Metals are currently trading at Rs. 1,860.00, up by 1.97%. The company has a market capitalization of Rs. 1,04,751.35 crore. The stock’s 52 week high is Rs. 2,125.00 and its 52 week low is Rs. 1,042.90. In the past six months the stock has delivered a return of 53.84%.
What’s The News
The Board of Directors of Lloyds Metals and Energy, at its meeting held on September 21, 2026, approved the issuance of NCDs aggregating up to Rs. 1,550 crore through private placement.
The proposed issuance consists of two tranches of Rs. 600 crore and Rs. 950 crore, respectively. The NCD issuance is subject to applicable regulatory and statutory requirements. Alongside the fundraising, the company has approved an increase in the production capacity of its DRI plants at Ghugus and Konsari.
DRI Capacity Expansion
Lloyds Metals is expanding its DRI capacity across its Ghugus and Konsari plants. At the Ghugus plant, the company plans to add 1,85,000 MTPA, taking the total DRI capacity to 8,15,000 MTPA. At the Konsari plant, capacity will increase by 22,400 MTPA, taking the total to 92,400 MTPA.
Following these additions, the company’s combined DRI capacity is expected to reach around 9,07,400 MTPA, taking its total capacity beyond the 9 lakh MTPA mark.
The expansion is expected to be achieved through debottlenecking and optimisation of existing processes and technological parameters, rather than setting up an entirely new DRI facility. This approach allows the company to increase production capacity by improving the utilisation and efficiency of its existing infrastructure.
Rs. 190 Crore Investment for Expansion
The total investment required for the approved DRI capacity expansion is Rs. 190 crore. Of this, Rs. 140 crore will be invested at Ghugus, while Rs. 50 crore will be invested at Konsari. The company plans to fund these capacity additions through internal accruals.
It is important to distinguish this Rs. 190 crore capacity investment from the Rs. 1,550 crore NCD programme. Based on the current disclosure, the company has not stated that the entire NCD proceeds will be used to finance these specific DRI capacity additions.
Focus on Downstream Integration
The capacity expansion comes as Lloyds Metals continues to build an integrated steel value chain around its captive iron ore resources. The company’s Konsari facility currently includes a DRI plant and pelletisation operations, with further downstream steel-making capacity planned. The company’s website states that a 4 MTPA pellet plant is operational, with another 4 MTPA pellet capacity under development, while a 3 MTPA integrated steel plant is planned at the site.
Increasing DRI capacity can enable the company to process more of its iron ore into a value-added intermediate product before further downstream processing.
Financial performance
Looking at the quarterly results of Lloyds Metals & Energy Limited, the company’s consolidated revenue from operations increased by 208.6% YoY, from Rs. 2,383.52 crore in Q1 FY26 to Rs. 7,354.40 crore in Q1 FY27. On a sequential basis, revenue grew by 22.2% QoQ from Rs. 6,019.72 crore in Q4 FY26.
In Q1 FY27, the company generated revenue from iron ore and pellets, DRI and power, with the contribution of value-added products continuing to increase. The company reported strong growth in iron ore and pellet volumes, while DRI and power sales also contributed to the overall performance.
In Q1 FY27, Lloyds Metals’ consolidated net profit increased by 170.3% YoY to Rs. 1,733.89 crore, compared with Rs. 641.59 crore during the same period last year. On a sequential basis, net profit increased by 13.3%, from Rs. 1,530.10 crore in Q4 FY26.
The company’s basic earnings per share (EPS) also increased significantly during Q1 FY27 compared with the corresponding quarter of FY26, supported by the sharp improvement in consolidated profitability.
Investor Perspective
The recent press release brings two different events of Lloyds Metals – issuance of NCD worth Rs. 1,550 crore and DRI capacity expansion worth Rs. 190 crore.
The new DRI capacity will bring an addition of 2,07,400 MTPA of capacity in Ghugus and Konsari regions. This brings their total capacity to 9,07,400 MTPA. The capacity expansion will be funded via internal accruals, as stated by Lloyds Metals in its press release.
The important parameters to keep track of for Lloyds Metals will be capacity expansion execution, utilization of extra capacity created for DRI, debt position of the company post NCD issuance, iron ore and steel price trends and progress on its downstream steel projects. NCD issuance brings increased availability of funds, whereas DRI capacity expansion is aimed at bolstering its existing integrated steel making chain.
Company Overview
Lloyds Metals and Energy Limited is an integrated iron and steel company engaged in iron ore mining, beneficiation, pelletisation and DRI production. The company operates its iron ore mining business through the Surjagarh mines in Maharashtra and has DRI manufacturing facilities at Ghugus and Konsari.
The company is also expanding its downstream steel-making operations, including pelletisation and an upcoming integrated steel plant at Konsari. Its operations are designed around greater integration between captive iron ore resources and downstream processing facilities.