Thank you, Shruti. Good afternoon, everyone.

It is a pleasure to welcome you on behalf of Godawari Power & Ispat Limited. Please note that today's discussion may include certain forward-looking statements, and therefore, must be viewed in conjunction with the risk that the company faces.

Today, we are joined by Mr. Abhishek Agrawal, Executive Director; Mr.

Dinesh Gandhi, Executive Director; and Mr. Sanjay Bothra, Chief Financial Officer.

May I now please invite the management to present on the company's business outlook and performance, after which we will open the floor for Q&A. Thank you, and over to the management, please.

Thank you, Sahil. Good afternoon, everyone.

Thank you for joining us on today's call. Our financial results and earning presentation have been uploaded to the stock exchanges and our website.

I trust you have had an opportunity to review them. I will briefly walk you through the key highlights of the results and progress on various projects, following which we will open the floor for Q&A.

GPIL has made steady start to FY2027, delivering resilient performance in Q1 FY2027, supported by healthy revenue growth, improved sales realization, stronger realization across key product segments. Sequentially, profitability was impacted by higher input costs, driven by increased iron ore sourcing from the market and elevated coal prices, following West Asia crisis.

These pressures are expected to ease upon commissioning of beneficiation plant, enabling higher captive mining, improved raw material availability, and enhanced cost efficiencies. Coming to the operational performance, our iron ore mining volume declined primarily due to space constraints for dumping of overburden, in view of delay in obtaining tree cutting permission in the additional allotted land.

This resulted in higher market procurement of iron ore for pellet production, leading to elevated input costs. Despite this, production grew YoY across product categories, except iron ore mining and galvanized products.

On QoQ basis, production remained subdued across most segments, with sponge iron and wire [phallos?] being key exceptions.

We remain on track to deliver our FY2027 guidance, with Q1 volume achieving between 16% to 29% of full-year guidance. Our value-added products also recorded healthy YoY growth in Q1, led by sponge iron, billet, and rolled products.

This further supported by improved realization of most of the products, both on YoY and quarter-on-quarter basis, contributing to healthy revenue growth during the quarter. Talking about the consolidated financial performance, Q1 FY2027 revenue recorded both YoY and sequential growth, supported by healthy sales volume and improved realization.

EBITDA and PAT remained broadly stable YoY, although profitability softened sequentially due to elevated input costs, primarily on account of higher procurement of iron ore from market and coal prices. EBITDA and PAT margin stood at 19.1% and 12.7%, respectively.

We expect margin improvement from Q4 FY2027, following commissioning of beneficiation plant, enabling greater utilization captive iron ore pellets. Now coming on our key growth projects, the Ari Dongri iron ore mine expansion is progressing as planned, with ramp-up expected from Q3, following commissioning of beneficiation plant, and full-scale operation targeted from FY2028.

The beneficiation plant will strengthen the captive mine iron ore security and improve ore quality for pellet production. Capex of 100 ₹218 crore incurred in the beneficiation plant till June 2026.

The 4.7 million-ton expanded pellet capacity operated at 77% utilization in Q1 and is expected to ramp up to around 80%-85% in FY2027 as the operations scale up. As regards our integrated steel plant and CRM projects, the company is decided to keep the proposed 1 million-ton integrated steel project in abeyance due to on-ground challenges and delays in approval, especially the approval for water allocation, which resulting in delay in final EC and consequently, the consent to set up the integrated steel plant.

Consequently, in order to leverage the benefit of state incentives and subsidies, synergies from proximity of base plant, the 0.7 million-ton CRM complex is proposed to be relocated to Maharashtra, near Sambhajinagar. The identification land for the proposed CRM project has been completed, and application for allotment of land has been submitted to Government of Maharashtra.

We expect the land allotment approval by end of August 2026. The project construction activities are expected to start from October 2026.

The project is now targeted to be commissioned by December 2027, with plant capex of ₹1,100 crore, to be funded through ₹550 crore of debt and balance through internal accruals. The 20 GW BESS project is progressing well and is scheduled for commissioning in Q1 2028.

Soil testing has been completed, construction of the compound wall is underway, key supply agreements for major equipments and raw material have been finalized, including long-term cell procurement, keeping the project execution on track. The project is also supported by incentives from the Government of Maharashtra.

We have already incurred a capex of ₹501 crore till date in the project. As regards expansion of solar projects, capacity from 165 to 290 MW, the iron ore mines and additional 2 million-ton pellet plant for captive use, the 25 MW solar plant has been commissioned in May 2026, and 100 MW project is under construction, targeted for commissioning by September 2026.

The proposed 250 MW solar project has been kept in abeyance due to relocation of CRM project to Maharashtra, in which the solar power was proposed to be consumed, and also the delay in land allotment for the solar project. The 45 MW BESS project for storage of captive solar power plants under implementation and targeted for commissioning by Q3 2027 targeted for commissioning by Q3 2026, not 2027, sorry.

Upon completion of planned projects, the captive solar power capacity will reach to 290 MW, and solar storage capacity will reach to 45 MW. The CRISIL has reaffirmed the credit rating of the company at AA- stable for long-term facilities.

I am also pleased to mention that GPIL has been recognized among India's 500 most valuable companies in 2025, Burgundy Private Hurun India 500 list, reflecting growing scale, strong business fundamentals, and sustained value creation. On ESG front, the company has completed initiative under energy efficiency and decarbonization program.

The 6.9 MW WRHB plant has commenced commercial production, taking total WHRB capacity to 49 MW. GPIL is also advancing its decarbonization efforts through 5 TPD carbon capture utilization project in collaboration with IIT Bombay, for which civil work is underway, and completion targeted by end of FY2027.

The company has demonstrated of a strong focus on reducing carbon intensity, with CO2 emission per ton of steel tracked under two internationally recognized framework: Carbon Border Adjustment Mechanism, CBAM, calculation independently assessed by SGS; and World Steel Association ISO 14064 standard. Under CBAM technology based on the total carbon basis, emission intensity stood at 3.180 CO2 ton in Q1 FY2027, improving 1.9% quarter-on-quarter and 4.2% YoY, from 2 3.244 ton fixed carbon.

Under the World Steel Association methodology based on fixed carbon basis, emission intensity stood at 2.485 ton CO2 per ton of steel production in Q1 FY2027, remaining broadly stable quarter-on-quarter and YoY, as against target of 2.4920 fixed by Government of India. Overall, Q1 FY2027 reflects improved carbon efficiency under CBAM framework, while WSA-based emissions remained stable.

As a part of its EV transition towards greener operations, GPIL has added five new dumpers during the quarter, taking fleet to 15 EV dumpers, 24 EV loaders, and 15 EV excavators. The adoption of electric transportation has reduced operating cost by nearly 75%, CO2 emission by around 88%, as compared to the conventional diesel vehicle.

Now coming on the market outlook, India's iron ore production is expected to rise to 8% to 340 to 345 metric ton during million tons during FY2027, with most incremental supply coming from captive mines, while pellet production stood at provisionally 120 million tons in FY2027 in FY2026, up from 109 million metric tons in FY2025, led by Odisha and Maharashtra. The demand remains supportive, driven by rising steel production, higher pellet uses, with shift towards higher grade DR-grade pellets.

However, industry utilization remains constrained at 65% due to reduced exports, limited high-grade availability, and margin pressures. Globally, iron ore prices remained resilient, close to about $95 to $105 tons, supported by healthy mill margin and inventory restocking, despite peaking Chinese steel consumption.

While additional low-cost supply from Guinea Simandou project presents downside risk, domestically, iron ore prices broadly remain stable, closer to about ₹5,000-₹5,500 range ex-mines, while pellet prices are in the range of ₹9,000 to ₹11,000 per ton, with current levels at around ₹10,000 a ton. Meanwhile, India's steel demand outlook remain strong, supported by infrastructure, housing, railway, and manufacturing investments.

In conclusion, I would like to mention that backed by strong captive mining assets, strong balance sheet, ongoing capacity expansion, and focus on ESG and cost optimization, GPIL remains well-positioned to drive sustainable long-term value creation. With clear roadmap and strong execution focus, company remains confident of achieving its Vision 2030 targets of 4x increase in revenue, 3x growth in EBITDA and PAT.

We remain committed to delivering on our growth ambition and creating value for all stakeholders. With this, I would like to conclude my opening remarks and open the floor for Q&A.

Thank you, and over to you, moderator.

Hi. A very good afternoon, and thank you for the opportunity.

Sir, my first question comes around the steel plant that now is getting delayed again. Just wanted to get your sense of, if you could help me in understanding are there any specific milestones or conditions that need to be satisfied before the board revives this project?

Also now, going ahead, should we continue to build this steel plant into the company's medium-term expectations, or should now we view it as an optional growth project rather than a committed capex plan?

Good morning. On the first question, the milestone which you expect was the water allocation.

Earlier we were given a LOI by the state government for the water allocation, but once we got back to them for the confirmation letter, then there were challenges, and because of which, the entire water allotment of 9.4 something MCM has been delayed. It's been almost been six, eight months now.

That is the reason the project has been kept on hold. From an investor's angle, I think you should keep the steel plant as an optional now for the medium-term growth.

Okay. We're keeping it as an optional.

Yes, because till the time we don't get the water approval and all, we really don't know that's going to happen. Better to keep it as an option now for the steel plant.

Okay. No, that is quite clear.

Just a follow-up on the same, because your slide on the Vision 2030, the numbers over there for revenue and EBITDA, I believe that still includes any commitments coming in from the steel plant. How should that Vision 2030

No, that doesn't include. It's mainly on the CRM complex, which will get commissioned in Q3 of FY2027, which is December 2027, and that the battery storage project, which is well on track.

We have revised the guidance. If you see our earlier presentation, it was 4x and the EBITDA level, but now we've removed the steel part from that entire investor presentation.

Yes, we have.

Okay. No, that is quite helpful.

Sir, second question comes on just pertaining to these challenges that we are seeing out for the steel plant, this doesn't have any impact on the rest of the projects, like the BESS or the CRM mill, because now the CRM is now shifting towards Maharashtra. No, see.

Because CRM was coming on the same land in the steel plant and we're not getting the desired approval for the water allotment, so that is the reason we've decided to take this step and move CRM complex to Maharashtra. Maharashtra again, we have opted for AURIC industrial belt, where it's a plug-and-play model, just like the battery storage.

Land allotment will happen by end of this month. As Mr.

Gandhi said, we should commence the activities on ground by October. CRM, there is a delay of almost six months, but CRM will be on track, and please consider steel plant as in hold as of now for medium term.

Okay. Understood.

Just a follow-up on the CRM, we are now moving closer to our BESS facilities, right? What benefits will take place either for the CRM complex or for BESS in terms of cost from moving the product from Chhattisgarh to Maharashtra, or just now moving the plant directly over there?

See, on the battery storage side, it was always planned in Maharashtra only. There are no changes in the battery storage project from day one.

On the CRM side, the additional advantage what we envisage is the local consumption of the value-added steel, which we're going to be producing. Maharashtra being in an automobile hub, right?

A lot of our products will be consuming automobile. We expect a demand growth local in Maharashtra, which will add to the benefit of CRM.

For raw material, there is a lot of suppliers like JSW is there in Dolvi, then there is ArcelorMittal in Gujarat. We don't see a challenge in procurement of HR coils.

On the consumption side, Maharashtra is a big state for the consumption. That is why the industrial policy of Maharashtra government is giving us those benefits in terms of SGST and other things.

We feel shifting CRM is actually a boon to us by shifting to Maharashtra rather than Chhattisgarh.

Understood.

Yeah.

My next question comes on the Ari Dongri mining side. We faced some challenges this particular quarter in terms of the production from the mining.

Is it expected to continue for Q2 as well, and Q3, or Okay. Yes.

No. I'll tell you.

The mines had basically two lands. One was the private land where we've already started dumping, all formalities are over, and we've started using the land for dumping.

On the government land, last stage approvals are pending, basis which we will be allowed to enter the land and do the tree cutting and all. That should happen in Q2.

From Q3 onwards, we expect the mining production to ramp up and eventually achieve full capacity from Q4 or earlier Q1 next financial year. Q2, you can expect the same numbers in terms of mining production.

Understood. We'll continue to have a higher procurement from the merchant miners for No,

see, in Q2, there will So, Q2, if you if you realize, we have already informed the investors last month only that we have shut down one of our new the new 2 million plant because of iron ore availability from the market, as well as the gas pricing. Q2 will be dull in terms of pellet production and mining numbers.

Q3 onwards, we expect to run the pellet capacity at full production, and mining ramp-up will happen from Q4 and eventually full capacity from Q1 of FY2028.

Understood. That is quite helpful.

Just one follow-up more. Now, the beneficiation plant is coming in from Q3, right?

Can you just help me in understanding how should we look at the quarterly trajectory of the captive ore availability, because you're saying Q4 is where we'll ramp up to full mining production activities, right? Post the beneficiation plant coming in and the iron ore mine production ramping up, are we going to completely eliminate the merchant iron ore procurement, or that would be the right way to look at it?

See, so, Q3, you can say so we'll be running a pellet plant at full capacity. The purchase from market will be still about 25%-30%.

From Q4 gradually, it should come down below 10%, and finally in FY2028, it should be 100% captive. That is the target.

Okay. Understood.

That is helpful. Sure.

I have more, I'll join back to queue for more.

Sure.

Thank you so much.

Thank you.

Firstly, thanks for the opportunity. Sir, the first question was just a follow-up on the previous one, that the 3 million guidance that we've given for iron ore, that is after including for beneficiation?

See, basically beneficiation is more on the input side. The 3.4 million guidance given for the full year for the mining production, which is basically a usable ore for pellet plant, that is still on track.

That is very much on track. We are not revising our mining guidance for the full year.

3.4 million we have given for this year, and which is very much on track.

The rest would be the market purchase, additional 1.2, 1.3 million.

Yes, yeah. No, in that case, see what will happen is our pellet production will be on the lower side, we expect.

Accordingly, our market purchase for the full year will be on the lower side because we have already shut down one of the pellet plants last month, and I think it will continue to remain shut in this quarter. Accordingly, the purchase from market in terms of volume will be slightly on the lower side.

Got it. Sir, the reason for shutting down the pellet production, obviously first was the iron ore, but how big is the gas supply issue for us?

Is it expected to normalize post Q2?

See, no, I think there was a little misunderstanding. We are able to procure the 100% gas from the supplier, but the issue is as per the new guidelines of PNGRB, the value, the purchase value of the gas is gone up drastically.

It's almost up by 40%-45%. Purchasing iron ore from the market and also getting gas at higher price, that makes pellet plant operation commercially unviable.

That was what we have stated in our statement last month, commercially, in the current market scenario, where steel is down, and pellet prices touch all-time low of about ₹8,700 in starting of July, it makes pellet plant commercially unviable to purchase from the market and use expensive gas.

Right. Makes sense.

Sir, the second question is on the iron ore pricing. This year, we've seen iron ore come down to around $94.

We further expect that the Simandou project should ramp up by the end of this year and further double down the next year. How do you see the iron ore market pricing for the next one, two years?

See,

I feel iron ore will keep hovering between $90 to $100 because the Simandou project will take some time to ramp up, plus the demand in India is definitely growing for iron ore. If you see, a lot of both port-based plants have started importing iron ore.

I feel iron ore should remain in the levels of between $90 to $100, depending on the market to market. Yeah.

We don't feel iron ore going down below $90 soon.

Got it. With the beneficiation, we'll be able to command a much better price in terms of quality?

See, beneficiation will mainly help us in reducing the mining cost because right now, I'm beneficiating the entire ore in factory complex by paying a transportation of ₹1,000. By not beneficiating in the mines, my mining cost will go down of usable concentrate, which will feed to the pellet plant.

The idea is to reduce the mining cost and improve on the profitability. That is why putting up a beneficiation plant in the mines now.

Got it, perfect. Just last question before I join back on the queue.

Sir, do we do any sensitivity for iron ore pricing? Let's say if there's a 5%, 10% fall in iron ore prices, what could be the impact on our revenue or profitability, for that matter?

See,

if you ask me, right, a ₹100 down in iron ore pellet, we'll lose ₹40 crore in a year, basis a 4 million production of iron ore pellets. It's very simple.

Iron ore cost still doesn't impact so much in terms of pellet prices. Pellet prices are mainly driven on the steel sentiment.

For example, today, if you see, the steel sentiments are slightly down, so that's why the pellet prices were below ₹9,000. Last couple of weeks, the market has revived almost by 10% in the domestic.

Pellet prices are back to 10,000 levels in the domestic. I would say pellet plays more important role in our cost economics rather than the iron ore fines prices.

Okay. Pellet prices, as you mentioned, are entirely driven by your steel economics and steel demand.

Yes. Yes, definitely, definitely, definitely.

Okay. Thank you, sir.

I'll just join back again in the queue.

Thank you.

Hi, thanks for the opportunity. Am I audible?

Yes.

Yeah. Thank you, Abhishekji, for really elaborate answers.

Just one question on the three things that we are doing. The pellet plant is already up and running, right?

Like you said, we're not operating it, but it's up and running. Then we'll be having a beneficiation coming up and the mining scale-up.

Once all these three of our major actions come into force, say suppose end of FY2027, FY2028 onwards, what kind of benefits do you see coming into our books, if you could quantify that broadly? Like you touched upon that we'll save ₹1,000 per ton in transportation with beneficiation at mine.

If you could just break it down in a little more granular form and just help us understand how much our EBITDA per ton can change with all these three things combined.

Just to give you a very brief breakup, currently, our mining cost stands about between ₹3,000 to ₹3,500, depending on the production. Our target is to bring down the mining cost below ₹2,700 from FY2028.

Beneficiation is a part of it. Again, the EV deployment in the mines is again a part of it.

The whole idea is to bring down the mining cost. So, ₹100 saving in the iron ore straight away gives you a EBITDA of ₹40-₹50 crore on a 5, 6 million production of iron ore.

The idea is to bring down the mining cost, and that's why all these initiatives have been taken. That is on the first side.

Pellet production, we expect to be at full capacity from FY2028, which is about 4.5 million tons. Straight away, with higher volumes, that will give us a higher number in terms of profitability.

These two are the major reasons for iron ore mining and the pellet.

Right. Sir, with the more iron ore mining that we can do, will this volume help us in generating some business, or we can't sell because of the ceiling that we have of 40 million something on the pellets, 47 million 47 lakh on the pellets, sorry?

No, see. We are allowed to sell as a captive miner as per new MMDR Act.

We are allowed to sell 50% of our iron ore in the market at additional royalty of 150%. That is only possible if you are able to feed 100% to your pellet plant.

In the longer term, we have no intention of selling iron ore in the market. We want to make 100% iron ore captive to the pellet plants.

Going forward, maybe two, three years down the line, if we feel the opportunity is there, if we are still able to have a surplus iron ore, then only we'll think of selling in the market. At the moment, we have no plans of selling iron ore in the market.

Rather, we'll conserve it and keep mines running longer.

Fair enough. FY2028 at least, we don't have any plans to sell No, no, no, no, no,

no.

Sir, if you could just help me understand, what is the conversion rate from your beneficiated iron ore to your pellet? See,

conversion remains same.

In terms of quantity, yeah.

It is about depends between ₹1,500 to ₹1,800 on annual basis.

Sorry, your voice broke, sir. I couldn't hear.

It's between ₹15 to ₹1,800 on annual basis. ₹1,500 to ₹1,800.

Okay. Sir, broadly, like you said, as of now, you're not looking to sell iron ore, but suppose we decide to sell in future, what kind of delta would you capture?

Is it safe to assume that the delta that we capture in pellet is much more versus what you capture in iron ore, and hence we don't want to sell iron ore outside? See,

the first thing is if you want to sell iron ore, we have to pay 150% royalty on lumps and 250% royalty on fines. Straight away, a ₹1,000 of delta goes away if we intend to sell iron ore in the market.

The delta in pellet is almost ₹4. Commercially, it doesn't make sense to sell iron ore in the near term.

Unless pellet prices really, really crash to below ₹8,000, then probably we can think of selling iron in the market, but I don't see that happening very soon.

Got it. One last question from my end, sir.

In FY2028, there will be very limited volume growth, right? Now, the major growth will come in on our steel business once the CRM mill comes up, right?

Other than that, the main driver for our EBITDA growth would be from the BESS once it comes online from Q1 FY2028 onwards.

Right.

Perfect. Thank you so much, sir.

Thank you, and all the best to you and your team.

Thank you.

Thanks for this opportunity, sir. This was more related to iron ore mine.

You said that part of the land was private and part of the land was government. In private land, the operation has started.

In the government land, whatever the approval is pending, what nature of that approval, and will that can delay the production for a longer time?

No, see, the approval which is pending is the final approval from the state government for entry to the land and tree cutting, because it is a government land, it's a revenue land, and there was a plantation done. There is a process we have to follow, which includes the forest department as well.

The file is under application. We are very hopeful we should get the desired approvals by end of September, and basis that, from October onwards, we will get the land to start dumping.

Thereafter, the key iron ore production can take some time.

Ramp-up will start happening from October onwards, but as I said, eventually, the full ramp-up capacity will happen end of Q4 and early of Q1 next financial year.

On the private land, whether we can independently start producing iron ore or no?

No, see. We can start producing iron ore at 6 million capacity from today itself.

Basically, we needed additional land for dumping of overburden. On the private land, we have started dumping the overburden.

That is where we're able to still produce the current capacity of iron ore. Once we get the government land, the dumping capacity can improve, and eventually, the iron ore production will improve.

Dineshji,

let me clarify. In fact, the land for dumping ground is separate from the land for mining.

The mining area and dumping area is slightly different. This additional land which has been allotted is only for the dumping ground.

In that also, there are two land: one is private and another one is the government land. Tree cutting for the dumping ground land is something which delayed the mining operations.

Okay. Sir,

I hope it is clear to you. For mining, my full land is available.

Available, okay, okay, fine. Okay.

For dumping, you need area.

This land was specifically for the purpose of dumping the overburden.

Fine, fine. Sir, second thing related to the project which we had shifted now to Maharashtra, now whether we will have a better profitability in BESS project or even in the cold rolled mill capacity?

Any possibility of higher margin because of that, or still you will go with your earlier guidance? See,

in terms of profitability, we don't see much change. The only positive side in Maharashtra is the local consumption in Maharashtra is on very higher side.

For us, we already have a demand available, which will save us on the transportation cost on the finished product. That is one advantage we will get in Maharashtra.

Plus, the Maharashtra industrial policy incentive is also much better compared to Chhattisgarh. From that angle also, the incentives we will be getting yearly will add to the profitability of CRM complex.

The storage from day one was in Maharashtra only, and that project remains on track. Nothing changes there.

This incentive will be able to improve some margin or no?

Yes, yes. The incentives will improve the margin by another 2%-3% for sure on the CRM complex side.

Okay. Earlier you were targeting somewhere at around 7%-8%, it can move up to

Yeah, we should, exactly, we should touch 10%-11% with incentives.

Okay. Great, sir.

Thank you very much.

Thank you.

Thank you for the opportunity. Just wanted to understand that there has been an increase in the iron ore production costs by approximate 10%.

Wanted to understand the reasoning. Is it just with respect to the natural like the fuel?

No, the iron ore cost is gone up because of the higher purchase of iron ore from the market, no other reason.

Mining cost.

Mining cost, okay. The mining cost, exactly.

The mining cost again has gone up, it's mainly because of lower production in the mines, and the other operating cost has gone up only because of the lower production. Once we are able to achieve our desired capacity, the mining cost will automatically come down.

Because in last 10 years, this is the highest mining cost, sir. Yes.

Yes,

yes. Because of the lower production on the mining side, that is the cost has gone up.

Once we achieve the production, the mining cost will automatically come down, no other reason. Plus, as Mr.

Gandhi mentioned, of course, there's also impact of the diesel, which is consumed in the mines for the operations. That also has a impact on the mining operations.

Got it. My next question is I've seen a increase in the sales volume of the pellet.

In your peer group companies also, there has been a drastic increase in pellet production and sales. Is there any specific reason behind that?

No,

see, our new pellet plant was running at full capacity. In Q1, we were operating all the three plants, so that is why the additional production happened, and that is why the additional pellet sales happened.

Because our captive consumption for pellet remains constant with our DRI capacity, whatever additional pellets will be produced will be sold in the market. That is why you see a substantial jump in Q1 for pellet sales.

Okay. Sir, can you give a view on your demand, how is the demand on the pellet side?

See,

the demand was quite lull end of June, early July. The prices had touched COVID low of below ₹9,000, and that was the reason we had to shut one of our plants because the operations were commercially unviable.

Since the steel market has revived in last two, three weeks, pellet demand is better compared to probably July, and the prices also shot up by almost 10%.

Got it. Now, sir, we are not going ahead with our integrated steel plant.

Is there any plans to use the internal pellet to make sponge or something like that? How are we moving ahead?

If we have cancelled our ISP plant, what's the capex pipeline? Are we thinking in terms of something around sponge or anything like?

No, firstly, we haven't cancelled. We have kept the project on hold.

Once we get the desired approvals, probably we'll have a rethink what to do. On the consumption of pellet side, we have no plans of expanding the DRI capacity because again, getting a new land, going for the EC, it's a long-drawn process.

We have no plans of increasing our DRI capacity. Whatever pellets will be produced will be sold in the merchant market.

There is actually a good demand of high-grade pellets, be it the domestic market or be it international market. We actually started exporting.

We exported two ships in end of Q1 and early of Q2 before shutting our pellet plant. We will keep selling pellets in the market in the longer term.

Okay. Sir, I was going through your past con-calls, there has been a tendency with respect to all of our approvals, there is a lot of delays.

Is there any specific reason, or it is just the

No, I would say it's very unfortunate. There have been enormous delays at different stages when it comes to approvals from the state government, but that is something which is not in our hand.

Hopefully, whatever pending approvals are still there, we should get it as soon as possible. That's all I can say.

It's very unfortunate, but it's really not in our hands, to be honest.

Got it. Thank you so much, sir.

That's from my end.

Yes.

Hi, sir. Thank you so much for the opportunity, sir.

Most of my questions have been answered. If you could sir just help me out with the understanding of the iron ore cost.

Previous participants also have asked, but by when do you expect to get the approval for the expansion for the dumping area?

As we mentioned earlier, we are very hopeful we should get the pending approvals by end of Q2, and from Q3 onwards, you can see improvement in mining production and eventually full capacity from FY2028. That's what we envisage.

Sir, what's the update on BESS?

The project is very much on track. The groundwork has started, everything has been placed, the machine delivery will start happening from December, and we expect to roll out the first container in Q1 of FY2028.

The BESS project is very much on track.

Sir. Sir, coming to the realizations of iron ore and pellet, they had seen a good peak in Q4 and start of Q1 as well.

I think in Q2, they have been a little softer, as you had mentioned as well. Do you think they will have a little bit of lower realization going forward?

No. If you ask on a longer term, we still feel the iron ore prices will hover around between ₹9,000 to ₹10,000 in the longer term, ₹9,000 being the lower side and ₹10,000 being on the higher side.

If we also see last five months, the average pricing and our selling price also remains around 10,000 levels. Plus, it's a commodity, and it's a cyclic business, ups and down will keep happening depending on the market here.

We don't see major change in iron ore pellets in the longer term.

Sir, you had also mentioned regarding that you were exploring exports as an option for your pellet to if domestic market

We did export two vessels in June and July, and then we had to stop exports because of shutting off our one of the pellet plants. Export opportunity is always there, depending on the domestic demand and pricing, we're always open for exports.

What were the realizations you got in June for exports?

It was slightly, I could say, almost at par with the domestic market, which is about ₹9,000 ex-plant, and the market in the domestic was ₹9,000 in June and July.

Got it. Thank you, sir.

Yeah.

Thank you for the opportunity. Sorry if this is getting repeated.

I was able to join in a little late. Just wanted to understand, during the quarter, we sold down our stake in Jammu Pigments, which we had invested in a couple of years ago.

Just wanted to understand the thought process, what changed, what led to this decision.

Hello. Dineshji, yeah.

Yeah. Jammu Pigment, we have not sold much.

We have sold I think about stocks worth about ₹25 crore. We are still thinking on the strategy on Jammu Pigment.

In fact, we had a time either to increase our stake or exit or whatever you do. We have not yet fully decided on that.

The promoters' other family members like their daughter and son-in-law have also joined the business. Earlier, the statement was that they don't have any succession planning, and therefore, planning to exit.

Then, we also have lot of other things coming up in Chhattisgarh and now in Maharashtra, CRM, other things, and operationally, that location is becoming slightly difficult for us, Jammu and Kota. We are in a process of taking a call.

We have partially sold stake to the promoters. If they desire and if they want, then we can even offload some more quantities going forward.

Okay. Any expected timelines.

No, not timelines are there on this. We are still in discussion as to how to go forward on this.

Understood. That's it from my end.

Thank you so much.

Thank you.

Hi, sir. Thanks for taking me back.

Sir, I think last-to-last con-call, you had spoken about Boria Tibu the TOFR that we were going to file in quarter one of this year. Just wanted to know what's the update on that filing.

See, Boria Tibu expansion plans are very much on track. We have started preparing the documents.

We also will be putting up a beneficiation plant inside the mines as well, for which the trials are under process. Once everything is finalized, we will be filing the TOR for Boria Tibu, and we expect Boria Tibu expansion to happen somewhere in probably April '30, FY2031.

That is the plan. The current mining capacity is 0.7 million.

From next year onwards, Boria Tibu will be running at full capacity of 0.7 million. Currently, it is running at about 0.2, 0.3 million.

Eventually, FY2031, we will be taking the mining capacity from 0.7 to 4 million tons.

Got it. Perfect.

The beneficiation plant would also be 4 million ton then?

Yes, 4 million mining, 4 million beneficiation. Since the grade is on the lower side, we expect output of close to about 1.5 to 2 million tons usable concentrate for the pellet feed.

1.5 to 2 million. Okay.

A recovery of about 40%. Yeah.

The tail loss would be much higher in this.

Yes, because the grade is on the lower side. The average grade in the mines is somewhere about 45 to 50.

Of course, the tailing will be on the much higher side to maintain the output of the concentrate of 65 above.

Got it. Sir, you gave a proper update on how our BESS is progressing in terms of supply arrangements, in terms of domestic EMS also being finalized.

Are we having any conversations or discussions around the commercial arrangements about any customer discussions or how we're looking to progress around that? See,

we have already tied up with domestic EMS. We already tied up for domestic PCS as per statutory Government of India, where currently 20% of your entire system has to be from made in India.

We already achieved that. In terms of commercial sales, from August onwards, we have started quoting our containers in the market, and we'll start participating in tenders for future supplies.

Got it. These will be the tenders where we will be participating.

Exactly, it will be mainly with a back-to-back guarantee to the developer. We'll be participating in tenders.

We'll be doing a back-to-back guarantee. If he wins the bid, we'll be the supplier for that particular project.

That is how we intend to go ahead with the sales.

Got it. Just on the ferro galvanized products, I think we saw a decline also in galvanized products volume for this quarter.

Any particular reason why we saw a particular decline?

Usually, beginning of monsoon, the deliveries are on the lower side, the projects get delayed. That is why the galvanizing products you can see is on the lower side.

Once the monsoons are over, you will see the volumes back at the desired levels. It's just a seasonal effect, nothing else.

Got it. Sir, just my last question, I think you had explained it very well on last con-call the difference between a BF and a DR pellet.

Since you've mentioned that we have already started exporting and the DR pellets, the gas-based, command a much higher premium, is it something that we will look at in the near term, or we'll be focusing only on the domestic market?

No, we very much have plans to enter the DR market, which is mainly the Middle East. That can only happen once we are able to feed 100% from our mines because they are very specific quality-conscious.

Once we're able to do that, we have plans to enter into the DR market as well because of the higher premium.

Once Ari Dongri will be running up with the beneficiation plant, we can then probably do the DR pellets?

No, I would say that will happen only once we're able to feed 100% of our pellet capacity from our mines, because then we can start playing with the quality of product. That will happen in FY2028 once we are able to achieve the 100% mining capacity.

Yes.

Yes, very much. Yes.

Okay.

Perfect. Thank you so much, sir, for taking up questions, and good luck, sir.

Thank you so much.

Good afternoon, sir, and many thanks for the opportunity. Sir, my first question is, as your one of the pellet plant is on shutdown, should we expect any change to the company's FY2027 pellet production guidance of 4.0 million ton?

Although we haven't revised, we are still evaluating, but you can expect the volumes to be slightly on the lower side. Once we have a full final guidance internally, we will inform all the investors.

You can expect a slightly lower guidance for the entire year since one of our pellet plants is already shut from last almost 45 days now.

Should it reach 4.0 million ton?

No, the production will be slightly on the lower side, but with exact guidance, we will come back in some time. Once we have a full clarity, yeah.

Sir. My second question is, how do you see the pellet market outlook for this fiscal in terms of demand, pricing, and margin, particularly with rising domestic supply and subdued export demand?

See, the prices just touched lowest two months back, but with the steel demand going up slightly, the prices have again gone up by 10%. I still feel in the longer term, the prices will keep hovering between ₹9,000 to ₹10,000 ex-Raipur.

Sir. Thank you very much.

Thank you.

Hi, sir. Good afternoon.

Am I audible?

Yes, please.

Couple of questions. First, our cost of materials have just gone up by 40%.

As I understand, we procure the materials one quarter back. Let's say we might have procured our material in about February or March when the West Asia wasn't as impactful.

Can you just segregate this cost for me?

See, on the total raw material cost, which is mainly for us iron ore and the imported coal, the domestic coal was largely stable. Iron ore contributes about 75% of the increased cost, and 25% was the imported coal.

Just to be very specific in terms of number, our imported coal cost was about ₹10,500 for Q4 and early Q1. Now, it's almost touched ₹13,000.

Straight away, 25% impact because of the West Asia crisis, and 75% is mainly account of iron ore for purchasing from the market compared to our own mined material.

That will be much more impactful in the quarter two, because just you said the imported coal cost has gone up much more?

Yes, Q2 will continue to remain on the higher side because the prices still have not reduced compared to Q4 levels. Dollar was there, the shipping freight is still on the higher side, the index is slightly lower because of the current crisis, but still on the higher side.

Okay. On the natural gas side, sir, when do we expect some sort of normalcy?

Is there some timeline where this force majeure will just expire?

No clarity, to be honest. We have been in touch with our supplier, GAIL, but he has no guidelines.

It's every day situation, how the war unfolds every day. As things are very irrational right now, we just hope for the best here.

Absolutely. At what pellet prices does it make sense to produce at these gas prices?

See, at these levels, we are evaluating our operation for the third plant. We're also talking to the suppliers if we are able to secure the required quantity of volume to run the pellet plant.

If we do so, we will definitely come back and announce it to the investors. At the moment, it is under shutdown, and we feel August will also be a shutdown period.

September, there might be a possibility where we can start the third operation for the third plant.

Okay. Just the last question, at current capacity expansions, we won't be needing any debt, right?

If steel plant doesn't come into the picture?

See, to be honest, as we clearly said, the steel plant is put on hold. We have no clarity.

If you see the steel plant requirement of funds, we were taking almost a huge debt to fund the steel plant. Since it's on hold now, we don't need to borrow any money for funding our current projects.

We have sufficiently cash flows to fund the entire projects now.

Perfect. Thank you so much, sir.

That's all from my side.

Thank you.

Thank you for the opportunity. Sir, I just wanted to know, was there a revision in the budgeted capex for the CRM project?

Yeah.

Earlier the capex envisaged was about, I think, ₹900-₹950 crore. Now, it's about ₹1,100 crore.

It's mainly on account of the one-time cost will be incurring on account of the land in Maharashtra and other basic infrastructure. Earlier, the entire complex was coming up in Chhattisgarh with the steel plant, a lot of common infrastructure cost was getting absorbed.

Since now CRM will be independent, it's a one-time cost which we have to incur to start the plant, which is the land, the infrastructure, the transmission lines, and other things. That is why the capex is above almost about 15%-20% compared to the previous capex announcement of ₹950 crore.

Sir. All right.

In fact, it's also working capital

margin. The entirely ₹200 crore is not by increase of capex.

Some working capital margin money is also included in ₹1,100 crore. Actual increase will be much lower.

Sir, what will be the estimated land cost for the Maharashtra land?

Close to ₹45-₹50 crore.

Land cost will be about ₹50 crore, yeah. The land parcel is about 35 acres.

Okay. Sir, expected commissioning date will be in

December 2027, which is Q3 of FY2028.

Sir. Thank you.

That's all.

Thank you.

Good afternoon, sir. Sir, my question is regarding the cash utilization.

We already have some healthy cash on books, and for a steady state pellet price, we would be making something more than ₹1,000-₹1,200 crore every year. Now that steel plant is shelved, what are your plans with regards to utilization of the cash?

We will come back, sir. Let this capex be over, the CRM and BESS project.

Let's have the full clarity on integrated steel plant, and then we'll come out with the plan for the cash.

Okay. Thank you so much.

Yes. Just one question I had on capex.

How should we now take a look at FY2027 and '28, because now the steel capex is no longer part of it?

We have given numbers in our presentation. We have given the numbers.

Only those numbers.

FY2027, '28, how much will be the capex. Okay.

Got it. In terms of pricing for Q2, oh sorry, not pricing, in terms of pellet production, should we assume the 675 KT, 700 KT, would that be the right way to look at it?

Sorry, come again, please?

For pellet production during Q2 of FY2027, should we assume 650 to 700 KT for this particular quarter in terms of pellet production?

No. If we happen to keep the plant shut for the entire quarter, the numbers will be on the lower side.

At the moment, if you talk about, somewhere about 500 KT.

Got it.

Yeah.

Hi, sir. Just this question.

Since you said we'll be funding all of our capex going forward through internal accruals, what will be our new capex for next three years, excluding if ISP is not in the near medium-term growth? See,

for the CRM, we have envisaged a capex of ₹1,100 crore, out of which about ₹80 crore have already been spent, about ₹1,000 crore on the CRM side. On the battery storage side, we have already spent about close to ₹500 crore.

The remaining capex of close to ₹700-₹800 crore will be spent in this year and next year, plus on the remaining mining capex. Overall, we envisage a capex of close to about ₹2,000 crore for remaining FY2027 and entire FY2028.

In FY2027,

you're saying ₹2,000 crore to ₹21 ₹2,100 crore, and in '28, you're saying ₹2,000 crore, and '29?

No. The numbers are given in presentation, how much will be in which year.

You can refer the presentation. Shall I tell you the presentation?

No, sir. I do have it, but it's only till '28.

I wanted till '29, if you have any projection for '29.

No.

For '29, there is no projection as of now.

No projection as of now.

Okay. Got it, sir.

Thank you.

Yeah. Thank you very much for joining us on this call.

We hope that we have been able to address all your concerns. Should you have any more questions or require any clarification, please get in touch with our investor relation team at Go India Advisors.

Thank you very much, and with this, we conclude this call.

Thank you.