Quarterly Financial Results
Gallantt Ispat Reports Q1 FY27 Results; Revenue Grows While Margins Face Pressure
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GALLANTT
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- Gallantt Ispat Limited reported Q1 FY27 revenue of ₹1,146 crore, up 2% YoY, while EBITDA stood at ₹203 crore and PAT at ₹124 crore. Profitability was impacted by softer steel realizations and a planned pellet plant shutdown, while the company’s ₹3,000 crore expansion project remains on track for H2 FY27.
PRICE-SENSITIVE TRIGGER
Event: Gallantt Ispat announced its unaudited financial results for the quarter ended June 30, 2026.
Type: Quarterly Financial Results
Impact: Neutral
Immediate Effect: The company reported modest revenue growth despite lower steel prices and planned maintenance shutdowns. Sequential margin improvement and ongoing expansion projects helped offset operational headwinds.
Metrics:
Key Financial Metrics:
- Revenue: ₹1,146 crore (+2% YoY | -5% QoQ)
- EBITDA: ₹203 crore (-20% YoY | -3% QoQ)
- EBITDA Margin: 18% (down 470 bps YoY, up 50 bps QoQ)
- PBT: ₹165 crore (-24% YoY | +2% QoQ)
- PAT: ₹124 crore (-29% YoY | +1% QoQ)
- PAT Margin: 11% (down 460 bps YoY, up 100 bps QoQ)
- EBITDA per Tonne: ₹8,787 (-21% YoY)
Segment Performance:
- Operational Production
- Power Generation: 116 MWH (+4% YoY)
- Pellet Production: 112.3 KT (-36% YoY)
- DRI Production: 236.4 KT (+2% YoY)
- Billet Production: 231.4 KT (+1% YoY)
- TMT Bar Production: 196.2 KT (stable YoY)
- Sales Volumes
- DRI Sales: 12.3 KT (-43% YoY)
- Billet Sales: 26.7 KT (+13% YoY)
- TMT Bar Sales: 191.8 KT (+1% YoY)
Highlight:
Despite softer steel prices and a planned pellet plant shutdown, Gallantt maintained an 18% EBITDA margin while keeping its ₹3,000 crore capacity expansion on schedule.
What Happened ?
Gallantt Ispat reported resilient revenue growth during Q1 FY27 despite a challenging operating environment marked by weaker steel realizations, rising raw material costs, and a planned annual shutdown of its pellet plant for maintenance. The integrated manufacturing model and backward integration helped cushion the impact on profitability, while the company’s large expansion project continued to progress as planned.
key details
Business & Operational Highlights
- Revenue increased 2% YoY to ₹1,146 crore.
- EBITDA margin stood at 18%, improving 50 bps sequentially.
- Planned annual maintenance at the pellet plant reduced pellet production by 36% YoY, impacting downstream operations.
- TMT bar volumes remained stable, supported by demand from the infrastructure and housing sectors.
- Pellet plant maintenance has been completed and management expects utilisation to normalise in the coming quarters.
- The company’s ₹3,000 crore expansion project to increase capacity to 1.23 MMTPA remains on track for commissioning in H2 FY27.
- Captive iron ore blocks in Rajasthan and Uttar Pradesh remain targeted for FY2028, strengthening long-term raw material security and cost competitiveness.
Note:
- Management believes the company’s integrated manufacturing model and backward integration continue to provide structural cost advantages despite cyclical weakness in steel prices and temporary production disruptions.
Risk Analysis
Summary:
The quarter was affected by softer steel realizations, higher raw material costs, geopolitical uncertainties, and temporary production disruption due to planned pellet plant maintenance.
Key Risks:
- Softer steel prices could continue to pressure operating margins.
- Higher coal, iron ore, and freight costs may impact profitability.
- Geopolitical developments could increase input costs and disrupt supply chains.
- Delays in ramping up the pellet plant or executing the expansion project may affect future earnings.
Worst Case:
If steel demand weakens further while raw material costs remain elevated, margins could remain under pressure despite the company’s integrated operations and expansion initiatives.
Risk Level: Medium
Company Commentary
Management highlighted the following during the quarter:
- Management stated that the first quarter reflected seasonal weakness and lower long-product steel prices.
- Sequential operating performance remained resilient despite higher input costs and the planned pellet plant shutdown.
- The ₹3,000 crore expansion project remains on schedule for H2 FY27.
- Captive iron ore mines are expected to improve long-term cost efficiency and raw material security from FY2028 onward.
Official Exchange Filing: Antelopus Selan Energy Limited
