1. At a Glance
From a once-forgotten sponge iron maker to a market-cap behemoth that can buy half of Goa if it wanted, Lloyds Metals has pulled off a transformation so dramatic it should have its own Netflix docuseries. Q1 FY26 saw ₹2,380 Cr in revenue, 33% OPM, and ₹635 Cr in net profit. The PE is at 48.4, which means investors are treating this like the TCS of mining — except here, instead of coding bugs, they’re digging iron ore.
2. Introduction
The Indian steel and mining scene is full of giants — NMDC, SAIL, JSW — but Lloyds has been playing the underdog-turned-overachiever role beautifully. In FY23, mining was 78% of revenue, sponge iron 19%, and power 3%. Translation: most of its money comes from digging stuff out of the ground and selling it before anyone asks too many questions.
In the last five years, profits grew at an absurd 115% CAGR, riding a perfect storm of mining capacity expansion, commodity price tailwinds, and operational efficiency. But that doesn’t mean it’s risk-free — promoter stake is down 11.2% over three years, leverage is back on the table (₹785 Cr debt in FY25), and it just approved ₹2,500 Cr NCDs for even more growth.
3. Business Model (WTF Do They Even Do?)
Lloyds runs a vertically integrated mining + sponge iron + power model:
- Iron Ore Mining:The cash cow. High-margin, high-volume, and tied to commodity cycles.
- Sponge Iron Manufacturing:Converts iron ore into steel-making raw material.
- Power Generation:Captive consumption and a bit of sale to
- the grid.
This is a commodity business with a kicker — Lloyds controls its raw material source, giving it better margins than most peers who are at the mercy of suppliers.
4. Financials Overview
| Metric | Q1 FY26 | Q1 FY25 | Q4 FY25 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 2,380 | 2,417 | 1,193 | -1.55% | 99.6% |
| EBITDA (₹ Cr) | 780 | 719 | 261 | 8.49% | 198.5% |
| PAT (₹ Cr) | 635 | 558 | 202 | 13.83% | 214.8% |
| EPS (₹) | 12.13 | 11.03 | 3.87 | 9.97% | 213.4% |
Commentary:Sequentially, revenue doubled and profit tripled — because last quarter looked like they took a power nap. OPM at 33% is monster territory for metals.
5. Valuation (Fair Value RANGE only)
Method 1 – P/E:
- EPS TTM = ₹29.21
- Industry median P/E ~20x → FV = ₹584 – ₹876 range.
Method 2 – EV/EBITDA:
- EV ≈ ₹73,984 Cr (mcap) + ₹785 Cr (debt) – cash (assume ₹500 Cr) ≈ ₹74,269 Cr
- TTM EBITDA ≈ ₹1,989 Cr → EV/EBITDA ~ 37.3x (high for commodities).
- FV range via 20–25x EV/EBITDA = ₹39,800 – ₹49,800 Cr EV → ~₹760 –
