Godawari Power & Ispat Ltd Q2 FY26 – From Steel to Solar: The Iron King That Now Wants to Store Sunshine Too

1. At a Glance

Godawari Power & Ispat Ltd (GPIL), the Chhattisgarh-based steel czar, is currently trading at ₹242 per share — a number that might look small until you realize it’s carrying amarket cap of ₹16,721 croreand anROCE of 23.2%. This is not your average rusty steel story. This is a company that mines its own iron, burns its own coal, makes its own steel, and is now apparently building asolar empire of 250MWbecause, why not?

For Q2 FY26, GPIL clockedsales of ₹1,308 croreandPAT of ₹161 crore, marking a modest3.16% QoQ sales riseand1.78% profit growth— not fireworks, but not bad for a business that deals in molten metal and volatile iron ore prices. EPS for the quarter stood at ₹2.41, giving it aP/E of 22.5x— slightly above the industry median of 21.2x.

And here’s the kicker: while other steel companies are crying about raw material costs, GPIL laughs its way through because85% of its iron ore is sourced from its own mines. Basically, they’ve built a steel empire on self-reliance long before “Atmanirbhar Bharat” became a slogan.

2. Introduction – The Irony of Iron

Some companies dig for gold; GPIL digs for iron, melts it, shapes it, wires it, and now, even turns it into solar dreams. Founded in the industrial heartland of Raipur, GPIL’s story is a cocktail ofmining grit,steel sweat, andenergy ambition.

When you think of the Indian steel sector, you probably imagine monolithic giants like Tata Steel and JSW flexing their balance sheets. But GPIL? It’s thescrappy smallcap that doesn’t just mine ore — it mines opportunities.

Its recent antics include investing ₹125 crore through warrants to expand its renewable subsidiary (Godawari Green Energy), setting up a10GWh Battery Energy Storage System (BESS), and signing off a250MWp solar projectby March 2027. In a world where steel meets sustainability, GPIL is trying to become the “Green Iron Man of India.”

But don’t let the “green” fool you. This company still smells of hot metal. With5.4 million tonnes of iron ore reserves in hand,236 MW of captive power, andferro alloy operations at 79% utilization, GPIL’s operational rhythm sounds more like a heavy metal concert than an ESG choir.

3. Business Model – WTF Do They Even Do?

Let’s decode the Godawari puzzle. At its core, GPIL is afully integrated steel producer. That means it doesn’t just make steel; itcontrols every single step— from mining iron ore to spinning HB wires. Imagine if Amul owned the cows, the dairy, the trucks, and even the tea stalls. That’s GPIL in steel.

Main verticals:

• Mining:Captive iron ore mines (Ari Dongri & Boria Tibu) with165 million tonnes of reservesand a combined capacity of3.05 MTPA(soon going to 6.7 MTPA).
• Pelletization:Produces 2.7 million tonnes of pellets, which are like the steel industry’s ladoos.
• Sponge Iron, Billets & Wire Rods:These form the skeleton of everything from buildings to bolts.
• Ferro Alloys:The seasoning that gives steel its strength.
• Power Generation:236 MW of captive power capacity, because when you run a mini-industrial nation, you can’t rely on the grid.

Basically, if there’s iron, GPIL probably has its fingerprints on it. The integration saves them a fortune in raw material costs.Captive sourcing covers 85% of their needs, and theirlow debt-to-equity ratio of 0.04means they sleep well at night.

4. Financials Overview

Commentary:When your iron prices take a nap, your EBITDA follows suit. The margin drop this quarter isn’t a mystery — it’s called “export duty hangover.” GPIL’s profits are leaner,