1. At a Glance
This is not a sleepy metal stock. This is a bulldozer on steroids. Market cap ₹70,614 Cr, CMP ₹1,297, ROCE 38.3%, ROE 31.4%, and a quarterly sales jump of 202% with profit up 169% YoY. The latest quarter clocked ₹5,058 Cr revenue, ₹1,757 Cr operating profit, and ₹1,090 Cr PAT with OPM at a flex-worthy 35%. Sounds dreamy? Sure. But before you pop the champagne, glance at the balance sheet—debt ₹8,163 Cr, P/B 9.19, and a CAPEX trail that looks like a highway project timeline. The stock’s cooled off (-11% in 3 months), which means the market is thinking. Are you?
2. Introduction
Lloyds Metals used to be that obscure mining name people mispronounced at family dinners. Not anymore. In the last few years, it has morphed into a merchant mining + DRI + pellets + downstream ambitions beast. The engine? Surjagarh Iron Ore Mine—a 50-year lease till 2057, smack in the middle of India, equidistant from hungry steel plants.
FY23 revenue mix tells you who’s boss: Iron ore mining 78%, sponge iron 19%, power 3%. Translation: dig rock, sell rock, mint cash. And then—classic Indian promoter move—plough everything into expansion. The company went from 3 MTPA iron ore in FY22 to 10 MTPA, with approval to scale to 55 MTPA. Ambition? Check. Execution risk? Also check.
So is this a structurally great mining cash cow… or a CAPEX soap opera waiting for the next
episode?
3. Business Model – WTF Do They Even Do?
Let’s make it simple.
- Mining: Iron ore from Surjagarh. This is the ATM.
- Sponge Iron (DRI): 3.5 lakh TPA capacity across Ghugus & Konsari. Recently added 70,000 TPA at Konsari.
- Power: 34 MW captive—because grid power is for amateurs.
- Value-Added Products (VAP): Pellets, wire rods, HR coils, galvanized coils, API-grade steel. This is the “MBA slide” part.
The magic sauce is integration. Ore comes out of their mine, goes into their plants, then into higher-margin products. Less dependence on volatile external supply. More control. More margin. Sounds sexy—until execution delays show up like uninvited relatives.
4. Financials Overview
Quarterly Comparison Table (₹ Cr)
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 5,058 | 1,675 | 3,651 | 202% | 38.5% |
| EBITDA | 1,757 | 536 | 1,043 | 228% | 68.4% |
| PAT | 1,090 | 389 | 567 | 180% | 92.3% |
| EPS (₹) | 19.24 | 7.44 | 10.87 | 158% | 77.0% |
Annualised EPS (Q3 rule)
Average of Q1–Q3 FY26 EPS × 4
= (12.26 + 10.87 + 19.24) / 3 × 4 ≈ ₹56.5
At CMP ₹1,297 → Implied P/E ≈ 23x on annualised run-rate. Market says: “Nice growth, but show sustainability.”
Do you think these margins survive
1 thought on “Lloyds Metals & Energy Ltd Q3 FY26 — ₹5,058 Cr Quarterly Sales, ₹1,090 Cr PAT, 35% OPM: Mining Money Printer or CAPEX Fever Dream?”
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