At a Glance
Gallantt Ispat has pulled off another sizzling quarter. Revenue ₹1,128 Cr (+7% YoY), PAT ₹174 Cr (+43% YoY), and margins at a cool 22%. This steelmaker moonlights as a wheat flour brand and real estate developer, proving diversification can sometimes work. The stock is up 117% YoY, trading at ₹681, but P/E 36x says it’s already priced like premium TMT bars.
1. Introduction
From sponge iron to Shalimar Gallantt housing, this company is everywhere. Investors love the profit growth story (CAGR 78% in 5 years), but skeptics whisper about cyclicality. Steel prices are volatile, but Gallantt’s mix of agro and power keeps the profit engine hot.
2. Business Model (WTF Do They Even Do?)
- Steel: Sponge iron, billets, TMT bars – core revenue driver.
- Agro: Wheat flour products (Atta, Maida, Suji, Bran) under the “Gallantt” brand.
- Power: Captive power for cost efficiency.
- Real Estate: Shalimar Gallantt JV in Lucknow.
Takeaway: It’s a steel company with side hustles that actually make sense.
3. Financials Overview
Q1 FY26 Snapshot
- Revenue: ₹1,128 Cr (+7%)
- EBITDA: ₹247 Cr (OPM 22%)
- PAT: ₹174 Cr (EPS ₹7.2)
- ROCE: 19.2% | ROE: 15.1%
FY25 Recap
- Revenue: ₹4,261 Cr
- PAT: ₹453 Cr
- OPM: 17%
4. Valuation
- P/E: 36x – pricey for a cyclical sector.
- P/B: 5.8x – market expects continued growth.
- EV/EBITDA: ~14x – premium steel.
Fair Value Range: ₹600 – ₹720 (current price at upper band, limited upside).
5. What’s Cooking – News, Triggers, Drama
- Q1 FY26: Strong PAT growth, margin expansion.
- Steel Demand: Rising infra spending a tailwind.
- Real Estate JV: Shalimar Gallantt project sales improving.
- Volume Surge: Exchanges sought clarification – management said “market-driven”.
- Power Costs: In-house generation keeps costs low.
6. Balance Sheet
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 2,949 | 3,136 | 3,548 |
| Liabilities | 1,965 | 1,929 | 1,703 |
| Net Worth | 984 | 1,207 | 1,845 |
| Borrowings | 387 | 462 | 378 |
Comment: Debt reducing, equity growing – healthy balance sheet.
7. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 234 | 344 | 579 |
| Investing | -209 | -248 | -460 |
| Financing | -19 | -102 | -114 |
Observation: Strong operational cash, reinvested heavily.
8. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 11% | 15% | 15% |
| ROCE | 12% | 19% | 19% |
| PAT Margin | 5% | 9% | 11% |
| D/E | 0.2 | 0.2 | 0.15 |
Verdict: Sexy margins, low leverage.
9. P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 4,057 | 4,227 | 4,261 |
| EBITDA | 364 | 448 | 727 |
| PAT | 141 | 225 | 453 |
Comment: Profit tripled in two years – impressive.
10. Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| APL Apollo | 20,885 | 801 | 52 |
| Shyam Metalics | 15,945 | 922 | 30 |
| Welspun Corp | 14,392 | 1,622 | 15 |
| Gallantt Ispat | 4,261 | 453 | 36 |
Verdict: Smaller scale, premium valuation.
11. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 68.9% (stable)
- FIIs: 0.05% (negligible)
- Public: 31%
12. EduInvesting Verdict™
Gallantt Ispat has transformed into a high-margin steel player with diversified revenue streams. The stock’s meteoric rise (+117% YoY) reflects investor confidence. However, the P/E premium makes it vulnerable to steel price corrections.
SWOT Analysis
- Strengths: Margin expansion, low debt, diversified revenue.
- Weaknesses: High valuation, cyclicality risk.
- Opportunities: Infra push, agro business scaling.
- Threats: Steel price crash, competition from giants.
Final Word: Gallantt is forging profits like a master blacksmith. Just watch out – steel cycles can burn.
Written by EduInvesting Team | 29 July 2025
SEO Tags: Gallantt Ispat, Steel Stocks, Q1 FY26 Results
