Lloyds Metals and Energy Limited Q2 & H1 FY26 Concall Decoded: Record Profits, Pellet Power & Debt That Finally Makes Sense

1. Opening Hook

When most metal companies blame cycles, Lloyds decided to blame… execution. While peers debated steel demand, Lloyds quietly turned mud into margins using a slurry pipeline and casually crossed pellet plant capacity in four months. Monsoons tried their annual sabotage, but management shrugged and promised to make it back “in the coming months.” EBITDA expanded, profits hit records, and suddenly everyone wanted to talk about pellets instead of iron ore prices. Debt ballooned, yes—but this time with a plan, a pipeline, and a pellet plant to show for it. If you thought mining concalls were boring, this one comes with capex swagger, integrated ambition, and just enough complexity to keep analysts awake. Read on—because Lloyds isn’t playing quarters anymore, it’s playing decades.

2. At a Glance

• Revenue ₹25,754 Cr (+75% YoY) – Highest-ever quarter, monsoon tried but failed.
• EBITDA ₹8,693 Cr (+95% YoY) – Margins flexed like a gym regular.
• EBITDA Margin 33.8% – Mining peers quietly taking notes.
• PAT ₹6,056 Cr (+22% YoY) – Profits now officially routine.
• Pellet EBITDA ₹5,039/ton – Value addition doing the heavy lifting.

3. Management’s Key Commentary

“The slurry pipeline is a market turning point.”
(₹600 per ton saved—finance teams smiling 😏)

“Pellet plant crossed 100% capacity in October.”
(Ramp-up speed: startup energy in a mining company.)

“This value-added mix is now a core profitability driver.”
(Iron ore alone is so last decade.)

“We are building for the next 30 years, not 3 quarters.”
(Short-term traders gently ignored.)

“EBITDA margins expanded despite Q2 being a weak mining quarter.”
(Monsoon officially demoted.)

“We aim to be structurally low cost and cycle-proof.”
(Steel cycles invited, impact limited.)

4. Numbers Decoded

• Pellet margins now rival entire standalone businesses elsewhere.
• Iron ore EBITDA/ton at ₹1,781 despite monsoon drag.
• DRI margins soft but stable, waiting for coal prices to behave.

5. Analyst