01 — At a Glance
The Iron Ore Kid Who Decided to Mine Copper in Africa
- 52-Week High / Low₹1,613 / ₹1,005
- Q3 FY26 Revenue₹3,875 Cr
- Q3 FY26 PAT₹889 Cr
- Q3 FY26 EPS₹19.24
- Annualised EPS (Q3×4)₹76.96
- Book Value₹142
- Price to Book8.34x
- Dividend Yield0.08%
- Debt / Equity1.06x
- EBITDA Margin Q334%
The Gist: Lloyds Metals crossed ₹11,000 crore in consolidated revenue. Standalone Q3 delivered ₹3,875 crore revenue (+129% YoY), ₹1,317 crore EBITDA (+137%), and ₹889 crore PAT. Margins at 34%. But here’s the plot twist: they’re not just expanding sponge iron and mining capacity anymore. They’ve acquired a 50% stake in a copper mine in the Democratic Republic of Congo. Pellet plants. Steel mills. Beneficiation plants. And copper cathodes in Africa. Welcome to 2026 — when mid-cap miners forget to stay mid-cap.
02 — Introduction
From Sponge Iron to Sponge Risk. A Beautiful Mess.
Two years ago, Lloyds Metals was a niche sponge iron manufacturer with a captive iron ore mine. Standard narrative: backward integration, low cost, decent margins, nobody exciting. The stock was trading in the ₹400–₹600 range.
Today — ₹1,184 per share, a market cap of ₹76,186 crore, and management is casually discussing copper mining in the DRC as if it’s as routine as updating the canteen menu.
What happened? Environmental clearance expansion. Pellet plants commissioned. Slurry pipelines delivering cost savings. A full integration play into steel. Acquisition of Thriveni Earthmovers’ mining business (79.82% stake). And now — a 50% JV stake in a copper mine in Katanga, DRC, targeting 10,000–12,000 tonnes of cathode output in FY27 and scaling to 30,000 TPA medium-term.
This is no longer a conservative miner’s story. This is a diversified mining and metals company building optionality at a furious pace. The question isn’t whether they can execute one thing. It’s whether they can execute seven things simultaneously. Q3 FY26 results suggest they can. Or suggests they’re running very fast before gravity catches up. Both are possible.
Concall Tone (Feb 2026): Management explicitly stated copper is “a new gold for the new age economy.” They’re not joking. They also confirmed that Katanga (DRC) is “not zero politically worrying” but “well sustained” with “infrastructure and systems in place.” Translation: we believe in this. Believe in us.
03 — Business Model: WTF Do They Even Do Now?
It’s Complicated. Let Me Count the Buckets.
Lloyds Metals & Energy is officially a metals and mining conglomerate with five operational buckets: (1) iron ore mining (Surajgarh, Gadchiroli, Maharashtra), (2) sponge iron manufacturing (DRI), (3) pellet production (value-add), (4) mining services (via Thriveni subsidiary), and (5) copper exploration/production (DRC JV). Think of it as a matryoshka doll, except each doll is aggressively building capex.
Iron ore is still the backbone. Q3 saw 4.1 MT of ore sales with an EBITDA/ton of ₹1,825 — meaning they’re pulling ₹1,825 of pre-interest earnings out of every ton. Pellets, the value-added play, did 1.14 MT in Q3 with EBITDA/ton of ₹4,535 — that’s 2.5x the margin profile of raw ore. DRI is the sticky wicket. Volumes at 0.12 MT in Q3, management called it “one of the most challenging businesses… most affecting the secondary steel market.” Translation: it’s cyclical and they know it. But they’re still expanding it because the medium-term thesis is integrated steel manufacturing, not stand-alone DRI.
Thriveni, the MDO (mining and mineral exploration) subsidiary (79.82% owned post-July 2025 acquisition), hauled in ₹2,200 crore revenue in Q3 at 25% EBITDA margin. Coal mining (PB West, PB North West, Odisha), barytes, Indonesia operations — all feeding Thriveni’s 20% EBITDA margin. The profit math: ₹550 crore EBITDA in Q3 alone.
And copper? It’s early. Very early. 10,000–12,000 tonnes in FY27. But at 30–32% EBITDA margins and $11,000–$12,000 copper cathode prices, this could be ₹500–700 crore of PBT within 12 months once it scales. Management’s framing: “multi-decade demand strength, constrained supply.” They’re not wrong about the thesis, though politics in Katanga is always a wildcard.
Iron Ore Sales4.1 MTQ3 FY26
Pellet Output1.14 MTQ3 FY26
DRI Production0.12 MTQ3 FY26
Thriveni EBITDA₹550 CrQ3 EBITDA
Slurry Pipeline Magic: First 85 km pipeline is running. They’re planning a second pipeline (16 MTPA capacity). Unit economics claim ₹1,250/ton savings for pellet-feed via pipeline. Scaled across 26 MT annual dispatch target, that’s ₹32.5 crore annual benefit. Boring? Yes. Compounding? Absolutely.
💬 Here’s the real question: Is Lloyds becoming a world-class integrated miner, or is it becoming a collection of adjacent bets run by promoters with deep pockets and aggressive ambition? What’s your take in the comments?
04 — Financials Overview
Q3 FY26: The Numbers That Make Your Eyes Pop
Result type: Quarterly Results (Dec 2025) | Q3 FY26 EPS: ₹19.24 | Annualised EPS (Q3×4): ₹76.96 | 9M FY26 EPS (cumulative): ₹45.39
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 3,875 | 1,675 | 2,384 | +131.6% | +62.7% |
| EBITDA | 1,317 | 608 | 794 | +116.6% | +65.9% |
| EBITDA Margin % | 34% | 36% | 33% | -200 bps | +100 bps |
| PAT | 889 | 389 | 567 | +128.5% | +56.8% |
| EPS (₹) | 19.24 | 7.44 | 10.87 | +158.7% | +76.8% |
Reality Check: Q3 is a standalone snapshot (Lloyds Metals only). Consolidated figures crossed ₹11,000 crore revenue for 9M FY26. Thriveni contributed ₹2,200 crore in Q3, meaning the group is doing >₹6,000 crore in quarterly consolidated revenue. EPS annualisation: Q3 EPS ₹19.24 × 4 = ₹76.96. But this is seasonal. Coal mining in Thriveni spiked in Q3 due to good weather. Q2 had rain disruptions. Always adjust for seasonality in mining operations. Full-year FY26 guidance points to ₹6,500–7,000 crore standalone revenue, ₹2,000–2,200 crore Thriveni EBITDA, and consolidated EBITDA of ₹3,000+ crore. Back-of-envelope: full-year standalone EPS could land around ₹60–65 if maintained. That’s why the annualised number matters less than the quarterly trend.
05 — Valuation: Fair Value Range
What’s This Expansion Play Actually Worth?
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2 Responses
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