Lloyds Metals eyes 27 million tonne sales, steel plant to come on stream this year

Rajesh Gupta, MD of Lloyds Metals & Energy outlines the company’s next growth phase driven by higher iron ore and pellet volumes, steel plant commissioning, copper expansion and continued capex, while hinting at a potential future IPO for Triveni Earthmovers.

Rajesh Gupta, MD of Lloyds Metals & Energy, said the company expects strong growth in iron ore and pellet sales this year amid firm demand and rising prices in the steel sector. The company is targeting around 27 million tonne of total sales, while also commissioning its steel plant by the end of the year to expand into direct reduced iron (DRI) and steel production.

Gupta said Lloyds Metals is entering a new phase of scale-up with higher pipeline utilisation, copper mining expansion and continued capex across beneficiation and steel operations. While he refrained from giving earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance, he indicated that operational efficiencies, rising capacities and integrated assets should continue to strengthen profitability over the coming years.

Watch the full conversation here or scroll for edited excerpts.

The optimism comes after earnings jumped in the January-March quarter of 2026 (Q4FY26), where Lloyds Metals & Energy reported revenue of ₹6,019.40 crore compared with ₹1,192.60 crore a year ago, while EBITDA surged to ₹2,544.98 crore from ₹260.40 crore. The Maharashtra-based company now commands a market capitalisation of around ₹95,580.97 crore, with the stock gaining nearly 45% over the past year.

These are edited excerpts from the interview.Q: Your guidance suggests nearly 26–27 million tonne of production and around 7.5–8 million tonne of pellet production. What kind of sales and EBITDA trajectory are you expecting?

A: Price inflation is there. In fact, the market is steady upward with good demand traction in both steel and iron ore.

The projection for this year is around 27 million tonne of sales, including around 7.5–8 million tonne of pellet sales. Revenue would broadly be around double of this year.

Q: So roughly 19 million tonne of iron ore sales and 7.5–8 million tonne of pellet sales?

A: Yes, around 19 million tonne of iron ore sales and 7.5–8 million tonne of pellet sales.

In addition to that, we will have around 800,000 tonne of DRI sales and about 150,000 tonne of steel sales as the steel plant gets commissioned by the end of this year.

Q: Your iron ore EBITDA per tonne was around ₹1,900 last quarter. With price increases and cost benefits, do you expect further improvement?

A: I would not like to give pricing guidance because it is a commodity business.

What we are focused on is costs. The pipeline capacity utilisation will increase from around 4 million tonne currently to nearly 8 million tonne, and that will substantially add to the bottom line per tonne.

We definitely see EBITDA remaining upward of ₹1,900 per tonne.

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Q: By simple calculations, EBITDA from iron ore, pellets, and DRI itself could exceed last year’s company EBITDA. Can EBITDA move closer to ₹10,000–11,000 crore this year?

A: We would not like to give hard EBITDA guidance. That is for analysts to calculate. Let us focus on performing operationally.

Q: Let’s talk about Triveni Earthmovers. The business delivered around ₹2,000 crore EBITDA last year. What are your expectations going forward?

A: We are anticipating much higher turnover there because of growth in the Surjagarh mine asset, Odisha operations, coal assets in Jharkhand, Andhra assets and copper.

Overall, we are expecting around 50% growth in EBITDA on a fair basis.

Q: Does that make an IPO of Triveni Earthmovers a possibility in the future?

A: At some point in time, yes, we will look at an IPO because we believe the business deserves a better valuation multiple.

But the detailing is still on the drawing board, so I would not like to comment on timelines right now.

Q: What explains your investment in Bharat Wire Ropes?

A: It is a pure investment.

They will also become a large customer once our steel plant and wire rod operations come up. Geography also works in our favour because we are the closest plant to them.

The wire rope business itself is exciting, which is why we invested.

Q: Could Bharat Wire Ropes generate meaningful business for Lloyds Metals in the future?

A: They could buy around 1,000 tonne from us initially. Revenue potential could be around ₹700 crore by 2027-28 (FY28).

Q: You are also expanding into copper and cobalt through the Surya and Chemaf assets. What kind of contribution do you expect from these businesses?

A: We expect around 10,000 tonne of copper production this year from the Surya assets.

Eventually, Surya could ramp up to 30,000 tonne, while the Chemaf asset could ultimately produce around 70,000 tonne.

The cobalt business has significant long-term potential as well, supported by large mining assets and internal ore sourcing.

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Q: What will the capex and net debt profile look like given these expansion plans?

A: Capex for 2026-27 (FY27) should be around ₹12,000 crore. Over the last three years, we have already invested around ₹30,500 crore.

Despite that, net debt is only around ₹4,000 crore, which is roughly 80% of annual EBITDA.

Next year’s capex should be around ₹10,000 crore, including completion of the steel plant, beneficiation investments and the second pipeline project.

Q: The steel plant will be commissioned in the last quarter of this year?

A: Yes, the steel plant will be commissioned in the last quarter of this year.

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