Gallantt Ispat Limited reported a 29% year-on-year decline in standalone net profit after tax (PAT) to ₹124 crore for the quarter ended June 30, 2026 (Q1FY27), primarily driven by surging raw material costs and a planned maintenance shutdown at its pellet plant. While revenue from operations grew modestly by 2% to ₹1,146 crore, EBITDA contracted by 20% to ₹203 crore, compressing operating margins from 23% in Q1FY26 to 18%. The company highlighted that despite margin pressure, it maintained debt-free status with all capex funded through internal accruals. Consolidated results mirrored the standalone figures, with net profit also standing at ₹124 crore.

The Board meeting held on July 27, 2026, approved the unaudited financial results for Q1FY27. The results were reviewed by M/s Maroti & Associates under Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In a significant governance update, the Board accepted the resignation of M/s Maroti & Associates as statutory auditors, effective July 27, 2026, citing increased audit complexity and resource constraints. M/s Singhi & Co. was appointed as the new statutory auditors to fill the casual vacancy until the ensuing Annual General Meeting. The Audit Committee confirmed no concerns were raised by the outgoing auditors pursuant to SEBI Circular CIR/CFD/CMD1/114/2019.

Financial Performance

Total income stood at ₹1,164 crore, up 3% from ₹1,135 crore in Q1FY26. However, total expenses rose sharply by 9% to ₹999 crore. Raw material costs jumped 10% to ₹882 crore from ₹800 crore year-on-year, driven by higher coal prices and increased open-market iron ore procurement following the annual maintenance shutdown at the Pellet Plant. Employee benefits increased by 24% to ₹39 crore, while finance costs rose 50% to ₹8 crore. EBITDA per tonne reduced to ₹8,787 in Q1FY27 compared to ₹11,068 in Q1FY26.

Operational Updates and Capex

Production volumes showed mixed trends. TMT Bars production decreased slightly by 0.15% year-on-year to 196.2 KT, while DRI – Sponge Iron production grew by 2% to 236.4 KT. Pellet production dropped significantly by 36% year-on-year to 112.3 KT due to the maintenance shutdown. The company incurred ₹137 crore of capex in Q1FY27, bringing total capex to ₹775 crore since inception, funded entirely through internal accruals without incremental debt. A ₹3,000 crore capex program is underway, focusing on backward integration into iron ore mines in Sonbhadra (UP) and Todpura (Rajasthan), and expanding steel capacity to ~1.23 million MT per annum (MMTPA).

What the Numbers Show

The divergence between modest revenue growth of 2% and sharp expense growth of 9% underscores significant margin pressure in Gallantt Ispat’s operations. With raw material costs constituting the bulk of total expenses, the company’s ability to pass on price increases appears limited in the current quarter. The simultaneous resignation of long-term statutory auditors due to resource constraints adds a layer of operational transition risk, although the clean review report suggests no underlying accounting irregularities. The shift towards premium products like Gallantt Advance aims to support higher realizations, potentially offsetting some input cost pressures over time.

Gallantt Ispat Limited Gallantt Ispat has appointed Amit Jalan as its Chief Financial Officer (CFO) and Key Managerial Personnel (KMP), effective July 27, 2026. The Board of Directors approved the appointment during a meeting held on July 27, 2026, acting on the recommendation of the Nomination and Remuneration Committee. This leadership change strengthens the company’s financial management structure, with Jalan transitioning from his previous role as Chief Accounts Officer to lead the finance function full-time.

The appointment is made pursuant to Section 203 of the Companies Act, 2013, and Regulation 6(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosures were filed under Regulation 30 of the SEBI LODR Regulations, 2015, read with SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024 (updated as on January 30, 2026). The Board’s decision aligns with statutory requirements for appointing key managerial personnel, ensuring robust governance for operations across its Gorakhpur and Gujarat units.

Appointment Details and Profile

Amit Jalan will serve in a full-time capacity starting from the effective date of his joining. His extensive background includes expertise in end-to-end finance management, cost control, audit, budgeting, forecasting, and profitability analysis. Additionally, he possesses significant skills in credit and stock control, Management Information Systems (MIS) reporting, costing, training, and internal risk assessment. He is also skilled in driving strategic initiatives and optimizing financial performance while ensuring statutory compliance across all functions.

Strategic Context

Jalan’s promotion reflects the company’s strategy to leverage internal talent for senior financial roles. He brings over 25 years of experience in finance management, corporate planning, and IND-AS accounting, having been associated with Gallantt Ispat since its incorporation. The transition coincides with the firm’s recent audit restructuring, where M/s. Singhi & Co. was appointed as Statutory Auditor to fill a casual vacancy left by Maroti & Associates.