Lloyds Metals & Energy Limited recorded its highest-ever first-half operational performance in H1FY27, driven by a 36% year-on-year increase in iron ore production to 10 million tonnes.

The integrated metal and mining company also witnessed significant growth in downstream products. Direct Reduced Iron (DRI) output more than doubled to 343,000 tonnes, while pellet production surged to 3.8 million tonnes, reflecting successful ramp-up of new capacity.

Iron ore and BHQ production momentum

Iron ore mining operations maintained strong momentum, achieving 10 million tonnes in the first half of FY27 compared to 7.4 million tonnes in the corresponding period last year. The company remains on track to meet its full-year guidance of producing 26 million tonnes of iron ore in FY27.

Notably, the mined ore figures exclude Banded Hematite Quartzite (BHQ) stockpiles. The company accumulated 8.7 million tonnes of BHQ during this period, up from 1.2 million tonnes in H1FY26. This material is slated for processing once the newly commissioned beneficiation plants become fully operational.

Downstream expansion drives pellet and DRI growth

The commissioning of the second 4 million tonne per annum (MTPA) pellet plant at Konsari significantly boosted capacity to 8 MTPA. This expansion enabled pellet production to reach 3.8 million tonnes in H1FY27, implying 100% capacity utilisation. The rapid ramp-up marks one of the fastest timelines achieved by the company for such infrastructure projects.

In the DRI segment, production rose 104% YoY to 343,064 tonnes from 167,812 tonnes in H1FY26. This volume implies consistent capacity utilisation exceeding 90% across its two Maharashtra locations.

Copper segment contribution

Lloyds Metals also reported copper production of 4,389 tonnes in H1FY27. This figure includes residual production from the Chemaf plant during Q1FY27, marking continued activity in its base metals division following investments in the Democratic Republic of Congo.

Production summary H1FY27

What the numbers show

The data reveals a strategic shift towards value addition and higher-value products. While iron ore volumes grew 36%, the pellet segment expanded 372%, indicating that downstream processing is becoming a larger contributor to overall output mix. Furthermore, the massive accumulation of 8.7 million tonnes of BHQ, which is currently excluded from saleable ore figures, suggests significant future revenue potential once beneficiation capacities are fully utilised.

Lloyds Metals & Energy promoters have disclosed the creation of a Non-Disposal Undertaking (NDU) on their equity holdings to secure a Rupee Term Loan Facility from State Bank of India. The filing, dated September 30, 2026, confirms that while disposal of these shares is restricted, legal ownership, voting rights, and dividend entitlements remain with the respective promoters.

Nature of the Security Arrangement

The NDU was entered into by Rajesh Rajnarayan Gupta, Promoter and Managing Director, along with other promoters, in favour of SBICAP Trustee Company Limited acting as the Security Trustee. This arrangement is part of the financing documents for the term loan availed by the company. The undertaking imposes contractual restrictions on the transfer or creation of encumbrances on the specified shares during the applicable period.

Crucially, the disclosure clarifies that this is not a pledge. The shares continue to be held in the respective demat accounts of the promoters, with no transfer to third-party accounts. The promoters retain full voting rights and economic benefits, subject to the terms of the financing documents.

Promoter Holdings Under Undertaking

The following table summarizes the key promoter entities and individuals whose shares are subject to the NDU or related pledges as per the disclosure:

What the Numbers Show

A distinct pattern emerges when comparing the types of security provided by different promoter entities. While major corporate promoters like Thriveni Earthmovers and Crosslink Food and Farms have placed a significant portion of their holdings under Non-Disposal Undertakings, other entities such as Sky United LLP and Lloyds Metals & Minerals Trading LLP have also created direct pledges. Specifically, Sky United LLP pledged 20 million shares (3.55% of capital), and Lloyds Metals & Minerals Trading LLP pledged 20 million shares (3.55% of capital) alongside creating NDUs on their remaining holdings. This mix suggests a tiered approach to collateralization for the SBI facility, where certain entities provide stricter security (pledge) while others provide restrictive covenants (NDU).

Regulatory Compliance

The disclosure was made under Regulation 31(1) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The report was submitted to BSE Limited and National Stock Exchange of India Limited. The date of creation for most NDUs was recorded between August 26, 2026, and September 4, 2026.