Lloyds Metals & Energy Limited (LMEL) has reported strong performance for the second quarter, with significant growth in revenue and profitability. The company's strategic investments in pellet production and operational efficiencies have begun to yield substantial returns.

Financial Highlights

• Total income stood at INR 25,754.00 million, up 75% year-on-year
• EBITDA reached INR 8,693.00 million, a 95% increase from the previous year
• EBITDA margin expanded by 348 basis points to 33.75%
• Profit after tax (PAT) grew by 22% year-on-year to INR 6,056.00 million

Operational Performance

The company's performance was driven by several key factors:

1. Iron Ore Production: Iron ore production reached 3.42 million tons, with sales of 2.50 million tons, up 77% and 10% year-on-year respectively.

2. Pellet Plant Ramp-Up: The newly commissioned 4 million ton pellet plant at Konsari achieved full utilization within four months of commencement.

3. Slurry Pipeline Efficiency: The 85-kilometer slurry pipeline has become a major enabler, providing seamless evacuation and structural cost reduction.

4. DRI Expansion: LMEL commissioned its DRI expansion at Ghugus during the quarter, further strengthening its integrated operations.

Financial Strategy and Outlook

LMEL's management highlighted several key points regarding their financial strategy and future outlook:

• The company plans to raise INR 9,500.00 crores through an NCD issue over the next six months.
• LMEL aims for a debt to EBITDA ratio of 1, focusing on internal accruals for future growth.
• The company expects to receive around INR 350.00-400.00 crores annually from Industrial Promotion Subsidy (IPS) benefits.

Future Projects and Expansion

LMEL continues to progress on several major projects:

1. BHQ Beneficiation: The company has mined 1.20 million tons of BHQ and plans to commission the first unit of its beneficiation plant by the last quarter of next fiscal year.

2. Pellet Capacity: LMEL aims to reach a total pellet capacity of 12 million tons in the coming years.

3. Steel Plant: The company is planning a 3 million ton integrated steel plant, with construction expected to start by the end of FY27.

4. Green Initiatives: LMEL plans to reduce conversion costs by transitioning to LNG and increasing green power usage to 25-35% in the next six months.

Management Commentary

Rajesh Gupta, Managing Director of LMEL, stated, "This has been a half year where operational commissioning of the pellet plant has taken center stage. DRI plant has started, the value-added products have further strengthened their profile, and our project pipeline has moved forward as predicted with the planning. Across the board, the business continues to demonstrate resilience and direction."

He further added, "We remain committed to creating a business at a structurally low cost, fully integrated, environmentally responsible and built to deliver sustainable shareholder value."

LMEL appears well-positioned to navigate the market cycles with its integrated operations and focus on cost efficiency. The company's strategic investments in pellet production and operational improvements are expected to drive growth in the coming quarters.

Thriveni Earthmovers Private Limited, a promoter of Lloyds Metals & Energy Limited, has released a pledge on 22,00,000 equity shares of the company, representing 0.42% of the paid-up share capital. The pledge release was executed in favor of YES Bank Limited, effective from November 4, 2025.

Pledge Details

The pledge release was carried out under an Unattested Pledge Agreement dated March 27, 2025, between Thriveni Earthmovers as the borrower and YES Bank as the lender. This move potentially indicates a positive development in the financial position of the promoter entity.

Company Performance

While the pledge release is a notable event, it's important to consider the broader context of Lloyds Metals & Energy's recent performance. According to the company's latest financial results:

The company has shown strong financial performance in the second quarter of FY26, with significant revenue and profit figures on both standalone and consolidated bases.

Recent Corporate Actions

In addition to the pledge release, Lloyds Metals & Energy Limited has been actively engaging with investors. The company recently hosted an earnings conference call for Q2 & H1FY26 on November 13, 2025. This demonstrates the company's commitment to transparency and open communication with its stakeholders.

Market Implications

The release of pledged shares by a promoter entity is often viewed positively by the market, as it may indicate improved financial health or confidence in the company's prospects. However, investors should conduct their own analysis and consider multiple factors before making investment decisions.

As the pledge release involves a significant number of shares, it may have implications for the stock's trading pattern and investor sentiment in the short term. Market participants will likely monitor any further developments or changes in promoter holdings closely.

It's important to note that this article provides information based on the latest available data and should not be considered as investment advice. Investors are encouraged to perform their due diligence and consult with financial advisors before making any investment decisions.