Godawari Power & Ispat Ltd. continues to expand its integrated steel and mining operations through capacity additions, renewable energy initiatives, and value-added product offerings to strengthen long-term growth prospects.
Key Capacity Expansion Milestones Achieved
Received Consent To Operate (CTO) from CECB in Feb’26 for expansion of Ari Dongri Mines from 2.35 MnT to 6 MnT, with phased ramp-up underway and full-scale operations targeted from FY28.
The iron ore beneficiation plant capacity expansion at the Ari Dongri Mines, increasing capacity tenfold to 6 million tons, is targeted for by Q3 FY27.
Received CTO from CECB for expansion of Sponge Iron capacity from 0.59 MnT to 0.65 MnT and HB Wire capacity from 0.10 MnT to 0.115 MnT.
Received CTO for a 7 MW waste heat recovery power plant, bringing total WHRP capacity to 49 MW.
Commissioned a 2 MnT iron ore pellet plant in December 2025, boosting total pellet capacity from 2.7 to 4.7 MnT, and pioneering advanced natural gas-based grate kiln technology in India, reducing carbon intensity.
1 Million Ton Integrated Steel Plant
The board has approved the development of a 1 million ton integrated steel plant, with a capex of Rs. 7000 Cr, to manufacture structural steel and wire rods. Land acquisition and environmental approvals are in place, while consent to establish is awaited. Discussions with equipment suppliers and project engineering are ongoing, with construction expected to begin in October 2026.
Scaling Captive Solar Capacity by 3X
GPL is tripling its captive solar capacity, increasing from 165 MW to 540 MW, supporting iron ore mines, the new pellet plant, CRM, and the upcoming steel plant. A 25 MW expansion was commissioned on May 19, 2026, with another 100 MW expected in Q2FY27.
CRM Complex Project Progress
The CRM project is on track with on-site construction for the 0.7 million ton CRM project to begin by July FY26. Key equipment orders placed, with advance payments made, targeting project commissioning by March FY27 or early Q1FY28. The company has guided for a conservative 50% utilization (3.7 lakh tons) in FY28, with capacity utilization expected to reach ~90% from FY29 onwards.
Advancing the 20 GWh BESS Project
The company is developing a 20 GWh BESS project, with soil testing completed, construction underway, and Rs. 310 Cr already invested. Long-term agreements with EVE Power and Shanghai Shenyi Roche Energy Technology Ltd have secured the supply chain for LFP cells and BoS components. The first line is expected to be commissioned by Q4FY27, with output ramping from 5–6 GWh in FY28 to 17–18 GWh from the third year onwards. EBITDA margins, initially estimated at 7–8%, are currently trending at 12–13% due to strong market demand.
Expansion Planned at Boria Tibu Mines
The company plans to expand Boria Tibu mining capacity from 0.7 MnT to 4 MnT, along with in-mine beneficiation facilities. Given the low-grade nature of the ore (35–40% Fe content), the project is targeted to become operational by FY30, with usable output expected at 1.5 MnT.
Strong FY27 Growth Outlook Across Key Segments
The FY27 guidance reflects continued growth across key segments, with iron ore mining guided at 3.4 MnT, iron ore pellets at 4.0 MnT, sponge iron at 0.65 MnT, steel billets at 0.525 MnT, rolled products at 0.44 MnT, and ferro alloys at 95,000 tons.
FY27 Revenue & Margin Guidance
The company expects FY27 revenue to exceed Rs. 6,000 Cr, supported by higher volumes from the new pellet plant operating at 80 – 90% utilization. At current market conditions, EBITDA margins are expected to remain healthy at around 24–25% for FY27.
Planned Capex & Debt Outlook
The company expects FY27 capex at Rs. 1800–2,000 Cr, primarily towards the CRM complex, BESS project, and solar expansion. Major capex for the Rs. 7,000 Cr integrated steel plant is expected from FY28 onwards, with annual capex projected at Rs. 3,000 Cr in both FY28 and FY29. Debt funding for the steel project is also likely to commence from FY28, while current projects are largely being funded through internal accruals.
EV Fleet Expansion Plans
The company plans to deploy over 300 - 350 EV trucks at full operational scale, with the overall investment, including charging infrastructure, estimated at Rs. 350 Cr.
Vision 2031: Building a Rs. 30,000 Cr Revenue Platform
The company targets revenue of nearly Rs. 30,000 Cr over the next 5 years, driven entirely by announced projects and existing operations. The 20 GWh BESS project is expected to contribute Rs. 15,000 Cr in revenue, while the new integrated steel plant and CRM complex are projected to add over Rs. 6,000 Cr and Rs. 3,000–4,000 Cr, respectively. Growth will also be supported by expanded pellet capacity.