Gallantt Ispat's standalone net profit declined 29% to ₹124 crore for Q1FY27 ended June 30, 2026, compared to ₹174 crore in the corresponding quarter of the previous year, according to the company's latest financial results. The significant profit decline was driven by surging raw material costs and a planned maintenance shutdown at its pellet plant, as reported by the company. The consolidated results mirrored the standalone performance, with net profit remaining at ₹124 crore for the quarter.
Despite the profit decline, revenue from operations grew modestly by 2% to ₹1,146 crore in Q1FY27, up from ₹1,128 crore in Q1FY26, as reported by Gallantt Ispat. However, total expenses rose by 8.8% to ₹999.16 crore, creating significant margin pressure. The company's EBITDA contracted by 20% to ₹203 crore, with margins compressing from 23% in Q1FY26 to 18% in the current quarter. Total income stood at ₹1,163.98 crore, up 2.6% from ₹1,134.60 crore in the previous year.
Production volumes showed mixed trends during the quarter. 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. However, pellet production dropped significantly by 36% year-on-year to 112.3 KT due to the maintenance shutdown at the pellet plant. Raw material costs jumped 10% to ₹882.36 crore from ₹800.44 crore year-on-year, driven by higher coal prices and increased open-market iron ore procurement following the annual maintenance shutdown. Employee benefits increased to ₹38.71 crore from ₹31.19 crore, and finance costs rose to ₹8.47 crore from ₹5.65 crore.
The Board approved several significant corporate governance changes during the quarter. The Board accepted the resignation of statutory auditors M/s Maroti & Associates effective July 27, 2026, citing increased scale and complexity of audits alongside resource constraints as reasons for stepping down after serving since FY23. The firm completed a limited review report for the quarter, with no concerns raised by outgoing auditors. M/s Singhi & Co. was appointed as the new statutory auditors until the ensuing Annual General Meeting. Additionally, Mr. Amit Jalan was appointed as Chief Financial Officer (CFO) and Key Managerial Personnel (KMP) effective July 27, 2026. Mr. Jalan, who has been associated with the company since its incorporation, previously served as Chief Accounts Officer and was recommended by the Nomination and Remuneration Committee.
The company continued its expansion plans with ₹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). The divergence between modest revenue growth of 2% and sharp expense growth of 8.8% underscores significant margin pressure, with raw material costs constituting the bulk of total expenses limiting the company's ability to pass on price increases in the current quarter.
