Gallantt Ispat delivered robust operational results for the fourth quarter, with power production rising 14% year-on-year according to an exchange filing on Monday, April 6. The company's pellet production surged significantly by 59% YoY to 2.21 lakh metric tonnes during the quarter, while steel sales demonstrated steady growth of 9% YoY to 0.23 million tonnes. Steel production stood at 0.24 million tonnes in Q4, up 9% YoY, with full-year FY26 production reaching 0.88 million tonnes and marking a 3% YoY increase. The company maintained strong operational performance with capacity utilization of 91% in Q4 and 86% for FY26, as reported in the exchange filing.
Despite the volume gains, Gallantt Ispat faced margin pressures in Q4 FY26, with operating margins reaching 15.0% compared to Q3's 14.3%, though still below earlier periods. The company reported net profit of ₹125 crore for Q4 FY26, up 25% year-on-year, with revenue increasing 12% to ₹1,200 crore and EBITDA growing 17% to ₹180 crore. Higher input costs, particularly coking coal affecting the entire Indian steel industry, likely kept margins from fully reflecting the higher sales volumes. The full fiscal year 2026 showed more moderate growth of 3% in steel production and sales, with steel sales for FY26 coming in at 0.85 million tonnes.
In contrast to the strong Q4 performance, Gallantt Ispat had reported subdued results in Q3 FY26, with net profit falling 12% to ₹100.4 crore compared with ₹114 crore in the corresponding quarter last year. Revenue declined 4% to ₹1,073.6 crore from ₹1,118 crore a year ago, while EBITDA dropped 23% year-on-year to ₹154 crore against ₹199.1 crore in Q3 of the previous financial year. Operating margin also contracted to 14.3% from 17.8% in the year-ago period, reflecting lower operating leverage and input cost pressures.
Despite the mixed quarterly performance, shares of Gallantt Ispat Ltd ended higher on Monday, closing at ₹564.45 on the NSE with a gain of ₹8.55, or 1.54% during the trading session. The company's trailing twelve-month (TTM) Price-to-Earnings ratio stands at 25.5 with a market capitalization of about ₹15,500 crore. This P/E is higher than peers like Steel Authority of India (SAIL) at 18.2, Tata Steel at 22.0, and JSW Steel at 20.5, though Gallantt Ispat's stock has outperformed these competitors by approximately 5% over the past year. The strong Q4 operational performance sets a positive tone for the company moving into the new fiscal year, though improving margins will depend on managing ongoing input costs and using production capacity efficiently.
