The Board of Directors of Godawari Power and Ispat approved a significant expansion proposal on Tuesday, approving the setup of an integrated steel plant with 1 million tonnes per annum (MTPA) capacity of iron and steel finished products. According to reports from CNBC TV18, the proposed facility will be located at Sarora village in Tilda tehsil of Raipur district, Chhattisgarh, with an estimated investment of ₹7,000 crore. The project will be funded through a 1:1 ratio of debt and equity (internal accruals) and is expected to be completed over a period of about three and a half years. The company has now received environment clearance from the Ministry of Environment, Forest & Climate Change, Government of India as announced on July 16, 2025, marking a major milestone in the project's development.
The stock market rally provided strong support for Godawari Power and Ispat shares, with the stock jumping 4.86% to ₹264.10 as of 2:32 PM on Tuesday following the announcement. As reported by CNBC TV18, the gains came as the broader Indian stock market recovered sharply, with Sensex and Nifty 50 surging over 2% each. The Nifty Smallcap 100 and Nifty Midcap 100 indices also posted gains of more than 2% each, contributing to the positive sentiment. The stock has delivered 41.58% returns over the last 12 months, demonstrating strong long-term performance despite recent volatility.
The expansion comes as Godawari Power and Ispat currently operates with an existing steel capacity of 0.5 MTPA at its Siltara facility in Raipur, which is operating at over 95% utilization. According to CNBC TV18, the planned expansion is aimed at capitalizing on the growing demand for structural steel in India. The new facility will manufacture finished steel products such as heavy and medium structural steel and wire rods, strengthening the company's product portfolio and supporting long-term growth in the domestic steel market.
The company has made significant progress in its divestment of its stake in Ardent Steel Private Limited (ASPL), with the latest tranche completed on March 24, 2026. According to Live Mint, Godawari Power and Ispat transferred 2,00,000 equity shares representing 2.52% stake for ₹6.60 crore consideration. Following this tranche completion, the company's stake in ASPL was reduced from 20.98% to 18.46%, with ASPL ceasing to be an associate company effective March 24, 2026.
For the December quarter, Godawari Power and Ispat reported mixed financial results with some positive margin improvements. According to CNBC TV18, net profit fell 1.1% year-on-year to ₹143.2 crore from ₹144.8 crore in the previous year. However, revenue dropped 12.2% YoY to ₹1,139 crore from ₹1,297 crore in Q3FY25. Despite the revenue decline, EBITDA rose 3.9% YoY to ₹230.3 crore from ₹221.6 crore in the year-ago period, with EBITDA margin expanding by 320 basis points to 20.2% from 17% in the previous year.
