Lloyds Metals and Energy delivered its highest-ever first-quarter iron ore production of 6.05 million tonnes in Q1FY27, representing a 53% year-on-year increase from the previous year. According to reports from CNBC TV18, the company stated it remains on track to produce 26 million tonnes of iron ore in FY27, continuing the strong momentum from FY26. The mined ore figure excludes 5.9 million tonnes of banded hematite quartzite (BHQ), which will be processed once beneficiation plants are commissioned. This achievement demonstrates the company's successful unlocking of mining bottlenecks and establishment of robust logistics infrastructure to handle massive volumes.
Direct Reduced Iron (DRI) production surged to 182,460 tonnes during the quarter, marking a 131% increase from 79,000 tonnes in the year-ago period. As reported by CNBC TV18, the company's two new kilns are now fully commissioned and operating at capacity. Pellet production reached 1.69 million tonnes in Q1FY27, with the company recently commissioning its 4 million tonnes pellet plant, bringing total annual pellet production capacity to 8 million tonnes. Both plants are experiencing strong demand in domestic and international markets, with Plant 1 now operating at full capacity. The 131% jump in DRI production indicates a successful shift toward integrated value-added products, with the company effectively processing more of its own raw iron ore into higher-priced products that typically lead to better operating margins compared to selling raw ore alone.
The company reported copper production of 2,754 tonnes during the quarter, with copper production commencing at the Surya mines in March 2026. According to CNBC TV18, this makes Lloyds Metals India's first company with mine-to-market capabilities in copper. The reported output includes residual production from the Chemaf plant. In May 2026, the company received environmental clearance to expand its Surjagarh mine capacity, followed by the commissioning of a new waste-heat recovery power plant in June to support its DRI expansion, directly contributing to the 131% production jump observed this quarter.
The company has successfully evolved from a mid-tier miner to a top-tier merchant iron ore producer with 6MT+ quarterly output, positioning itself as a critical infrastructure enabler as the government pushes for 300MT of steel capacity. As per CNBC TV18, volume-driven growth is the primary revenue catalyst for Lloyds Metals in the current fiscal, with integrated operations (DRI and pellets) scaling faster than raw mining, which protects margins against commodity price volatility. The strategic dominance in the Gadchiroli mining belt provides a low-cost logistics advantage, while the company's focus on massive volume increases effectively lowers per-tonne overheads despite global volatility in iron ore prices.
