Godawari Power And Ispat limited (NSE: GPIL) Q4 2025 Earnings Call dated May. 21, 2025
Corporate Participants:
Amit Lahoti — Analyst
Dinesh Gandhi — Executive Director
Sanjay Bothra — Chief Financial Officer
Abhishek Agrawal — Executive Director
Analysts:
Manav Gogia — Analyst
Rakesh Roy — Analyst
Sahil Sanghvi — Analyst
Aditya Welekar — Analyst
Divya Agarwal — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4 and FY ’25 Earnings Conference Call of Godawri Power and Limited hosted by Emkay Global Financial Services Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Amit Lahoti from Emkay Global Financial Services. Thank you, and over to you, sir.
Amit Lahoti — Analyst
Yes. Thanks, Puja. Good morning, everyone. Welcome to Q4 FY ’25 earnings call of Power. We have with us today Mr Abhishek Agarwal, Mr Dinesh Gandhi; and Mr Sanjay Bothra. I thank the management for giving us the opportunity to host this call. I now hand over the call to Mr Gandhi. Over to you.
Dinesh Gandhi — Executive Director
Thank you, Abhit. Good afternoon, ladies and gentlemen. Thank you for joining us today for Q4 and FY ’25 earnings conference call of Gujari Power; Limited. Our financial results press release and earnings presentation have been uploaded on our website as well as on the in the website. I believe you have had a chance to review that. I believe — I briefly take you through the operating performance and financial results, after which we will have a question-and-answer session.
At the outset, I would like to mention that over the last five years, JPI has sold consistent financial strength compounded annual growth of 10% in revenue, 14% in EBITDA and 36% in. Coming on the operational performance for Q4 FY ’25 and full-year FY ’25, I’m happy to share that GPI has achieved highest-ever production in iron with, oils and power in FY ’25. The company has fully met made its FY ’25 production guidance for iron-ore mining while surpassing the targeting and gold product with 126% and 106% achievement exceed
FY ’25 production of iron-ore mining is still billet, HV wire, gelmonized and increased various pellet and iron were almost flat. On quarterly basis, iron-ore mining pellet and product has shown consistent increasing trend both on Q-o-Q and Y-o-Y basis. The mining was also helped by the commencement of production in. For FY ’25, of palet exposure and HBY shown a growth. On per tonly basis, iron-ore pellet product shown an increase in trend both on quarter one and Y-o-Y basis.
As you would have observed in our — on our regional publications, FY ’25 realization for almost all products, excluding ferro was in the downturn. They are ranging between 1% to 8%. There is a fall in realization. On quarterly basis, realization of pellet declined while rest of the steel products were largely flat, except for, we saw an increase of 9% Y-o-Y and 5% quarter-on-quarter basis. There is — our individual has also performed remarkably during the year with was achieving a EBITDA of INR80 crores.
During the quarter, the company has resumed production in-mine, which has helped improve iron-ore mining production. The company has also started commercial production in — of rolled product in the form of structural steel for — in our newly commissioned rolling mill in our division, which has reduced the dependence on-market for steel for division. The company is further awaiting approval of GPI steel billage for HP grid that is grade each duty and once the PGCIL approval is received, GPL will be able to offer full range of product for CGI transmission projects.
Coming to the volume guidance for FY ’26, company expects iron-ore mining and pellet production of 3 million ton each in FY ’26, exposure and production of 5.94 lakh ton is still below 500,000 ton, product 375,000 tons and around 90,000 tonnes. Coming on the consolidated financial performance, in Q4, revenue increased to INR1,464 crore on quarter-on-quarter basis, while decreased slightly on Y-o-Y basis due to drop-in realization.
EBITDA and freight increased 44% and 53%, respectively to INR318 crore and INR221 crore on quarter-on-quarter basis due to increase in-production and sale volume of pellet, products and rolled products. On yearly basis, the revenue remained flat almost for some — if compared to FY ’24 level, the increased production and sales volume were offset by drop-in realization. All-in consolidated EBITDA impact was mainly due to decrease in realization.
Despite challenges, EBITDA margin and margin stood strong at 22% and 15%. The company has been — the net cash of INR863 crores is INR35 — as on, 31st March that is 100% on the capital of the company. I would now like to take you through the certain updates on the growth plan for the company. On the capacity front, approval for expansion in iron-ore mining capacity in mines from 2.35 to 6 million ton. The same is expected by Q3 FY ’26.
The approval is further delayed owing to compliance of an additional condition by mining department. However, company is confident of getting the final approval by Q3 FY ’26. The 2 million ton mining pellet expansion is progressing as per plant and is expected to be commissioned in Q2 FY ’26. Additionally, company plans to increase capacity of a steel shop by another 50,000 tonnes, bringing the total capacity to 575,000 metric tons.
This expansion is expected to be commissioned by Q4 FY ’26. To support the power requirement of additional capacity, the company has decided to set-up an additional 30 megawatt of solar power plant, hence the total capacity of under-construction solar project increased to 125 megawatt, you know which is for the meeting requirement in additional pellet capacity, eligation plant with and is still menting expansion.
The company has already acquired the land for the solar project and has finalized the contracts for execution of project. Following this expansion, the overall solar power capacity will rise to 290 megawatt entirely for. On decarbonization front, GPL has signed an MOU synergy to implement rested recovery project, which is currently underway and target completion by March ’26. Furthermore, a later of intent has been issued to IAC Mumbai for technology transfer for 5 tonnes per day carbon capture unit also expected to be completed by March ’26.
These initiatives along with replacing diesel and petrol vehicles with electric ones for internal transportation mark important steps in our journey towards becoming Net carbon zero-emission by 2015. Our CO2 emission per ton of steel has shown significant reduction in last three years. The company has got approval of EGCI for supply of steel billet for the structural steel manufacturer of product for transmission project. This is further expected to improve our operating margin once the grade of billets are approved by the PGCL for which an instruction has already been done and we are awaiting the approval shortly. I would also like to mention that during the current financial — during the financial year ’25, acquired 43.96% stake in Jammu Pigment on fully-diluted basis. The company is engaged in recycling of metal, you know, and JPL has expertised in processing complex future of industrial waste of non-perous metal. Although the company had acquired 51% stake in this company, however, this stake has gone down to 43.96% on account of allotment of an additional shares to the promoter of the company to repay their outstanding loans. The loans — the company was having certain loan from the promoter, which has been converted into the equity by raising additional capital. In FY ’25, companies achieved a net sales of INR860 crore, EBITDA of INR79 crores and PAT of INR37 crores. And in Q4 FY ’25, net sales was INR237 crores, EBITDA of INR34 crores and paid of INR14 crores. The company is confident of a growing volume in Pigments Limited and is actively engage with the promoters and the company management to increase the productivity across the various units. JPL has also identified a land for purchase of for capacity expansion and consolidation of operations to a single lab location. The management believes that JPL will create substantial value for GPL shareholders. The company has received final approval of from CFCB for consent to operate for enhanced capacity of 195,000 tonnes to 594,000 tonnes. It may be mentioned that earlier the approval was given on provisional basis and now the company has received the final approval. The company has also initiated ESG rating by appointing Care to raid the company on ESG score. It is given an ESG rating of three with a score of 51 the company is working towards in improving the ESG score in consultation with the rating agencies. We feel reaffirmed credit rating of AA minus stable and A1 plus for long-term and short-term credit facilities of the company. Coming on the market outlook, on international front, global iron-ore prices have remained within the range of $95 to $105 so-far this year, currently holding is at about $100. The first-half of the year was supported by weather-related production losses. The second-half will see increased supply and might put pressure on the iron-ore prices. The recent geographical connection continues to weigh global demand-supply dynamics. There is a hope that China will continue to provide to support the economy. At the same time, a post four, five years of decline in China’s housing sector is also expected to stabilize. This along with rising cost curve will support the iron-ore prices on decline. For FY ’25, we expect the iron-ore prices to range between $900 and $5 or maybe around closer to average of $100. On domestic front, iron-ore prices and MDC 564 been on upward trend year-to-date currently trading at approximately INR5,500 a tonne. This increase is driven by rising steel demand in domestic markets supported by implementation of duties. Iron-ore pellet prices have created around INR9,000 to INR10,000 a ton with current level of about INR9,500. Going-forward, prices are expected to between INR9,000 to INR11,000 government administration, which has earmarked INR11.2 million ton 11.23 million capital expenditure for ’25-’26, reflecting 10% rise from previous year. This major investment in infrastructure, including road, railway, urban development support from the government in terms of secur duty is set to significantly boost steel demand. With our four decades of experience in and steel industry, business leadership, committed team GPL stays on a strong foundation of expertise and resilience, Our solid cash position combined with advantage of iron-ore mine hybrid production provides competitive edge in the market. The company forward-looking capital expenditure plan under consideration and strategic diversification into recycling business reflect our commitment to innovation and sustainability. In addition, our cost-saving initiative, investment in solar power plants and many other environment-friendly steps to reduce carbon emission demonstrate our dedication to responsible growth. Supported by all stakeholders, is confident of towards moving a future of sustainable and success. We can now open the floor for question-and-answer. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Manav Gojiya from YES Securities. Please go-ahead.
Manav Gogia
Yeah. Hi, sir. Good afternoon and thank you for the opportunity. First first of all, congratulations on the good set of numbers for the quarter. So my first question comes on the mining ACs for Ari. I just wanted to know that looking at the FY ’26 guidance for iron-ore mining, are we building in any part of the ore to start flowing through from Q4 onwards?
Dinesh Gandhi
Good morning, Manav, and thank you so just to update on the mining part. So the current set of numbers, which we have proposed for the FY ’26, we have — we are partly considered a very small quantity from INO mining. So against last year’s — so this year, we have considered INO mining at 2.7 2.8 million tonnes against 2.4 million last year. So partly we expect in Q4 January onwards, we should be able to ramp-up the mining capacity.
So that’s why a very partly has been considered, plus second mine is, which has also started operations a couple of months back, some quantities will be consumed there as well. So put together this year’s mine target is about 2.7 2.8 million tonnes by FY ’26.
Manav Gogia
Got it, sir.
Sanjay Bothra
Million 3 million tons,
Dinesh Gandhi
3 million tons, sorry. Yeah. Orea plus the expansion and of course, the old capacity, 3 million ton.
Manav Gogia
Got it, sir. Sir, additionally, I know — I mean, you guys are quite confident on getting the ECs. My question is, just in case the company faces any challenges where the ECs are not received, what would be up?
Dinesh Gandhi
No, just to interrupt — just to interrupt — just to — I do understand it’s a very important question because there has been delays from past few quarters. So you know, unfortunately, the LOI has been issued by the state government, which is part of the document, but there was a condition which we were not aware of where we have to do some more testing and finally give them a composite report by then by a third-party.
So now they want a report from a third-party. Earlier, we had given them reports, but now they want a third-party report. So that is still another six to eight weeks. So that is why this delay. Otherwise, the process is on. We should be able to get this report by first-half June. And beside that, we will start filing for the public hearing and filing the mining plan. So there’s just a delay. We are very confident and there is no need for Plan B. I can assure you that.
Manav Gogia
Sure. Sure. Thank you. That was really, really helpful, sir. So I can show that in the mining,.
Dinesh Gandhi
Yes, yes, please.
Manav Gogia
So early in April, we had received an update that the Tibu mine had went out of operations, suspended, I think temporarily. So we are back-in production at that mine, right? We don’t —
Dinesh Gandhi
So finally, okay. So there was some lapses in the renewal of as per IBM. So we have completed all the formalities now. We are waiting for the clearance from IBM. So that clearance we should get this week. So So from end of May, the mine will be back-in operation at full flow?
Manav Gogia
Perfect, perfect. Sure. Thank you, sir. Sir, my second question is on the operational front. You know, the sponge iron production volume saw 39% fall on a quarter-on-quarter basis. So can you give them this highlight the factors behind the same? And wanted to know that did we meet the needs for billet production captively or did we have to source the materials through the market for this quarter?
Dinesh Gandhi
Okay. Okay. So a couple of things. Firstly, so currently, the capacity of we have is 5.94 lakhs. So we had achieved that same capacity by mid of February. So we had purposely planned a modification in couple of along with the turbine. So we have changed with a more efficient turbine. So then cash down period was planned because they had already achieved the capacity of 5.9 crore spun which may make. So there was no certain breakdown.
The sales — the volume growth is there because already achieved 5.9 crores in past 11.5 months. That is why, you know, because we can only produce 5.94. So if you see this quarter also both lens after modification have started in first week of May. So again, the volume in Q1 will be less, but eventually for the entire year, we will be able to achieve 5.9 crores. So that’s how we have planned it.
Manav Gogia
Sure, sir. Sure, sir. And just following-up on the same thing. For pellets, I think this quarter we have seen a massive jump on the sales side of the things. So I wanted to know that usually we sell around 400,000 in the market and the rest is used for the captive needs. So what were the reasons behind this jump and
Dinesh Gandhi
If you remember, in end of Q3, there was a pile of inventory of pellets because of the subdued market conditions, plus met be the equila. So almost for 45 days in this quarter, my captive consumption was only 40% for pellets. So that additional 60% of pellet volume for Q4 as well as the inventory in Q3, both were sold and cleared in this quarter. That’s why you can see a big jump-in the sale volume otherwise, no specific reason. This is the only reason. It’s a one-time thing.
Manav Gogia
Got it, got it. And did we export any of the volumes during the quarter or was it?
Dinesh Gandhi
We did export one vessel during January month, apart from that everything is going domestic. And right now, everything is going domestic.
Manav Gogia
Okay. Sure. Perfect. I’ll get back-in the queue for more questions. Thank you so much for your time.
Dinesh Gandhi
Thank you.
Operator
Thank you. Participants who wish to ask a question may press star N1. I repeat to ask a question, please press R&1 now. The next question is from the line of Rakesh Roy from Boeing AMC. Please go-ahead.
Rakesh Roy
Morning, sir. Sir, my first question is regarding, sir, hello.
Dinesh Gandhi
Yeah, very good morning.
Rakesh Roy
Yeah. So my first question regarding that after Government of India just recently put the share card duty. So can we see any price increase from your side in in Q1 or you have taken any price increase in Q1?
Dinesh Gandhi
See, of course, so we know government has imposed duty for six months with a minimum pricing mark, but we all need to understand the duty has been posed on basically the HR coils or value-added products, which are usually catered by the primary stream market, right? Because of sentiment, there was a slight increase in the pricing for two months, you can say between 15th of March till say end of April, early May. But since second-half of May, the market has again reversed, the market is again at the same levels which was in Q4.
So there was a slight jump-in the pricing owing to sentiment, but now since monsoons are approaching, so demand is quite weak right now. So market has reversed. So not much of difference I would say in last two months.
Rakesh Roy
Okay.
Dinesh Gandhi
It went up about 8%, 10%, it came down at 10%. So it’s at the same level now.
Rakesh Roy
So-so we have not taken any price increase and for Q1 we can for Q4 price or Q1 price is saying populate.
Dinesh Gandhi
So see there will be a slight price difference, but what happened usually we have a order book of almost say 45 days. So early Q1, there was a price jump, but in end of Q1, there’ll be again a price low. So you can consider Q4 and Q1 price on the same levels for pellet.
Rakesh Roy
Okay, more or less.
Dinesh Gandhi
More or less.
Rakesh Roy
Right. And sir, my next question, sir, how much margin you are targeting for FY ’26 after this one lot of prices in the global market is changing in daily or daily or iron or coke, how much margin you are expecting for FY ’26?
Dinesh Gandhi
And see as per current — as per the current guidance volume for FY ’26, we are confident we should be able to achieve what we have achieved in FY ’25, which is about 20% plus, but of course, subject to how market remains. But if you say today’s market condition, we are confident we can achieve what we have achieved last year-on similar levels.
Rakesh Roy
And for revenue side, sir, how much top-line we are expecting?
Dinesh Gandhi
Sorry, come again.
Rakesh Roy
And for revenue side, how much topline we are expecting for FY ’26?
Dinesh Gandhi
See, so there’ll be two couple of things in this call — in this year. One is my new pellet plant will be commissioned by end of Q2 as we have informed everybody. So the additional volume of pellets will start giving us additional revenue. And secondly, my new subset rolling mill, which has just got commissioned last quarter, so that will be — that will give us an additional volume of about 3 lakh tonnes. So we can say roughly about 5% to 7 additional or probably 5%, 7% of additional volume we can see this in terms of top-line, 5% to 7%.
Rakesh Roy
Okay. Okay. Okay. Thank you, sir.
Dinesh Gandhi
Thank you.
Rakesh Roy
Thank you so much.
Dinesh Gandhi
Thank you.
Operator
Thank you. Ladies and gentlemen, in order to ask a question, you may press. I repeat to ask a question, please press R&1. The next question is from the line of Sahil Sanghvi from Monarch Networth Crap Capital. Please go-ahead.
Sahil Sanghvi
Yeah, good afternoon. Thank you for the opportunity and I appreciate the volumes that you’ve done in pellet in just 1/4. And welcome — warm welcome to sir also. My first question is, I see that the ore mining target is 3 million ton and we are also targeting a 3 million ton pellet production. So I believe we will require more than 3 million ton of ore. So just if you can break-down your ore requirements with respect to Ari Dungri, Boria Tibu and some external buying for the pellets on?
Sanjay Bothra
Yeah. So this year, we have given a volume of up 3 million of pellets with additional 0.5 million, 0.6 million coming from a new plant. So basically that and 3 million of mining, out of which 2.4 million will be from, about 0.45 million will be from and about 0.25 million will be from expansion of the EC, which is from the Q4 onwards. So that saw the breakup of 3 million of iron-ore, which we in this financial year. The remaining fines roughly say about 0.7 million to 0.8 million including my new plant capacity, we will be sourcing from the market.
So right now, we do about — we do about 0.5 million annually so plus the additional requirement from a new pellet plant will be met initially. So on the year-old, you can consider about 0.7 million to 0.8 million of iron-ore will be from the market for FY ’26.
Sahil Sanghvi
Okay. Got it, got it, got it. And roughly just wanted to understand the demand scenario. So monsoon right now will be a little weak, but otherwise, any kind of — I mean any kind of slowdown are you seeing from the ground level?
Dinesh Gandhi
See, so market has reversed compared to probably in the month of April, the demand has gone down definitely, at least for the secondary market, which has impacted the entire supply-chain, right, from and domestic coal and even the pellet prices. So pellet prices have softened compared to a high of INR10,000 in last quarter to about, say, INR9495,000 in this quarter at the moment currently. So we have seen a little bit of downside about 5% to 7%.
Monsoons are still away, I would say, they’re still only in second-half of May, usually monsoon right in July. So let’s see how the market plays. Difficult to really energe right now.
Sahil Sanghvi
Right. And assuming that we have our approvals in-place as you’ve guided with respect to the EC, are we targeting a 4 million ton kind of mining or mining from for FY ’27.
Sanjay Bothra
So 100% sir. So FY ’27, we are targeting the entire capacity. So like from 2.35 million, so we’re targeting about 4 million of iron-ore and 1.5 million of BNQ for my pension plan from FY ’27 plus FY ’27 will also give us the entire volume of the new pellet plant.
Sahil Sanghvi
Right, 4 million ton of iron-ore and how much of the BMQ?
Sanjay Bothra
1.5 million of BMQ.
Sahil Sanghvi
Okay. Okay. This is from — this is both from or some both of ironry.
Sanjay Bothra
So if I see a current EC expansion of, we are saying INR6 million in iron-ore out of which 4.5 million is iron-ore and 1.5 million is BNG.
Sahil Sanghvi
Right. And do you also expect some contribution from in FY ’27?
Sanjay Bothra
107. So this year should do about 0.4 million, 5.4 million. Next year, will ramp-up to 0.5 million. That’s how we planned it. And eventually 30 onwards, we will want to get entire 0.7 million from as well. So next Year, you can say 0.5, 4 million from and 1.5 million BMQ from itself. That’s how we have planned it.
Sahil Sanghvi
6 million tons is what. Okay. Okay.
Dinesh Gandhi
Yeah.
Sahil Sanghvi
And lastly, sir, I mean, we had some approvals awaited for the structural steel side of the — what we’re doing at the plant. So any developments on that front?
Dinesh Gandhi
Were you probably talking about — you’re talking about the new steel project at Tilda, you’re talking about the customer we just commissioned?
Sahil Sanghvi
Yes, yes. Just on the on the developments over there and any kind of further approvals you’ve got over there?
Dinesh Gandhi
Yeah. So on the Tilda front, we have progressed well for the land allotment. Finally, the file has started moving. So we are confident we should be able to get the land by next four to six-weeks. And once the land is there, we should get the EC by a couple of months. So as if now, we expect the EC we can get the EC by Q2 of this financial year.
Sahil Sanghvi
Right, right, right, right. And any further approvals on the customer level for the structured steel that we were trying to push?
Dinesh Gandhi
No, so basically — so there are two gates of transition line towers. One is the MS gate for which we’ve already got the PCL approval where we have already started supplying to our end consumers. And for the second law, which is that SG high-tension grade quality, the inspection has been done by the PGCL team in last week — last week, we hope to get the approval by end of this quarter, which is June. And from July onwards, we will offer the entire range of PCL approved products in the market to our end consumers.
Sahil Sanghvi
Got it. Got it. And my last question is on Jammu Pigments. If I have to see your numbers in Q4, they were really extraordinary as to the margins also and the revenue also. So any kind of internal targets do we have for the growth on revenue and the margin that we’re targeting on Jammu for FY ’26 Pigment?
Sanjay Bothra
Then we’ll not be able to give you the guidance on Jammu Pigment, but I can only tell you that we are actively engaged with the company and lot of improvements have been done over a period of last three months and more improvements are on the way in terms of productivity improvement. And once the productivity improves, you know the margins and the volumes will definitely increase. That is what our confidence is based on our working so-far in the company and JPL really is on right as of now
And you will see the improvements over a period of time, but I will not be able to give you any kind of guidance on that company because we are still — a lot of things we are trying to get hold-on it before we can give any guidance.
Sahil Sanghvi
Sure, sir. Sure, sir. But just are the Q4 margin sustainable or should we assume that’s more of a quarterly phenomenon?
Sanjay Bothra
Yeah, quarterly volatility will continue to be there depending on the product mix, et-cetera, because you know, there are various products other than like teen,, zinc, you know this kind of value-added products, we are focusing on those products and certain assets have also been commissioned. So those products will give us substantially higher-margin than what we are getting on the late. So yeah, but that margins will depend on the product mix and final output.
Sahil Sanghvi
Sure, sure. Thank you so much. Thank you.
Sanjay Bothra
Thank you.
Operator
Thank. Participants who wish to ask questions may press R1 at this time. The next question is from the line of Aditya from Axis Securities. Please go-ahead.
Aditya Welekar
Yes, sir, thanks for this opportunity. My question is on the oils realization. So it has bucked the trend. So basically we have seen in this quarter steel price realizations have fallen, but ferroll oil realizations have improved on a quarter-on-quarter basis. So any outlook on the prices on oils and the kind of guidance we have here for oils is slightly less than what we have achieved for FY ’25. So we have achieved 1 lakh tons and the guidance is slightly lower at 0.9 crores. So any color on that.
Dinesh Gandhi
See for the, yes, the margins have slightly improved compared to Q3 because Q3 was quite subdued in terms of market and is definitely a part of supply-chain. Q4, the market improved and Q1, the market remained stable compared to-Q1. So we can see the license on the similar levels as Q4 for Q1. On the volume side, yes, we did cost 1 lakh tonnes. This year, the guidance is slightly less because we are planning some energy-efficient systems to be modified in the system regarding the new pollution equipment, the new pollution norms.
That’s why the guidance is slightly in the lower side. If we’re able to achieve the modification then in time, we are sure we can produce as per last year’s volume. So that’s why we have given a little conservative volume depending on our modification work, nothing else.
Aditya Welekar
Sure. Okay. And sir, the drop-in the sponge iron production in this quarter. So have we sold our pilots externally means directly to the third-party market?
Dinesh Gandhi
Yes, that’s why the sales of pellet in Q4 is much higher compared to Q3 because of the shutdown in spaunge iron.
Aditya Welekar
Okay, got it. That’s it from my side. Thank you.
Dinesh Gandhi
Thank you.
Operator
Thank you. Before we take the next question, we would like to remind participants that you may press R1 to ask a question. The next question is from the line of Divya Agrawal from Ficom Family Office. Please go-ahead.
Divya Agarwal
Sir, thanks for taking my question. Sir, I just wanted to know the iron pellets have — I know pellet realizations have declined by 4% quarter-on-quarter and 6% year-on-year. So do you expect the realizations to improve from here on? And what was the reason for that? And how were the realizations in the international markets? Was it of — from — were it more as compared to domestic market or like it was in the similar lines?
Dinesh Gandhi
See, currently, so last year, I would say most of the year, the export market was quite subdued compared to domestic market. The domestic prices were much, much higher. So if you see the entire pellet volume going out of India last year was much lower compared to a year before that. And right now also the export market of pellet is quite subdued. To give you a delta, so currently the delta is almost at $15, $20. So domestic is much — of domestic is about $15 more compared to the international market.
And looking at the current trend, it seems to be on the similar lines. So that’s why the export volumes from our company was close to last year. So that is one. Secondly, on the pricing side, see, our 4%, 6% is not a big number because eventually it’s a commodity and steel demand does play a big factor-in terms of deciding the pricing as well. So 4%, 5% is I think much acceptable. And this year as well, so if you say April was good, again, May is still better,
But June onwards you can see the demand and the pricing is on the lower side. So our guidance of 5% plus is, I think it’s quite acceptable. No major reason for that I would believe.
Divya Agarwal
Got it fair enough. And in terms of domestic market, what kind of traction are you seeing like are there new capacities oversupply, how is the demand/supply situation in pilots in the domestic market?
Dinesh Gandhi
And see, you have to consider region-wise. If you see the Eastern market, which is Bengal and, there is oversupply of pellets because of additional capacity being installed, plus the limited sources of available, which is mainly the USA market. But for Aikur market, the demand is much more because of the DRI capacity, which has been added in last two, three years since COVID. So abnormal capacities of DRI has been added in the Raipur market in last, three years because of which for us the pressure of selling is very seldom. Probably once in four, five months, we will feel the pressure of selling the pilots. Otherwise, it’s a kick walk for us.
Divya Agarwal
Right, sir. Got it. That’s all from my. All the best. Thanks.
Dinesh Gandhi
Thank you.
Operator
Thank you. Ladies and gentlemen, in order to ask a question, you may press star and one. I repeat to ask a question, please press R1. The next question is from the line of Hitesh who is an investor. Please go-ahead.
Unidentified Participant
Thank you for taking my question and many congratulations to the management and the way GPI is shaping up as a responsible ESG company with green initiatives not only benefiting stakeholders on cost-saving, but also being environmentally sustainable.
Dinesh Gandhi
Thank you so much.
Unidentified Participant
Sir, I would like to know details on the loans we have extended, which is reflected in our balance sheet. And along with that, if we do have any intercorporate loans whether taken or extended.
Dinesh Gandhi
Can you please includes on
Unidentified Participant
The long-term side, is there are two parties INR118 crores on in the short-term basis
Dinesh Gandhi
, we normally it is a part of the treasury management and in a short-term period, we get substantially higher-rate of interest as compared to the rate offered by the banks. And as a part of treasury management, some loans have been given, which is to the external parties in the form of, you know, intercorporate deposits. So total exposure will be in the range of INR200 crore to INR250 crores, including long-term loans.
Unidentified Participant
Okay. So it will be a mix of long-term and short-term loans.
Dinesh Gandhi
Yeah, yeah.
Unidentified Participant
And in fact, I’m able to understand correctly, we are planning a fresh borrowing for the expansion we are pursuading. Am I correct?
Dinesh Gandhi
Yeah. This INR300 crore borrowing which we have proposed and took the approval of the Board is in order to manage the cash-flow. In fact, our actual requirement may not be there to the extent, we may draw some amount, we may not draw, but in order to maintain the cash-flow and have some cash balance with the company because otherwise our cash balances are tied-up with the current expansions in the plant. So I just took an approval for INR300 crore from the Board and we will take the sanction also. We’ll draw as and when it is required.
Unidentified Participant
Okay. Thank you.
Dinesh Gandhi
Yeah
Operator
Thank you. A reminder to all participants that you may press and one to ask a question. The next follow-up question is from the line of Rakesh Roy from Boeing AMC. Please go-ahead.
Rakesh Roy
Yes, sir. Sir, my first question regarding the industry was there. So sir, new plant — the new plant for FY ’26, we are expecting 0.5 million ton for FY ’26.
Dinesh Gandhi
Right. Correct, correct.
Rakesh Roy
And for — and for rolling mill, we are expecting 0.5 lakhs 50,000.
Dinesh Gandhi
No, no, no. So there are two expansion. One is the new pellet plant. Second is we have taken an additional rule from the Board to expand our steel capacity from 5.5.25 lakhs to 5.75 lakhs. So that is the 50,000 tonnes and from the new structured rolling mill which we have commissioned, so this year we had a production of 1.5 lakh tonnes. So 1.5 lakhs to put — so total put together, the rolling capacity will be 3.75 lakhs, out of which 2.25 to 2.3 will be and 1.5 lakh, 1.75 lakh tons will be the structure, which we just commissioned in last quarter. Yeah, just put together about 3.75 to-4 lakh tons of rolling. Yeah, yeah.
Rakesh Roy
But total is a 3.75 lakh products
Dinesh Gandhi
Yes, yes, put together both the products. Both the main.
Rakesh Roy
Okay. Okay, right, sir. And sir, one more question regarding, sir, sir, suddenly, sir, we see some in every — every — okay, it’s a north or western part, we are seeing — seeing some unexpected raining happening. So do you see also any problem in Raipur or unexpected rain or you have faced any problem in operation?
Dinesh Gandhi
No, no, see, see, so we have spent well in the infrastructure getting — because the monsoon in Raipur Disney is quite good. It’s from July till mid of October. So this is that we have spent well in infrastructure. So even if there is a — untimely monsoon, we are very well-prepared and doesn’t harm our operations at all. And achievement of production guidance year-on-year clearly shows that.
Rakesh Roy
Okay. And sir, last question, sir, as you say, sir, you get the EC by Q3 FY ’26 for my mining business now.
Dinesh Gandhi
And very much, very much. Yes.
Rakesh Roy
And the mining operation from next year FY ’27? Yes.
Dinesh Gandhi
No. So you can see a slight ramp-up from Q4 onwards. But yeah, majorly, you can see an incremental volume happening from FY ’27, but you can see a slight increment from Q4 onwards.
Rakesh Roy
Okay. Okay. Okay. Okay. Thank you, sir.
Dinesh Gandhi
Thank you.
Operator
Thank you. Thank you. Before we take the next question, participants who wish to ask questions may press. The next follow-up question is from the line of Manav from YES Securities. Please go-ahead.
Manav Gogia
Yes. Thank you, sir. Sir, one question I wanted to ask on the high-grade pellet premiums, considering the drop-in the pricing for pellets, are the premiums getting impacted as well?
Dinesh Gandhi
No, no, no. So we ensure that the premiums are always basis the commercial pellets. So our premiums remain the same, same, plus INR500 not a big number, but majorly our premium remains quite constant for the entire year. We basis it are the commercial pellet. That’s why we are marketed in the product because of the quality and other parameters. Yes. Okay. Sure, sir. So for example, today, for example, the pricing is say INR9,500. So our pellet will be at INR10,000, INR11,000. The pricing because INR9,000, will be INR1,500. So the delta between both the gates is constant.
Manav Gogia
Got it, got it. Yeah, sure, sir. So one question, can you just let me know what was the landed cost of coal for us during Q4 and how do you see it shaping up during Q1?
Dinesh Gandhi
See, for Q4, the landed cost of coal was close to about 11750, the imported coal. And for Q1, the pricing will be somewhere about INR11,500, a slight reduction. But from Q2 onwards, we can see a sharp drop of almost 10% because even the international market has corrected quite a bit.
Manav Gogia
Got it, got it, sir. That was helpful. Sir, one more question going to be on the capex expectations, right? What would a number that we can see for both FY ’26 and FY ’27 going ahead?
Dinesh Gandhi
The FY ’26 with the current pellet project mines entification, mines expansion and few other energy — energy incentive initiatives, we envisage that the outloo outflow will be about, say, INR850 crores for this year. And next year, hopefully, we are able to start work on a new steel plant. So if that happens, then of course, the numbers have to change. But still it will be difficult to give you a right number right now. This year, it will be about INR800 crores INR900 crores.
Manav Gogia
So we have given the number on the capex plan for the current year in our presentation that is capex. So more or less all these expansion projects are likely to get commissioned in the current year and that is in the range of about INR1,000 crore remaining capex.
Sanjay Bothra
So there is a — pending capex minification plan is the capex of INR150 crore pellet plant is INR334 crores yet to be said. All these numbers are as on March ’25. Solar power project, there is a INR380 crore requirement. Energy efficiency project INR56 crores, altogether INR952,000 crore, approximately.
Manav Gogia
Sure, perfect. That was very, very helpful. And sir, on the new steel plant that has come right now under discussions. So we are going like any idea on that we can get, whether it’s going to be a greenfield expansion or probably a brownfield expansion at the current capacities.
Dinesh Gandhi
No. So the steel plant at the new low complex will be definitely a greenfield curve expansion. There will be a brownfield. As I said, we are waiting for the land approval and hence the EC. We should be able to get it in next three to four months and our plan is more or less ready, but once till the times Board doesn’t approve it, we really can’t come into the market. So we’re waiting for the EC to get approved. Once we have approval, we will definitely share this year. But it’s going to be a greenfield complex.
Manav Gogia
Okay, okay, sure. And will it be for flats or loans?
Dinesh Gandhi
No, so it won’t be flat. So you can — so structure is a — so it will be more on the section mill side, the structured side. So the whole idea is what we have commissioned in is a medium structured mill and the remaining product which is medium to heavy structured mill, we want to establish in this complex so that can offer full range right from light to heavy in the longer-term. That’s the whole idea.
Manav Gogia
Got it, sir, got it. So that is quite helpful. I think that’s all from my side. Thank you so much for the opportunity and all the very best, sir.
Dinesh Gandhi
Thank you.
Operator
Thank you. Thank you. We’ll take our last question from the line of Aditya from Axis Securities. Please go-ahead.
Aditya Welekar
Yes, sir. Thanks for opportunity again. My question is on the macro front. So currently, what is the kind of differential between CFR China iron-ore prices versus our domestic iron-ore prices? And at what level of differential does the — does it impact our pellet pricessments if the iron-ore prices decline in future then what will be — at what level it will — it will start pinching us. So I want to understand from that perspective.
Dinesh Gandhi
See, to be honest, the impact of national iron market, you know, compared to previous years that there is lot of dilution because earlier we were doing a lot of export volumes, so there was a direct impact. But in last couple of years when that dynamics have changed because additional DI capacity has been added in-region for which the pellet demand has gone up exponentially. So that’s why you see from last 18 months, we have hardly exported any vessels. So I don’t see in the longer-term, any major change in Iron-ore will have a big impact on the pellet pricing, you know. And as for this year’s guidance by all the big agencies like Golden Sachs and all, iron-ore should be at 90 — between 900 levels this year as well. So we don’t see much change unless there is a drastic change in the economics. So, yeah.
Aditya Welekar
Yeah, understood. That’s helpful, sir. Thanks a lot and all the best.
Dinesh Gandhi
Thank you. Thank you.
Operator
Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Amit Lahoti
Yeah, thank you. We would like to express our heartbret appreciation for joining this conference call and we are confident that we have adequately answered all your queries. Should you have any further questions or need additional information, please feel free-to reach-out to us or our Investor Relations Relation Agency, Go India Advisors. Once again, we sincerely thank you for your participation and your unwavering support. Thank you very much.
Abhishek Agrawal
Thank you.
Operator
Thank you. On behalf of Emkay Global Financial Services Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.