Lloyds Metals And Energy Ltd (NSE: LLOYDSME) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
Rajesh Gupta — Managing Director
Riyaz Ahmed Shaikh — Chief Financial Officer
Analysts:
Unidentified Participant
Prateek Singh — Analyst
Amit Dixit — Analyst
Vikas Singh — Analyst
Parthiv Jhonsa — Analyst
Siddharth Gadekar — Analyst
Bhavin Chheda — Analyst
Vinit Thakur — Analyst
Divya Agarwal — Analyst
Harsh Shah — Analyst
Aditya Agarwal — Analyst
Tanmay Chaudhary — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Lloyd’s metals and energy Q1 FY26 earnings conference call hosted by DAM Capital Advisors. 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 this. Ladies and gentlemen. Foreign. Ladies and gentlemen, good day and welcome to the Lloyd’s metals and energy Q1 FY26 earnings conference call hosted by Dam Capital Advisors. 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 this 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. Pratik Singh from Dam Capital Advisors. Thank you. And over to you, sir.
Prateek Singh — Analyst
Thanks, Shruti. Good morning everybody and thank you for joining us today. We at Dam Capital are pleased to host Lloyd’s Metals and Energy’s first quarter FY26 numbers. We have with us today from the management, Mr. Ajesh Gupta, Managing Director, Mr. Riyadh Sheikh, CFO and Mr. Chintan Mehta, CIO. Without further ado now I would like to invite Mr. Rajesh Gupta to initiate the proceedings for the call. Thanks. And over to you, sir.
Rajesh Gupta — Managing Director
Thank you. Good morning everyone and a warm welcome to the Q1 FY26 earnings call of Lloyd’s Metals. I would like to express our gratitude to Dam Capital and Dharmesh Bhai for graciously hosting this call. To begin with, let’s say this Q1 has been a fantastic quarters of milestones for us. We have successfully commissioned the pipeline and the 4 million ton pellet plant in K. Both are among the fastest execution in India. We have received the environmental clearance to expand the mining to 26 to 55 million tons per annum up from 10 million tons. We completed the acquisition of the Triveni MBU operations integrating cost efficiency and boosting long term profitability and further strengthening our mining business performance and margins.
Our construction of the seed plant in Google is well underway with a pre commissioning of the DRI cables already started to briefly touch upon the market scenario for iron and pellets. The domestic iron ore pellet market remains strong supported by strong steel demand and capacity expansions across the country. Steel demand continues to remain at 8.9percent growth. India Steel trajectory is driving sustained iron ore offtake and therefore the pellet demand continues to grow and especially in the environmental advantages in steel Making that pellet making offers. The domestic demand remains the primary focus Internationally the iron ore in the international market Iron ore market has passed the worst I believe with index now poised to run between $102 to $110 for the rest of the year.
Coming to a few of the highlights for this quarter we need to highlight the strategic investments in pellet plants. We have invested in two pellet plants. One is Mandobi River Pellets Private Limited which is on the west coast near Goa and one is Damani River Palace Limited which is on the east coast in Odisha. This strengthens our pellet our access to pellet markets across the country east, west and central positioning us as one of the most formidable players in the Indian parent industry. Last year we were zero. Right now we are 9.5 and next year will be 12.5 million tons 13.5 million tons capacity.
We are now well geared to cater to both domestic and export markets for pellets. While the domestic environment is highly conducive, we are actively evaluating export opportunities. Our CAPEX program is progressing at full swing. Well planned, meticulously executed and running simultaneously across three locations. As mentioned earlier at Coal City the Pennant plant phase one has started and phase two is on track with operations to expected by the end of this fy. At Gogus, the Wire road mill project is in advanced stages. All plant, all steel plan has been executed. Construction has started. The DRI and WHRB plants will start getting commissioned in this quarter.
Having said this, we are still looking at growth maybe even beyond iron ore. We are evaluating and studying opportunities in other minerals and resources in various geographies to shape the next phase of growth. We would do it in a very phased and systematic way the way we have developed our iron business with a society inclusive model and minimal leveraging giving us the confidence. This will give us the confidence to replicate similar success in new resources. With these strategic developments we are confident of delivering growth ahead which will be similar if not exceeding our growth in last four years.
I thank all our investors for being part of our journey and for their continued trust and support. Now I will hand over to our CFO Riaz who will walk you through the financial performance for the quarter.
Riyaz Ahmed Shaikh — Chief Financial Officer
Thank you Rajeshi for the brisk and insightful strategic update. I will now take you through our quarter one FY26 financial and operational performance along with key highlights on execution and capital expenditure starting with overall financial performance. The first quarter of FY26 has been marked by strong operational execution translating into robust financial delivery. Our total income stood at 24,084 million, broadly flat year on year but registering a sharp 99% increase sequentially on the profitability front. EBITDA came in at 8087 million, up 12% year on year and an impressive 188% quarter on quarter. EBITDA margins expanded to 33.6% reflecting both better iron ore realization and operational efficiency.
Profit after tax to debts 6,346 million, up 14% year on year and over three times higher quarter on quarter with PAT margins of 26.35%. These numbers underscore the resilience of our integrated business model even in the face of commodity price variation. Now speaking on per 10 matrices to give a more closer look at performance for iron ore sales, volume for the quarter was 3.45 million tonnes, up 2% year on year and 107% quarter on quarter. Average realization stood at Rs 6061 tonne, up 6% year on year and stable sequentially. EBITDA per tonne for iron ore improved to Rs 2223 and increase of 20% year on year and 46% quarter on quarter driven by better grade and efficiency.
Speaking about DRI, volume was 78,900 tons higher by 3% year on year and 13% quarter on quarter. Realizations were muted down 10% year on year and 2% quarter on quarter. Given market price softness on power front it was quite muted. Volume remained stable year on year and quarter and quarter though realizations were down 27% year on year due to lower merchant power prices. I would also like to spend some time on mentioning about capital expenditure and execution. This quarter has been remarkable in terms of execution. Our CAPEX program is progressing exactly as per schedule with work happening simultaneously across all major sites in quarter one FY26 we incurred 13,270 million of CapEx following the 36,947 million invested in financial year 25.
Key projects include BHQ benefication. The pilot plant results are consistently showing results of over 63% FE content. Pellet Plant 2 at Konsari is expected to be ahead of schedule. Wire rod mill and steel plant at Bukus progressing well with civil and structural work underway. Then we have the slurry pipelines infrastructure which improves logistic efficiency. The discipline and simultaneous execution across locations, mines, pellet plant and downstream steel facilities positions us strongly for volumes and margin expansion. The update on the Triveni MDOTL that is CEIL the Trini Earth Movers in India Private Limited Acquisition the acquisition of Triveni’s MDO operation through Triveni A Tour India Private Limited has been completed.
This integration gives us direct control over a critical cost driver in mining and is expected to improve mining EBITDA margin on a consolidated basis. The TEIL acquisition will start getting consolidated into our financials from quarter two FY26 onwards, further enhancing earning visibility. Speaking about the balance sheet and financial strength which remains core to our strategy, we continue to maintain a robust balance sheet with strong operating cash flows and prudent capital allocation. This financial strength ensures that our growth ambitions both in core iron ore and pellet capacities and in new mineral opportunities are fully funded without over leverage.
We have consistently delivered industry leading shareholder returns. Over the last one year LMEL shares have delivered a 117% return versus 24% for the NSE metal index and over the last three years shareholder returns stand at over multifold reflecting strong operational delivery and market confidence in our growth strategy. For my closing Remarks in summary, Quarter 1 FY26 has delivered both operational and financial fronts underpinned by disciplined execution, cost control and strategic investment. With the projects under implementation and the benefits from til consolidation from next quarter, we remain confident of sustaining momentum through the rest of FY26.
Now the floor is open for questions and I look forward to having a good interactive session with all of 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 two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Amit Dixit from Goldman Sachs. Please go ahead.
Amit Dixit
Yeah hi, Good morning everyone and congratulations for a good set of numbers. Thanks for the opportunity. Just couple of questions from my side. The first one is regarding your your recent strategic so while Brahmi River Pellet makes sense around 50% but just wanted to understand the rationale for acquisition of 19.4% stake in MRPPL. What is the rational behind it? It doesn’t give us any, you know, control over material or a meaningful stake as well. So if you could explain the rationale behind it and whether this read these recent pellet equity strategic investment signify that going to be a meaningful player in the pellet market or later on as our steel capacities develop, these can be backended to Supply our steel, steel plant.
Rajesh Gupta
Could it be the second part of your question, I couldn’t understand it.
Amit Dixit
Yeah, the second part of the question is that what is the, what is the final, you know, what you’re looking at basically for the upgrade acquisition, whether you want to be a meaningful player in the external pellet market or these pellet investment, essentially these pellet plant will feed into your own steam it last.
Rajesh Gupta
So let me answer the first question, the second question first. With 25 million tons of regular mining and sellable 26 million tons of regular mining and around 5 million tons of steel production, we’ll always have a 16 million ton roughly excess pellet stroke iron. Ore. And that if it is marketed. In a blended way, it will always be the right strategy number one. Number two, so we would always be having parent output as a long term strategy number two is also that the BRPL asset would mostly be using iron ore from that area itself and marketing the iron ore also the parent also in that area itself. So there are also talks with long term consumers utilizing the pipeline and the pellet asset there. Number three, regarding the goa, it’s like you are aware we had foot in the door earlier by having a conversion contract. We are selling them iron ore and that continues there.
So the asset purchase, if you might have noticed is at a very, very low valuation, mostly at a book value basically because it’s a long term thought process to have a foot in the door in the western coast as well. Especially when we look at the export market from there. Right now Export is unviable with six $7 premium over iron ore. Once that will change over a period and then that asset will be more viable. And answering your last first question, why only 19.55% or whatever is what was available for us?
Amit Dixit
Okay, got it, got it. The second one is essentially in a prepared remarks, you mentioned that the company might be looking for some other mining investment, maybe overseas. So if it is not too early, is it possible to give with drop a hint at what could these be, Whether these would be.
Rajesh Gupta
It is too early. Even internally it is too early. We have been scouting, like I said across metals and across geographies. It is too early to commit anything on that.
Amit Dixit
Okay, if I may squeeze in one more. And that is an offshoot from the last question, what kind of profitability we are looking at pellet considering that, you know, our iron ore is of higher grade with low silica element of content. So what kind of profitability you are working with? I mean preferably there would be some good Buyers for it in export market as well.
Rajesh Gupta
We are right now our sales is totally in the email market. We have produced around 2 and a half lakh, 3 lakh tons in this till now in the last 40 days and we are sold out till mid September or so mostly in the Indian market. The profitability is around extra from I don’t know of around 1500-1800 rupees per ton on an EBITDA basis.
Amit Dixit
Okay, got it. Thank you and all the best.
Rajesh Gupta
The the advantage to that credit plant is also the pipeline. So we save on the iron ore. Iron ore transportation as well.
Amit Dixit
Yeah, of course, of course. Thanks a lot.
Rajesh Gupta
Thank you.
operator
Thank you. Our next question is from the line of Vikas Singh from ICICI Securities. Please go ahead.
Vikas Singh
Good morning sir and thank you for the opportunity. So my first question pertains to a guidance of 22 million tons. We did 3.5 and currently monsoon is going. So our asking rate for the second half could be anywhere between 7 to 8 million tons per quarter assuming some impact for the monsoon in 2Q. So just wanted to understand how confident we are on this and what is the evacuation plan on? Because evacuating a 8 to 9 million ton in a last quarter would be difficult. Right?
Rajesh Gupta
Right. So Having completed the two quarters let’s say around 8 million tons, 7.5 to 8 billion tons. We’ll be left with around 14 million tons in the two quarters. Out of the 2 million tons will be evacuated two and a half million tons will be evacuated by pipeline to the consulary plant. We hope to sell some concentrate from there as well. And balance is around 12 million tons. 11 and a half 12 million tons which leads around 45 to 50,000 tons a day of transportation by truck to customers as well as by truck to the railway sidings.
We have got three railway sidings fully operational with full fledged stockyards near the railway siding. We have the truck and the full network available to be able to do that. We have been doing on good weather days up to 60,000 tons per day on. On a set of three four days. So right now it’s possible we haven’t achieved that quarterly figure but daily weekly figures have been achieved beyond this limit.
Vikas Singh
Notice sir. So my second question again pertains to your two strategic investment. Just wanted to understand is there any clause already there which allows us to buy the remaining stake or for the timing is just the minority stake which. We are picking up. I couldn’t understand the question in which. So in this two strategic investment basically the MRPL and BRPL Is there any clause which allows us to take further stake in these companies at a later stage achieving certain milestone or. This is the only transaction which we are doing and there are no plans for further increasing the stake in this company. Yes.
Riyaz Ahmed Shaikh
See currently we were. We were looking. We were trying to get in the more and more whatever we could achieve. But we could achieve only 49%. The balance 50 remains with our partner. That is TMPL only. So. So it’s. It’s more or less in the. In the same group. Same group. Yes. If. If there is a requirement of taking over that we will be able to do that. As for about Mandobi. Yeah. You were saying something. Regarding Mandavi. Because 19.4% that in Goa where there is a low grade availability and you are predominantly dependent on export market to be good. While there’s a lot of news coming that the Chinese capacity might get cut. So the low versus high grade premiums might also shrink going forward. So I still didn’t get the rationale why you gone to that geography while. Because you are already creating a good pallet capacity by yourself. So there was no. Basically is that reason for us to go for a small plant like that.
Rajesh Gupta
The Mandobi asset has been purchased at book value at their procurement value. And so that is a very low price asset. We are supplying them iron ore and it’s a strategic investment. I mean it’s a investment not you not getting involved in the operations. Apart from what we are right now doing. The pellets if exported would be through us like we have been doing earlier. So that would continue. It’s an additional additional partnership with the promoters there not they would not be interested in selling more like I mentioned earlier. And at the moment we are very very going to continue on the same basis.
Vikas Singh
Yes sir. So exactly that is why. Why my concern was since we don’t have control and we are ourselves is a very dominant player in that space. What was the need to just go and buy minority stock? Because I don’t think that this would contribute significantly into our financials as well.
Rajesh Gupta
It does not contribute to our financials. It’s a 16.5 crores investment by a company which is worth 85,000 crores. And we believe that it’s investment which will pay in the long run. Which strategically we have now a foot in all the two in both the coasts and the center part of the country. That is a very strategic decision we have. I mean there’s nothing else I can really say on this 16 and a half crores is the investment. There’s no management stake. Marketing contract.
Riyaz Ahmed Shaikh
The marketing contract continues. What we are still doing. The export is through us only. We’ll be doing that. We’ll continue doing that.
Vikas Singh
Notice that’s all for my side for the time being. I’ll join back the QFI further question.
operator
Thank you. Our next question is from the line of Parthiv Jonesa from Anandrati. Please go ahead.
Parthiv Jhonsa
Hi, good morning sir. So my first question pertains to the entire cost optimization. You know, considering our Earth and EBITDA has been better compared to the hike in ESP or realization and you know is it fair to assume that we have started getting some benefit from training already and this will continue going forward further? You know you have mentioned on one of the slides if I’m not mistaken, slide 19 that once you know 85 kilometer completely wraps up the study pipeline, you would have about 500 to 600 per ton. Kind of a cost saving and captive logistics will be about 100 to 150 per ton.
So is it fair to assume that this about 2,200 EBITDA per ton can easily be close to about 2,700 800 in next two quarters.
Rajesh Gupta
The benefit of revenue would come in automatically with the consolidated figures. The study pipeline advantage for 10 billion tons out of 26. 26 million tons will be there the so therefore the advantage would be 500 into 10 by 26. So that would be little lesser. I hope that answers the question.
Parthiv Jhonsa
Yeah. So just wanted to Understand does this 2200 EBITDA patent include anything or does it has it started including anything from the 320 benefit or it will completely accrue in Q2 the 300 benefit will.
Riyaz Ahmed Shaikh
Start coming in only in the next quarter, the running quarter because the consolidation it will be the consolidated numbers will show you that till now it wasn’t there. It was. It was just an effect of the of the study pipeline which we just commissioned for almost end part of the last month of the quarter and as a realization as well as the work what we have been doing on the cost front. So all these things have helped us in improving our EBITDA.
Rajesh Gupta
Item on this logistics question. We have started in this quarter our logistics company which would also be more in the Triveni group of company under Triveni rather than Barracky under lawyers. That will also be a step down, step step down subsidiary. And that will also add two things to the cost saving exercise. One is reduction of cost by having internal control. Number two, the profitability of that company would remain within the group, within the company. And number three, the ladies gentlemen Vikas mentioned about the evacuation that is also supported by that company. So number four of course is also the greening of the whole exercise.
So logistics is a very, very serious aspect of us and we are looking at all aspects to make sure that logistics are green, are saving money and are efficiently evacuating the product.
Parthiv Jhonsa
Sure that it’s quite helpful, sir. So my second question is pertaining to the MRPPL 19.4% strategic stake right now. So I believe it’s about 2 million ton kind of capacity. Just because you are supplying a high quality or to them apparently. Is there a possibility to for them to hike this 2% to say 4, 5% if the export opportunity or the domestic opportunity that belt increases. Is there a good opportunity to increase the capacity there? Any idea on that?
Rajesh Gupta
I. I believe that the company would be looking at. Looking at beneficiation assets in that cor because there are a lot of dumps that are being auctioned and there is a beneficiation plan available with the Chongle, the erstwhile owner of this company. So the, the strategy is to use that more beneficiate it in the Chongle plant and bring it it to this pellet plant and mix it with our blended with our own and get a very acceptable quality of pellet for the domestic market.
Parthiv Jhonsa
And so if I may just reason a quick one. You have given guidance till 27. Just wanted to understand by you know, by 28 your BHQ 15 million ton would come on stream. That would give about close to about 5 million ton of a equivalent ore. Right. So is that fair to understand that your I know production would drop down from 2526 guidance to say 20 number and your BHQ would be 15. Is that understanding correct?
Rajesh Gupta
We are accelerating our BHQ program from input of 15 million tons in the first phase to 30 million tons in the first phase. So that will give us 10 million tons output and the DSO sales would come down by same amount. So you’ll be able to continue the 26 million tons that is allowed under the EC for the life of the.
Parthiv Jhonsa
So 16 plus 10. Correct?
Rajesh Gupta
16 plus 10.
Parthiv Jhonsa
Yeah, perfect. That, that’s quite helpful. Thank you so much.
operator
Thank you. Our next question is from the line of Siddharth Gadekar from Equidious. Please go ahead.
Siddharth Gadekar
Hi. Hi sir. Good morning. So first on the operational performance, can you give a split between the fines and the lumps this quarter and of the Volume and the realization.
Riyaz Ahmed Shaikh
It was around 11% of lumps and balance was fine.
Rajesh Gupta
And realization for both the realization was.
Riyaz Ahmed Shaikh
6500, 6500 rupees for the lumps and around 5, 6005, 900 or 800900 rupees for the fines 5000.
Siddharth Gadekar
So secondly for this quarter, how are we looking at the realization.
Rajesh Gupta
The markets have? I think if I look at the average price it will be little 200 rupees more. At the moment our current market price and we see see that will continue. Nobody can really predict. I don’t know pricing. But given the fact that steel demand growth is 8, 9, 9% production is similar 9% and Reno is up by 8%. We see the continuous gap increasing and also seeing it in the market by seeing that there is lesser exports, little more imports of iron ore and some pellets coming. So with all that we think that the market would be quite strong for iron ore.
Siddharth Gadekar
Secondly, in terms of our volumes for two edge where we are guiding for around 14 million tons in the second half. So have we already started negotiations with the customers who actually supply the entire volume?
Rajesh Gupta
Yes, we have. Our largest two customers have been getting 31%, 35% from us. That would continue on the same ratio and that has been negotiated on some index basis. The other products are internally like you said, pellet. Pellet is going to a brand new geography because earlier we didn’t have enough lumps. So the pellets is going to the southern geography where there’s a good demand. So that is actually taking away 2 million tons going forward. Two and half million tons of our pellet of our iron ore away from the market, away from our sales liability and going to a brand new market.
I see pellet and lump as competing with each other. So that’s why we are very careful of that. The rest of the market basically grows in the same ratio. And we are very, very confident of able to evacuate the material and sell the material at similar margins if not better than last than the last quarter.
Vikas Singh
So lastly on our wire load capacity also we have started any discussions with customers. Any primary markets that we would be targeting for virus.
Rajesh Gupta
We are. This is the first plant in our area in the western region in the Maharashtra region. We are having have a very clear cut marketing strategy tied up. Number one is that we are doing three service centers in three different areas. One very at the plant. One would be near Hyderabad again and one would be near Bombay Pune. So with these three service centers we’ll be able to sell a Large quantity of TMT even though it is wire rod we would sell it in coin form and the service centers would be able to sell TMT the wire rod itself.
We are talking to some wire rope manufacturers as well as to LRP manufacturers to be able to get into that field. Especially LRPC is growing at the rate of around 25%. 2025% and we want to partake in that. It will be very, very partnership oriented marketing for that product. Thirdly is that we have three products that will be selling from our mill. One is wire rod which will be around 900 800,700 to 800,000 tons TMT both in wire rod form and in straight form around 300,000 tons and alloy steel stroke bars, carbon shield bars which will be around 200 300,000 tons.
So we have a whole range very, very flexible thought process in our marketing and in our product mix as well as the mill configuration.
Siddharth Gadekar
So lastly only on the capex for this year how should we think about the capex including the acquisitions that we are doing.
Riyaz Ahmed Shaikh
See for the, for the acquisition we have that, that cash flows are with built in within the company internal accruals plus some shares is what we have to be doing. So it will be, it will be a issue of new shares and the balance cash capex what we are already there in our pipeline that is all We’ve done around 1300-1400 crore rupees in the first quarter and going ahead and going ahead we should be on an average doing over the next three years at around 7500-8000 crore rupees. And plus this we have the 65% of the warrants which is pending.
So around 1770 crore rupees is spending on that. We should be getting that.
Siddharth Gadekar
Thank you so much.
operator
Thank you. Our next question is from the line of Bhavan Cheda from Enam Holdings. Please go ahead.
Bhavin Chheda
Sir. Congratulations on overall good set of numbers and getting EC raised to 26 million ton overall. Good.
operator
Your voice is a bit low.
Bhavin Chheda
Can you hear me now?
operator
Yes, now it’s better. Please go.
Bhavin Chheda
Yeah, yeah. So congrats on overall numbers and getting a EC limit to 26 million ton. So just a few questions I think just to follow up for the earlier one. Annual capex you said 7 and a half to 8000 crores for next three years, next two years. Projects which are already going on.
Riyaz Ahmed Shaikh
Yeah that would be per year.
Bhavin Chheda
Okay so for the projects which are already going on for expansion of steel and pellet so we are pending it would get over in 24 odd thousand crores. Right. And this includes a greenfield of 4 million pellet capex also which is there in the presentation right now.
Rajesh Gupta
Yes.
Bhavin Chheda
And. And the new slurry pipeline. Hello.
operator
Yes.
Riyaz Ahmed Shaikh
Yes sir. Yes.
Bhavin Chheda
Okay. Second question. I. I just missed out on the 14 million evacuation plan for second half you had mentioned. I just missed out two, three points there. Can you repeat that, sir?
Rajesh Gupta
Okay. Around 2.5 million tons would be evacuated by the pipeline leaving around 11 and a half million tons. If you divide that by 180 days it leaves around 50,000 tons per day. We have been doing 60,000 tons regularly on dry days in the rainy season as well after the EC and we are very confident that we can complete the 22 million tons that is the capacity allowed by the EC in this financial year.
Bhavin Chheda
Right. And the last question on BHQ grade the capex what we are doing as you said now phase one. You are doing a 30 million ton at one go. And how would it be commissioned in phases?
Rajesh Gupta
30 million tons would be.
Riyaz Ahmed Shaikh
Six.
Rajesh Gupta
Six trains. Three.
Bhavin Chheda
Six trains.
Rajesh Gupta
There were three modules or three trains. Three through nine modules and there three modules or three trains each. So there are nine trains. We’ll be commissioning. We are doing. Going ahead with six trains in the first phase. We’ll give you a.
Rajesh Gupta
Each train, each train would be commissioned say let’s say every month. Every 15 days of one month, two months with the. The. The overall infrastructure will be ready for the 30 million ton input and 10 million ton output.
Bhavin Chheda
Okay. And the first range should be next year.
Rajesh Gupta
No, I would next by the end of the financial year.
Bhavin Chheda
Okay. Okay. By March 27th or so or January 27th.
Rajesh Gupta
December 27th.
Riyaz Ahmed Shaikh
FY26.
Rajesh Gupta
FY27. Yeah, sorry.
Bhavin Chheda
Okay. Okay. Thank you. Thank you sir. And best of luck here.
operator
Thank you. A request to all participants. Please restrict your questions to two question per participants. We request you to rejoin the queue in case of more questions. Our next question is from the line of vineet Thakur from Plus 91AMC. Please go ahead.
Vinit Thakur
Good afternoon. Good morning sir. I had a couple of questions. Could we tell. Could you tell me about what our IPS benefit will come on stream. Will it? From this year or next year.
Rajesh Gupta
The IPS paperwork has started. We will be able to credit the IPS for the pellets in this year itself.
Vinit Thakur
And sir, how much are we expecting?
Rajesh Gupta
I don’t have the figures on hand but essentially the credit plan divided by 12 plus the DRI. Also the purchasing and also the DRI plan when it gets commissioned.
Vinit Thakur
Okay. Sir, thank you. And I had one operational question. So we completed our months whereas industry standards around three to four years. What gives us the mode to, you know, complete the plant in such a fast pace?
Rajesh Gupta
One of the reasons is focus, focus, focus. Number two is we have got our own internal company. When I say internal meaning Lloyd Engineering and their associate LICL which has hired all the equipment, not with owns all the equipment for the pipeline as well as the erection. Many of the employees, the, the workers are employed by this company. So it’s essentially like a full fledged construction company itself. We are depending on ourselves rather than anywhere else in the outside. And number three is the total support from the local authorities as well as equipment suppliers because that, all that is very important.
Number four is continuous cash flow is going without any hiccups. So all these things add to this execution strategy which will continue for all our projects.
Vinit Thakur
Okay sir, thank you so much.
operator
Thank you. Our next question is from the line of Divya Agarwal from FICOM family office. Please go ahead.
Divya Agarwal
Yeah, hi sir, thanks for taking my question and congratulations on the great set of numbers. So sir, firstly in Q1 our total production was around 4 million tons. And in Q2 due to monsoon it’s expected to be around 2 million tons. So we are left with around what, 16 million tonnes which translates to around 2.7 million tons per month. So my question is, do we have the capability and the resources or the machineries to produce 2.7 billion tonnes per month?
Rajesh Gupta
Actually it is 4 million tons in this quarter as well. And this question has been answered earlier, including the pipeline and the fact that we have done 50 to 60,000 tons on, on a single week, on a daily basis, on a single week, we are very, very confident that we can evacuate in the full 22 million tons that is required under the EC in this financial year.
Divya Agarwal
That was helpful. And secondly sir, I just wanted to know about the price hike. So were there any price hikes in this quarter or do we expect any price hikes in coming quarters as well?
Rajesh Gupta
There has been a price hike around 15 days back when the quarter started. And like I said earlier, I cannot predict what the price hike would be like. The market has a supply demand issue for island wood and so we are hoping to succeed in that way.
Divya Agarwal
So just if I can squeeze in one. So what are the margins for Trinveni pellets and mrpl and what kind of synergies do we expect from these acquisitions that Lodge would incur?
Rajesh Gupta
Triveni pellets, like I mentioned earlier, is looking at. Not Triveni. BRPL is looking at long term agreement where at one end the mine is available with one company and at the other end there is a steel plant. So we are looking at that conversion type of agreement. We will make it consistently 600 1/800 rupees margin. Well within the investment area that we have. And MRPPL is little more troublesome. And that’s why we have only 18 19% stake in that 19 20% stake in that.
Divya Agarwal
Sir, thanks. Thanks a lot and all the best.
operator
Thank you. Our next question is from the line of Harsh Shah from Seven Rivers Holding. Please go ahead.
Harsh Shah
Good morning sir. The first question is that we are envisaging investment of around 600 crore in Dubai. So if you can elaborate about the timeline and what kind of opportunities are we foreseeing there.
Riyaz Ahmed Shaikh
We just. We were just as. As also mentioned we are looking into other geographies and other minerals and all those stuff what we are looking in for export finding. So this is just. Just a preparation for that. We can, we. We incorporate a company and if any. If any opportunity is available then we can. We can go through it on a quicker note. That’s why this company.
Harsh Shah
Okay. And sir, we have raised at the moment.
Riyaz Ahmed Shaikh
Yes, Sorry, can you come again? Nothing specific at the moment.
Harsh Shah
Okay. Okay. And so we have raised. We are raising 2500 crore through debentures. And last year we had taken enabling. We expect the remaining part of 2500 crore also to come in sometime in. In the current year. We’re not looking in for any.
Riyaz Ahmed Shaikh
Any further dilution as such. This is as the NCD what we felt should be more than enough for. For taking care of all our projects any the volatility associated with the industry. So we just going in for a 2500. So as of today it is only this much. If anything comes up we’ll be letting you know.
Harsh Shah
Okay. Okay. Sure. Thank you so much.
operator
Thank you. Our next question is from the line of Aditya Agarwal from Finn Avenue. Please go ahead.
Aditya Agarwal
Good morning sir. Am I audible?
operator
Yes sir, you’re audible.
Aditya Agarwal
Yeah. So sir, I have two questions. First is like we are projecting our top line to be somewhere around 40,000 crore in a matter of four, five years down the line. So coming on to our backward integration I.e. slurry pipelines and you know the acquisition of Triwini and today as of now our EBITDA margins were like somewhere around 33% in the quarter. So do we expect this operating margins to be somewhere north of around 40 percentage by in next four, five years.
Rajesh Gupta
No, I think the steel margins would normally be much lesser. I don’t have the figures offhand. Yes, but we would be the margin.
Riyaz Ahmed Shaikh
With all the cost saving steps. What we are taking, we are trying to achieve appeal will not. If not beyond 40, we’ll add close.
Aditya Agarwal
To 40 something close to 40 percentage.
Rajesh Gupta
And we will compound these figures more properly as the industry is progressing.
Aditya Agarwal
Yes. Answer second is like this on the pallet pricing. So are we planning to supply pallets towards Raipur market as well? I mean from industry sources there is a lot of DRI capacity that is coming over there. So do we have any plans to supply pallet over there or. We will be looking for a different location for supplying pallet in the market.
Rajesh Gupta
We have already started our pellet output mostly in the south part of the country because there was a bigger supply demand gap there and a lot of DRI units are there also. We do not exclude ragpool from our thought process at the moment that market is a little more crowded and we look at geographies which give us the best realizations without disrupting the overall market.
Aditya Agarwal
Yes. And so like coming on to our, you know, the overall production and the, you know, pipeline that we are having. So are we optimistic on the steel pricing like overall market outlook? I mean iron ore is pretty stable. So coming on to pallet like do we expect pallet to be stable somewhere around 9,000 to 10,000 rupees per ton in the near term.
Rajesh Gupta
Right now ex Factory are around 8,700, 8,500 and we see that moving with the iron ore market going forward. I think the worst of the pellet industry. The pellet industry as well as the smaller steel players suffer a lot in the rainy season. So I think in the next nine months we foresee a very steady demand for pellets. And pricing should reflect based on island and iron pricing like I mentioned earlier cannot be predicted by anybody.
Aditya Agarwal
And there are top line guidance of 40,000 crore rupees remains intact for next four years.
Rajesh Gupta
We have given such a guidance. I don’t think so.
Aditya Agarwal
In the May. May 24th one in the last 4.2.
Rajesh Gupta
Million on steel plant itself gives you 25,000 crores and 16 million tons of 10 million to the wire in or gives you the balance. So that’s where that 40,000, 40,000 top line comes from. Yeah, it does. The projects are all online.
Aditya Agarwal
Yes. I will be joining back on the queue.
Vikas Singh
Thank you so much.
operator
Thank you. A reminder to all participants. Anyone who wishes to ask a question May press star and one on their touchstone telephone. I repeat, anyone who wishes to ask a question may press star and one on their touchstone telephone. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our next question is from the line of Tanmay Chaudhary from Ventura Securities. Please go ahead.
Tanmay Chaudhary
Hi sir. Thank you for the opportunity. I just have a follow up question on the iron. On production. Like we are guiding for 22 million ton in FY26. So correct me if I’m. If I’m wrong. Like 4 million ton is going for pellet plant 1, 5 will be going for TRI. So we are left with around 17.5 million ton over the. For the open market side. Right.
Rajesh Gupta
A little more. Because it’s not 4 million. It’s annualized 4 million tons around 2.5 meters for the pellet and around 800000 tons for this dri.
Tanmay Chaudhary
For the dri, 800000 tons. Okay. Okay.
Rajesh Gupta
Left with 3.3 minus around say 18. 18 million tons.
Tanmay Chaudhary
And we are not seeing any issue on the demand side like absorption side over this?
Rajesh Gupta
No, I am not seeing that at all.
Tanmay Chaudhary
Okay. Okay. And so one more question, like over the DRI part. Just wanted to know like how do we see going forward? Because we have seen realization have come down despite of volume going up. So can you just comment over like.
Rajesh Gupta
DRI and the steel sector is undergoing its annual problem of the rainy season. Unfortunately it started a little before that because of the international problems of China. Now we. I am seeing the DRI is still under pressure and margins are still under pressure, still positive over and above RNO price or pellet price for that matter. But under pressure, margins will remain under pressure for the next six to eight months. I see. And yeah, pellet is more stable and demands are better. The demand of steel has gone up by 8% over the last two years. Three years.
It was little more in the. In the two years back. And now this year is around 8, 9% which is still a very, very strong demand. The problem is that the supplies are even stronger, the supply growth is even stronger and it will take some time to stabilize till the steel market stabilizes. DRI is a factor of the steel market.
Tanmay Chaudhary
Okay, thank you. Thank you so much. That’s for my side.
operator
Thank you. Our next follow up question is from the line of Vinit Thakur from Plus 91AMC. Please go ahead.
Vinit Thakur
Hi sir. One more question I had is since we moved towards 100% green mining, are there any plans to venture into Green steel as well.
Rajesh Gupta
Definition of green steel is not fully understood by me. The taxonomy divided. Divided by the government of Islam India. Our steel plant would be the five star rating.
Vinit Thakur
Okay sir, thank you.
operator
Thank you. Our next follow up question is from the line of partive Jonesa from Anandrati. Please go ahead.
Parthiv Jhonsa
Hi. Thank you for taking the questions again. So my first question is pertaining to the couple of old blocks which were optioned in the nearby vicinity. I believe you know those blocks are not yet operational so any chances those would come out for re auction and you would be able to participate in that because they’re in very close vicinity to the existing mine or, or coal or. Or iron ore. Iron ore.
Rajesh Gupta
There are, there were six blocks which are auctioned in the past. I have no exact status of what is exact status of that. Those are exploratory consolidated blocks. I have no idea what is the status of those blocks.
Parthiv Jhonsa
Okay so my last question is pertaining to the capex. I believe you said that your yearly capex for next 3 years is about 7 and a half to 8000 crores. Just wanted to know in the near term you’re gonna receive some amount from the warrant and you know just wanted to check like would you, would we be open to you know take you know debt just to fund these capex what will completely be from internal.
Rajesh Gupta
So we have taken some debt we.
Riyaz Ahmed Shaikh
Had, we have taken some debt in this in the last year also this year also wherever we feel there is a shortage or wherever we feel there will be a stress is when we are planning and going ahead with debts. Now we’ve taken in the an NCD approval of 20, 2500 crores. This is something which we are looking at over the next three years. It should give me a buffer, it should be a long term type of a thing is what we are targeting at and it should be a buffer which should be taking care of all our debt requirements till the time of the capex what we have announced.
Parthiv Jhonsa
Perfect, perfect. Thank you so much.
operator
Thank you. Our next question is from the line of Ameshada from Poornarta Investment Advisors. Please go ahead.
Unidentified Participant
Hi sir, thank you for the opportunity. So I just had a question on Civini Earth Movers Ltd. So I just wanted to understand whether we’ll be using this company for our captive purposes or will it also have its own outside business.
Rajesh Gupta
It already has outside outside contracts. There are, they are operating in. We are operating in. In Odisha For Irenor around 14 mines in Jharkhand with the NTPC mines in Indonesia in Andhra in two mines. One mine in Bayte. So we are already doing that. We continue to do that. And we’ll also continue to look at other MD opportunities and any international assets as well. If we go into that the asset would be owned by Lloyds Mittel and the MD would be done by Trini. So we have the double engine growth for future projects is what we are planning.
Unidentified Participant
So like what kind of margins does the company earn on these contracts and what kind of revenue expectations do have do we have from this company for. The rest of the year?
Rajesh Gupta
Roughly the revenue currently is around. Last quarter was around 7500 crores.
Unidentified Participant
Okay. And the margin. Sir.
Rajesh Gupta
One. One minute. Sorry. 750 crores. The difference between millions and crores.
Riyaz Ahmed Shaikh
I got confused.
Rajesh Gupta
Sorry. Around 33% of that. Going forward the tonnage of Lloyd’s metal would be added in this year for sure. We should take IT up from 7 per quarter to around 1100 crore rupees per quarter.
Unidentified Participant
So before this we were not a. Client of Tribenia at Movers.
Rajesh Gupta
We were the clients of trivial Earth Movers. We were also the. Yeah, we were the. Not this particular company. This is a break off from the original company that that structure is explained in our previous presentation as well.
Unidentified Participant
Sure, sure. Thank you so much. Thank you.
operator
Thank you. Our next question is from the line of Pratik Singh from Dam Capital Advisors. Please go ahead.
Prateek Singh
Hi sir. Just last bookkeeping question and following up from the earlier question. So earlier when we had announced acquiring 80% in three. So we had given projections for the next few years basis existing business operations. So are we at a point where we can give a new estimate if we have won any new order wins or should we still assume the same numbers given earlier?
Rajesh Gupta
Since the last quarter they have not won any new contract. They are all busy in consolidating these two companies and getting the right mix of people. And integration of two big companies is also always not an easy job. So we are all busy there. Sure.
Prateek Singh
So we will take the last numbers.
Rajesh Gupta
That integration process is well underway and we are very happy with the way the integration is going and looking for new and new opportunities have been looked at.
Prateek Singh
Understood. Thanks.
Rajesh Gupta
Thanks.
operator
Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to the management for closing comments. Over to you sir.
Riyaz Ahmed Shaikh
Thank you everybody. Hope we have replied to all your questions, all your queries. If anything else remains pending you can always get in touch with us. Chintan Mehta, he’s the investor relations officer. You can always get in touch with him, and he’ll be providing with you all the replies. Thank you.
operator
Thank you. On behalf of Dam Capital Advisors, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.