Lloyds Metals And Energy Limited (LLOYDSME) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Lloyd's Metals and Energy Limited Q4 FY26 earnings conference call. As a reminder, all participant lines will be in 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 has been recorded. I now hand the conference over to Mr. Shivang Singh. Thank you, and over to you, sir.

Good afternoon, everyone, and thank you for joining us today. We at Equitas are pleased to host Lloyd's Metals and Energy 4Q and Effect 26 Burning Spot. We have with us today Mr. Rajesh Gupta, Managing Director, Mr. Diyaz Sheikh, Chief Financial Officer, And Mr. S. K. Naderi, Director of Finance from Priveni. We would like to begin the call with brief opening remarks from the management, following which we will have the forum open for an interactive Q&A session. Before we start, I would like to point out that some statements made in today's call may be forward-looking in nature, and a disclaimer to this effect has been included in the earnings presentation shared with you earlier. Now, I would like to invite Mr. Rajesh Gupta to initiate the proceedings for the results call. Over to you, sir.

Good afternoon, everyone. A very warm welcome to all the participants joining us on this call today. Thank you, Srivans and the entire Equalist team. We deeply value your continued support and engagement. It fills me with immense pride to share that Lloyd Sheer had crossed the consolidated market cap of 1 lakh crore, a milestone that would have seemed distant not long ago. This milestone belongs first and foremost to every single investor, each and every one of you, who backed us through our 50-year journey, through our early days of uncertainty and up to this milestone. This I am saying as a guy who four years thought that IR meant industrial relations only. Your patience is a reflection of trust, your place in us, and we take that responsibility very seriously. Our sincere gratitude to all our investors and stakeholders joining us on this call and on this journey. Before I speak about our performance, I want to take a moment to acknowledge our team at the mine, at the plants, and all the offices all over the world. What has been achieved by us in the FY26 is quite extraordinary. It did not happen by accident. It happened because of a team that showed up every day with clarity of purpose and relentless focus on execution. In the last five years, our CHR on revenue is up by 109%. And on Pat, the CHR is a whopping 139%. This shows that we are a 50-year-old startup. This year... Our standalone profit crossed 3,100 crores on a standalone basis and 3,829 crores on a consolidated basis. Consolidated revenue crossed 17,000 crores, fast approaching the $2 million mark. On operations front, our island was scaled from 10 million to 22 million tons, which is a 120% growth in a single year. The parent plant commissioned at the fag end of Q2 reached 100% capacity to transition within just 4 months, 3 months, 3 million tons in 9 months, a ramp-up that very few plants anywhere in the country have achieved. We have volume scaled 56% year-on-year with a new scale ramping up as steadily as the parent plant. Going on to the projects, we have invested heavily for the future, 13,500 crores in the last four years, and this will continue. In Konsari and Gatshiroli, we have completed the two pellet plants reaching capacity of 8 million tons, making us the largest merchant pellet player by far, and we also commissioned along with this the 85 km slurry pipeline. We have completed our mine capacity increase from 3 to 55 million tons with a sellable output of 26 million tons over the last four years. The BSQ beneficiation project is progressing. Pilot plant reserves have delivered excellent yields and major engineering contracts are completed. Construction machine is mobilized. All major machines are ordered on A key European supplier, and we are well in target of first-phase readiness by December 2027. This plant, the BSU beneficiation, is a trailblazer in India and will lead to greening of our company in a steel cycle in very dramatic ways. Meanwhile, in Chandrapur, the DRI capacity is doubled, power capacity is doubled to 100 megawatts. And it is stabilized. The steel plant, that is the blast furnace, arc furnace, coke oven, and the rolling mill of 1.2 million ton wire rod, is well underway for commissioning for last quarter this year. The engineering of this third planet plant is also nearing complete in Chandrapur, along with the 194 km pipeline from Hedri to Ghogos via Chandrapur stockyard. This pipeline will reduce logistic cost for most of the iron ore output by us. By more than 500 rupees a ton, and it's in advanced planning stage. Few milestones for us on the efficiency front. The EBITDA margin has held steady at approximately 34% across both the last two quarters, demonstrating structural cost efficiency and not one-off gains. Return on capital employed stood at 56% ex-CWIP. for FY26 and return on equity at 37%. These are world-class metrics. Pricing parity with competition is maintained along with a volume increase of 120% and new product like pellet being started. Remaining is ranked number one among 383 open cash mines in India by the Ministry of Coal. Reflection of operational excellence across the group. Other than Surjagat, the growth in Triveni operations in Odisha and Garkand continue with three new mining operations starting. A few key updates on copper. Copper, which is the new gold, and Congo, which is our new Surjagat, is led by Surya. I want to congratulate his team and him. For successful commissioning of the Surya copper plant in six months, we are the first Indian integrated player in the copper business. Copper is the backbone of energy, transition, electrification, and renewables. It is the perfect foil to our one-mine portfolio and also our international entry into critical minerals. We have a defined pathway to expand capacity to 30,000 tons. In addition, we have acquired 49% in KMAF group. This is the first deal after the U.S. and Congo signed the critical mine mineral agreement in December 2025. And we are proud to be at the forefront of the strategic realignment in global critical minerals. KMAF is a large operating copper-cobalt platform in the Katanga copper belt with 50-plus permits. Cobalt capacity is expected to scale to approximately 20,000 tons in the two operating plants. Along with this, we will be achieving 100,000 tons of copper over the next three to five years from both KMAF and Surya. Let me give you our FY27 outlook briefly. The steel markets and therefore iron ore are as strong as ever, especially in Indian market. Our FY27 guidance reflects the next. Thank you. As all logistics and sustainability initiatives are maturing by March 28, FY26 has been a year of extraordinary achievement. Our finances have never been stronger. Our operational foundation has never been robust. And our strategic pipeline in ferrets, in ferrets, in steel, and now in copper has never been more exciting. We remain deeply grateful to all our investors, partners, and every member of our team. Without taking more of your time, I hand over the call to Riyaz. Mr. Naredi and Mr. Hemankur will take you through the detailed financial operations of the Triveni and the Congo operations as well. Thank you once again, everybody.

Thank you, Rajeshji. Good evening, everyone. I want to open with a line from Aristotle that I believe captures exactly what FY26 means for us. We are what we repeatedly do. Excellence, then, is not an act, but a habit. That is precisely the story of our FY26 numbers. The margin you will see today are not a one-time event. They are the outcome of systems we have built, disciplines we have embedded, and habits of execution that run deep across every function of this organization. With the context, I will take you through the stand-alone financials and operating performance for Q4 and the full-year FY26, focusing on the numbers, margins, and capex. So, the financial highlights for quarter 4 by 26 standalone. This has been the strongest quarter we have ever reported on a standalone basis. The total income came in at Rs. 4977 crores, registering a remarkable 310% year-on-year growth. EBITDA was Rs. 1679 crores, up 498% year-on-year, a near-six gold jump in absolute profitability. For the financial highlights of the full year, FI26, FI26, without doubt, the best year Lloyd The total income for FY26 stood at approximately 13,838 grose. Up 104% year on year. We more than doubled our revenues in a single year. EBITDA came in at 4673 crores, growing 133% year on year. FAT was Rs.3194 crores, up 120% year on year. EBITDA margin for the full year stood at 33.77%, up 418 basis point year on year. The margin improvement is not one-off. It is structural and is coming from higher share of value-added products, especially pellets, in the revenue mix, benefits of the slurry pipeline, which has started flowing meaningfully into the P&L, better utilization across mining, pellets, and DRI, operating leverage as volume scales significantly. Going to the operational highlights of our ironwork. Iron ore production for Q4 FY26 was 9.09 million tons, up 529% year on year. For the full year, production stood at 21.96 million tons, up 120% year on year. Iron ore sales volume for Q4 FY26 was 6.16 million tons, up to 71% year on year. For FY26, total sales were 16.18 million tons, up 71% year on year. Realization per tonne stood at Rs.5,848 in quarter 4 and Rs.5,806 for the full year. EBITDA per tonne was Rs.1894 in quarter 4 and Rs.1930 for FY26, reflecting strong unit economics. A monthly run rate in April 2026 is already at approximately 2 million tonnes, undermining a strong start to FY27. Now, the operational highlights for pellets. Pellet production for quarter 4 FY26 was 1.08 million tons and for the full year was 3.03 million tons. The pellet plant commenced commercial production at the fag end of quarter 2 FY26. Within four months of commissioning, it has already reached 100% capacity utilization, which is an exceptional execution outcome. Realization per tonne per quarter 4 FY26 stood at Rs. 9,590, supported by strong product quality and strategic geographic positioning. EBITDA pattern for pellets stood at Rs.4040 in quarter 4, robust margin. Driven by captive iron ore slurry pipeline basic evacuation and strong domestic demand. I am also pleased to share that the second pellet plant was commissioned in May 2026. This takes our total pellet capacity to 8 million tons per annum and positions us strongly for FY27 volume growth. For the operational highlights of DRI and Power, DRI sales volume for Q4 FY26 was 188,000 tons, up 171% year-on-year. For the full year, DRI volumes were 480,000 tons, up 56% year-on-year. DRI realization stood at Rs. 27,306 per term in quarter four, with EBITDA per term of 7,999, strong unit economics. Power volumes were up 48% year-on-year in quarter for FY26. The value-added mix. Value-added products now account for 32% of FY26 stand-alone revenues, up from 20% in FY25. In terms of EBIT contribution, the share is 30% up from 11% in FY25. This mix shift is central to improving margin stability, reducing volatility, and enhancing overall return metrics. With pellet plant 2 now commissioned and the wire rod mill on track, this WAP share is expected to improve further in FY27. Coming for the capex update, the company has incurred capex of approximately 13,500 crores during FY24 to FY26. FY26 stand-alone capex alone was close to 8,100 crores, reflecting the significant investment phase we are currently in. Key projects funded include two pellet plants, DRI expansion, slurry pipeline investments, and the ongoing CAPEX of the seed plant. Importantly, CAPEX execution is on track and within approved budgets. To give further color on CAPEX of 39,500 crores, we have capitalized 5,100 crores of assets comprising mainly of pellet plant 1, slurry pipeline, and the DRI plants. Rs 1850 crore is capital advances. Remaining is CWIP, which you can see in our published numbers. The balance sheet and the net debt. Stand-alone net debt as on 31st March 2026 stands at Rs 3,901 crore, a manageable level given our EBITDA generation. Despite an intensive capex cycle, the balance sheet remains comfortable. Strong EBITDA has supported internal accrual-led funding and controlled leverage. Working capital continues to be well-managed, helped by faster dispatch cycles and healthy demand conditions. To summarize, FY26's standalone performance has been extraordinary across every metric. Margins are structurally strong, JPEX execution remains disciplined, and the pipeline into FY24's is the strongest it has ever been. With that, I will hand over to Naridiji for Krimeni's performance.

Thank you, Rajeshji and Riyadji. Good evening, everyone. For us at Triveni, growth has always been about discipline, execution, consistency, and doing the fundamentals right, day in and day out. Let me take you through Triveni's performance in Q4 and the full year FY26. Financial overview, TIPL FY26. From a financial perspective, FY26 has been a transformational year for the Triveni. The total income for the full year stood at approximately 8000 crores, to be precise 7997 crores, with an EBITDA of 1990 crores and EBITDA margin of approximately 25%. This compares to the EBITDA of 1062 crores and margins of approximately 16 crores in FY25, a nearly doubling of EBITDA in a single year. In Q4 FY26 specifically, EBITDA was 910 crore with margins of 36%, reflecting exceptional operating leverage as volume scale. Cash PAT for the full year stood at 1196 crore with cash PAT margins of approximately 15%. The improvement in margins reflects better operating leverage. Higher equipment utilization and continued focus on cost discipline across all project sites. I'll come to the operations at Garchiroli. The environmental capacity at Surjagarh mine has been increased from 10 million tons per annum to 55 million tons per annum, a massive regulatory win that unlocks significant volume headroom. FY27 volume growth is expected to be more than 75 percent, including BHQ. Underpinned by full-scale operations at Central Hill and completion of FY27 equipment mobilization as procedure. We have now deployed 88 electric equipment units at the mine and 20 electrical units at the railway siding that firmly establishes our green mining credentials. BHQ verification plan. Excavation has commenced with 22 large-scale equipment mobilized. 14 mobile crushers and 26 heavy earth-moving machines are also deployed for BHQ crushing at the mines. We have also established a full EV and LNG ecosystem at Suryagar Mines. 100-ton diesel dumper has been successfully converted to LNG hybrid operation, which is a significant sustainability milestone. Now, Odisha operations, our Odisha operations also continue to scale meaningfully. One of the MGM mines has been awarded the prestigious 5-star rating by Indian Bureau of Mines, which reflects our operational quality. Guali Iron ore mine production has also been enhanced from 7.4 million ton per annum to 9 million ton per annum. Sarojini Pradhan mine has scaled up from 0.57 million ton to 4.99 million ton per annum. These are significant capacity additions. Dalpahar iron ore mine is a new mine, and the operations are expected to commence in Q1 of FY27, with a FY27 production target of 3 million tons. Lasadda Pacheri mines again a new mine. The MDPA has been signed, and operations are to commence in Q1 FY27, with a FY27 production target of 1.5 million tons per annum. Shri Metallic Mine capacity has been increased from 1.5 million tons to 1.8 million tons. Overall, the Odisha operation volumes are expected to increase by 39% year-to-year to 34 to 35 million tons in FY27. One of the mining lists, Sagargai Mine was selected for the 11th Fikki Excellence Award and acknowledgement of our operational and sustainability standards. Coming to Coal, Priveni Scenic Mining, our subsidiary, PB West and PB North West. PB West has achieved the highest distinction of a five-star rating from the Ministry of Coal, ranking number one among 383 open-caste mines across India, which is an extraordinary distinction. PB Mine was also awarded the overall winner at the 68th Annual Mine Safety Week, receiving the Suraksha Shikhar Gold Award. R&R set a national record in FY526, completing over 1400 houses, which is 143% of the previous year's target, and acquiring over 420 acres of land, which is 103% of the target. Record yearly performance at PB West. That OB removal has been at 72.8 million BCM. Coal production was 17.5 million tons. Coal crushing and dispatched 17.4 million tons. IPCC commissioned on 11th August 25, handling 2.89 million tons. Electrical loading 21.8 million BCM, that is up by 80% year on year. Electric drill 1.5 lakh meters. That is up 45% year-on-year. Wireless communication system implemented across all HEMM and mid-scale equipments. Now, coming to international and new ventures. International, on Indonesia, we are rationalizing lower-margin operations and plan to redeploy equipment to higher return opportunities in Congo and P&G. On Jio Masur Gold Mining, our MDO and exploration contract commenced in January 26th. We have targeted EBITDA contribution of approximately 60 crores in FY27, a meaningful new revenue stream with further upside as exploration progresses. Outlook. Revenee's focus remain clear, scale responsibly, execute efficiently, and protect margins through productivity and cost optimization. The pipeline for FY27 looks strong. Thank you.

We'll open up for the questions.

Thank you. We'll now begin the question and answer session. Anyone who wishes to ask questions may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Amit Dikshin from GS. Please go ahead.

Yeah, hi. Good evening, everyone, and congratulations for good performance. A couple of questions from my side. The first one is on slide number 25, where you have the on the BRPL project. Just wanted to understand the economics of this because you mentioned that the free cash and the profit accruing to us is quite substantial. So, just wanted to understand the CAPEX part of it and how we are, you know, looking at operations to ensure that this kind of, these kind of numbers in terms of sweet cash accrued to us.

Yeah, I thank Samis for the question. So as you rightly said, I mean, this is a business which is already in place. So for generating this kind of free cash flow, the amount of sustaining cash is not much. So that's why the free cash flows are high because this is a take-on-pay contract. That we have with Tata Steel as a captive consumer. This is of great strategic benefit to Tata Steel because this operates a pipeline which is near about the mine mouth of their existing mines and it opens up near the Kalinganagar plant within the 5 km radius. So because of it, the entire capacity is dedicated to them. And as a part of our shareholder agreement, this was agreed as a margin for the existing assets. So that's why this is a large amount of free cash flow. You would also recall that we had signed the MOU with Tata Steel for evaluating multiple projects, which involved some of the projects that we'll be taking up with them. It involved working on slurry pipelines for their projects, it involved a steel plant facility in Garchiroli, and it also involved new MDO projects that we will be doing with them. So, given all of that, we are progressing on some of those projects. So, as of now, those projects, CAPEX is still being finalized because they are still in the... This discussion and finalization stage, but some of these free cash flow will go towards generation and development of those projects, but we intend to maintain high return on capital for such projects so that it is deployed and suitable for maintaining the high return on capital that we have.

Sir, just a related question to this, you know, because our expertise in laying slurry pipeline in record time is quite well documented. So, is there some exclusivity that you have with Tata Steel or you can approach any other steel player because a lot of them are looking for the slurry pipeline? Okay, okay, okay, okay. The second question I have is on the Congo operations and constellations for starting the copper operations over there. And I'm just wondering what kind of incremental capex you expect to incur in both copper and cobalt project to reach the capacities that you have mentioned. Also, on the related note, this geography is not the easiest one to work. So, what specific steps you are taking to ensure that, you know, because you have started operations and I would say I don't recall any other company that has done that in such a small time.

Yeah, so thanks again, Amit. Yes, definitely it's a new territory and that's why the new opportunities are coming out of it. And that's why we see that this was a very unique case which presented us an asset which was near operational. So to answer the first question, how much capital expenditure will be required? This plant is near about 85 to 90 percent complete. We are already engaging with the EPC players. These are world-class EPC players. The plants are designed and built by people like Autotech and Big Rim from China. So, we are getting them back on the ground. I think within this month, we are getting them up and running. In terms of completion of the plant, the total plant capex initially was near about $1.1 billion, out of which $800 plus million has already been spent. Based on our current evaluation, including the initial working capital and the mine development, which will be feeding these plants, it would require near about 200 to 260 million dollars. We are still working on the exact numbers, but this is a fairly broad estimate, which can be taken at the moment. In terms of players who are operating and working in the mines in Congo, it's a fairly established mining destination. It had its challenges earlier, but given the rising demand of copper and cobalt as a strategic material for defense products, particularly apart from the batteries, this is something which is of great importance to U.S. So, U.S., because, I mean, U.S. has also started realizing that a lot of supply chain of critical minerals is basically residing with China. And whenever these tariff barriers and different problems happened, they saw that the supply chain can be choked. So that was one of the key things which kind of drove us to this. Because having this kind of an asset at such a large scale, yes, you are right, it is a high risk if you are doing it alone. But that risk is mitigated by the fact that we are partnering with the U.S. and U.S. has a strategic and critical minerals deal which was signed in 2025. So in fact, we have very strong support from U.S. and given the kind of support that U.S. is building. With DRC, there is a strong cooperation, and this is the first project under this, so a flagship project, so it becomes de-risked by the same amount. It's something what you can probably see with Suchagar, like it was one of the first projects that we opened up here, so of course risk was there, but this was the first project in Maharashtra, so for Maharashtra Ayanarur was new, and now Maharashtra is looking at opening up many more mines and coming up. So, this gives us a good entry and also helps us build a very strong partnership with U.S. because They see us as reliable, credible operators. So in difficult terrains, wherever the U.S. companies are not able to operate or not able to scale as fast as they would want the supply chains to be built, we would be a partner of choice. So this is an alternate to China on the global scale, and that's why we see this partnership. It's something which will be quite important and also de-risk in the entire process because of the presence of U.S.

Thank you so much and all the best.

Thank you. The next question is from the line of Vikas Singh from ICICI Securities. Please go ahead.

Good afternoon, sir. Thank you for the opportunity and congratulations on very good set of numbers. Sir, my first question pertains to Triveni. If I look at our iron ore ramp up has been largely been done while the coal has not been ramping up. So, Are we going to expect volume growth in this segment? Because if I remember correctly, a couple of quarters back, we have given a pretty good numbers in terms of revenue guidance on the Triveni side. And what has caused this margin expansion on the year-on-year basis from EBITDA margin of 16% to 25%?

In iron ore, we are starting two new mining leases, and for the other mining leases where we are already doing, we have got the environmental clearances enhancement, and due to that, the iron ore production is going to be higher as compared to the earlier year, and in respect of coal, as we stated, Indonesian operations, we are slightly slowing down due to lower margins, and Jharkhand operations, the contract. So, yes, we will be increasing our revenues, the quantity in iron ore more as compared to coal. And Surjaghar also, we have got a large expansion. So, there also we are going to increase it. So, this is the reason that iron ore expansion will be much more as compared to coal.

Sir, just a follow-up question on this. We, in the remarks, somebody said that 37-39% higher iron ore production could be there. Would our revenue follow the similar model or the rates are different and revenue growth would be lower than that?

No, no, revenue growth will be there and we will be getting the benefit of economies of scale. So our revenues will be much, much better.

No, so. So, would that go in tandem with the volume, assuming the same kind of rates we are getting across the board, or the intensity would be lower than the volume, that's what I was asking effectively.

No, more or less it will be the same. Top line would be more or less the same, bottom line would be faster because of economical scale.

Notice, sir. Sir, my second question pertains to our realization this quarter. If I see iron ore and pellet, there was a deviation. One has gone up on sequential basis while the pellet realization went down, which is a little bit surprising. So, could you explain what has happened here and what is the spot realization? Have we also taken price hike today?

Sir, what has gone down? Pellet.

Sir, pellet, the pellet realization was sequentially was down. As for our own presentation, while the iron ore has been up sharply, so I just wanted to understand.

As volumes have gone up in pellet, we have had to search new markets, and that is why the pellet realizations are a little lower, because the newer markets are at a distance. Some tenders were there earlier, which we have not been able to re-establish again, and we have been doing a little bit more export. On the... On the pricing of iron ore, it's more or less driven by the market. We are in line with the rest of the market and the steel market.

And sir, lastly, if you could give us some update on your BHQ project, because next year, if I remember correctly, we wanted to do more of a low-grade beneficiation versus the high-grade sales.

So, in my remarks, I mentioned that by December 2027, the BHQ first phase of 30 million tons input and around 12 million tons output will be commissioned. The land is with us, the equipment has been mobilized, the construction equipment has been mobilized, the crushing of the material has started, and we will be putting the material onto the site and getting it evacuated from the site in this year. And over the next two years, that material will be accumulated there. And as far as the project itself is concerned, we are going ahead with the total engineering is not about to complete. The main ordering of 85-90 percent has been ordered on very five-star parties. The pellet plant has helped us a lot in establishing the final engineering, and that is the status.

So, since we are benefiting and the mining ratio to output is lower, do we expect that once the BHQ picks up our overall blended EBITDA pattern on the iron ore side at least would settle on a lower scale?

We think it's on a higher scale because BHQ beneficiary ore will be 66-67%. The cost upside is around 200-300 rupees, which I think we explained in the last con-call, and particularly with the revised notification of the government on reduced royalties. So, the upside on the cost will be around 200-300 rupees. The upside on the selling price or on the usage level, even if we do it internally, will be at least 700-800 rupees. So, we think that EBITDA will go up once the BSQ.

Sir, wouldn't the mining cost per ton of the final material would be three times higher, two and a half times higher, so that should get added in the cost, not only on the beneficiation?

There are much bigger scale volumes, so we would have, like I said, the total cost would be in that range, the royalties are much higher.

This is adjusted for the mining ratio you are talking about.

Absolutely, absolutely. I am talking about net usable ore.

Noticed, sir. Thank you, sir, and all the best for you.

Thank you. The next question is from the line of Jasandeet Singh from Numara. Please go ahead.

Thank you for the opportunity, and congratulations for a great set of results. So, my first question is regarding CAPEX. You were highlighting how much CAPEX will be required for the second couple of soon that you have entered. I just wanted to understand, you know, with that in mind, what will be our FY27, 28 CAPEX guidance for console lawyers now? And in line with that, you know, with CapEx increasing, the earnings are also increasing significantly, but what will be a sustainable net bidder or leverage numbers for the company, and is the company looking for any deleveraging in the, you know, 27, 28? That will be my first question.

So, most thanks, Jashandeep. The total CAPEX excluding the ISP for the Konsari unit is around 28,000 pros, that is what we have, of which we have already spent, as I have mentioned earlier, is 13,500 odd pros. So, that remains with the 14,500 pros to be spent over the next two years. Next year, our plan does around between 10,000 to 11,000 gross is what we are planning to expand, because that will include a lot of portion from the BHQ plant and the... So, it should be closed on 500, and the next year it should be closed on 500. Plus, yes, in 2728, by that time, we would be clear on the largest steel plant at Konsari and also the copper. So, all those expenditures will be further included in this and should be a larger number.

Sir, largely copper capex will start from FY28, you know, is that right? And also on deleveraging or your sustainable net debt will be done?

In FY27 also there will be copper investments.

Yeah, so actually majority of the copper investments will get done in FY27. So, we should have the revenues and profitability from copper coming in from February 28 because, as I said, the plants are near about 85% to 90% complete. So, we want to get them running ASAP and that's why a large part of the capex will actually be done this year.

And to this, we would have to add the Triveni capex, although since you asked for consolidated, Triveni capex would be around 1000 crores in this coming year. in this current year.

And the 10,000 to 11,000 crore also includes 380 and copper. Is my understanding right, sir?

No, that's on standalone basis. That's, yeah.

So, consult, so how much will be consult?

In terms of capex, you are asking? So basically, on a console basis, copper will be, as I mentioned earlier, near about 200 to 260 million dollars. So we can add near about 2,000 crores.

15,000 crores.

Right, sir. And any plan of, you know, deleveraging Triveni? Because most of the debt on the console book is from Triveni. So any plan for the next two years to reduce the debt on Triveni? And what is your target net debt that the management is internally working with?

Triveni debt, yes, we are looking at it. We have plans of... The RPS as it is reducing, it was just paid around 700 crore rupees in the month of April for the RPS, so that 2,100 crore in the debt is RPS. Office 700 crore is happening, so over the next three years, the 2,000 crore rupees reduces, so the debt automatically comes down. And the regular PMX-alot.

After my last question, again, because, you know, Lloyd is expanding and growing at such a rapid pace, will all the CapEx, will the company be able to manage all the CapEx for internal accruals, or is there a plan or is management looking towards raising some more capital, either through debt or equity, in the near future? How is management looking towards it?

Yes, debt we would be raising. As we have mentioned, we should be able to have a proper mix of debt. The EBITDA should be around 11.5 times of the EBITDA, not more than that. That is what our numbers would be. Equity as of now, we have not planned on anything, and we don't, in the near future, so we don't intend on that.

Any equity would be, if ever, would be in the books of Trevenly, if we go for an IPO in that company at a later stage. Not in this year.

Understood, sir. And so my last question will be largely towards the new government regulation which came, which is now, you know, is fixing ASP for, I don't know, grade below 45% with, you know, or the close to two-thirds of your reserves being in that category. While I understand, beneficiation will be there, and you will be selling output will be higher grade, but just want you to understand how does that regulation or how does the management look at that regulation, whether there will be benefits in terms of royalty or whether there will be benefits in more off-takes happening of the lower grade. Just want you to understand that.

So, the royalties paid on material going out of the mine and the lower grade of... Less than 45 or less than 35 would be going out of the mine, entailing a royalty at the rate of 50% or 75% respectively. So that would reduce our BHQ output cost to the BHQ plant. So it helps us in terms of reduction of cost.

Understood, sir. Just one last question. Sir mentioned that 2,000 rupees per time saving coming from largely from transport. Can you have a breakdown of that and, you know, how much will be coming from this shipping port?

I mentioned 2,000 crores over the next, once the second pipeline is commissioned, from Hedri to Ghugus via the Chandrapur stockyard, all our 16 million tons of... Mattel, which is now being transported to the railway siding or to various customers by truck, at 600 rupees a ton, 500 rupees a ton will be saved. So that itself is 1,000 crore rupees. Plus whatever pipeline we are already doing right now, plus our solar projects and other green initiatives, plus various initiatives during all the sites. So we have calculated a total of 2,000 crore rupees per year going forward from 2028 onwards.

Thank you so much for this, and I'll join back with you.

Thank you. The next question is from the line of Ritesh Bhagwati from Alpha Plus Capital. Please go ahead.

Thanks for taking my question. And first of all, congrats on great set of numbers. Firstly, it's in regards to our DRC assets. So, we saw a commercial production of 12,000 tons per annum copper cathode plant at Surya Mines got commissioned in March 26. So, and plus we have done an acquisition of another 49% stake in Chemoff. So, what I want to first of all understand is how are we seeing this ramp up of 10,000 tons per annum to 30,000 tons per annum happening. So, what is the timeline for that? Secondly, what I also want to understand is how are we seeing this integration of DRC assets happening and what sort of revenue and EBITDA contribution can we see in this financial year?

Yeah, thank you. So I'll explain on both the assets. So the first asset actually was commissioned and started producing copper plates in March 2026. So we have produced near about 700 to 750 tons of copper as of date. The plant as per budget is able to produce near about 40 to 45 tons per day. We are having certain supply shortages on the sulfuric acid because it's an inland country. So because of which there is a slightly lower volume than expected. But good thing is that with the plant that you acquire the other company. We have a sulfuric acid plant. So we are now continuing to supply sulfuric acid from that. So there is synergy between the two companies. So with that, I think we are looking at producing a total of around 9 to 10,000 tons of copper for the financial year ending this year. Shamaf will not produce anything this year. It is expected to start production meaningfully by July of 2027 when the plants are expected to be commissioned. So a big uplift will come when those plants are completed and they start operating fully. They are fully integrated plants in terms of mine next door to the plants. So we'll have near about 90,000 tons of copper production, but starting from July 2027. Until then, we will have around 800 to 900 tons of copper that we expect once we solve the sulfuric acid problems, which should be sorted in the next three months. So that's broadly the production profile for the Congo assets.

Okay. So, basically, I also want to understand our stake acquisition that we have done for Lloyd's Panguna, which we will engage with Bougainville Corporal Limited. So, if you can just provide some clarity on a strategic roadmap, anticipated timeline for securing mining rights.

No asset has been taken over. We have created a company for future actions in that country. It is a very active, was a very active mine 40 years back with boat built, roads built and the mine commissioned and well-established, etc., with very rich copper and gold deposits. But it's still in the discussion stage. We have got the rights only and nothing has been acquired and we don't need, like I said, setting our foot into the area.

Okay. So, just lastly, on our pallet plant, so, like, we have recently commissioned our second pallet plant as well. So, what I want to understand is, like, when do we expect, you know, both pallet plants together to reach the expanded capacity of 10 million tons per annum from our original 8 million tons per annum?

It's 8 million tons, 2 into 4, 8 million tons. The first plant in the first 9 months of operation has achieved 3 million tons, which is within the capacity. We hope to repeat that in the second plant as well, and therefore we hope to achieve 7.5 to 8 million tons in this complete year.

Okay. Thanks a lot. That's it from my end.

Thank you. The next question is from the line of Suti Agarwal from Chhattisgarh Investment. Please go ahead.

Hello, am I audible?

Yes, ma'am. Yes.

Yeah, firstly, congratulations to the team for great set of numbers. Sir, my first question is, does receivables increase from 171 crores to 1480 crores on a consolidated number? That is 3.24 times. So, is this from the Treveni or on standalone like?

See, last year it was not a consolidated, because Teveni is just acquired in this year, so only nine months has been consolidated. So if you're looking at a consolidated number, then it is not comparable, if you compare it with the last year.

Okay, okay.

Thank you. A reminder to all participants that you may restrict yourself to one question. The next question is from the line of Park Kotak from Solz91 Asset Management. Please go ahead.

Hi, thanks for taking my hand. Congratulations for a good set of numbers. Sir, actually, I have a couple of questions. The first one is an extension to the previous participant's question. I understand that now since MDO is integrated with our operations, if you could, you know, just give a bit of color on our receivable days and inventory days and payable days for the consolidated entity going ahead. And second, sir, if you could just on an accounting side provide the number for IPS benefit this year, it would be really helpful.

On the IPS benefits, basically, it is right now around one year in accrual, one year post the claim to be made. The claim would be made in June for the last year, so we would get the monies in June 2027. We are trying to see how that can be expedited. For the consolidated receivables data, I think this question is a very interesting question. We don't have the clear-cut answer on why exactly that moment is there. We will come back very shortly on that.

In Srivini, the receivables are 15 to 30 days.

In Srivini, the receivables are 15 to 30 days.

In cold it is 15 days.

We'll figure out exactly the reasoning behind it and come back.

Thank you. The next question is from the line of Amish Arda from Purnata Investment Advisor. Please go ahead.

Amai, sir, could you please go ahead?

Anything is not there. Since there is no reply from the line of Mr. Amai Sharada, I will promote the next question which is from Harj Shah from Seven Rivers Holdings. Please go ahead. Yeah, hi.

Good afternoon, sir. Sir, in your slide, you have given guidance of 26 million tons for FY27, production of iron ore.

Can you give us a split? How much of this will be consumed internally for the downstream products and what will be sold outside?

Around 8.85 million tons. 8.8 million tons will be consumed internally for the pellet class. The DRI plant may be another 200,000 tons, so around 9 million tons will be consumed this year internally. Parrot plus DRF. Part of the food will also be consumed internally in the DRF plant.

Thank you. The next question is from the line of Siddharth Gadekar from Equitress, Securities Limited. Please go ahead.

Hi, Tom. So, first one is Shimak acquisition. Can you just speak on the debt that we have acquired with that entity and how should one think about that debt?

Yeah, thank you. I mean, yes, I think that needs a little bit of clarity because otherwise it may look that you have acquired a lot of debt. So, we have become owners of the company. So, of course, the company was under stress. So, there's a lot of debt which has accrued, built up, and they have spent that on the plant. But as a part of the overall negotiation process, we have also made settlement agreements with the key creditors. So, actually the total debt which is there on the books of Sharmaaf is around 800 million dollars. Large creditors mostly we have negotiated and effectively once we pay out those creditors, this debt will be reduced by 475 million. So, that's the amount of negotiation that has been done. And the balance of the debt, which will be remaining on the books, which is near about $330 million, that is fully non-recourse, and it will stay at the company level at Shemaf. Also, we are negotiating on that with some of the smaller parties, which are there. So we'll go through that process and possibly we can also receive some benefits from there. So that's broadly the current debt. For completing the plants, possibly we'll borrow additional $200 million, which will also be non-recourse to LMEL and borrowed at the asset level because the assets itself is near about $1 billion, which is all We have already put on the ground.

So, secondly, in terms of the ramp-up on C-Mac, how should one think about the ramp-up in this practice?

So, as I answered earlier, I mean, July 2027, we should see reasonably full commercial scale production. So, we should be producing near about 8,000 tons of copper, including the Surya mine. So, only Shemakh itself, it will be near about 6,000 to 5,500 tons per month.

And the entire debt will get consolidated into our control balance sheet or how should one think about that?

Yes, that's right. So although we own 49% but because we are having the operational control on the ground and we are the ones who are running the operations which is typically... For us as something which we like and control because effectively we need the operational controls to make the assets work. So that's why because of that reason, even though we are 49%, we have operational control and thus it gets consolidated into our books.

Okay, good. So, lastly, on the standalone operations, on the pellet, we had spoken about some bee bottlenecking that we were doing on the standalone operations. So, when should we start seeing the benefits of that bee bottlenecking coming in?

We are studying and applying to the government for relevant permissions. We should get that by the year end, that's 26-27. So, next year, we will see an increased production in that.

So, that would be for both the pellet plants or only the first pellet plant? So effectively, we can go to 10 million ton of pellet capacity with deal-to-plast?

No guidance on that, but yes, that is the target.

Okay. Got it, sir. Thank you so much.

Thank you. The next question is from the line of Netra Deshpande from Mirai Asad Chair Khan. Please go ahead.

Yeah, good evening, sir. Congratulations to you all for remarkable set of numbers and metallic numbers for FR26. So, to start with the first question, just would like to know as have already set the estimated phase for the second cost and for the XME course and what would be the timeline for that as the slurry pipeline for the project, the phase one, the cost and already it was got cleared in the earlier session.

We are not able to understand that.

So what would be the phase 2 cost of the timeline for the overall total project for the slurry pipeline, capacity of utilization and overall volume. So it will take up and ramping up.

The phase 2 slurry pipeline is for the 16 million tons what we are planning. This is the plans for the entire Capex to be completed is within two years, as we mentioned earlier also.

Okay, and my next question is about what would be the revenue growth in terms of volume of iron ore and value added products for FY27 and FY28?

There is no increase in volume. This is the maximized volume that we have. FY27 we just discussed. FY28, our steel plant would be operational fully, so we would be having a production of, say, 1 million ton, which is 75-80% of the capacity, plus the pellet plant would be producing that 8-9 million tons, so that would be the value added product range, and relevantly, DRI and PIGI, etc., would also be produced according to that.

Thank you. And so one more which is what would be the inter-segment revenue in terms of tax in IROs that the that they are using because after the exhibition as we can see that inter-segment revenue have a rank of like it is somewhere around 4000.

I don't think we are ready with that exact figure that you are looking for. We will come back shortly on that.

Thank you. The next question is from the line of Vedan Sardar. From Nirmal Bank Securities, Private Limited, please go ahead. Mr. Vedant sir, could you please unmute your line and go ahead. Thank you. Yes, sir.

Thank you for the opportunity and congratulations on the next season.

Sir, we have guided 26 million ton of iron ore production and doubled down on pellet production and data development.

We are a production for FI27. Can you broadly tell us the revenue growth and EBITDA growth for FI27 on the current realization of iron ore?

I think the figures are all with you. We leave it to the analyst to analyze and confirm the figures.

Thank you. The next question is from the line of Tanmay Chaudhary from Dalat Capital. Please go ahead.

Yeah. Hi, sir. Thank you for the opportunity. Sir, my first question is on the logistics side. Like, what are our evacuation plans to the pipeline and the trucks and railway sliding, and specifically for feeding our recently coming pilot plant?

Your question is not very clear, sir. Can you repeat it?

Yes, sir, I'm asking on the evacuation plan through the pipeline and on the transport side, like for feeding our recently commissioned pellet plant.

So the recently commissioned pellet plant is being fed by the pipeline we were commissioned around a year back. That same pipeline is now feeding both the pellet plants that are commissioned. This product is being evacuated either by truck or from a railway siding which is around 80-70 km away. That's why the evacuation of the current parent plant and muddied into the parent plant is answered. Does that answer the question?

So the line has dropped. Ladies and gentlemen, we take this as a last question. I now hand the conference over to the management for closing comments.

Thank you, everybody. I guess we were able to reply to all your questions and queries. Once again, thanks, everybody. And if you have any further questions, you can get in touch with Mr. Chintan Madh or myself so that we can give you all the further replies. So thank you once again for participating, and thank you, Equirus team, for hosting us.

Thank you, sir.

Thank you. On behalf of Equate Securities Private Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.