Lloyds Metals Accelerates Growth: Q1 FY26 Iron Ore Output Hits 4 Million Tonnes, DRI Production Climbs 3% YoY

Lloyds Metals and Energy Ltd (LMEL) has reported a robust start to FY26, with provisional iron ore production reaching 4.0 million tonnes in the first quarter and direct reduced iron (DRI) output rising 3% year-on-year to 79,033 tonnes. These figures highlight the company’s operational momentum and strategic positioning as it ramps up for major capacity expansions.

 

Key Highlights:

 

Iron Ore Output: Q1 FY26 iron ore production stood at 4.0 million tonnes, maintaining the upward trajectory seen in recent quarters. This comes as Lloyds Metals received environmental clearance to expand its mining capacity to 55 million tonnes per annum, positioning the company to become India’s largest iron ore operator.

 

DRI Production: Provisional DRI output for Q1 FY26 reached 79,033 tonnes, a 3% increase from the same period last year, reflecting ongoing improvements in plant efficiency and operational scale.

 

Strategic Expansion: The company’s expansion roadmap includes ramping up iron ore mining to 26 MTPA in the initial years, with further scale-up to 55 MTPA as beneficiation plants come online. The new beneficiation facility at Hedri is already showing promising results, producing high-grade iron concentrate with over 66% Fe.

 

Financial Performance: LMEL recently posted strong financials, with FY25 profit after tax up 17% year-on-year and EBITDA margins holding firm despite industry headwinds. The company’s capex plan and in-house ore availability are expected to further boost cost efficiency and earnings.

 

Industry Impact: Lloyds Metals’ growth is set to play a foundational role in the emerging steel hub of Gadchiroli, supporting downstream industries and enhancing India’s raw material security.

 

Sources: Business Standard, CNBC TV18, Money Muscle