Godawari Power Eyes Rs 150 Crore Boost To Profitability With Power Grid Deal For Steel Billets
GPIL is awaiting environmental clearance for expanding operations in the Aridongri mines in Chhattisgarh, with a public hearing scheduled for April 2025.
Godawari Power & Ispat Ltd. expects an additional Ebitda of Rs 150 crore after Power Grid Corporation of India Ltd. approved the supply of steel billets for transmission projects, according to the company's Executive Director, Abhishek Agrawal.
“Usually, we generate an Ebitda of about Rs 4 to 5 per kilo, as our rolling mill is still ramping up. However, by FY26, we expect full production of 2 lakh tonnes and an Ebitda of close to Rs 8 to 10 per kilo. This will lead to a substantial addition of approximately Rs 150 crore in Ebitda from this particular Power Grid clearance,” Agrawal said in a conversation with NDTV Profit.
He emphasised the growing demand for India’s renewable energy sector, which will lead to Power Grid’s infrastructure expansion. “With the increasing renewable capacity in India, there is pressure on Power Grid to accelerate its infrastructure development. The demand for Power Grid products will continue to rise year on year,” he added.
GPIL, a company engaged in iron ore mining and manufacturing products like sponge iron, steel billets, steel wires, and pellets, is also expanding operations in the Aridongri mines in Chhattisgarh.
GPIL is awaiting environmental clearance for the expansion, with a public hearing scheduled for April 2025. Agrawal expects the EC approval by June 2025.
He anticipates that the company will reach full mining and beneficiation capacity by Q4 FY26.
Beneficiation, which involves processing raw ore to enhance its mineral concentration and remove waste elements, is expected to improve GPIL’s efficiency significantly.
Discussing the impact of the Aridongri expansion, Agrawal said, “For FY26, we anticipate an additional pellet production volume of about 6 to 7 lakh tonnes. Currently, we produce around 2.5 million tonnes annually, which should increase to approximately 3.25–3.3 million tonnes. On the mining side, we currently produce about 2.4 million tonnes, which should rise to 3 million tonnes in FY26. By FY27, we expect full capacity utilisation, with mining output at 6 million tonnes, pellet production at nearly 4.5 million tonnes, and beneficiation operating fully at 6 million tonnes.”
GPIL shares were trading 0.57% lower at Rs 179.98 on the NSE, while the benchmark Nifty was up 0.63% at 23,051.25 at 11:11 a.m.
