Lloyds Metals Approves ₹1,550 Crore NCDs, Plans DRI Capacity Expansion

Lloyds Metals Approves ₹1,550 Crore NCDs, Plans DRI Capacity Expansion

Lloyds Metals and Energy is set to expand its Direct Reduced Iron (DRI) manufacturing capacity beyond 900,000 MTPA, while strengthening its funding position through a proposed ₹1,550 crore debt issuance.

The company’s Board has approved the issuance of up to ₹1,550 crore in Non-Convertible Debentures through private placement. The proposed issue will be structured in two tranches of ₹600 crore and ₹950 crore, giving the company additional capital flexibility for future requirements.

At the same time, Lloyds Metals is investing ₹190 crore to increase its aggregate DRI capacity to 907,400 MTPA. The expansion will be funded entirely through internal accruals, without relying on the proposed debt programme.

The Ghugus facility in Maharashtra is planned to see its DRI capacity increase to 815,000 MTPA, involving an investment of ₹140 crore. At the Konsari facility, capacity is expected to rise to 92,400 MTPA with a further investment of ₹50 crore.

The capacity expansion forms part of Lloyds Metals’ broader strategy to increase its downstream processing capabilities. The company has been integrating its operations around captive iron ore resources, pelletisation and DRI production.

The company also reported a sharp increase in consolidated revenue during the first quarter of Financial Year 2026–27. Revenue stood at ₹7,354 crore, compared with ₹2,384 crore in the corresponding quarter of the previous financial year, representing a 208.6% year-on-year increase.

Consolidated EBITDA rose to ₹2,942 crore from ₹833 crore, marking a 253.1% increase. EBITDA margin expanded to 40% during the quarter.

According to the company’s disclosures, the proposed DRI expansion at Ghugus and Konsari will be financed through internally generated funds. This leaves the proposed NCD programme available for other capital requirements and future expansion plans.

The Board has also approved the allotment of 141,969 equity shares under the ESOP-2017 scheme at ₹4 per share. Following the allotment, the company’s paid-up capital will increase marginally to ₹56,30,48,920.

Lloyds Metals is also progressing with its wider downstream and mining-related expansion plans, with its Surjagarh operations supporting captive raw material availability for its manufacturing activities.