Whalesbook
Godawari Power and Ispat Limited's stock price hit a new peak of ₹320 per share on Tuesday, surging 10.1% on the BSE. Despite a slight trim by midday, shares were trading up 9.13% at ₹316.9, outpacing the slightly lower BSE Sensex.
Strong Q4 Performance Fuels Rally
The stock rally was spurred by the company's release of its fourth-quarter fiscal year 2026 (Q4FY26) financial results. Godawari Power reported a net profit of ₹280 crore for the March quarter, a notable 26% increase compared to ₹222 crore in the same period last year. Revenue from operations grew by 10% year-on-year, reaching ₹1,610 crore.
Margin Expansion and EBITDA Growth
Earnings before interest, tax, depreciation, and amortisation (EBITDA) showed robust growth, climbing 38% to ₹439 crore from ₹318 crore year-on-year. This was accompanied by an improved EBITDA margin of 27%, up from 22% in the previous year. The company's board also approved a dividend of ₹1 per share.
Management Optimism
B.L. Agrawal, Chairman and Managing Director, expressed confidence in the company's future. "Despite softer realisations, Godawari Power delivered resilient performance in FY26, with revenues remaining steady and Earnings before interest, tax, depreciation and amortisation (EBITDA) and profit after tax (PAT) margins strong at 23 per cent and 15 per cent, respectively," he said. Agrawal pointed to the company's competitive strengths, including captive iron ore mines, a healthy net cash position, ongoing capacity expansions, and a commitment to ESG principles, which he believes position it for sustained value creation through operational efficiency and solar-driven cost optimization.
Company Profile
Godawari Power & Ispat, based in Raipur, is an integrated steel manufacturer and a key part of the Hira Group of Industries. The company has evolved from producing sponge iron and captive power to manufacturing a full range of mild steel wires, making it a significant player in India's long steel products market. Its product line includes sponge iron, billets, ferroalloys, wire rods, steel wires, iron ore pellets, oxygen gas, fly ash bricks, and captive power generation. It is also a pioneer in iron ore pelletisation in India, operating a 1.80 million tonnes per annum (MTPA) pellet plant at full capacity.