Multibagger stock: Shares of multibagger Godawari Power & Ispat Ltd slipped over 6% on Wednesday after the steel major reported a 25% fall in net profit for the June 2025 quarter. Consolidated revenue from operations slipped 1% to Rs. 1,323 Cr on a YoY basis due to a drop in realizations. However, EBITDA inched up 2% on QoQ basis but fell 20% on a YoY basis to Rs 324 Cr. EBITDA Margins and PAT Margins stood strong at 24% and 16%.
Profit after tax slipped on both QoQ and YoY basis by 2% and 25% to Rs 216 crore due to fall in realizations.
The board also cleared a total capital expenditure of Rs 1,600 crore for two new projects, to be financed through equity and debt, with a 40:60 funding split.
a. CRM Complex: The Board has proposed setting up a 0.7 MnT CRM Complex with a capital expenditure of Rs. 900 crore. This amount includes pre-operative expenses, inter-corporate deposits (ICDs), and margin for working capital.
b. Storage Battery Plant: The Board has also proposed setting up a 10 GW Storage Battery Plant with a capital expenditure of Rs 700 crore through GPIL’s wholly owned subsidiary Godawari New Energy Private Ltd.
The stock of the steel producing major, hit an intra day low of Rs 187, falling up to 6.45% in the current session. The stock opened lower at Rs 195 against the previous close of Rs 199.90 on BSE.
The shares of the steel and power manufacturer’s stock has gained 233.65% in three years and risen 1603% in five years.
Total 1.75 lakh shares of the firm changed hands amounting to a turnover of Rs 3.33 crore in the current session. Market cap of the firm fell to Rs 12,768 crore.
B.L. Agrawal, Chairman and Managing Director, said, “I’m pleased to report that despite a decline in realizations during Q1FY26, GPIL maintained strong margins, with EBITDA at 24% and PAT at 16%, supported by robust operational performance. Our new capex plans—focused on setting up the CRM Complex and the Storage Battery Plant—are expected to drive operational synergies and enable strategic diversification, strengthening our long-term growth outlook. Coupled with a strong net cash position, ongoing investments in mining and pellet capacity expansion, and a firm ESG commitment, we are well-positioned for sustainable value creation. Efficiency improvements, solar-led cost savings, and the strategic advantage of captive iron ore mines—along with continued stakeholder support—further reinforce our path for future growth.”
About the Company
Godawari Power is a steel company, which operates through two segments: Steel and Electricity. Its geographic segments include domestic market and export market. The company is engaged in iron and steel industry, power sector and mining sector.
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