💰 Financial Performance

Revenue Growth by Segment

Total operating revenue grew 3.27% YoY to INR 903.03 Cr in FY2025 (Prov.) from INR 874.41 Cr in FY2024. For Q1FY2026, the group achieved revenue of ~INR 375 Cr, indicating a significant scale-up following the commencement of new capacities.

Geographic Revenue Split

Not disclosed in available documents; however, operations are centered in Tadali, Maharashtra, with strategic proximity to metal supply players.

Profitability Margins

PAT margin significantly improved to 5.56% in FY2025 (Prov.) from 2.40% in FY2024. Operating margins stood at 10.27% in FY2024 (E) compared to 9.96% in FY2023, driven by stabilized raw material costs.

EBITDA Margin

EBITDA margin improved to 11.07% in FY2025 (Prov.) from 7.35% in FY2024. This 3.72% absolute increase is attributed to backward integration support from GRISPL and the commencement of the captive power plant.

Capital Expenditure

The group undertook a significant capex of INR 296.00 Cr at CML, funded by INR 180.00 Cr in term loans and the remainder from promoter sources. Additional capex at GRISPL materialized in November 2024.

Credit Rating & Borrowing

Long-term rating reaffirmed at ACUITE A- | Stable and short-term rating at ACUITE A2+. Borrowing costs are reflected in an Interest Coverage Ratio (ICR) of 6.06 times in FY2025 (Prov.) compared to 3.73 times in FY2024.

⚙️ Operational Drivers

Raw Materials

Iron ore pellets and beneficiated iron ore (supplying ~40% of captive needs), coal for sponge iron production, and bulk raw materials for steel manufacturing.

Import Sources

Sourced primarily from group company GRISPL (40% captive) and local reputed metal supply players near the Tadali, Maharashtra plant to minimize logistics costs.

Key Suppliers

G R Integrated Steel Private Limited (GRISPL) provides backward integration; other external suppliers are not specifically named but include 'reputed metal supply players'.

Capacity Expansion

Sponge iron capacity expanded from 60,000 MTPA to 175,500 MTPA. New capacities include 39,204 MTPA of Silico Manganese, 198,000 MTPA of Billets, and a 30 MW captive power plant.

Raw Material Costs

Raw material costs decreased in FY2024, contributing to margin stabilization. The group uses bulk procurement strategies to mitigate price fluctuations, which increased inventory days to 125 in FY2025.

Manufacturing Efficiency

Efficiency is driven by the captive power plant and the strategic location of the Tadali plant near raw material sources, though production was hampered in FY2025 by power disruptions at one plant.

Logistics & Distribution

Not disclosed as a specific percentage, but the plant's strategic location near suppliers is noted as a factor easing procurement logistics.

📈 Strategic Growth

Expected Growth Rate

66%

Growth Strategy

Growth will be achieved through the full-year stabilization of expanded capacities (Sponge Iron, Billets, Silico Manganese) and the GRISPL backward integration plant. The group expects cash accruals of INR 100-140 Cr in FY2026-27 to support debt servicing and operations.

Products & Services

Sponge Iron, Silico Manganese, Steel Billets, and captive power generation.

Brand Portfolio

G R Group (Benchmark of Quality), Chaman Metallics Limited.

New Products/Services

Expansion into Steel Billets (198,000 MTPA) and Silico Manganese (39,204 MTPA) represents a shift toward higher value-added downstream products.

Market Expansion

The company listed on the NSE in January 2023 to increase market visibility and access capital for its INR 296 Cr expansion project.

Market Share & Ranking

Not disclosed; the company operates in a heavily fragmented and competitive downstream steel industry.

Strategic Alliances

The group operates as a consolidated entity including NRSPL, GRSPL, CML, GRKFAPL, and GRISPL to leverage operational and financial linkages.

🌍 External Factors

Industry Trends

The steel industry is currently seeing a trend toward semi-integration and captive power to combat high energy costs and margin volatility. The industry remains cyclical and fragmented.

Competitive Landscape

Intense competition from a large number of organized and unorganized players in the downstream steel sector.

Competitive Moat

Moat is built on semi-integrated operations and captive power (30 MW), providing a cost advantage over non-integrated peers. This is sustainable as long as captive raw material links (GRISPL) remain strong.

Macro Economic Sensitivity

Highly sensitive to infrastructure development and real estate demand, which are driven by government spending and GDP growth.

Consumer Behavior

Pick-up in real estate and construction activities by the Government is driving demand for steel long products.

Geopolitical Risks

Exposure to global commodity price cycles which dictate the pricing of sponge iron and steel products.

⚖️ Regulatory & Governance

Industry Regulations

Subject to environmental norms regarding steel manufacturing and power plant emissions; also impacted by government infrastructure policies.

Environmental Compliance

The group repurposes fly ash for brick/cement production and conducts afforestation drives. ESG compliance is integrated into operations through healthcare camps and educational support.

Taxation Policy Impact

Not disclosed; however, the group accounts for deferred tax liabilities and provisions in its financial statements.

Legal Contingencies

Not disclosed; no significant pending court cases or litigation values were mentioned in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices and finished goods realisations could impact profitability by more than 5% given the commodity nature of the business.

Geographic Concentration Risk

High concentration in Maharashtra (Tadali), making the group vulnerable to regional industrial policy changes or local power grid stability.

Third Party Dependencies

Moderate dependency on external bank limits, with fund-based limit utilization at ~84.28%.

Technology Obsolescence Risk

The group is mitigating this by investing in new backward integration plants and captive power technology to maintain cost competitiveness.

Credit & Counterparty Risk

Debtor days are low at 10 days in FY2025 (Prov.), indicating strong receivables quality and low credit risk from customers.