GLOBAL ECONOMIC OVERVIEW
Global economic growth showed restraint influenced by the geopolitical tensions in the Middle-East, record increase in U.S. Tariffs, heightened trade policy uncertainty and divergent domestic policy responses across major economies. According to World Economic Outlook, Global growth is projected to decelerate from 3.4% in 2025 to 3.1% in 2026 and settle at 3.7% in 2027.
After withstanding higher trade barriers and elevated uncertainty in 2025, the Global Economy is now facing outbreak of war in the Middle-East from February 2026 which has generated major disruptions in energy markets. Before the outbreak of the conflict, global activity seemed to be on a firm footing, supported by strong growth in some major economies and better-than-expected global trade, amid robust growth in Artificial Intelligence (AI)-related technology exports and a slight decline in tariff levels. Two-thirds of economies around the world is now facing weaker growth prospects. The war has put an impact on crude oil prices, commodity prices, inflation expectations, increase in logistics cost and tightening financial conditions - offsetting the otherwise-improving growth momentum. Shipping through the Strait of Hormuz till date remains severely disrupted although resuming a number of times. According to a report from Global Economic Prospectus, these disruptions are projected to keep energy prices elevated, with the Brent crude oil price averaging $94/barrel (bbl) in 2026, an increase of 36% over 2025. European natural gas prices are anticipated to rise about 30% in 2026, on tightened liquefied natural gas (LNG) availability globally. The conflict has also severely disrupted global fertilizer trade, triggering sharp price increases that reflect the Gulfs large share of global fertilizer exports and the surge in natural gas prices being a key input for nitrogen fertilizers. Central banks are expected to hold rates higher for longer to curb inflation, while governments face rising fiscal pressures from weaker growth alongside necessary expenditures to cushion crisis impacts. The global economic impact crucially depends on the conflicts duration, intensity and scope, which are inherently unpredictable at this stage.
World Economic Outlook Growth Projections
| PROJECTIONS 2025 | PROJECTIONS 2026 | PROJECTIONS 2027 | |
| World Output | 3.4 | 3.1 | 3.2 |
| Advanced Economies | 1.9 | 1.8 | 1.7 |
| United States | 2.1 | 2.3 | 2.1 |
| Germany | 0.2 | 0.8 | 1.2 |
| France | 0.9 | 0.9 | 0.9 |
| Italy | 0.5 | 0.5 | 0.5 |
| Spain | 2.8 | 2.1 | 1.8 |
| Japan | 1.2 | 0.7 | 0.6 |
| United Kingdom | 1.3 | 0.8 | 1.3 |
| Canada | 1.7 | 1.5 | 1.9 |
| Emerging Market and Developing Economies | 4.4 | 3.9 | 4.2 |
| China | 5.0 | 4.4 | 4.0 |
| India | 7.6 | 6.5 | 6.5 |
| Russia | 1.0 | 1.1 | 1.1 |
| Brazil | 2.3 | 1.9 | 2.0 |
| Mexico | 0.6 | 1.6 | 2.2 |
| Saudi Arabia | 4.5 | 3.1 | 4.5 |
| Nigeria | 4.0 | 4.1 | 4.3 |
| South Africa | 1.1 | 1.0 | 1.3 |
Source: IMF, World Economic Outlook
Despite these headwinds, the global economy demonstrated resilience technology-related investment, supportive fiscal and monetary policies. A faster-than-expected resolution of the conflict and stabilization of energy markets could restore confidence, ease inflationary pressures and improve growth prospects. An improved trade policy environment and buoyant AI-related investment can provide countervailing support to global trade. However, putting in place the right policies will be crucial for making sure that technological transformation leads to broadly balanced growth within and across countries. Lower US effective tariff rates on imports than originally announced will also reduce headwinds to growth. Safeguarding financial stability requires robust supervision, progressing with robust regulatory policies for non-bank financial intermediaries (NBFIs) and crypto-assets in line with internationally agreed recommendation, and closing remaining data gaps on the many less regulated NBFIs. Enhanced stress-testing frameworks are also needed to better assess the risks around the increasing interconnectedness between banks and NBFIs. Enhanced reform efforts can improve the foundations and prospects for sustainable medium-term growth and improve resilience. Actions to reduce regulatory burdens, strengthen skill development, and promote labour mobility and participation are especially important.
INDIAN ECONOMY
Although the Global Economy remains fragile, Indias economy remained one of the fastest-growing major economies with real GDP growth at 7.4-7.6%. India re-affirms its status as the fastest-growing major economy for the fourth consecutive year. Despite the global uncertainties, Indias GDP for 2027 is projected at 6.8-7.2%.
Last 10 years real GDP comparison of India with other Emerging and Developing Countries
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | |
| India | 6.5 | 3.9 | (5.8) | 9.7 | 7.6 | 7.2 | 7.1 | 7.6 | 6.8 |
| Russia | 2.8 | 2.2 | (2.7) | 5.9 | (1.4) | 4.1 | 4.9 | 1.0 | 1.1 |
| China | 6.8 | 6.1 | 2.3 | 8.6 | 3.1 | 5.4 | 5.0 | 5.0 | 4.4 |
| Saudi Arabia | 3.2 | 1.7 | (3.8) | 6.5 | 12.0 | 0.5 | 2.6 | 4.5 | 3.1 |
| Mexico | 2.0 | (0.4) | (8.4) | 6.0 | 3.7 | 3.1 | 1.4 | 0.6 | 1.6 |
| Brazil | 1.8 | 1.2 | (3.3) | 4.8 | 3.0 | 3.2 | 3.4 | 2.3 | 1.9 |
| South Africa | 1.6 | 0.3 | (6.2) | 4.9 | 2.1 | 0.8 | 0.5 | 1.1 | 1.0 |
Despite the Global Economic disruptions, India continues to chart a strong growth path supported by resilient domestic demand and strengthening investment momentum. The Ministry of Statistics and Programme Implementation (MOSPI) has corroborated this momentum, with real GDP growing 7.8% in Q1 FY26 and an impressive 8.2% in Q2 FY26, the sharpest quarterly expansion in recent years.
A. Primary Sector (Agriculture, Forestry, Fishing, Mining)
The primary sector has shown steady, if moderate, growth. In Q2 FY 2025-26, the primary sector recorded real GVA growth of around 3.1-3.5%, supported by favourable monsoon conditions and healthy rabi crop prospects. While agriculture continues to be a stabilising force for rural consumption, its share in overall GDP has been gradually declining as the economy diversifies, a trend which is consistent with Indias structural transformation towards manufacturing and services.
B. Secondary Sector (Manufacturing, Construction, Utilities)
The secondary sector has emerged as a standout performer in FY26, growing at approximately 8.1% in Q2 FY 2025-26.
Manufacturing expanded by around 9.1%, buoyed by the Production Linked Incentive (PLI) schemes, import substitution, and rising capacity utilisation across sectors such as electronics, automobiles, textiles and pharmaceuticals. Construction grew even faster, at roughly 7.2-9.4%, reflecting strong government and private capital expenditure in infrastructure, housing and urban development. Electricity, gas and utilities posted more moderate growth, in line with industrial power demand trends.
This manufacturing and construction-led resurgence aligns with the Countrys long-standing advocacy for labour-intensive manufacturing, ease of doing business reforms, and deeper integration into global value chains as key levers for Indias growth.
C. Tertiary Sector (Services)
Services remain the single largest contributor to Indias GDP, accounting for well over half of total output, and continue to be the fastest-growing segment- expanding by around 9.2% in Q2 FY 2025-26. Within services, Financial, Real Estate and Professional Services has shown particularly strong growth of over 10%, driven by robust credit growth, a buoyant capital market, IT and business process outsourcing demand and expanding digital financial services. Trade, hotels, transport and communication also contributed meaningfully, aided by resilient urban and rural consumption.
On the demand side, private final consumption expenditure grew close to 7.9% in Q2 FY26, up sharply from the prior year, while gross fixed capital formation (investment) also accelerated, supported by government capex and improving private sector investment sentiment. Exports have shown resilience despite global trade headwinds, including US tariff actions, underlining Indias relatively low dependence on external trade as a share of GDP.
For FY 2026-27, the RBI currently projects growth moderating to around 6.9%, reflecting the fading of cyclical tailwinds and continuing global uncertainties, even as India retains its position as the fastest-growing large economy within the G20.
The Government has implemented significant policies and reforms for the development of the economy. According to the Press Information Bureau (PIB), Economic reforms in 2025 reflect a maturing phase of Indias governance, where the emphasis shifted decisively from "expanding regulatory frameworks" to "delivering measurable outcomes". The focus moved towards simplifying systems, reducing compliance burdens, and improving predictability for citizens and businesses. Across taxation, GST, labour regulation, and business compliance, reforms were designed to make every day economic interactions smoother, faster, and more transparent, strengthening trust in institutions and policy certainty.
Reforms implemented by the Government of India since 2014 at a glance
| MANUFACTURED FOCUSSED REFORMS |
MAKE IN INDIA - Emphasis on ease of doing business, increasing FDI, and local sourcing norms, noting Indias rise to the 63rd position in the World Banks Ease of Doing Business rankings. |
PHASED MANUFACTURING PROGRAMME (PMP) - Phased increase in basic customs duty on mobile phones and components to foster domestic production. |
PLI SCHEME - Allocation of ?2.0 trillion across 15 sectors for import substitution and boosting export growth |
SEMICONDUCTOR MISSION - ?760 billion dedicated to building a robust semiconductor and display manufacturing ecosystem in India. |
PM MITRA - Establishment of mega integrated textile parks through central-state collaboration. |
ECMS SCHEMES - Fiscal incentives for manufacturing key electronics and EV components like PCBs and Li-ion cells over six years. |
| INFRASTRUCTURE FOCUSSED REFORMS |
UDAY - The UDAY (Ujwal DISCOM Assurance Yojana) scheme was launched by the Ministry of Power, Government of India, on November 5, 2015, to improve the financial and operational health of the debt-ridden power distribution companies (DISCOMs). |
SAGARMALA - Focus on port-led development and unlocking coastal and inland waterways potential to lower overall logistics. |
BHARATMALA PARIYOJANA - Targets Construction of 34,800 km of national highway network including greenfield expressways Under Phase-1. |
NATIONAL INFRASTRUCTURE PIPELINE (NIP) - Development of world-class infrastructure across sectors through a significant investment of ?111 trillion till 2025. |
NATIONAL MONETISATION PIPELINE (NMP) - Unlock value and recycle capital from brownfield public infrastructure assets. Asset monetization blueprint of Rs. 6 trillion to recycle capital made. |
PM GATI SHAKTI AND NATIONAL LOGISTICS POLICY - Create a unified, technology-driven logistics framework to integrate planning and execution across various ministries and states. |
NMP 2.0 SCHEME - Initiative to unlock value from brownfield infrastructure assets. Covers over 2,000 assets across 12 key infrastructure sectors including highways, railways, power and port. |
| FINANCE FOCUSSED REFORMS |
START UP INDIA - An initiative designed to build a strong ecosystem for nurturing innovation and startups across the country. |
GOODS AND SERVICES TAX (GST) - Replaced multiple central and state indirect taxes with a unified system. Government estimates 2% GDP boost via GST implementation, with rates further rationalized in 2025. |
CORPORATE TAX REFORM - Government reduced the corporate tax rate from 30% to 22% for existing domestic companies to boost investments. |
| REGULATORY AND LABOUR FOCUSSED REFORMS |
JAN VISHWAS BILL - Streamlining of regulations, reduced compliance penalties and promoting the ease of doing business. |
NEW LABOUR CODES - Consolidation of 29 Central Labour Laws into four simplified codes to standardize and streamline regulations nationwide. |
This years initiatives emphasized on ease of living, ease of doing business and inclusive growth, aligning regulatory structures with Indias evolving economic aspirations. From simplified tax regimes and Next-Generation GST to modern labour codes and expanded MSME definitions, the Government ensured that reforms not only reduced friction in everyday economic activities but also empowered youth, women, small businesses, and rural communities. Collectively, these measures illustrate a governance approach rooted in outcome-driven policymaking, fostering trust, predictability and long-term economic resilience.
KEY REFORMS SHAPING GROWTH AND OPPORTUNITY
Income Tax Reforms
In a major relief for Indian families and individual taxpayers, the Union Budget 2025-26 introduced substantial reforms in direct taxation, ensuring that annual incomes up to ?12 lakh are exempt from income tax under the new regime, with the effective exemption rising to ?12.75 lakh for salaried taxpayers on account of the standard deduction. This change reaffirmed the Governments commitment and left millions of middle-class households with higher disposable income, boosting consumption, savings and investment.
The New Income Tax Act, 2025 modernizes Indias direct tax framework by simplifying and streamlining tax legislation, making it more accessible, transparent, and less prone to litigation. A key reform is the introduction of a unified "Tax Year - the twelve-month period of the financial year commencing on the 1st April", replaces the earlier concepts of Assessment Year and Previous Year. It not only improves clarity and makes it easier for taxpayers to understand the financial period their income and tax filings, but also reduces ambiguity in compliance and interpretation.
The Act strengthens digital-first enforcement, faceless tax administration, consolidates compliance provisions such as Tax Deducted at Source (TDS) under a single section, empowers the Government to introduce technology-enabled schemes, and enhances dispute-resolution mechanisms.
Labour Reforms
The Government of India consolidated 29 existing labour laws into four Labour Codes - the Code on Wages 2019, the Industrial Relations Code 2020, the Code on Social Security 2020 and the Occupational Safety, Health and Working Conditions Code 2020.
The new framework enhances ease of doing business while expanding wage security, social protection, and workplace safety for workers, including women, migrant, gig, and platform workers.
The reforms expand the safety net for Indias workforce, with nearly 10 million Gig and Platform workers receiving annual social security support. Women workers benefit from assured leave provisions, maternity benefits and improved workplace safety. Overall, the Labour Codes mark a decisive shift from rule-heavy regulation to outcome-based governance, creating one unified framework for over 50 crore workers across sectors. Additionally, the codes lay a strong foundation for a future-ready workforce and resilient industries aligned with Indias long-term growth aspirations.
Rural Employment Reforms
Rural employment reforms anchored in the enactment of the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with a modern statutory framework that enhances livelihood security and integrates employment with community development.
Ease of Doing Business Reforms
To ensure that Quality Control Orders (QCOs) do not disrupt domestic production, the Government has implemented them in a phased and MSME-friendly manner through the Bureau of Indian Standards (BIS). Additional compliance time was given to Micro (6 months) and Small (3 months) enterprises, exemptions were provided for export-oriented and R&D imports (upto 200 units) and legacy stock could be cleared within six months, easing the transition for businesses.
GST 2.0 Reforms
The Goods and Services Tax (GST) reforms, represent another landmark step in reshaping Indias indirect tax framework to align with the aspirations of a young, entrepreneurial and consumption-driven economy. The latest Next-Generation GST reforms, mark a decisive step towards simpler taxation, lower burden on citizens and improved ease of doing business. They significantly strengthen GSTs role as a citizen-centric, business-friendly and growth-oriented tax system.
Overall, the Next-Generation GST reforms reinforce GST as a simpler, fairer and growth-oriented tax system, delivering ease of living for consumers and ease of doing business for enterprises, while supporting consumption-led growth and long-term fiscal sustainability.
Export Promotion Mission
In a major boost to Indias trade competitiveness, the Union Cabinet approved the Export Promotion Mission (EPM) as a flagship structural reform with an outlay of ?25,060 Crores for FY 2025-26 to FY 2030-31. Announced in the Union Budget 2025-26, EPM marks a strategic shift from fragmented export support schemes to a single, outcome-based and digitally driven framework, aimed at empowering MSMEs, first-time exporters, and labour-intensive sectors. The Mission integrates financial support (Niryat Protsahan) including affordable trade finance and credit enhancement with non-financial enablers (Niryat Disha) such as quality compliance, branding, logistics and market access.
Source: Press Information Bureau (PIB)
Key Risks Outlook
Despite this encouraging outlook, businesses should stay alert to several risk factors that could influence the India GDP growth rate trajectory in 2026, such as the -
Overall, Indias economic outlook is poised to remain strong, driven by robust domestic demand, policy support, diversification and structural transformation. Further, improving trade relations with the developed economies will provide the requisite impetus to the economy. India is well-positioned to sustain its position as the worlds fastest-growing major economy.
INDUSTRY STRUCTURE AND DEVELOPMENTS
GLOBAL STEEL INDUSTRY
Global steel demand is stabilising after 3 years of suppression. The recovery is real, but the divergence between regions has never been sharper. However, Global demand growth is projected to remain sluggish at around 0.9% per year through 2030, with the conflict in the Middle East, rising energy prices and disruptions in supply chains adding further headwinds. As the gap between steel production and capacity widens, utilisation rates will remain low and may slide from 76% in 2025 to 74% or less in 2028, intensifying financial pressure across the steel industry.
CY2026 Steel Demand Growth by Region
| Region | Growth |
| Middle-East | -7.4% |
| China | -1.5% |
| Dev. World | 1.0% |
| USA | 1.7% |
| EU & UK | 1.3% |
| Africa | 3.8% |
| India | 7.4% |
Average Steel consumption remains 10 million tonnes (MT) below pre-pandemic levels, whilst crude steel production fell to a record low in 2025. Growth is expected to remain subdued in 2026 (+0.4%) before strengthening in 2027 (+2.2%) due to continued economic uncertainty, geopolitical tensions and weak industrial demand. Demand from steel-using sectors declined marginally in 2025 (-0.1%) and is forecast to recover only modestly in 2026 (+1.3%), held back primarily by the continued weakness of the automotive sector, before gaining some speed in 2027 (2.4%).
Crude steel production reached a record low of 125.8 million tonnes in 2025, a fall of -2.9% compared to 2024. This was due to lacklustre demand from steel-using sectors and persistently higher energy and production costs compared to other major steel-making regions. Steel capacity utilisation stood at 65.4% in the first quarter of 2026, broadly unchanged from 65% in 2025, highlighting the continued weakness of underlying market conditions.
Real steel consumption experienced modest growth in 2025 (+0.9%) after three consecutive annual declines and is forecast to increase along with replenishments of stocks by a further +1.4% in both 2026 and 2027.
According to Industry observers in the near- and medium-term, prices for steelmaking raw materials will decline or stagnate. Whilst declining input costs will offer some relief to mill margins, they are unlikely to lift steel prices while global overcapacity persists — it is the surplus of steel, not the cost of making it, that is the primary price depressant.
A series of major regulatory developments are reshaping steel trade flows and prices in 2026-27, particularly in Europe. Taken together they represent a significant tightening of import protection across all three major Western markets.
The EUs Carbon Border Adjustment Mechanism (CBAM) entered its definitive enforcement phase on 1st January 2026, imposing a carbon levy on imported steel equivalent to the costs borne by EU producers under the EU Emissions Trading System. The price uplift from CBAM in 2026 is expected to be limited due to implementation timing: while liabilities accrue from January 2026, actual carbon payments are not due until 2027. 2027 is therefore likely to see the more significant CBAM-driven price impact, as payments fall due for the first time, free ETS allowances are cut further (from 2.5% in 2026 to 5% in 2027) and buyers are forced to price carbon costs into contracts with greater precision.
In the United States, Section 232 tariffs that are raised to 50% in June 2025 continue to insulate the domestic market significantly from world price levels, with US HRC prices well above Asian benchmarks. This divergence is structural for as long as the tariffs remain in place.
In the UK, the current steel safeguard also expires on 30th June, 2026, to be replaced by a new trade defence mechanism from 1st July, 2026 with substantially lower import quotas and a 50% out-of-quota tariff, mirroring the EU approach.
According to OECD Steel Outlook, projections for 2026 indicate a nearly stagnant demand globally, followed by a gradual recovery to 1,885 million tonnes by 2030. While demand in China is expected to continue its long-term decline in the coming years, India, Southeast Asia, the Middle East and North Africa (MENA) region, and other developing economies continue to show stronger growth prospects.
Steel demand in developed economies remained under pressure in 2025, marking a fourth consecutive year of muted demand, as high production costs and affordability pressures persist. However, a recovery is anticipated in 2026, supported by infrastructure and defence spending, easing inflation and an improvement in real household incomes.
Profitability in the steel sector has remained weak, reflecting the pressures of excess capacity and excess production on steel prices. Overall, global steel demand is expected to stabilise and gradually improve, underpinned by structural demand growth in emerging economies and a tentative recovery in key developed markets but taking into account the early resolution of the ongoing Middle-East conflict.
INDIAN STEEL INDUSTRY
India being the second largest producer of crude steel made a record 168.4 MT output of crude steel in FY 2026 while finished steel production stood at 160.90 MT. Consumption of finished steel reached 163.7 MT. The per-capita consumption of steel touched around 100 kgs in FY 2026 with the National Steel Policy targeting 160 kgs by FY 2031. Domestic demand remained the key growth driver with finished steel consumption, expanding by about 7-8% supported by increased activity in infrastructure, construction, railways, and manufacturing sectors. The governments continued push on large-scale infrastructure projects and urbanisation played a pivotal role in boosting steel consumption during the period.
As of FY 2026, Indias steel production capacity had increased to 220.00 MT and is projected to reach 300 MT by FY 2030. Secondary steel plants, including MSMEs, accounted for 47% of crude steel capacity in FY 2025. India also holds vast iron ore reserves, with the potential to produce 700 MT annually, making it the second-largest producer globally. In FY 2026, steel trade remained favourable, with India emerging as a net exporter of finished steel, recording a trade surplus of 0.08 MT, compared with a net import position in FY 2025. The top five exported products during FY 2026 were HR coils/strips, pipes, GP/GC sheets and coils, bars & rods, and CR coils/sheets, with HR coils/strips emerging as the leading export category, while GP/GC sheets and coils recorded a decline in exports.
Overall, Indias strong export performance was the major highlight of FY 2025-26. Finished steel exports surged by 35.9% reaching over 6 MT during April - March (6.6 MT), while imports declined sharply by 31.7%. This shift enabled India to regain its position as a net exporter of steel, strengthening its footprint in global markets such as the Middle East, Europe, and Southeast Asia. The growth in exports was also supported by diversification of markets and improved competitiveness of Indian steel products.
Major Government Reforms supporting the Steel Sector
The Government has implemented several measures to strengthen raw material availability, ensure global market access, and reduce import dependence. These steps have lowered production costs, driven growth in the steel industry, and supported MSMEs and small steel producers.
Government is playing a facilitative role by fostering a conducive policy framework for its growth and development.
Steel Reformation of India
| Reducing Import Dependency | Protection from Import Surge |
| Production Linked Incentive (PLI) Scheme | Infrastructure Projects |
| Promoting Domestic Production | International Market Reach |
Reducing Import Dependency
The Government has introduced several measures to strengthen raw material security, improve quality standards and enhance competitiveness of steel sector in order to reduce import dependency.
International Market Reach
The Governments efforts to reform Foreign Direct Investment (FDI) policies have significantly contributed to increased FDI inflow. This has resulted in increase in FDI inflow by 120% between 2014 and 2024, compared to 2004-2014. FDI equity inflows into the manufacturing sector also rose by 69% in the similar years.
Government supported via provision of 100% FDI under automatic route. This resulted in attracting ?1,60,000 crore (USD 18.67 billion) between April 2000 and June 2025 by metallurgical industries.
Furthermore, Free Trade Agreements with United Kingdom, European Union, and others are likely to expand market access for the sector.
Promoting Domestic Production
The government follows a policy-driven approach to promote domestic steel manufacturing and enhance long-term sectoral resilience.
Infrastructure Projects
In FY 2023-24, construction and infrastructure remained the primary drivers of steel demand, accounting for about 68% of total consumption. Meanwhile, the engineering and packaging sectors contributed around 22%, and the automobile industry about 9%. The Government is fast-tracking key logistics and infrastructure projects across 12 major steel zones. Rail, road and port expansions are underway on priority basis to ease bottlenecks and develop world-class multimodal connectivity supporting the sectors growth.
PM GatiShakti National Master Plan (PMGS-NMP), launched on October 13, 2021, aims to provide multimodal connectivity infrastructure to various economic zones. PM GatiShakti is driven by seven key engines: Railways, Roads, Ports, Waterways, Airports, Mass Transport, and Logistics Infrastructure, all working in unison for economic growth and sustainable development. The plan, developed by BISAG-N, is a Digital Master Planning tool that combines information from all Ministries/Departments into an extensive database utilising a dynamic GIS platform. Built using open-source technologies and hosted on MEGHRAJ, the government of India cloud, it offers real-time mapping of infrastructure projects. With their login IDs, Ministries can update their data on a regular basis. This integrated platform supports planning, reviewing, and monitoring.
Production Linked Incentive (PLI) Scheme
The Production Linked Incentive (PLI) scheme is a government initiative. The primary aim was to strengthen Indias manufacturing capabilities by offering financial incentives to eligible companies based on their incremental sales. It offers financial rewards of 4% to 6% on incremental sales from goods manufactured locally. The program covers 14 strategic sectors with an outlay of ?1.97 lakh crore to boost domestic manufacturing, slash imports and create jobs. It will improve the trade balance, raise export value realisation. It will also help the Indian steel industry upgrade technology and move up the value chain. The scheme offers incentives for 5 years (FY 2024-25 - FY 2030-31) to companies that meet specified investment and production targets. Under the scheme, export volumes are projected to rise more than threefold. Meanwhile import volumes are expected to decline by nearly four times from 2023-24 to 2029-30.
Key achievements of PLI scheme are:
Recently, the Government has also signed Memorandum of Understanding (MoUs) for 85 speciality steel projects of 55 companies under PLI 1.2. The projects involve investment of ?11,887 Crore and a committed capacity addition of ~8.29 MT.
During the year it was reported that India will host Bharat Steel 2026 in New Delhi, highlighting the countrys growing focus on green steelmaking, resilient supply chains and advanced technologies. The event was scheduled on April 16-17, 2026, at Bharat Mandapam in New Delhi but had to be postponed until further notice by the Ministry of Steel due to evolving global situations. The event will attract global industry leaders and investors, reflecting strong international interest in Indias steel sector. This development underscores the sectors positive outlook, supported by rising demand, sustainability initiatives, and ambitious capacity expansion targets, positioning India as a key global steel producer.
Coal Market in India
India is the worlds fifth largest coal resource, assessed at about 4,00,715 Million Tonnes (MT), and ranks as the second largest producer and consumer of coal. Around five lakh mine workers produce this coal across more than 350 mines. Domestic coal production has crossed one billion tonnes for two consecutive years, at 1047.52 MT in FY 2024-25 and 1040.08 MT in FY 2025-26, compared with 609.18 MT in FY 2014-15. A substantial part of this growth has come from captive and commercial blocks, whose share of national production has risen from 10.9% in FY 2021-22 to 20.2 per cent in FY 2025-26.
The concept of commercial coal mining was formally launched under the vision of the Honourable Prime Minister of India Shri Narendra Modi and the Atmanirbhar Bharat mission. Under this concept sale of coal was permitted on a competitive basis and extending participation beyond the public sector. A successful bidder can sell coal to any consumer in any sector at market-determined prices, with no captive-use restriction and no bar on how the coal is utilised. The erstwhile fixed charge per tonne was replaced by a revenue-sharing model, under which the bidder quotes a percentage of revenue payable to the Government. That share is indexed to the National Coal Index, so that the nations return moves with the real value of the coal. Eligibility norms were broadened considerably. Prior mining experience is no longer required, joint ventures and consortia may participate, and 100 per cent foreign direct investment is permitted through the automatic route.
Since its launch, 141 coal mines have been auctioned commercially across 14 rounds, with a combined peak rated capacity of 366.35 MT per annum. The average revenue share discovered is 24.17%, six times the 4% floor. Of these, 123 have gone to private players and 44 of the successful bidders were entities that had not mined coal before.
Captive and commercial blocks together produced about 210.46 MT in FY 2025-26, crossing the 200 million tonne mark for the first time. A decade earlier the figure stood at 28.83 MT, a compound annual growth of about 22 per cent over the period. Within this, commercial mines have contributed about 26.12 MT in FY 2025-26, with 23 mines operational. At full production, the blocks auctioned so far are expected to yield annual revenue of about ?47,000 Crores, draw capital expenditure of about ?48,756 Crores and generate employment of about 4,75,000. Further, revenue from premium generation has risen from ?461 Crores in FY 2014-15 to ?5,553 Crores in FY 2025-26, a compound annual growth of around 26%, accruing to the exchequer and to the producing States.
Coal is vital to Indias energy needs, supplying over half of the countrys power. Despite renewable energy growth, coal-based thermal power will remain essential, with its share projected at 55% by 2030 and 27% by 2047.
India imports coal to meet the gap between domestic demand and production, primarily for the steel and power sectors. The Ministry of Coal has been implementing various strategic measures to strengthen domestic production and ensure a secure coal supply aligning with Indias goals of reducing coal imports and enhancing energy security. By prioritizing domestic coal output, the government aims to march ahead towards Viksit Bharat goal by building a self-reliant, sustainable energy framework that supports long-term economic growth.
Details of import of coal and products i.e. coke during the last four years including the current year:
| Coal | 2021-22 | 2022-23 | 2023-24 | 2024-25 | 2025-26 |
| Coking Coal | 57.16 | 56.05 | 58.81 | 57.58 | 66.33 |
| Non-Coking Coal | 151.77 | 181.62 | 205.72 | 186.05 | 180.04 |
| Total Coal Import | 208.93 | 237.67 | 264.53 | 243.63 | 246.37 |
| Coke | 2.48 | 3.63 | 3.96 | 4.88 | 2.12 |
Source: Ministry of Coal
Coking Coal is being imported by Steel sector mainly to bridge the gap between the requirement and indigenous availability and to improve the quality. Other sectors like Power sector, cement etc. and coal traders are importing non-coking coal.
Under the Revised SHAKTI Policy, 2025, imported coal-based plants have been allowed to procure domestic coal, while existing fuel supply agreement holders can secure additional coal beyond their contracted quantities after lifting 100 per cent of their Annual Contracted Quantity (ACQ) allocation. Further, coal linkages under the CoalSETU window are also expected to improve the availability of washed coal and lower inputs.
To strengthen domestic coal logistics, the Ministry of Coal has launched an Integrated Coal Logistics Plan, which includes 33 critical railway projects, expansion of First Mile Connectivity (FMC) infrastructure, higher rail evacuation capacity and greater use of coastal shipping and inland waterways.
The strong growth in both coal production and dispatch indicates that domestic supply continues to keep pace with rising energy demand. As India expands its infrastructure, manufacturing and electricity generation capacity, sustained growth in coal availability will remain an important factor supporting industrial production and overall economic activity.
Iron Ore Market in India
Iron ore is the basic raw material mainly used in the making of pig iron, sponge iron, steel and alloy steel. Iron & steel industry is the major consumer of iron ore in the country. This industry uses iron ore in lumps and as ore fines after palletisation, sintering or briquetting. Indias expanding steel industry remains a key driver for iron ore demand, fuelled by Government-led infrastructure projects, urbanization, and industrial growth. The National Steel Policy aims for 300 million tonnes of steel production by 2030, significantly increasing the need for high-grade iron ore. Large steel producers are expanding capacity, which results in higher domestic raw material procurement. Also, policies like "Make in India" and the Production Linked Incentive (PLI) scheme induce production of steel, strengthening iron ore consumption.
Indias iron ore production hit a record 313 million tonnes (MT), marking a 7% to 9% increase year-on-year. Driven by surging local steel demand, consumption grew by nearly 10%, pushing high-grade imports to a 7-year high of 12 to 14 MT while exports softened.
India reached a historic milestone of over 200 cumulative mineral block auctions in fiscal year 2025-26. Out of these, iron ore accounts for roughly 40 newly auctioned blocks under the recent transparent auction regime, while over 430 iron ore blocks/mines are operational nationwide according to long-term industry tracking databases.
India is one of the major exporters of iron ore in the world and China is the largest consumer of this mineral. India usually ships lower-grade ores to China while imports higher-grade material to blend with domestic ore. However, exports have been trending lower as more iron ore is used by domestic steel plants. India reduced its exports of iron ore and pellets by 15% year-on-year in the FY 2025-26, to 25.78 MT. These figures were influenced by a decline in steel production in China in 2025, a drop in global prices for this raw material last year, and an increase in discounts for low-grade fine ore on the seaborne market.
According to report of Bigmint, Indias iron ore production is projected to rise to 340-345 MT in FY 2027 from around 313 MT in FY2026, indicating growth of 8% y-o-y. However, supply expansion is expected to exceed incremental demand from the steel sector, with additional volumes unlikely to be fully absorbed domestically. Odisha is expected to remain the primary driver of production growth, with output projected to increase to around 178 MT in FY 2027 from 162 MT in FY 2026. Production in
Chhattisgarh is likely to increase to around 56 MT, while Karnataka may see limited growth to about 50 MT. Jharkhands output is expected to remain largely unchanged at around 22 MT. Maharashtra is expected to contribute around 26 MT, while Goa remains marginal at around 2 MT. This concentration increases structural dependence on Odisha not only for production but also for evacuation and logistics. As incremental supply builds in a single region, any disruption in transportation or policy changes at the state level could have a disproportionate impact on overall supply availability.
Total Iron Ore Production
| Financial Year | Production (MT) |
| FY 2021 | 204 |
| FY 2022 | 251 |
| FY 2023 | 255 |
| FY 2024 | 278 |
| FY 2025 | 289 |
| FY 2026 | 313 |
| FY 2027 (P) | 345 |
Source: Ministry of Mines
India has made a number of reforms for its iron ore mining sector through key legal, tax, and market changes like the Mines and Minerals (Development and Regulation) (MMDR) Amendment Acts to boost transparency, end retrospective tax disputes, and lift caps on open-market sales from captive mines.
Section 9D has been added under Amended MMDR Amendment Act to establish a Centre-directed tax framework and stop States from arbitrarily imposing unpredictable levies. Any levy not paid or collected by the State before the amendment applies will be treated as invalid. However, amounts already deposited or recovered before such commencement shall not be liable to be refunded. Cleared out lingering uncertainties by declaring all pending retrospective tax demands invalid. Removed the 50% restriction on selling minerals from captive mines, enabling firms to sell 100% of their surplus iron ore in the open market.
Indias iron ore production is anticipated to continue expanding in FY 2027, supported by capacity additions and mine ramps. However, with supply growth exceeding demand, the system is likely to face increasing pressure. While volumes rise, the adjustment mechanism is likely to shift toward inventory build-up and pricing pressure rather than demand expansion. This indicates that the sector is expanding in scale, but with increasing strain on pricing power, cost structures and cash flows.
OUTLOOK
Indias Steel sector is rapidly strengthening its capacity, competitiveness and self-reliance. Government reforms in raw material security, logistics, quality control and PLI incentives are driving higher production and reduced import dependence. Rising exports and expanding specialty steel output are further reinforcing Indias global position. With clear pathways for green steel and decarbonisation, the industry is aligning with long term sustainability goals. Together, these steps are building a resilient, future ready steel ecosystem that will support Indias growth in the years ahead.
The Government has undertaken several other key initiatives to promote low carbon steel making. The Union Budget 2026-27 proposed CCUS technologies for steel and other industries with ?20,000 crore outlay over 5 years. The Steel Scrap Recycling Policy, 2019 is also boosting domestic scrap availability. Indias total steel scrap consumption stands at about 30 MT with around 5 MT imported. This makes the availability of high-quality domestic scrap essential for the transition to green steel. Increased scrap usage lowers specific energy requirements, reduces water consumption by 40% and greenhouse gas emissions by 58%. As a result, this strengthens Indias decarbonisation efforts. Ministry of Steel constituted 14 Task Forces to recommend measures across the steel industry decarbonisation chain.
Under the National Green Hydrogen Mission, Ministry of Steel has awarded 4 pilot projects for use of hydrogen in steel sector. These projects are being implemented in 3 areas including partial hydrogen injection in vertical shaft based DRI to substitute natural gas. They also involve using hydrogen in existing blast furnace to reduce coal and coke consumption.
Measures such as the Motor Vehicles (Registration and Functions of Vehicles Scrapping Facility) Rules (2021) support emission reduction. The National Solar Mission (2010) and the Perform, Achieve and Trade (PAT) energy-efficiency scheme (2012) will further improve energy efficiency.
The steel sector has adopted the Best Available Technologies (BAT) available globally, in the modernization & expansions projects. Japans New Energy and Industrial Technology Development Organization (NEDO) Model Projects for Energy Efficiency Improvement have also been implemented in steel plants.
These measures reinforce Indias commitment to de-carbonising the steel sector and achieving net zero emission intensity by 2070.
Role of AI in Steel Sector
AI is playing a pivotal role in optimizing various aspects of steel production. It brings together real-time industry challenges and connects them with AI solution providers, startups, technology firms and research institutions. It presents specific operational, logistical, safety, quality control, sustainability, and marketing challenges faced by steel producers and mining companies. This initiative marks a clear shift from gradual digitization to a mission-mode adoption of AI across the entire steel value chain. It covers mining, logistics, production, quality assurance, marketing and corporate governance.
Advanced steel production technology, with AI at its core, has led to the emergence of smart factories, digital twins and highly optimized processes. These innovations enable steel manufacturers to operate efficiently, customize products, and respond to market demands more effectively. The steel industrys adoption of artificial intelligence has not only enhanced its competitive edge but has also demonstrated a dedication to quality, sustainability and innovation. As AI continues its evolution, its significance within the steel sector will only grow, fundamentally influencing the future of global steel production.
Opportunities and Threats
| Opportunities | Threats and Risks |
| The steel industry growth is being driven by infrastructure expansion, renewable energy projects, urbanization and manufacturing recovery across key economies. The Indian steel industry future is closely linked to large-scale infrastructure initiatives, including transport corridors, energy projects and industrial zones. These developments require consistent supply, higher-grade materials and improved production efficiency. As demand becomes more specialized, manufacturers are expected to deliver not just volume, but precision and performance reliability. | Carbon emissions and environmental impacts leads to stricter compliance requirements for the steel industry. These regulations often result in increased operational costs, as businesses must invest in cleaner technologies and processes to meet environmental standards. Strict regulations like the Carbon Border Adjustment Mechanism (CBAM) risk penalizing high-emission traditional blast-furnace operations. |
Sustainable steel manufacturing is becoming a central requirement as industries align with carbon reduction targets and stricter compliance frameworks.
Indias crude steel output maintained its upward trajectory in 2025-26, growing by over 10.7% year-on-year to around 168.4 million tonnes. Domestic demand remained the key growth driver with finished steel consumption expanding by about 7-8%, which is supported by increased activity in infrastructure, construction, railways, and manufacturing sectors.
Strong domestic demand also translated into higher logistics activity. Indian Railways reportedly increased freight movement of iron ore and finished steel.
The Government is playing a facilitative role by laying down policy guidelines and creating a conducive environment for the steel sectors growth. The Indian Government has introduced various measures to strengthen steel production, including the Domestically Manufactured Iron & Steel Products (DMI&SP) policy to promote "Make in India" steel for government procurement and reducing Basic Customs Duty (BCD) on Ferro Nickel to zero. Government-backed Production Linked Incentive (PLI) frameworks continue to boost domestic manufacturing of high-value specialty steel grades.
Significant technological innovations in mining, processing and energy efficiency have the potential to improve productivity, reduce operational costs and minimize the environmental footprint of the industry.
Electric vehicles and other vehicles from the automotive sector will increase demand for both high-strength and lightweight steel materials. Steel manufacturers within aerospace operations integrate innovative steel alloys as part of their aircraft performance enhancement work alongside fuel efficiency upgrades.
The steel industry heavily relies on high-temperature thermal or chemical transformations to achieve the desired final outcome. However, this kind of operational environment inherently poses significant risks, making it exceptionally challenging to prevent unexpected accidents and ensure worker safety.
Apart from these concerns, the inspection and maintenance of machinery and structures within the industry present ongoing difficulties. These vital components are susceptible to corrosion, wear and tear, and structural integrity issues, often situated in hard-to-reach locations. Moreover, the absence of precise management tools severely limits the ability to predict failures within operations, resulting in unplanned shutdowns and an overreliance on corrective maintenance methods. This approach not only disrupts production but also incurs unnecessary costs and prevents optimal resource allocation.
Sudden geopolitical or supply chain shocks —such as Middle-East conflict is affecting industrial fuel availability which in turn is threatening production continuity. Recent tariff measures implemented by the US government, specifically the 25% tariff imposed on the import of steel, pose major threats to Indian steel producers, despite their limited direct exposure to the American market. These barriers are foreseen to redirect the excess steel to other markets, aggravating regional oversupply and putting downward pressure on prices and margins throughout Asia.
Managing logistics requirements is arduous, challenging and costly. The primary raw material for steel making is iron ore, besides coal or coking coal. Both are bulk minerals and steel is also a bulk commodity. So, whether it is physical transportation of raw materials for steelmaking to the steel mills or physical transportation of finished steel to demand centres, transportation of bulk materials is always arduous.
Green steel technologies in India, such as green hydrogen direct reduced iron (DRI) and scrap-based electric arc furnaces (EAF), offer up to 97% emissions reductions compared to traditional methods. The Ministry of Steel introduced the Taxonomy for Green Steel, laying the groundwork for a shift to low-emission steel. The steel industry has offered major growth prospects in green steel technology, infrastructure-linked domestic demand, and digital plant automation. Key career and business domains include sustainable hydrogen-based reduction, value-added specialty alloys, advanced structural engineering, and digital supply chain management
Surging cheap exports from major global players like China continue to pressure international price stability.
There are also concerns about potential overcapacity in the Indian steel industry, which could affect profitability. Some regions are seeing a decline in capacity utilization and a rise in debt levels within the steel industry, potentially impacting future investments and growth.
Another significant consequence stemming from the multitude of transformation processes within the steel industry is the generation of substantial volumes of sub products that currently find no reuse within the operation. Consequently, a significant amount of waste is generated and regrettably, a portion of this waste is improperly released into the environment.
The steel industry in India faces stiff competition from other global players like China, Japan, and South Korea. These countries have a competitive advantage due to the availability of low-cost raw materials, skilled labours, advanced technology, and economies of scale. To remain competitive, the Indian steel industry needs to invest in research and development, adopt new technologies, train and educate labourers and improve its efficiency.
COMPANY OVERVIEW
Gallantt Ispat Limited is more than a manufacturer; we are active contributors to Indias remarkable journey towards world-class infrastructure. With state-of-the-art plants in Uttar Pradesh and Gujarat, we transform iron ore into the backbone of infrastructure: GALLANTT ADVANCE TMT Rebars. Our expertise spans the entire steel manufacturing spectrum, from mining iron ore to shaping finished rebars. Every GALLANTT ADVANCE TMT Rebar we produce contributes to roads, bridges, and structures that connect lives and fuel progress. We believe in the power of steel to build more than structures; it builds dreams, aspirations, and a brighter future for all. By choosing Gallantt, you choose a partner in nation-building, leaving a lasting impact.
During the FY 2025-26 Revenue from Operations stood at 4,41,892.19 Lakhs as against 4,29,272.89 Lakhs during the last FY 2024-25. The Profit before Interest, Depreciation and Taxation stood at 77,604.39 Lakhs as against 71,004.78 Lakhs in the previous year registering a growth of 9.29%. The Net Profit after Tax for the year under review stood at 48,427.31 Lakhs as against 40,074.24 Lakhs in the previous year registering a steady growth of 20.84%. Earnings per Share (EPS) stood at 20.07 (face value of 10/- each) for the financial year ended March 31, 2026. During the financial year 2025-26 Companys performance has been quite satisfactory inspite of the geopolitical adversities and supressed Global Steel demand.
We, at Gallantt, have the following production data of the Fiscal 2025-26:
| Products | 2025-26 Production | 2025-26 Sales* |
| Sponge Iron (M.T.) | 9,14,749.277 | 9,11,091.800 |
| M.S. Billets (M.T.) | 8,83,400.406 | 8,86,723.677 |
| M.S. Round Bar & Miss Rolled Bar (M.T.) | 7,87,593.352 | 7,85,233.577 |
| Iron Ore Pellet (M.T.) | 8,18,865.000 | 8,18,488.489 |
| Power Generation (KWH) | 8,54,292.622 | 8,54,292.622 |
*Sales include captive consumption also
| 2024-25 QTY (MT/Unit) | 2024-25 Rs. In Lakhs | 2023-24 QTY (MT/Unit) | 2023-24 Rs. In Lakhs | |
| Steel (MT)* | 10,21,002.65 | 4,23,046.02 | 9,28,192.935 | 4,00,897.34 |
Company has Integrated Steel Plant facilities at Samakhiyali, Kutch, Gujarat and GIDA - Sahjanwa, Gorakhpur, Uttar Pradesh. Being an Integrated Steel Plant, Company, during the manufacturing process of end products i.e. TMT Bars also manufactures Sponge Iron, Billets etc.
UNIT-WISE OR PRODUCT-WISE PERFORMANCE
Company has only one segment that is Steel & Power. But, for the purpose of better understanding of Companys operation we are giving hereunder major product-wise Turnover and Sales:
| Items | 2025-26 Production | 2025-26 Sales* | 2024-25 Production | 2024-25 Sales* | % Change Production | % Change Sales |
| Sponge Iron (M.T.) | 9,14,749.277 | 9,11,091.800 | 7,53,542.140 | 7,55,045.929 | 21.39% | 20.59% |
| M.S. Billets (M.T.) | 8,83,400.406 | 8,86,723.677 | 8,54,630.202 | 8,51,724.862 | 3.37% | 4.11% |
| M.S. Round Bar & Miss Rolled Bar (M.T.) | 7,87,593.352 | 7,85,233.577 | 7,64,681.652 | 7,65,284.037 | 3.00% | 2.61% |
| Iron Ore Pellet (M.T.) | 8,18,865.000 | 8,18,488.489 | 5,99,050.000 | 5,98,706.020 | 36.69% | 36.71% |
| Power Generation (KWH) | 8,54,292.622 | 8,54,292.622 | 8,05,913.924 | 8,05,913.924 | 6.00% | 6.00% |
*Sales include captive consumption also.
SIGNIFICANT CHANGES IN FINANCIAL RATIOS
During the year, the significant changes in the financial ratios, compared to the previous year which are more than 25% as compared to the previous year, are summarised below:
| Sr. No. Financial Ratio | 2025-26 | 2024-25 | % Age Variance | Remarks for variation more than 25% |
| (a) Current Ratio | 2.95 | 3.35 | (11.88) | Not Applicable |
| (b) Debt Equity Ratio | 0.287 | 0.248 | 15.79 | Not Applicable |
| (c) Debt Service Coverage Ratio | 15.75 | 24.67 | (36.16) | This ratio has decreased due to increase in interest cost of borrowing during the year. |
| (d) Return on Equity Ratio | 15.73 | 15.14 | 3.86 | Not Applicable |
| (e) Inventory Turnover Ratio | 41.14 | 41.88 | (1.76) | Not Applicable |
| (f) Trade Receivables Turnover Ratio | 32.15 | 41.12 | (21.82) | Not Applicable |
| (g) Trade Payables Turnover Ratio | 18.88 | 18.05 | 4.63 | Not Applicable |
| (h) Net Capital Turnover Ratio | 3.24 | 4.24 | (23.57) | Not Applicable |
| (i) Net Profit Ratio | 11.25 | 9.78 | 15.03 | Not Applicable |
| (j) Return on Capital employed | 17.99 | 18.81 | (4.36) | Not Applicable |
| (k) Return on Investment | - | - | - | Not Applicable |
BUSINESS GROWTH, OUTLOOK AND EXPANSION
Your Company is the largest producer of Rebars in Uttar Pradesh and proudly holds 25% market share in its addressable geographies. During the year, your Company has achieved several noticeable milestones in order to scale up its business volumes and profitable. Your Company has the potential and the hunger to scale up its growth in order to give tough competition to its peers.
Investment in Manpower
Your Company has a dedicated team of Management and Operating Personnel who have been instrumental in the growth of the business over the years. Company is constantly investing to acquire good quality talent from across the Country for maintain the growth and sustainability of the Company. Company is infusing capital to create a better structure in terms of hierarchy and deploying training and development to retain best talent in the organization. Better human resource strategies have been adopted as retainership is quite a challenge in todays environment. Company has managed to improve its retention ratio to great extent as compared to last year.
Branding
Association of Shri Ajay Devgn, Bollywood Superstar, Film Director and Producer with the Company since 2021 as a Brand Ambassador has strengthened strengthens the trust and credibility over the Company. Mr. Devgan commands a huge mass fan following across all the age groups which in turn has helped the Company to pitch its products to all age groups. Mr. Devgns endorsement of our products has helped to build the brand reputation of the Company manifold. Mr. Devgns association has led to 35% increase in brand awareness across core markets which in turn resulted in enhanced dealer confidence and on-ground preference over unbranded peers.
Value-Added Product Mix
Your Companys Gallantt Advance Fe550D and Fe 600 TMT Rebars embody endurance, precision and reliability. They come with superior ductility and have gone advanced thermal treatment for higher tensile strength. These Rebars are manufactured with corrosion-resistant solutions which are suitable for coastal/high-moisture zones. These premium quality Rebars rise to the challenge, withstand the test of time and carry the weight of ambition which in turn provide higher realizations.
Solar Energy Self-Sufficiency
During the year, Company proposed to set up an 18 MW Solar Power Plant at Village - Khelaru, Taluka - Shidpur, Dist - Mehsana in Gujarat. This Solar Power Plant will generate 3,37,50,000 KWH/per year. Apart from this, Company had finalized a land admeasuring 60 Acres (approx.) of land on leasehold basis. The project has already been executed and an investment amounting to 48.25 Crores (approx.) has been incurred as Plant Cost. The said project is expected to be complete and operational by August 2026. This Solar Power Plant when operational will cater to Companys Gujarat manufacturing unit.
Company is under the process of setting up of a Solar Power Plant at Prayagraj, Uttar Pradesh through its Wholly-Owned Subsidiary M/s. Suryalaxmi Technologies Private Limited with an annual capacity of 62.5 to 80 MW. During the financial year 2025-26, significant progress has been achieved in the implementation of the project. More than 75% of the land required for the proposed solar power plant has been identified and arranged. Further, the Company has obtained In-principle Grid Connectivity Approval from UPPTCL for generation of power from the proposed project. This project shall meet Companys power requirements, thereby reducing dependence on conventional sources of energy, improving energy cost efficiency, and supporting the Companys environmental sustainability objectives.
Mines-to-Mill Advantage
Your Company has already obtained the Composite Licence for Todupura Iron Ore Block, District Karauli in Rajasthan. Company has submitted and offered the Highest Final Price Offer of 175.05% to become a Successful "Preferred Bidder". As per topographical studies, the geological data and the structure indicate that the Iron Ore investigated area is 260.71 hectare and the total deposit of Iron Ore is 85.42 million tonnes. The said Iron Ore Mine has been allotted for Gujarat Steel Unit of the Company. Further, has been declared as a "Preferred Bidder" by the Directorate of Geology and Mining, Government of Uttar Pradesh for grant of Mining Lease for two Iron Ore Blocks situated at Sonbhadra District in Uttar Pradesh. Both mines in Uttar Pradesh will be allotted for the Gorakhpur Steel Unit of the Company. The survey work of all 3 (Three) Iron Ore mines are under process. In-house mining of Iron ore, being the basic raw material of the Company, shall ensure operational flexibility, easy availability and no dependency on international as well as domestic suppliers of Iron Ore. By owning and efficiently operating through captive Iron Ore mining, significant cost saving can be derived and sustained which, in turn, would surge the operating as well as net profit of the Company considerably.
Expanding Dealer & Distribution Strength
Your Company has been catering to 3,000+ dealers and around 34 distributors in Uttar Pradesh and Gujarat for close to 2 decades and plans are underway for expanding distributor and dealer reach across both Uttar Pradesh and Gujarat. Company has direct relationships with 10,000+ contractors, architects and other influencers. Your Companys extensive dealer-led distribution system provides deep retail penetration, demand visibility and pricing power; critical advantages in regional steel markets.
Real Estate Venture
Your Company has entered into a new venture of real estate and infra including construction of hotels and mall by partnering with renowned Shalimar Group. The success of the flagship project, Shalimar Gallant, located in Mahanagar, Lucknow which is a Group Housing project with ultra-modern facilities and setting a new standard for luxury living in the heart of Lucknow has laid the foundation for Gallantt Real Estate. Now, Gallantt Real Estate aims to expand its horizons, bringing the same commitment to excellence to new high-end residential and commercial projects in Gorakhpur.
Installation and Modifications in Machinery
Your Company during the financial year 2025-26 has made significant technical modifications in its Rolling Mill No. 1 of Gujarat Steel Unit to increase production to 8 MM. Change in Motor, New QST Section along with Pre and Post Pinch Roll as well as installation of continuous Shear Machine, Tail Breakers and Single Shaft Twin Channels are the mentionable modifications. Further, a new Bar Bundling system has also been installed in its Rolling Mill No. 2 of Gujarat Steel Unit. A Hydraulic Scrap Poker System has also been installed at the 30 MT Induction Furnace at the Gujarat Steel Unit.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an adequate system of internal controls in place. It has documented policies and procedures covering all financial and operating functions. These controls have been designed to provide a reasonable assurance with regard to maintaining of proper accounting controls for ensuring reliability of financial reporting, monitoring of operations, and protecting assets from unauthorized use or losses, compliances with regulations. The Company has continued its efforts to align all its processes and controls with global best practices.
The Audit Committee of the Board of Directors actively reviews the adequacy and effectiveness of internal control systems and suggests improvements wherever needed to strengthen the same. The Audit Committee evaluated the internal financial controls based on the following criteria:
A. Systems have been laid to ensure that all transactions are executed
in accordance with managements general and specific authorisation. There are well-laid
manuals for such general or specific authorisation.
B. Systems and procedures exist to ensure that all transactions are recorded as necessary
to permit preparation of financial statements in conformity with generally accepted
accounting principles or any other criteria applicable to such statements, and to maintain
accountability for aspects and the timely preparation of reliable financial information.
C. Access to assets is permitted only in accordance with managements general and specific
authorisation. No assets of the Company are allowed to be used for personal purposes,
except in accordance with terms of employment or except as specifically permitted.
D. The existing assets of the Company are verified/checked at reasonable intervals and
appropriate action is taken with respect to any differences, if any.
E. Proper systems are in place for prevention and detection of frauds and errors and for
ensuring adherence to the Companys policies.
Effective steps are taken by the Management to enable continuous monitoring of lead control indicators and action taken towards correcting identified gaps. Respective functions have been trained and equipped to enable continuous monitoring of exceptions by themselves to reduce surprises and enable corrective action on timely and regular basis.
Your Company has a robust financial closure self-certification mechanism wherein the line managers certify adherence to various accounting policies, accounting hygiene and accuracy of provisions and other estimates.
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED
Your Company considers human capital as one of the most vital assets driving the organizations long-term success. The Companys HR philosophy places significant emphasis on attracting, developing, and retaining talented individuals across all levels. The Company constantly facilitates and encourages its employees at all levels to enhance their knowledge and skills and continuously seeks to inculcate within its employees, strong sense of business ethics and social responsibility. Recruitment processes are carefully structured to ensure the right talent is brought in not just for current needs, but also for future growth and capability building. The training programs conducted in the organization are designed based on business needs, departmental goals and individual development plans, ensuring employees are continually aligned with evolving organizational expectations. Company also places high importance on the safety of its employees and ensures adherence to safe work practices.
As on March 31, 2026, the employee strength of the Company was 4,242. The Company has maintained peaceful and harmonious industrial relations in all units of the Company during the financial year 2025-26.
CAUTIONARY STATEMENT
Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward looking statements and based on certain assumptions/expectations and current scenario and the input available. Actual results might differ substantially or materially to those expressed or implied. Important developments including global or domestic trends, political and economic environment in India or Overseas might affect the Companys operations.
| On behalf of the Board |
Chandra Prakash Agrawal |
| Chairman & MD |
| DIN: 01814318 |
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2026, IIFL Capital Services Ltd. All Rights Reserved
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132 (Member ID - NSE: 10975 BSE: 179 MCX: 55995 NCDEX: 01249), DP SEBI Reg. No. IN-DP-185-2016, IA SEBI Regn. No: INA000000623, Merchant Banker SEBI Regn. No. INM000010940, RA SEBI Regn. No: INH000000248, BSE Enlistment Number (RA): 5016, AMFI-Registered Mutual Fund Distributor & SIF Distributor
ARN NO : 47791 (Date of initial registration – 17/02/2007; Current validity of ARN – 08/02/2027), PFRDA Reg. No. PoP 20092018, IRDAI Corporate Agent (Composite) : CA1099
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
