Gallantt Ispat’s Q2 profit fell 32% to Rs 60.51 crore due to higher costs, despite revenue rising 13% to Rs 1,145.89 crore.

The steelmaker told the stock exchanges that its board approved the unaudited consolidated results on 19 October.

They cover the three months ended 30 September. A year earlier, profit after tax stood at Rs 88.92 crore.

Sales moved the other way. Revenue from operations climbed from Rs 1,012.78 crore a year earlier, and total income reached Rs 1,164.04 crore, up from Rs 1,025.97 crore.

Costs ate the gain. Total expenses jumped to Rs 1,080.87 crore from Rs 922.95 crore.

Raw materials cost Rs 794.21 crore, up from Rs 730.28 crore. Goods bought for resale shot up to Rs 98.87 crore from just Rs 5.10 crore.

Operating profit, known as EBITDA, fell 16.6% to Rs 109.6 crore from Rs 131.5 crore a year earlier.

The operating margin, which shows how much of each rupee of sales the company keeps as operating profit, slipped to 9.57% from 13%.

Profit before tax dropped to Rs 83.17 crore from Rs 103.01 crore a year earlier. Earnings per share fell to Rs 2.51 from Rs 3.62.

The April to June quarter looked different. Profit then was Rs 123.67 crore, while revenue stayed almost flat at about Rs 1,146 crore.

Over the full six months, revenue rose to Rs 2,291.55 crore from Rs 2,140.52 crore.

Profit moved down to Rs 184.17 crore from Rs 262.72 crore. Half-year earnings per share slipped to Rs 7.63 from Rs 10.82.

Looking ahead, the company is lifting steelmaking capacity from 1 million tonnes to 1.29 million tonnes, with the new capacity targeted for the second half of FY27.

It is also developing its own iron ore mines to secure raw material supply. For now, the numbers show higher sales and lower earnings.

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