Godawari Power shares surge 10% to record high, mcap crosses Rs 21,000 crore - Here’s the trigger

Godawari Power share price: Shares of Godawari Power & Ispat Ltd jumped over 10% on Wednesday in early trade following its announcement of upbeat financial results for the March quarter submitted to exchanges post market hours on Tuesday.

In the afternoon trade, Godawari Power shares were trading 8.14% higher at Rs 314.05 apiece on the BSE, a massive jump from the previous close of Rs 290.40. The counter had jumped as much as 10.19% in early trade to hit a fresh all-time high of Rs 320. Supported by the positive sentiment, the company’s market cap increased to Rs 21,070 crore.

Q4 results performance

According to the stock exchange filings, the company reported a consolidated net profit of Rs 280.09 crore for Q4FY26, an 26% year-on-year (YoY) climb compared to the Rs 221.26 crore profit posted in the same quarter last year. 

Consolidated revenue from operations also registered a 10% YoY growth, coming in at Rs 1,610.27 crore against Rs 1,468.08 crore in the corresponding period of the previous fiscal.  

The company’s EBITDA for the fourth quarter strengthened by 38% YoY to Rs 439 crore from Rs 318 crore a year ago. Operating margins also saw an expansion, increased by 558 basis points to reach 27%, up from 22% in Q4FY25. Attributing this upswing in the investor presentation, the company noted that revenue witnessed a strong 41% QoQ improvement driven by healthy production ramp-up, higher sales volumes, and better realizations.

Godawari Power dividend

On the corporate action front, the company board has recommended a final dividend of Re 1 per share on the face value of Re 1 each for the FY 2025-26.  

Chairman and Managing Director B.L. Agrawal said, "Supported by the competitive advantage of captive iron ore mines, a strong net cash position, ongoing capacity expansion, and a firm ESG commitment, we remain well-positioned for sustainable value creation through operational efficiency, solar-led cost optimisation, and the continued support of our stakeholders." 

FY27 outlook

Looking ahead, According to the investor presentation attached to the exchange filing, the management expects iron ore mining volumes to scale up to 3.4 million tonnes (MnT) in FY27 from 3 MnT recorded in FY26. It also reveals that sponge iron and steel billets production are targeted to reach 0.65 MnT and 0.525 MnT, respectively, in FY27.