Godawari Power & Ispat: Analyst View Analyzed

Key Points

• YES Securities upgraded Godawari Power to ‘Add’, raising price target.
• Expanded battery storage plan: 20 GWh to 40 GWh by 2029.
• Ari Dongri mine expansion nearing approval, boosting iron ore supply.
• Pellet production rising to 3.47 million tonnes by 2028.
• Increased pellet capacity adds margin resilience and lower costs.
• Management expects approvals by Q4 FY26, benefits visible from FY27.

YES Securities has changed its opinion on Godawari Power & Ispat, moving from a ‘Reduce’ rating to an ‘Add’ recommendation. They’ve also increased their price target for the stock to ₹277 per share, up from ₹261. This change reflects a more optimistic view about the company’s future.

The primary reason for this upgrade is that Godawari Power & Ispat is growing – they’re producing more, earning more money, and have exciting new plans. They’ve significantly increased their ambition in the battery storage market. Initially, they planned a 10.0 GWh battery assembly plant costing ₹700 crore. Now, they’re building a much larger 20.0 GWh plant for the first phase, with a total investment of ₹1,030 crore. They even plan to double that to 40.0 GWh by 2029, investing an additional ₹600 crore.

The first 20.0 GWh plant is expected to be fully operational by Q1 FY28E. A big part of this expansion is tied to the Ari Dongri mine. This mine has been waiting for approval for a long time, but it’s now nearing completion. The company believes that this expansion will improve how they use their land and make it cheaper to produce batteries. They’ll still mostly pay for the project with loans at the subsidiary level, and a small amount of their own money.

Another important development is the approval of the Ari Dongri mine expansion. According to YES Securities, the environmental clearance is almost finished. The proposal has been accepted and sent to the relevant government committees for final approval. Management expects these approvals to be secured by early-Q4 FY26E. While mining operations won’t start immediately, the benefits from this expansion won’t be seen until financial year 2027 (FY27E).

Godawari Power & Ispat expects to sell 2.12 million tonnes of pellets in the current year (FY26E), which will increase to 3.14 million tonnes in FY27E and 3.47 million tonnes in FY28E. Increasing the volume of pellets sold will be supported by the mine expansion, meaning they’ll be able to produce more pellets and keep their costs under control over the next few years. They’re also expanding their pellet plant to a total capacity of 4.7 million tonnes, with production already underway at 1.34 million tonnes in the first half of FY26, aiming for 3.0 million tonnes by the end of FY26.

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“Strategic investments and operational enhancements position Godawari Power & Ispat for sustainable growth and enhanced profitability.”