Indian metals and energy player Lloyds Metals and Energy Ltd is making aggressive moves to expand its mining footprint, both domestically and internationally. The company has recently signed a significant memorandum of understanding (MoU) with steel giant Tata Steel Ltd and has also acquired a major stake in a copper mining venture in the Democratic Republic of the Congo.
A Strategic Domestic Partnership with Tata Steel
The non-binding MoU with Tata Steel is set to bolster Lloyds' iron ore mining operations in the Gadchiroli district of Maharashtra. This region is witnessing increased industrial activity as concerns related to left-wing extremism have diminished. Analysts from JM Financial Institutional Securities see this collaboration as creating meaningful strategic optionality for faster development of steelmaking capacity, better logistics, and technology sharing.
A key focus area is the establishment of iron ore beneficiation facilities. These are crucial for processing the low-grade iron ore that constitutes more than 80% of the 860 million tonnes of reserves under Lloyds' lease. The company has environmental clearance to mine up to 55 million tonnes of iron ore annually, with nearly 30 million tonnes expected to be of the low-grade variety. Furthermore, Lloyds' planned steel plant could supply raw material to Tata Steel's downstream units in Tarapur and Khopoli, Maharashtra, which currently source about 2 million tonnes of steel yearly from Tata's plant in Odisha.
The High-Risk, High-Reward Congo Copper Bet
In a bold international move, Lloyds Metals announced on 10 December 2025 the acquisition of a 50% stake in Dubai-based Nexus Holdco FZCO for a cash consideration of $55 million (approximately ₹500 crore). Nexus holds dominant 80-90% stakes in companies possessing copper mining licences across an area of 100 square kilometres, along with a processing plant, all located in the Democratic Republic of the Congo.
While an ICICI Securities report notes the investment appears lucrative prima facie given strong London Metal Exchange (LME) copper prices and global demand-supply dynamics, it comes with substantial challenges. The mining assets are not yet operational, and their success hinges on a rapid build-out in a region known for its difficult terrain and volatile political environment. The deal is slated for closure in June.
Strong Financials and Full Valuations
Lloyds' recent financial performance has been robust, driven by its core operations. In the September quarter (Q2FY26), the company's revenue surged almost 170% to ₹3,600 crore, while its EBITDA more than tripled to ₹1,040 crore. This growth was fueled by the commissioning of a slurry pipeline and a pellet plant, alongside an increase in its environmental clearance limit.
The management has guided for iron ore mining volumes of 20-22 million tonnes in FY26, a significant jump from 10 million tonnes in FY25. Future earnings are expected to get a further boost from the planned commissioning of a second pellet plant and a 1.2 million tonnes per annum wire rod mill plant in FY27. ICICI Securities projects a 114% compound annual growth in EBITDA over FY25-27.
However, this strong growth outlook appears to be largely priced into the stock. According to Bloomberg data, Lloyds' shares are trading at a full valuation of 9.6 times its estimated FY27 EBITDA. Consequently, investors are likely to closely monitor the company's earnings trajectory in the coming quarters, as well as the progress on its ambitious Congo copper project and the Tata Steel partnership, for further directional cues.
