Steel stock jumps 4% after announcing ₹1,625 Cr investment to expand Battery Energy Storage System

Synopsis: This iron and steel stock is in the news and gained 4.5% today following the company’s decision to expand its BESS capacity by 4 times from an earlier aim of 10 GWh to now 40 GWh; this comes at an investment price of Rs 1,625 crores, which will be completed in two phases. 

The shares of this company, which is engaged in the business of mining of iron ore and manufacturing of iron ore pellets, sponge iron, steel billets, wire rods, H.B. wire and ferro alloys with generation of electricity, had its shares in the limelight after company’s bold decision to increase its BESS capacity.

With a market cap of Rs 16,527 crore, the shares of Godawari Power & Ispat Ltd jumped about 4.34% and reached their high at Rs 248.80 compared to their previous day’s closing price at Rs 238.45 and are trading at a PE of 22.2, whereas their industry PE is 21.2.

About the capacity expansion

Godawari Power & Ispat Limited (GPIL) has announced a major expansion of its Battery Energy Storage System (BESS) project through its wholly owned subsidiary, Godawari New Energy Private Limited (GNEPL). The company has significantly upgraded its earlier plan of setting up a 10 GWh BESS manufacturing facility and now aims to develop a 40 GWh capacity project in two phases, with a total investment of Rs 1,625 crore, up from the initially proposed Rs 700 crore. This move highlights GPIL’s growing focus on the energy storage space, which is becoming increasingly important alongside renewable energy deployment.

Under the revised plan, Phase 1 will scale capacity from 10 GWh to 20 GWh with an investment of Rs 1,025 crore during FY26–27, while Phase 2 will further expand capacity from 20 GWh to 40 GWh with an additional Rs 600 crore planned for FY28–29. The company explained that this capacity enhancement is driven by the availability of a single manufacturing line capable of producing 20 GWh per year, allowing for better land utilisation, lower building and structural costs, and more efficient overall project economics. GPIL also expects that operating a single 20 GWh line will result in lower manufacturing costs and improved operating margins.

The 20 GWh BESS facility is expected to begin commercial operations in Q1 FY2027–28, marking an important milestone in GPIL’s clean energy journey. The project will be funded through a combination of debt raised by GNEPL and equity infusion by GPIL from its internal accruals, spread across multiple tranches. The proposal has been approved by the board on December 12, 2025, underscoring the company’s strategic intent to build scale in battery energy storage and position itself for long-term growth as demand for grid-scale storage continues to rise.

Financials and more

The revenue from operations is at Rs 1,308 crore in Q2 FY26 versus Rs 1,268 crore in Q2 FY25, which is a growth of about 3 per cent. Similarly, the net profit has also increased from Rs 159 crore in Q2 FY25 to Rs 162 crore in Q2 FY26, which is a growth of about 2 per cent. 

Godawari Power & Ispat Limited (GPIL) is a well-established player in India’s secondary steel manufacturing sector, with operations that span the entire value chain—from iron ore mining to the production of high-quality steel. The company has built its business on resilience, innovation, and a strong focus on sustainability, which is reflected in its vertically integrated and efficient operating model. As GPIL enters its next phase of growth, it remains committed to aligning its operations with evolving global standards while continuing to deliver reliable steel solutions that support India’s industrial and infrastructure development.

Written by Leon Mendonca

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