Gallantt Ispat shares jump 14% on expansion plans and technical recovery

Gallantt Ispat shares surged 14 percent to 646 rupees on the BSE during Thursday's trading session on October 15, extending a weekly gain of 23 percent. Despite this recent rally, the stock remains 32 percent below its peak of 946.70 rupees reached in April 2026, and sits above its 52-week low of 470.80 rupees from November 2025. Over longer periods, the stock has gained 16 percent over one month, while declining 10 percent over three months, 21 percent over six months, and 6 percent over one year, alongside 669 percent returns over five years.

Expansion And Earnings

The steelmaker is entering a major growth phase in fiscal year 2026 to 2027 to boost manufacturing capacity and brand presence across India. The company appointed Janhvi Kapoor as a brand ambassador for Gallantt TMT Bars, joining Ajay Devgn. It operates integrated facilities in Gorakhpur in Uttar Pradesh and Kutch in Gujarat, producing pellets, sponge iron, billets, TMT bars, and captive power. Current annual finished-steel production stands at around 1 million tonnes, backed by 129.5 megawatts of captive power capacity, a 7 megawatt captive solar plant, and a workforce of over 5,000 employees. As part of a 3,000 crore rupee capital expenditure plan, the firm aims to lift steel capacity to 1.3 million tonnes by the second half of 2026, add an 85 megawatt solar power plant, and commission iron ore mines in Uttar Pradesh and Rajasthan. Meanwhile, standalone net profit after tax fell 29 percent year-on-year to 124 crore rupees for the first quarter of fiscal year 2027 ended June 30, 2026, due to higher raw material costs and a planned maintenance shutdown at its pellet plant. Revenue from operations rose 2 percent to 1,146 crore rupees, while EBITDA dropped 20 percent to 203 crore rupees, and operating margins fell to 18 percent from 23 percent. The company maintained its debt-free status by funding capital expenditure through internal accruals.

Analyst Outlook

Jigar S Patel, Senior Manager for Technical Research at Anand Rathi Share and Stock Brokers Limited, noted the stock recovered nearly 100 rupees from support at its long-term bullish trendline and stayed above its 200-day exponential moving average. Patel recommended booking profits at current levels due to the proximity to resistance, advising traders to wait for a healthy pullback or a confirmed breakout above 645 rupees before entering. He identified 600 rupees as the immediate support level and 645 rupees as the key resistance, stating a sustained move past 645 rupees could trigger another 5 to 10 percent upside.

Context

Steel manufacturing is a capital-intensive industry where companies regularly invest in captive power and raw material mines to control production costs. Stock market analysts track key technical levels like moving averages and resistance zones to guide short-term trading decisions during price rallies.