Godawari Power shuts pellet plant as GAIL cuts gas supply
The 2 MTPA pellet unit at Siltara, Raipur is idle from 14 July, blamed on curtailment of contracted gas by GAIL and seasonal mine output. It contributed **₹259 cr** or **5.5%** of FY26 turnover.
— 1 earlier story on Godawari Power And Ispat Ltd. →What's new
- Godawari Power suspended operations at its 2 MTPA iron ore pellet plant from 14 July 2026.
- GAIL curbed contracted gas supplies after a supply regulation order was withdrawn on 4 July.
- Spot gas costs rose and Ari Dongri mine output dropped during monsoon.
Why this matters
A 5.5% revenue contributor going offline for weeks will dent September-quarter profitability. But the company sees no lasting damage: mine output should recover post-monsoon and gas supplies normalize. The duration of the shutdown is the key variable.
What we're watching
- Duration of the shutdown – the company has not given a restart date.
- Whether GAIL restores contracted gas volumes in the coming weeks.
- September-quarter sales and profit impact when reported.
The full read
Godawari Power's 2 MTPA iron ore pellet plant at Siltara, Raipur went dark on 14 July 2026. The reason: GAIL curbed contracted gas supplies after a supply regulation order was withdrawn on 4 July, spot gas became pricier, and the company's own Ari Dongri mines produced less during monsoon. The plant contributed ₹259 crore to turnover last year — 5.5% of total revenue. That is not trivial. The September quarter will feel the pinch on both sales and profit. But the company calls it temporary and sees no structural damage. The stock, at ₹17,864 crore market cap with near-zero debt, can absorb a short hit. The open question is how many weeks the shutdown lasts.
Questions answered
- Why did Godawari Power shut its pellet plant?
- The company says GAIL reduced contracted gas supplies after a supply regulation order ended on 4 July, along with higher spot gas prices and lower iron ore output from its Ari Dongri mines during the monsoon.
- How big is the pellet plant for Godawari Power?
- The unit contributed ₹259 crore to turnover last fiscal year, about 5.5% of total revenue. The company's latest quarterly sales were ₹1,610 crore with net profit of ₹269 crore.
- Will the shutdown hurt Godawari Power's profits?
- Yes, in the short term. The company says the shutdown will reduce pellet production and sales volumes in the September 2026 quarter, denting profitability. But it expects no long-term impact as mine output and gas supplies normalise.
- When will the plant restart?
- Godawari Power hasn't given a specific restart date. It says the suspension is temporary and expects conditions to improve after the monsoon and once gas supply contracts resume.
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All notes on GPIL →- 14 Jul 2026 · 12:48 PM IST Godawari Power shuts pellet plant as GAIL cuts gas supply
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