Gallantt Ispat Limited makes a corporate announcement

A reliable numerical pro-forma impact cannot be established from the cited filings. The required separate audited balance-sheet figures for Gallantt Metal Limited and Gallantt Ispat Limited immediately before the appointed date—particularly debt, net worth, and the assets/liabilities transferred under the scheme—are not reported together.

The closest audited baseline available is Gallantt Ispat’s FY25 consolidated position:

• Debt-to-equity ratio: 0.13x ^[1]
• Total equity, used as the closest disclosed proxy for net worth: Rs 2,842.6 Crores ^[2]

These figures should not be presented as the post-demerger pro-forma outcome. A valid calculation would require:

`Pro-forma debt-to-equity = pro-forma debt retained or assumed / pro-forma net worth`

and would need the scheme-specific allocation of borrowings, assets, liabilities, reserves, and any share-capital or securities-premium adjustments. Simply adding the two companies’ reported ratios or net-worth figures would be incorrect.

There is also a transaction-description issue: the latest annual-report disclosure describes an amalgamation, sanctioned on 22 May 2026, under which Gallantt Ispat Limited amalgamated with Gallantt Metal Limited and the surviving Gallantt Metal entity changed its name to Gallantt Ispat Limited—not the demerger described in the question ^[3]. Accordingly, the defensible conclusion is N/D — no supported numerical pro-forma change in consolidated debt-to-equity or net worth.

Capacity comparison: The post-merger entity is described as having approximately 1.0 MMTPA of finished-steel capacity, comprising 0.6 MMTPA at Gorakhpur and 0.4 MMTPA at Kutch. Against the 0.6 MMTPA Gorakhpur-only standalone base, this represents an addition of 0.4 MMTPA, or 66.67%. ^[4]

However, this is not a like-for-like comparison with Gallantt Ispat’s FY26 annual report: the annual report already reports 1.0 MMTPA of finished-steel capacity across both Gorakhpur and Kutch. ^[7] Therefore, versus Gallantt Ispat’s reported company-wide annual-report capacity, the post-merger capacity is effectively unchanged at approximately 1.0 MMTPA; the 66.67% increase applies only when the base is defined as the Gorakhpur standalone platform.

Captive-power efficiency

The expected improvement is directional rather than numerically quantified. Gallantt has 129 MW of existing captive power capacity, comprising 78 MW at Gorakhpur and 51 MW at Kutch. ^[8] It is also developing 78 MW of captive solar capacity—60 MW for Uttar Pradesh and 18 MW for Gujarat—which management expects to generate approximately Rs 30-40 Crores of annual savings once operational. ^[9]

Accordingly, integration is expected to improve captive-power economics through:

• broader captive coverage across the combined operating base;
• substitution of conventional power with solar power; and
• better utilisation of the integrated power system.

But the company has not disclosed a defensible post-integration percentage change in captive-power consumption efficiency. The disclosed projection is cost savings and lower conventional-power dependence, not a specific efficiency percentage.