Gallantt Ispat Limited makes a corporate announcement

A defensible pro-forma debt-to-equity ratio and net-worth figure cannot be calculated from the cited filings. The required audited balance-sheet data for Gallantt Metal Limited and the scheme-specific allocation of the steel undertaking’s assets, liabilities and equity are not reported in the available material.

The calculation must be based on the assets and liabilities actually transferred under the demerger—not by simply adding the two companies’ total equity:

• Pro-forma net worth = Gallantt Ispat’s pre-appointed-date net worth + net worth attributable to the demerged steel undertaking transferred from Gallantt Metal.
• Pro-forma debt-to-equity = transferred debt plus Gallantt Ispat’s existing debt, divided by the resulting pro-forma equity. If the company uses its reported convention, this would be net debt / total equity, rather than gross borrowings / equity.

As a reference point only, Gallantt Ispat’s audited comparative figures at 31 March 2025 showed total equity of Rs 2,842.56 Crores, net debt of negative Rs 97.26 Crores, and reported net-debt-to-equity of negative 0.03x. These figures are for Gallantt Ispat alone and are not the requested post-demerger pro-forma numbers. ^[1]

The later FY26 annual report is also not an appropriate substitute: it records a subsequent amalgamation under which Gallantt Ispat amalgamated with Gallantt Metal Limited pursuant to NCLT sanction on 22 May 2026, after which the surviving company changed its name to Gallantt Ispat Limited. ^[2] Therefore, using FY26 consolidated net worth or leverage would mix the post-amalgamation entity with the pre-appointed-date demerger analysis.

Conclusion: the direction of impact—higher or lower leverage and net worth—cannot be established reliably without the latest audited Gallantt Metal balance sheet before the appointed date and the scheme’s precise transfer/allocation schedule.

Capacity: On the transaction-comparison basis, the resulting entity has approximately 1.0 MMTPA of finished-steel capacity, versus 0.6 MMTPA for Gallantt Ispat’s standalone Gorakhpur platform—an addition of 0.4 MMTPA, or 66.67%. ^[3] The 1.0 MMTPA comprises 0.6 MMTPA at Gorakhpur and 0.4 MMTPA at Kutch. ^{[5] [5]}

The key qualification is that this is primarily a legal/entity-perimeter increase rather than new physical capacity created by the merger. Gallantt’s FY26 annual report already describes the Gorakhpur and Kutch plants as a combined integrated platform with 1.0 MMTPA of finished-steel capacity. ^[5] The amalgamation was sanctioned on 22 May 2026, with Gallant Metal surviving and subsequently taking the Gallantt Ispat name. ^[6]

Captive-power efficiency: The company currently reports 129 MW of captive power capacity, comprising 78 MW at Gorakhpur and 51 MW at Kutch. ^{[5] [5]} It is developing 78 MW of captive solar capacity—60 MW for Uttar Pradesh and 18 MW for Gujarat—which management expects to reduce conventional-power dependence and generate estimated annual savings of Rs 30-40 Crores once operational. ^[7]

However, the company has not quantified a post-integration improvement in captive-power consumption efficiency as a percentage, such as captive power consumed per tonne or a revised captive-consumption ratio. Therefore, the supported conclusion is directional: energy economics and the share of renewable captive power are expected to improve, but the magnitude of the efficiency uplift remains undisclosed. The planned solar capacity is equivalent to roughly 60.47% of the existing 129 MW captive-power base, calculated from the reported capacities; this is a capacity comparison, not an efficiency forecast.