Gallantt Ispat shares surge 15% as heavy trading draws attention

what happened

Mint reported that Gallantt Ispat shares gained more than 15% on Monday, 12 October, despite weakness across the stock market. The shares started at Rs.508.50, also the session low, and advanced to an intraday peak of Rs.581.30. They are up more than 5% since the start of 2026 but down over 13% in the past year, remaining 14.6% above the 52-week low of Rs.496.25. The daily price band was widened from 10% to 20% effective 8 October.

Ruchit Jain of Motilal Oswal Financial Services said the broader trend had been negative in recent months, although the rebound came with strong volumes. He placed initial resistance near Rs.600, around the 200-day exponential moving average (DEMA), and identified Rs.500 as important support. Sudeep Shah of SBI Securities said the shares had traded within Rs.500–Rs.644 since 20 July and had twice found support close to the 100-week EMA. He described the wider setup as sideways to bearish, noting that the weekly MACD line remains below zero. Shah marked Rs.510–Rs.500 as a critical support band, with a break potentially opening another decline, while Rs.640–Rs.650 may cap gains.

The company is entering what media reports describe as a major expansion phase in FY2026-27, with plans to enlarge manufacturing and reinforce its brand across India. Gallantt Ispat has appointed Janhvi Kapoor as a brand ambassador for Gallantt TMT Bars, alongside Ajay Devgn. Its integrated facilities in Gorakhpur, Uttar Pradesh, and Kutch, Gujarat, cover pellets, DRI or sponge iron, billets, TMT bars and captive power generation. Current assets include roughly 1 million tonnes of annual finished-steel capacity, 129.5 MW of captive power and a 7 MW captive solar plant. The company employs more than 5,000 people.

Under a Rs.3,000 crore capital-spending plan, Gallantt aims to lift steel output from about 1 million tonnes to 1.3 million tonnes during the second half of 2026. The programme also covers an 85 MW solar facility and the commissioning of iron-ore mines in Uttar Pradesh and Rajasthan. In the first quarter of FY27, ended 30 June 2026, standalone net profit after tax fell 29% year on year to Rs.124 crore, while consolidated net profit was also Rs.124 crore. Operating revenue increased 2% to Rs.1,146 crore, EBITDA declined 20% to Rs.203 crore and the operating margin narrowed from 23% to 18%. Gallantt attributed the weaker result mainly to higher raw-material costs and planned maintenance at its pellet plant. It said it remained debt-free and funded capital expenditure from internal accruals.

why it matters

The rally comes alongside unresolved technical weakness and lower profitability. Markets will weigh the company’s expansion and spending plans against earnings performance, raw-material costs and the absence of debt financing.

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