Kirloskar Ferrous Industries Limited has released the transcript of its Q4FY26 investor and analyst conference call, held on 8 May 2026 at 4:00 p.m. IST, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transcript, filed vide Ref No. 3319/26 dated 15 May 2026 and signed by Company Secretary Mayuresh Gharpure, is available on the company's official website at www.kirloskarferrous.com . The call was hosted by Antique Stock Broking Limited and featured Managing Director R.V. Gumaste and Executive Director (Finance) & CFO R.S. Srivatsan.

Financial Performance Overview

Managing Director R.V. Gumaste opened the call with key financial highlights for the quarter and full year. The company reported full-year sales of ₹6,861 crores against ₹6,628 crores in the previous year. Profit before tax stood at ₹514.43 crores compared to ₹532 crores before exceptional items in the prior year, and ₹432 crores after exceptional items — reflecting an improvement of approximately ₹100 crores on a post-exceptional basis. The overall top-line growth was approximately 3% on a standalone basis and approximately 5.1% including Oliver Engineering.

Production and Sales Volumes

Gumaste provided a detailed breakdown of production and sales across all segments for both Q4 and the full year. Pig iron production in Q4 was 1,58,152 metric tons versus 1,62,286 metric tons in Q4 of the prior year, a decline of 3%. Casting production rose 13% year-on-year to 36,596 metric tons. Tube production grew 6% to 56,119 metric tons, while steel production fell approximately 10% to 58,119 metric tons. For the full year, total production was 6,23,939 metric tons against 6,31,103 metric tons, with the shortfall attributed largely to a 3.5-month stoppage of the Hiriyyur blast furnace due to unfavourable market conditions.

On the sales front, Q4 pig iron sales were 1,27,600 metric tons versus 1,35,000 metric tons, down approximately 6%. Casting sales rose 9% to 34,980 metric tons. Tube sales were broadly flat at 51,106 metric tons. Steel sales increased 20% to 24,812 metric tons. Total Q4 sales value stood at ₹1,781 crores. Sales realisations declined across segments — pig iron by 6%, tubes by approximately 10%, and castings by less than 1% — due to weak commodity prices through most of the year, with some recovery in pig iron and steel prices in Q4.

Segment Outlook and Strategic Initiatives

Gumaste outlined growth targets and strategic priorities across business segments for FY27. On castings, the company is targeting production of approximately 1,85,000 metric tons, comprising around 1,05,000 metric tons from Koppal, 60,000 metric tons from Solapur (at a run rate of 5,000 metric tons per month), and approximately 25,000 metric tons from Oliver Engineering in Rajpura. Oliver's FY26 revenue was approximately ₹118–120 crores, with FY27 revenue targeted at ₹240–250 crores. The company is also commissioning a sixth foundry focused on large castings and has commenced planning for a seventh foundry to support an aspirational capacity of up to 3 lakh metric tons per annum. Three new customers were added in the casting segment, including a diesel engine manufacturer supplying both domestic and export markets, and customers in the earthmoving equipment and tractor (TREM V) segments. The machining business across all three foundry locations is expected to generate approximately ₹100 crores in value within a year, supported by 22 horizontal machining centres (HMCs) now in operation.

For seamless tubes, the company targets approximately 10–11% volume growth in FY27 from a base of 1,88,700 metric tons in FY26. A capacity expansion at Baramati to 4 lakh metric tons per annum is planned through addition of a larger tube mill, with an estimated investment of over ₹500 crores as part of an annual capex plan of ₹600–700 crores. On pig iron, the company expects to approach 6,80,000–6,90,000 metric tons with current productivity, with further upside from commissioning a 150-ton-per-day oxygen plant and increasing PCI levels from 130 kg to 160–170 kg. The Hiriyyur blast furnace upgrade, estimated at ₹125–150 crores, is planned to increase its capacity to 2,50,000–3,00,000 metric tons per annum.

Energy, Green Initiatives, and Backward Integration

Gumaste highlighted that the solar power initiative generated approximately ₹70 crores in savings in FY26. An additional 35 megawatts of solar and 25 megawatts of wind capacity are targeted for commissioning between June and September, which together are expected to contribute ₹70–90 crores in annual savings at full capacity, with approximately half of that benefit expected in FY27. The company currently operates 52 megawatts of waste heat recovery power and 70 megawatts of solar/wind capacity at Jalna. Battery storage systems are being evaluated to improve green power utilisation under new Maharashtra regulations. On backward integration, the company is progressing on operationalisation of the Jambunath Gudda iron ore mines and plans to add beneficiation and pellet plant facilities. The long-term roadmap includes routing blast furnace output at Koppal into alloy steel production and expanding the seamless tube plant at Baramati, with the Jejuri steel plant positioned as a green steel producer.

EBITDA Margin and Near-Term Outlook

On profitability, Gumaste noted that the company is currently just above 12.50% EBITDA margin and reiterated a target of 15% EBITDA. He acknowledged cost pressures from the US dollar moving to ₹95 and coking coal prices rising by approximately $25 per ton, but expressed optimism that improving pig iron realisations — with international pig iron prices at $475 per ton and domestic prices up approximately ₹4,000–5,000 per ton from their lows — would support margin recovery. For tubes, a recovery of approximately 5–6% in net sales realisation per ton is expected in FY27, partially reversing the approximately 10% decline seen in FY26. The company also noted that the merger of Oliver Engineering into Kirloskar Ferrous Industries is expected to be completed within the next couple of months.

Kirloskar Ferrous Industries announced two significant corporate actions at its Board of Directors meeting held on 7 May 2026. The company disclosed the allotment of equity shares under its employee stock option schemes and the Board's approval to raise funds through Non-Convertible Debentures (NCDs) in multiple tranches, both pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Board Approves NCD Fundraise of Up to ₹1,000 Crore

The Board of Directors approved seeking approval from the Members of the Company for fund raising not exceeding ₹1,000 Crore. The fundraise is proposed to be executed through the issuance of Non-Convertible Debentures in one or more tranches. The key details of the proposed fundraise are as follows:

The Board's approval marks the initiation of the process, with member approval being a prerequisite before the issuance can proceed.

ESOP Share Allotment Increases Paid-Up Capital

The Board allotted 52,900 equity shares of ₹5 each upon exercise of stock options under the KFIL Employee Stock Option Schemes. Following this allotment, the company's issued, subscribed, and paid-up share capital has been revised upward. The key details of the updated share capital structure are presented below:

The allotment reflects the exercise of stock options by eligible employees under the company's existing ESOP framework, resulting in a corresponding increase in the total number of outstanding equity shares.

Regulatory Disclosure

Both developments were communicated to BSE Limited on 7 May 2026 by Company Secretary Mayuresh Gharpure, in compliance with the applicable SEBI listing regulations. The disclosures were made under Ref No. 3315/26 and are part of the company's ongoing regulatory reporting obligations.