Kirloskar Ferrous Industries Limited announced its financial results for the fourth quarter and fiscal year ended March 31, 2026. The company reported total sales of INR6,861 crores for FY26, an increase from INR6,628 crores in the previous year. Profit before tax for the year was INR514.43 crores, compared to INR432 crores before exceptional items in the prior year, reflecting an improvement of about INR100 crores.

Operational Performance

The company produced a total of 6,23,939 metric tons during FY26, slightly lower than the 6,31,103 metric tons produced in the previous year. The decline was attributed to a 3.5-month stoppage of the Hiriyyur blast furnace due to adverse market conditions. Production of castings increased by 7% to 1,48,564 metric tons, while tube production grew to 2,16,914 metric tons from 1,99,443 metric tons in the previous year.

Financial Highlights

Sales realization faced pressure during the year, with drops of 6% in pig iron and 10% in tubes. However, the fourth quarter saw a pickup in pig iron and steel prices. The company achieved a 3% growth in overall sales, which rose to 5.1% when including the contribution from its subsidiary, Oliver Foundry.

*Before exceptional items.

Strategic Initiatives

Management indicated that the merger of Oliver Foundry into Kirloskar Ferrous Industries is expected to be completed in the coming months. The company is also focusing on increasing its share of value-added and complex castings, with new customer acquisitions in the diesel engine and earthmoving equipment segments. Additionally, the company is investing in green energy projects, including 35 megawatts of solar and 25 megawatts of wind power, to reduce CO2 emissions and lower power costs.

Outlook

Looking ahead to FY27, the company targets a 15% volume growth in the casting segment, aiming for production numbers between 1,85,000 and 1,90,000 metric tons. The management expressed optimism regarding demand from the auto and tractor sectors and expects improvements in sales realization driven by rising international pig iron prices.

Kirloskar Industries Limited's listed material subsidiary, Kirloskar Ferrous Industries Limited (KFIL), has reported its audited financial results for the quarter and year ended March 31, 2026. The Board of Directors approved the results on May 7, 2026. KFIL delivered a strong standalone performance, with revenue from operations for Q4 FY26 standing at ₹1,780.99 crore, a 3% year-on-year increase from ₹1,736.19 crore. Net profit for the quarter rose 36% to ₹130.00 crore, compared to ₹95.56 crore in the corresponding quarter of the previous year.

Management Commentary

R.V. Gumaste, Managing Director, KFIL, commented on the results: "I am pleased to share that KFIL has concluded the year with a strong Q4 performance, characterized by robust volume growth and improved operational efficiencies across our key segments. Despite the macro-economic headwinds that persisted throughout the year, our consolidated annual revenue grew by 5% to Rs. 6,889 Crore, PBT before exceptional Item grew by 25% to Rs. 512 Cr, while our YTD PAT saw a significant 22% increase to Rs. 358 Crore. Our resilience was particularly evident in our rapid response to the Solapur LPG supply disruption in mid-March. By swiftly pivoting to alternate fuel solutions, we achieved a turnaround in just four days, minimizing the impact on our production schedules and customer commitments. Moving forward, all our major capital projects and strategic mergers are progressing as planned. We remain deeply committed to our long-term vision of value creation, focusing on a richer product mix, cost optimization through renewable energy, and enhancing our competitive position in the global market."

Standalone Financial Performance

For the full year FY26, standalone revenue from operations grew to ₹6,783.92 crore from ₹6,566.26 crore, while net profit increased 18% to ₹375.59 crore from ₹317.28 crore. The company’s EBITDA for Q4 FY26 stood at ₹225.9 crore, with an EBITDA margin of 12.7%. Total assets as of March 31, 2026, stood at ₹6,577.53 crore, compared to ₹6,353.57 crore in the previous year. Cash and cash equivalents improved to ₹81.92 crore from ₹41.82 crore.

The table below summarises the key standalone financial results (₹ in Crores):

*Excluding other income and exceptional items

Consolidated Financial Performance

On a consolidated basis, KFIL reported revenue from operations of ₹1,817.16 crore for Q4 FY26, a 5% increase from ₹1,736.95 crore in the year-ago quarter. Consolidated net profit for the quarter stood at ₹123.10 crore, up 33% against ₹92.34 crore. For the full year, consolidated revenue grew to ₹6,888.57 crore, while net profit rose 22% to ₹357.81 crore. The Casting segment remained the largest contributor to revenue and profitability.

*Excluding other income and exceptional items

About Kirloskar Ferrous Industries Limited

Founded in 1991, Kirloskar Ferrous Industries Limited is one of India's largest castings and pig iron manufacturers, catering to sectors such as tractors, automobiles, and diesel engines. With manufacturing facilities at Koppal, Hiriyyur, and Solapur, the company produces grey iron castings and various grades of pig iron. Following a merger, its product range now extends to ISMT Steel and seamless tubes, with ISMT having pioneered seamless tube manufacturing in India for bearing, boiler tubes, and automotive piping applications.