Kirloskar Ferrous Industries Limited has secured approval from the National Company Law Tribunal (NCLT), Mumbai Bench, for the amalgamation of its wholly owned subsidiaries, Oliver Engineering Private Limited and Adicca Energy Solutions Private Limited. The tribunal pronounced the order on June 2, 2026, allowing the scheme of arrangement which was approved by the board of directors on August 4, 2025. The appointed date for the merger is April 1, 2025, facilitating the consolidation of businesses to enable long-term sustainability and growth.

The merger aims to streamline the current holding structure, reduce the number of companies, and optimize administrative costs. Since both transferor companies are wholly owned subsidiaries of Kirloskar Ferrous Industries, no shares will be issued, and no consideration will be discharged for the amalgamation. The issued and paid-up capital of the transferor companies will stand cancelled upon the scheme becoming effective.

Scheme Details and Compliance

The scheme was sanctioned under Sections 230 to 232 of the Companies Act, 2013, and related rules. The petitioner companies addressed an inadvertent arithmetical error regarding the post-merger authorised share capital through board resolutions passed on April 4, 2026. The companies confirmed compliance with all statutory requirements, including the submission of audited financial statements for the year ended March 31, 2025.

Regulatory Observations and Undertakings

The Regional Director, Western Region-II, and the Official Liquidator filed reports with observations, which the companies addressed through affidavits. The companies confirmed that all charges against Oliver Engineering Private Limited have been satisfied and that no winding up proceedings are pending. The transferee company undertook to comply with the provisions of Section 232(3)(i) of the Companies Act, 2013, regarding the payment of differential fees for share capital.

The Assistant Commissioner, CGST Division, Rajpura, raised observations regarding claims from earlier Corporate Insolvency Resolution Process (CIRP) proceedings against Oliver Engineering Private Limited. The companies clarified that claims were dealt with in the resolution plan approved by the tribunal in September 2023, relying on the Supreme Court judgment in Ghanashyam Mishra & Sons (P) Ltd v. Edelweiss ARC. Kirloskar Ferrous Industries undertook to pay any legally payable dues upon the scheme becoming effective.

Tribunal Order and Directives

The NCLT declared the scheme unopposed and made the company petition absolute. The transferor companies are dissolved without winding up, and all liabilities will transfer to the transferee company. The tribunal directed the companies to file a copy of the order with the Registrar of Companies in E-Form INC-28 within 30 days and to lodge the order with the Superintendent of Stamps within 60 days for stamp duty adjudication.

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.