Kirloskar Ferrous Unveils ₹900 Crore Expansion Plan to Boost Production Capacity

Kirloskar Ferrous Industries Limited (KFIL), a leading player in the castings and pig iron manufacturing sector, has announced an ambitious ₹900 crore capital expenditure program aimed at expanding its production capacity across multiple segments. The expansion initiative is set to strengthen the company's position in the pig iron, ductile iron pipe, and alloy casting markets.

Expansion Strategy

The company's growth strategy focuses on capitalizing on the demand from the automotive and infrastructure sectors. KFIL anticipates this move may drive both volume growth and margin improvements across its product lines.

Key aspects of the expansion plan include:

Increased production capacity in pig iron, ductile iron pipe, and alloy casting segments
Focus on operational efficiency improvements
Implementation of green energy initiatives

These strategic initiatives are expected to potentially bolster the company's overall profitability and market position.

Financial Performance

KFIL has reported the following financial results:

Standalone revenue reached ₹1,728.00 crore, marking a 4% year-on-year increase
Net profit stood at ₹92.00 crore, up by 9% compared to the same period last year
EBITDA margin improved to 12.4% from 11.7% in the previous comparable period

Financial Metric	Current Period	Previous Period	YoY Change
Revenue	₹1,728.00 Cr	₹1,667.00 Cr	+4%
EBITDA	₹213.60 Cr	₹195.40 Cr	+9%
Net Profit	₹92.30 Cr	₹84.90 Cr	+9%
EBITDA Margin	12.4%	11.7%	+70 bps

R.V. Gumaste, Managing Director of KFIL, commented on the results, stating, "Despite drop in realizations and commodity headwinds, we have maintained our strong performance on both topline and profitability."

Market Outlook

The company's expansion plans are aligned with the current market dynamics:

Strong demand observed in the casting segment, particularly from the tractor and automotive industries
Steady performance across all product lines
Secured tube volumes for the upcoming period through an ONGC order

Conclusion

Kirloskar Ferrous Industries Limited's ₹900 crore expansion program demonstrates the company's commitment to growth and its confidence in the market's potential. By focusing on increasing production capacity, improving operational efficiency, and embracing green initiatives, KFIL aims to meet the growing demand in key sectors while potentially enhancing its profitability and market share in the coming years.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.46%	-7.11%	-7.99%	-17.34%	-27.90%	+225.17%

Kirloskar Ferrous Industries Limited (INE884B01025), a leading manufacturer of castings, pig iron, and steel products, has announced its financial results for the second quarter of fiscal year 2026, ending September 30, 2025. The company reported a steady performance with growth in both revenue and profitability.

Financial Highlights

Revenue from operations increased by 4% year-on-year to Rs 1,728.00 crores in Q2 FY2026, compared to Rs 1,667.11 crores in the same quarter last year.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose by 9% to Rs 213.60 crores, with an EBITDA margin of 12.4%.
Net profit grew by 9% to Rs 92.34 crores, up from Rs 84.91 crores in Q2 FY2025.
Earnings per share (EPS) improved to Rs 5.60, compared to Rs 5.16 in the corresponding quarter of the previous year.

Segment Performance

The company operates in three segments: Iron Castings, Tubes, and Steel. Here's a breakdown of the segment-wise performance:

Segment	Revenue (Rs Crores)	YoY Growth
Castings	1,087.73	-1.8%
Tubes	621.87	22.4%
Steel	476.89	3.7%

The Tubes segment showed significant growth, while the Castings and Steel segments maintained stable performance.

Operational Highlights

The company witnessed strong demand for castings from the tractor and automotive industries.
Oliver Engineering, a subsidiary, is ramping up production, contributing to the group's performance.
An order from ONGC has secured tube volumes for the second half of the fiscal year.
During the quarter, the company allotted 114,890 equity shares under its Employee Stock Option Schemes.

Management Commentary

R.V. Gumaste, Managing Director of Kirloskar Ferrous Industries, commented on the results: "Q2 has been a mixed bag for KFIL. On one hand, we saw steady demand for all products and margin pressure on iron and steel. The quarter saw strong demand for casting from tractor and automotive industry. Despite a drop in realizations and commodity headwinds, we have maintained our strong performance on both topline and profitability."

Financial Position

As of September 30, 2025:

The company's net worth stood at Rs 2,251.03 crores.
The debt-to-equity ratio was maintained at 0.36, indicating a strong balance sheet.
Current ratio improved to 1.14, up from 1.06 in the previous year, suggesting better liquidity.

Future Outlook

While the company hasn't provided specific forward-looking statements, the management's focus on steady performance and secured orders for the tube segment indicates a positive outlook for the coming quarters. The company's diverse product portfolio and strong market position in castings and pig iron manufacturing continue to be its key strengths.

Kirloskar Ferrous Industries Limited remains committed to creating value for its shareholders while navigating the challenges of commodity price fluctuations and market dynamics in the iron and steel industry.