Indian Metals & Ferro Alloys Limited (IMFA), India's leading fully integrated ferrochrome producer, reported sequential improvement in revenue and margins for the quarter ended June 30, 2025. The company's performance was primarily driven by ferrochrome price recovery and cost optimization initiatives.

Key Operational Highlights

Financial Performance

IMFA maintained a robust financial position with a net debt-free balance sheet as of June 30, 2025. The company's focus on operational efficiency improvements and cost optimization initiatives contributed to the sequential growth in revenue and margins.

Expansion Plans

IMFA's greenfield ferrochrome expansion project at Kalinganagar remains on track, with the first furnace expected to be operational by June 2026 and the second furnace by September 2026. The company is also progressing with its underground mining expansion at Sukinda.

Market Strategy

With the upcoming capacity expansion, IMFA plans to shift its focus towards the domestic market. Currently exporting about 90% of its production, the company aims to increase its domestic market share, potentially reducing the export ratio as new capacity comes online.

Industry Outlook

The stainless steel industry in India is growing at a healthy CAGR of around 6%. IMFA sees this as an opportunity to cater more to the domestic market, especially with the reduction in ferrochrome production by some other players in India.

Niche Products

IMFA has started producing niche products such as low-silicon, low-phosphorus ferrochrome with high chromium content. These value-added products currently represent about 5-6% of the company's total capacity, with premiums ranging from Rs. 4,000 to Rs. 20,000 per ton.

Challenges and Opportunities

The early arrival of monsoon impacted chrome ore production in Q1 FY26, with production at 104,000 tons compared to 220,000 tons in Q4 FY25. However, the company maintains sufficient inventory levels and plans to ramp up production in Q3 and Q4.

IMFA's management remains cautiously optimistic about the future, citing geopolitical uncertainties and potential changes in the global ferrochrome market, including possible export taxes on chrome ore from South Africa.

Conclusion

As IMFA continues to focus on operational excellence and strategic expansion, the company is well-positioned to capitalize on the growing domestic stainless steel market while maintaining its strong presence in the global ferrochrome industry.

Indian Metals & Ferro Alloys Limited (IMFA), a leading ferro alloys producer, has reported robust financial results for the first quarter, alongside significant changes in its leadership structure.

Financial Performance

IMFA Ltd announced its unaudited financial results for the quarter ended June 30, showcasing a solid performance despite challenging market conditions. The company reported a consolidated revenue from operations of ₹641.54 crore, compared to ₹662.28 crore in the same quarter of the previous year.

The company's profitability remained strong, with a consolidated net profit of ₹92.54 crore for the quarter, slightly lower than the ₹113.34 crore reported in the corresponding quarter last year. The basic earnings per share (EPS) stood at ₹17.10, reflecting the company's continued ability to generate value for its shareholders.

Segment-wise Performance

IMFA's ferro alloys segment, which is the company's primary business, generated revenue of ₹640.82 crore with a segment result of ₹118.31 crore. The power segment reported revenue of ₹124.94 crore, while the mining segment contributed ₹67.19 crore to the total revenue.

Leadership Transition

In a significant development, IMFA announced the retirement of Mr. Nalini Ranjan Mohanty from his position as Non-Executive Chairman and Director. Mr. Mohanty's tenure will conclude at the end of the Annual General Meeting scheduled for July 30.

Following this transition, the Board of Directors has approved the appointment of Dr. Barada Kanta Mishra, an Independent Director, as the new Non-Executive Chairman of the company. Dr. Mishra's appointment will be effective from July 31, and will continue until the expiry of his current tenure.

Corporate Governance

As part of its commitment to strong corporate governance, IMFA has also announced the reconstitution of its Stakeholders Relationship Committee. The new committee, effective from July 31, will comprise:

Management Commentary

Subhrakant Panda, Managing Director of IMFA, stated, "Our Q1 results demonstrate IMFA's resilience and operational efficiency in a dynamic market environment. While we've seen a slight dip in revenue compared to the same quarter last year, our profitability remains robust. The leadership changes announced today are part of our long-term succession planning, ensuring continuity and fresh perspectives in our governance structure."

Looking Ahead

As IMFA navigates through the fiscal year, the company's focus remains on maintaining its market leadership in the ferro alloys sector while adapting to evolving market conditions. The new leadership under Dr. Barada Kanta Mishra is expected to bring fresh strategic insights to drive the company's growth and sustainability initiatives.

Investors and stakeholders will be keenly watching how these leadership changes and the company's strategic initiatives unfold in the coming quarters, as IMFA continues to play a crucial role in India's metals and mining sector.