Indian metals & ferro alloys Limited held its Q3 FY26 earnings conference call on February 06, 2026, showcasing strong operational performance and outlining ambitious expansion plans. The company demonstrated resilience amid market challenges, with Managing Director Subhrakant Panda leading the discussion alongside senior management.

Strong Q3 FY26 Performance

The company reported robust financial metrics for the third quarter, with EBITDA margins exceeding 23%, representing a significant improvement from the previous quarter's 18-19% range. This enhancement was primarily driven by improved ferrochrome realizations, which increased by approximately INR6,000 per tonne compared to Q2 FY26.

Strategic Expansion Initiatives

The company is executing multiple growth projects simultaneously. The greenfield project at Kalinganagar (KNR 1) remains on track, with the first furnace expected to be commissioned in June 2026 and the second furnace shortly thereafter. This represents a critical milestone in the company's capacity expansion strategy.

Tata Steel Acquisition Progress

IMFA is proceeding with the strategic acquisition of Tata Steel Limited's ferrochrome plant at Kalinganagar (KNR 2) for a base consideration of INR610 crores. The company expects to close this deal within February 2026, with meaningful volume contributions anticipated from Q1 FY27. This acquisition will establish IMFA as India's largest ferrochrome manufacturer and the sixth largest globally, with total capacity exceeding 0.5 million tonnes.

Market Dynamics and Pricing Outlook

Domestic ferrochrome prices currently range between INR118,000 to INR120,000 per tonne, while Chinese prices hover around USD0.96 to USD0.97. The company expects these price levels to continue through Q4 FY26, supporting similar EBITDA margins. Panda noted that South Africa's production constraints and elevated chrome ore prices have created favorable market conditions for integrated producers.

Diversification and Future Projects

The company's ethanol project, with a capacity of 120 KLD and capex of INR150 crores, is nearing completion. Originally targeted for late February 2026, the commissioning has been slightly delayed to March 2026, with commercial operations expected to begin in April 2026.

Financial Position and Capital Allocation

The company maintains a conservative financial approach, funding the Tata Steel acquisition entirely through internal accruals. CFO Saunak Gupta outlined the capex roadmap, with approximately INR600 crores planned for FY27 and INR400-500 crores for the following year.

Production Guidance and Mining Expansion

IMFA targets significant production growth, expecting ferrochrome production to reach approximately 400,000 tonnes in FY27 and 475,000-500,000 tonnes in FY28. The company has set an ambitious ore raising target of 1 million tonnes for FY27, supported by its underground mining project with a total capex budget of INR1,000 crores.

Market Strategy Shift

The company plans to rebalance its sales mix from the current 90% exports and 10% domestic sales to approximately 60% exports and 40% domestic sales over the next two years. This strategic shift aims to better serve the domestic market while maintaining strong international relationships through long-term contracts.

Indian Metals & Ferro Alloys Limited has issued a postal ballot notice to shareholders seeking approval for the appointment of Ms Kiran Dhingra as an Independent Director of the company. The notice, dated February 5, 2026, outlines the proposal for shareholders to vote on this key board appointment through electronic voting.

Director Appointment Details

Ms Kiran Dhingra was appointed as an Additional Director in the capacity of Non-Executive Independent Director on February 4, 2026, following security clearance from the Director General of Civil Aviation, Government of India. Her appointment became effective from February 4, 2026, and is subject to shareholder approval through the current postal ballot process.

Voting Process and Timeline

The company has established a comprehensive e-voting process for shareholders to participate in the postal ballot. The voting will be conducted exclusively through electronic means, with no physical ballot forms being dispatched to shareholders.

Mr Sourjya Prakash Mohapatra, a Practicing Chartered Accountant (Membership No. 052805), has been appointed as the Scrutinizer to conduct the postal ballot through the remote e-voting process. The company has engaged National Securities Depository Limited (NSDL) to facilitate the e-voting process.

Director Profile and Qualifications

Ms Kiran Dhingra brings extensive experience from her distinguished career in civil service. She served for 38 years in various senior positions and holds the distinction of being one of the longest-serving officers at the rank of Secretary to the Government of India.

Her career included postings in diverse Union Territories including Andaman and Nicobar Islands, Arunachal Pradesh, Goa, and Delhi. She served as Chief Secretary to the Government of Goa and worked with various ministries including Urban Development, Textiles, and Panchayati Raj during her 15 years with the Government of India.

Current Directorships and Committee Memberships

Ms Dhingra currently serves as a director on the boards of Indian Register of Shipping and Stovec Industries Limited. Within Indian Metals & Ferro Alloys Limited, she holds key committee positions:

• Stakeholders Relationship Committee - Chairperson
• Corporate Social Responsibility Committee - Chairperson
• Allotment Committee - Member

Special Resolution Requirement

The appointment requires approval through a special resolution, as mandated under Regulation 17 and Regulation 25 of the SEBI LODR Regulations. Additionally, since Ms Dhingra will attain the age of 75 years on January 12, 2028, during her proposed tenure, the resolution also seeks approval for her continuation as a Non-Executive Independent Director beyond the age of 75 years, as required under Regulation 17(1A) of the SEBI Listing Regulations.

The board believes that Ms Dhingra's extensive experience in governance, policy-making, and corporate affairs will enhance the overall expertise of the board and contribute to the company's strategic direction. The resolution is being recommended by the Board of Directors for shareholder approval.