Kalyani Steels Limited , a prominent player in the forging and engineering quality carbon and alloy steels sector, has announced its financial results for the first quarter, showcasing a mixed performance with improved profitability despite a slight decline in revenue.

Revenue and Profitability

For the quarter, Kalyani Steels reported a revenue of ₹4,427.67 crore, marking a 4.1% decrease from ₹4,614.64 crore in the corresponding quarter of the previous year. However, the company demonstrated strong profit growth, with net profit rising to ₹609.65 crore, up 18.2% from ₹515.74 crore year-over-year.

Operational Performance

The company's operational efficiency improved significantly, as evidenced by the increase in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). EBITDA for the quarter stood at ₹853.00 crore, up from ₹792.00 crore in the same period last year. Notably, the EBITDA margin expanded to 19.26% from 17.16%, indicating enhanced operational efficiency.

Cost Management

Kalyani Steels' focus on cost optimization was evident in the financial results. The cost of raw materials consumed decreased to ₹2,259.91 crore from ₹2,425.52 crore in the previous year's quarter. Additionally, other expenses were reduced to ₹190.45 crore from ₹282.14 crore, contributing to the improved profitability.

Financial Position

The company maintained a strong financial position, with a robust balance sheet. The earnings per share (EPS) for the quarter increased to ₹13.97, compared to ₹11.81 in the corresponding quarter of the previous year, reflecting the company's improved profitability.

Key Financial Highlights

Kalyani Steels' ability to enhance profitability despite a slight dip in revenue demonstrates the company's resilience and effective management strategies in a competitive market environment. The focus on operational efficiency and cost management has clearly yielded positive results, setting a strong foundation for the company in the dynamic steel industry.

Kalyani Steels , a prominent player in the Indian steel industry, has provided insights into its expected performance for the first quarter of fiscal year 2026 (Q1FY26). The company anticipates that its Q1FY26 results will be in line with those of Q4FY25, despite ongoing concerns about U.S. tariffs on steel imports.

Q4FY25 Performance

In the fourth quarter of fiscal year 2025, Kalyani Steels reported:

This performance sets a benchmark for the company's expectations in the coming quarter.

Growth Trajectory

Despite global uncertainties, Kalyani Steels remains committed to its ambitious growth plans. The company has reaffirmed its goal of reaching a production capacity of 1 million tonnes per annum by fiscal year 2029 (FY29). This target underscores the company's confidence in its long-term growth strategy and its ability to navigate through current market challenges.

Odisha Project Update

Investors and industry watchers are keenly awaiting details about Kalyani Steels' Odisha project. The company has indicated that it will provide comprehensive information about this significant venture in the first half of FY26. This project is expected to play a crucial role in the company's expansion plans and future growth trajectory.

Looking Ahead

While the steel industry faces potential headwinds from U.S. tariff policies, Kalyani Steels' projection of steady performance in Q1FY26 suggests a degree of resilience in its business model. The company's focus on maintaining consistent results while pursuing ambitious growth targets reflects a balanced approach to navigating the current economic landscape.

As the first quarter of FY26 unfolds, stakeholders will be watching closely to see how Kalyani Steels manages to maintain its performance levels amidst global trade uncertainties and domestic market dynamics. The forthcoming details about the Odisha project in the first half of FY26 are also expected to provide further insights into the company's expansion strategy and long-term prospects in the Indian steel sector.