KIOCL Limited, a Government of India enterprise, announced its unaudited financial results for the quarter and nine months ended December 31, 2025. The company demonstrated a remarkable turnaround in Q3 FY26, posting a net profit after experiencing losses in previous quarters.

Financial Performance Overview

The company's financial performance showed significant improvement in the third quarter of FY26:

Segment-wise Performance

The company operates through multiple business segments with varying performance levels:

Revenue Breakdown

Segment Results

Nine-Month Performance

For the nine-month period ending December 31, 2025, KIOCL reported mixed results:

Operational Highlights

The company's operational performance reflected challenges in core manufacturing segments while service operations provided significant support. Key operational aspects include:

• Manufacturing Operations: Both Pellet Plant and Pig Iron Plant segments reported operational losses
• Service Revenue: Strong performance in service operations contributed ₹159.55 crores to quarterly revenue
• Treasury Operations: Generated positive returns of ₹13.42 crores in Q3 FY26

Corporate Governance and Compliance

The Board of Directors approved these financial results at their meeting held on February 12, 2026. The meeting commenced at 1:00 PM IST and concluded at 4:30 PM IST. Notably, the company currently operates without an Audit Committee due to the absence of independent directors, as their appointment falls under the Government of India's purview.

Key Financial Ratios

The company's balance sheet showed total assets of ₹2,275.77 crores and total liabilities of ₹598.00 crores as of December 31, 2025. The financial results demonstrate KIOCL's ability to achieve profitability despite operational challenges in its core manufacturing segments, primarily supported by strong service revenue performance.

KIOCL Limited has informed stock exchanges about the downgrade and subsequent withdrawal of its credit ratings by Brickwork Ratings India Private Limited (BWR). The rating agency reviewed the company's bank loan facilities totaling ₹1,050.00 crores and took action based on recent financial performance and the company's request for rating withdrawal following full repayment of facilities.

Rating Action Details

Brickwork Ratings downgraded KIOCL's credit ratings before withdrawing them entirely. The rating action covered both fund-based and non-fund-based bank loan facilities:

The rating withdrawal followed KIOCL's full repayment and closure of its fund-based bank limits, with the company providing a No Due Certificate (NDC) and No Objection Certificate (NOC) from the lender confirming consent for the rating withdrawal.

Financial Performance Deterioration

The rating downgrade reflected significant weakening in KIOCL's operating performance during FY25 and H1 FY26. The company experienced a sharp decline in revenues due to prolonged operational shutdowns lasting 232 days and subdued export demand.

For H1 FY26, revenue remained low at ₹268.55 crores, with net loss of ₹-54.95 crores, reflecting ongoing operational challenges.

Key Credit Concerns

Brickwork Ratings highlighted several factors contributing to the rating downgrade:

• Operational Challenges: Sharp fall in production and sales volumes, with export volumes reducing drastically to 0.15 MTPA in FY25 from 1.59 MTPA in FY24
• Cost Structure Issues: High fixed employee expenses of ₹157 crores in FY25 despite lower production, along with elevated power and fuel costs of ₹115 crores
• Market Exposure: Vulnerability to pellet price volatility and competitive industry environment, with dependence on tolling arrangements restricting profitability
• Regulatory Risks: Exposure to policy changes such as export duty impositions that historically affected operations

Credit Strengths and Liquidity Position

Despite operational challenges, KIOCL maintains certain credit strengths:

Future Outlook and Development Projects

The company is developing the Devadari iron ore mine to secure raw material supply through backward integration. Capital expenditure of approximately ₹530.15 crores has been invested in the project, with regulatory approvals including environmental, forest, and mining clearances already received. Once operational, the mine is expected to lower raw material and freight costs, supporting sustainable profitability improvement.

Regulatory Compliance

KIOCL submitted this rating intimation to stock exchanges pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that all fund-based limits have been fully repaid and closed, with no outstanding dues to lenders.