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:

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.

Kirloskar Ferrous Industries Limited , a prominent player in the ferrous industry, has recently made a significant move in its equity structure. The company has allotted 1,16,315 equity shares under its Employee Stock Option Schemes (ESOS), demonstrating its commitment to employee ownership and retention.

Key Details of the Allotment

Impact on Share Capital

The allotment has resulted in an increase in the company's issued, subscribed, and paid-up share capital. Here's how the numbers stack up:

This move underscores Kirloskar Ferrous Industries' focus on aligning employee interests with those of the company and its shareholders. Employee stock options are often used as a tool to motivate and retain talent, potentially leading to increased productivity and loyalty.

Upcoming Investor Communication

In addition to this corporate action, Kirloskar Ferrous Industries has scheduled a conference call for investors and analysts. This call, set for November 7, 2025, at 3:30 p.m. (IST), will discuss the company's unaudited financial results for the quarter and six months ended September 30, 2025. This approach to investor communication reflects the company's commitment to transparency and shareholder engagement.

The conference call will feature key members of the senior management team, including:

• Mr. R.V. Gumaste - Managing Director
• Mr. R.S. Srivatsan - Executive Director (Finance) and CFO

Investors and analysts interested in participating can access the call through various international toll-free numbers provided by the company.