Kirloskar Ferrous Industries Limited, one of India's leading castings and pig iron manufacturers, announced its unaudited financial results for the third quarter of financial year 2025-2026. The company reported mixed performance with improved margins despite challenging market conditions and lower commodity prices.

Standalone Financial Performance Q3FY26

The company's standalone operations showed resilience in margin management despite revenue pressures. Key financial metrics demonstrated the management's focus on operational efficiency and cost optimization initiatives.

The company's EBITDA margin expansion to 11.5% from 11.0% in the previous year quarter reflects successful implementation of cost optimization measures and operational efficiency improvements.

Consolidated Financial Results

On a consolidated basis, the company showed marginally better revenue performance while maintaining strong margin improvement trends across the organization.

The consolidated results showed stronger EBITDA growth of 7% and significant PBT improvement of 21%, indicating effective operational management across all business units.

Market Challenges and Operational Updates

According to Managing Director R.V. Gumaste, the company faced significant market headwinds during the quarter. Pig iron and steel prices declined to five-year lows due to oversupply conditions and weak demand in the market. Despite maintaining strong volumes, lower price realizations impacted overall revenue performance.

The company conducted planned maintenance shutdowns at three key facilities:

• Hiriyrur facility
• Baramati facility
• Jejuri facility

These planned shutdowns, combined with lower commodity prices, resulted in flat revenue performance for the quarter.

Strategic Initiatives and Outlook

The company implemented several strategic projects during the quarter to enhance operational efficiency and reduce costs. Key initiatives included pulverised coal injection with oxygen enrichment, solar capacity commissioning, and tube plant debottlenecking projects. These initiatives supported margin improvement despite challenging market conditions.

Management highlighted strong demand for value-added castings and the upcoming execution of large tube orders as positive factors strengthening the company's outlook. The expansion and renewable energy initiatives are progressing as planned.

Exceptional Items Impact

The company reported a one-time provision of ₹17.57 Cr towards gratuity and compensated absences during Q3FY26. This exceptional item resulted from the impact of revised wage definition under newly notified Labour Codes, affecting the quarter's profitability.

Kirloskar ferrous industries Limited has announced an interim dividend of ₹3 per equity share for the financial year 2025-26. The Board of Directors approved this dividend declaration at their meeting held on February 10, 2026, as communicated to BSE Limited through an official filing.

Dividend Details

The interim dividend represents a significant payout for shareholders, with the company declaring ₹3 per equity share of ₹5 each, translating to a 60% dividend rate for the current financial year.

Record Date and Payment Schedule

The company has established clear timelines for dividend eligibility and payment. The record date has been fixed as Monday, February 16, 2026, which will determine the list of shareholders entitled to receive the interim dividend.

Payment Mechanism

Kirloskar Ferrous Industries has specified that the interim dividend will be distributed exclusively through electronic payment modes. The company will utilize various digital payment systems approved by the Reserve Bank of India for dividend disbursement.

The electronic payment methods include:

• Electronic Clearing Services (ECS)
• Direct Credit
• Real Time Gross Settlement (RTGS)
• National Electronic Funds Transfer (NEFT)
• Other RBI-approved electronic modes

Regulatory Compliance

The dividend declaration was made in accordance with SEBI regulations, specifically under Regulations 30, 42, and 43 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This announcement follows an earlier communication dated January 31, 2026, indicating the company's systematic approach to shareholder communications and regulatory compliance.