Tata Steel Limited has successfully completed the sale of its Ferro Alloy Plant at Jajpur, Odisha to Indian Metals & Ferro Alloys Limited for a base consideration of ₹610 crore. The transaction was officially completed on February 27, 2026, following the Asset Transfer Agreement executed on November 4, 2025.

Transaction Details

The divestment involves the complete transfer of Tata Steel's Ferro Alloy Plant assets located at Jajpur, Odisha to IMFA. The company disclosed the completion through an official communication to stock exchanges under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

The transaction represents Tata Steel's continued focus on optimizing its asset portfolio while enabling IMFA to expand its ferro alloy operations in Odisha.

Regulatory Compliance and Approvals

Tata Steel confirmed that all necessary regulatory approvals were obtained prior to the transaction completion. The company made the disclosure in compliance with securities regulations, ensuring transparency for stakeholders and market participants. The official communication was signed by Parvatheesam Kanchinadham, Company Secretary and Chief Legal Officer.

Strategic Implications

For IMFA, the acquisition aligns with its strategic initiative to drive growth in its ferro alloy business through capacity expansion. The plant's location in Jajpur, Odisha provides operational synergies and proximity to the company's existing operations in the region.

The completion of this divestment within the anticipated timeframe demonstrates efficient execution by both parties. This transaction represents a pure asset sale structure, with Tata Steel focusing on portfolio optimization while IMFA strengthens its position in the domestic ferro alloy market.

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.