Kirloskar Industries Limited has informed stock exchanges about its material subsidiary Kirloskar Ferrous Industries Limited (KFIL) receiving rating reaffirmation from ICRA Limited dated December 30, 2025. The parent company filed the disclosure under Regulation 30 of SEBI Listing Regulations on December 31, 2025, with the credit rating agency maintaining a stable outlook for the integrated steel and casting manufacturer.

Regulatory Disclosure and Corporate Structure

Kirloskar Industries Limited, trading under BSE scrip code 500243 and NSE scrip code KIRLOSIND, submitted the mandatory disclosure regarding its listed material subsidiary's rating update. Company Secretary Ashwini Mali signed the communication to both BSE and NSE, ensuring compliance with listing obligations for material subsidiary updates.

Strong Market Position and Financial Performance

ICRA emphasized KFIL's established position as one of the leading manufacturers of foundry-grade pig iron and ferrous castings in the domestic market. According to company management, KFIL holds a healthy market share of 22-25% in the foundry-grade pig iron segment and 19-20% in the castings segment.

The company's financial metrics remain comfortable despite commodity headwinds:

Backward Integration and Manufacturing Infrastructure

The rating agency highlighted KFIL's competitive cost structure achieved through backward integration initiatives. The company operates a coke oven plant, captive power generation facilities, and a pulverized coal injection (PCI) plant, leading to substantial cost savings. The commencement of operations at the Bharath iron ore mine has partially reduced reliance on external iron ore purchases.

Expansion Plans and Investment Outlook

ICRA noted KFIL's substantial capital expenditure plans of ₹400-500 crores per annum over the next three years. These investments will focus on setting up an alloy steel plant, debottlenecking operations, and cost-saving projects, including increasing captive renewable energy capacities. The rating agency identified potential project execution risks and possible delays in capacity ramp-up if commissioning coincides with cyclical downturns.

Credit Assessment and Rating Outlook

The stable outlook reflects KFIL's established market position and efficient cost structure, expected to maintain comfortable credit metrics going forward. ICRA assessed the company's liquidity position as adequate, with unutilized fund-based limits of around ₹328 crores as of November 2025. Rating upgrades could occur if the consolidated total debt-to-operating profit ratio remains below 0.50 times on a sustained basis, while downgrades could result if this ratio exceeds 1.50 times consistently.

Kirloskar Ferrous Industries Limited has announced a temporary suspension of operations at its Jejuri plant in Maharashtra, effective December 26, 2025. The company informed the BSE about this operational decision under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Suspension Details

The temporary halt in operations is scheduled to last approximately fifteen days and is being implemented to facilitate upgrade activities at the facility. The company has characterized this as a planned suspension specifically aimed at enhancing the plant's capabilities.

Regulatory Compliance

The announcement was made through a formal communication to the BSE. Company Secretary Mayuresh Gharpure signed the disclosure document, ensuring compliance with listing obligations. The communication was digitally signed and timestamped on December 26, 2025, at 21:53:48 IST.

Company Background

Kirloskar Ferrous Industries Limited operates as part of the Kirloskar Group and maintains its registered office at 'One Avante', Level 5, Karve Road, Kothrud, Pune. The company operates in the steel sector and has been transparent in communicating this temporary operational adjustment to its stakeholders and the stock exchange.