Kirloskar Ferrous Industries Reports Q1 and FY Financial Results Amid Merger Completion

Kirloskar Ferrous Industries Reports Q1 and FY Financial Results Amid Merger Completion​

Kirloskar Ferrous Industries Limited (KFIL) has released its audited financial results for the quarter and the full year ended March 31, 2026. The company reported the results following a significant operational event: the completion of a Scheme of Arrangement involving two transferor companies.

The Board of Directors approved these post-merger audited financial statements on June 12, 2026.

Consolidated Financial Performance Highlights (Q1 and FY ended March 31, 2026)​

KFIL's consolidated results show specific performance metrics across various periods. The company operates in three segments: Iron Castings, Tubes, and Steel, with segment information disclosed in the consolidated financial results for the quarter and year ended March 31, 2026.

Key consolidated figures include:

Merger and Restatement Details​

The financial results submitted were post-merger, reflecting the Scheme of Arrangement and Merger by Absorption involving 'Oliver Engineering Private Limited' ('Ofpl') and 'Adicca Energy Solutions Private Limited' ('AESPL'). This merger was effected with KFIL and their respective shareholders. The process followed the sanction of the scheme by the Hon'ble National Company Law Tribunal (NCLT) Mumbai Bench, dated June 2, 2026.

Pursuant to the terms of the Scheme, all assets, liabilities, reserves, and surplus from the transferor companies have been transferred into KFIL. Consequently, the financial results for the year ended March 31, 2026, which were initially approved on May 7, 2026, have been updated to reflect the merger in accordance with Ind AS 103. Previous year's figures have also been restated as per Ind AS 103 (Business Combinations).

Management conducted an evaluation of the unabsorbed depreciation and carried forward losses from the transferor companies, recognizing an amount or Rs. 141.28 Crores as a deferred tax asset as of April 1, 2025. The company also recorded the impact of changes in the "wage definition" related to gratuity and compensated absences as exceptional items for the quarter ended December 31, 2025.

Financial Position and Key Ratios​

As of March 31, 2026, the financial positions are summarized below:

Cash Flow Analysis​

For the year ended March 31, 2026, the net cash from operating activities stood at 941.98 Crores, down from 754.24 Crores in the previous year (after taxes paid of 10.25 Crores). Net cash from investing activities was negative at 443.75 Crores, primarily due to purchases of property, plant and equipment totaling 448.26 Crores.

Net cash flow from financing activities totaled a decrease of 453.47 Crores, driven by interest and other borrowing costs paid (125.14 Crores) and net proceeds from long-term borrowings (-168.61 Crores). This resulted in an increase of Cash and Cash Equivalents at the end of the period to 87.00 Crores.

KIRLOSIND Stock Price Movement​

Kirloskar Industries Limited shares closed higher today after rallying by 2.51% to settle at ₹3129.3. The stock traded within a daily range of ₹3084.5 and ₹3150.9, with 1,925 shares being traded during the session.