Kirloskar Ferrous Reports Q4 FY26 Results: Focus on Expansion, Green Steel, and Capacity Growth

Kirloskar Ferrous Reports Q4 FY26 Results: Focus on Expansion, Green Steel, and Capacity Growth​

Kirloskar Ferrous Industries Limited (KFIL) reported its fourth quarter and fiscal year 2026 results, detailing strong operational growth in specific segments while noting the impact of market conditions on overall output. During the investor call, management highlighted continuous efforts to enhance casting and tube capacity, coupled with significant strategic investments in green energy and plant modernization.

Q4 FY26 Financial Performance​

For the fourth quarter of FY26, KFIL reported a total sales value of INR 1,781 crores. Looking at the full year, the company reported total sales of INR6,861 crores, compared to INR6,628 crores in the previous year.

Key figures from the quarter and year-end period are outlined below:


Production and Sales Highlights (Q4 FY26):


Overall, the company reported that total year production for FY25-26 reached 6,23,939 metric tons, down from 6,31,103 metric tons in the previous year. This major drop was attributed to the stoppage of the Hiriyur blast furnace for approximately 3.5 months due to market conditions.

Operational Strategy and Growth Pillars​

Management emphasized the strong growth trajectory in the casting division, especially after the inclusion of Oliver’s castings. Standalone casting production showed a year-on-year increase of about 7%, while incorporating Oliver saw a 16% growth in production.

The company confirmed its commitment to the merger of Oliver into Kirloskar Ferrous Industries, which is expected to conclude in the coming months, allowing the benefit of the merger to be recognized in FY25-26 itself.

Capacity Expansion and Future Volumes:

• Casting: KFIL management projects a substantial volume growth, with visibility for the next 3 to 4 years pointing towards an annual volume increase up to 3 lakh metric tons.
• Tube: The company plans to expand its seamless tube capacity in Baramati, aiming for a total capacity of 4 lakh metric tons per annum.
• New Facilities: Plans include commissioning a sixth foundry and developing capacity for a seventh foundry to meet increasing demand and service customers effectively.
• Solapur: While current utilization in Solapur was 4,200 metric tons per month last quarter, the company is working to increase this average to 5,000 metric tons over the next year.
• Guidance: For FY27, the production target for the casting division remains set at a range of 1,85,000 to 1,90,000 metric tons.

Focus on Green and Integrated Steel​

A significant part of KFIL's strategy revolves around sustainable and vertically integrated production. The company is heavily investing in transitioning toward green steel production, particularly at the Jejuri facility.

To bolster environmental initiatives and secure long-term supply, the company announced plans for major power generation advancements:

• Installation of a 35 megawatts solar power plant by July and August.
• Commissioning of a 25 megawatts wind power plant by September.
• The combined solar and wind efforts are expected to contribute to approximately 90 megawatts of solar equivalent and wind power.

Furthermore, the company plans to use its natural gas and waste heat recovery power, alongside potential investments in upgrading the blast furnace at Hiriyur, which could boost capacity to near 3,00,000 metric tons per annum.

Financial Outlook and Investment​

The company noted that the EBITDA margin is expected to improve, with management maintaining a target of 15% EBITDA, having currently achieved levels just above 12.5%.

In terms of investments, the group plans to continue investing at a rate of approximately INR600 crores to INR700 crores annually. These investments are earmarked for developing essential infrastructure, including operationalizing iron ore mines, beneficiation plants, and pellet plants to strengthen backward integration, creating a chain from "mine to machine castings and mine to seamless tubes."

KIRLOSIND Stock Price Movement​

On Friday, Kirloskar Industries Limited shares shed ₹64.30, slipping 2.06% to settle at ₹3049.80. The equity traded on a total volume of 4,382 shares during the session.