Financial Performance Highlights
Indian Metals & Ferro Alloys Limited (IMFA) reported its strongest financial performance in FY 2025-26 with revenue from operations at ₹2,826.31 crore (10.2% increase from ₹2,564.57 crore in FY25) and PAT improving to ₹424.36 crore from ₹378.09 crore, representing 12% growth. Earnings per share increased to ₹78.65 from ₹70.08 in the previous year. The company maintained net long-term debt-free status with strong cash reserves despite significant acquisition funding.
Operational Metrics and Strategic Developments
Ferro chrome production reached 267,301 tonnes (2.73% increase from FY25) with domestic sales surging 43.16% to 48,769 tonnes. The company completed the strategic acquisition of Tata Steel's ferro chrome plant at Kalinganagar on 27th February 2026 for base purchase consideration of ₹610 crore plus GST along with net working capital of ₹25.03 crore, totaling ₹707.27 crore from internal accruals. This acquisition includes four operational furnaces with 100,000 tpa capacity and one 33 MVA furnace under construction that will add 50,000 tpa capacity. Post-expansion, total ferro chrome capacity will reach 534,000 tpa, making IMFA India's largest producer.
Capital Expenditure and Financing
Significant capital expenditure of ₹1,335.49 crore was incurred, primarily for expansion projects, increasing capital work-in-progress to ₹791.74 crore from ₹74.39 crore. The company secured term loans of ₹296.33 crore for the Kalinga Nagar-1 Project, repayable in 24 quarterly installments starting June 2027, with interest rates ranging from 7.90% to 8.35%. The 120 KLD grain-based ethanol plant at Therubali faced delays and is now expected to commission in Q2 FY27, with no material financial impact anticipated.
Renewable Energy and ESG Initiatives
IMFA signed two major power purchase agreements: a 25-year PPA with JSW Renew Energy Twelve Limited for 70 MW hybrid renewable power (₹85.38 crore investment) and a 29-year PPA with EG URJA STROT PRIVATE LIMITED for 65 MW hybrid renewable power (₹110.18 crore investment). The company reduced scope 1&2 emissions by 11% per ton of product and water consumption by 1.88%, while reporting zero fatalities and zero human rights breaches.
Dividend and Capital Structure
The Board declared an interim dividend of ₹5 per share paid in November 2025 and recommended a final dividend of ₹7.50 per share, making total dividend ₹12.50 per share for FY26, totaling ₹53.95 crore in dividend payouts. Paid-up capital remained at ₹53.96 crore with 53,954,106 equity shares of ₹10 each, with promoters holding 58.69% as of 31st March 2026.
Regulatory Compliance and Auditing
Auditors Walker Chandiok & Co LLP issued an unmodified opinion, confirming adequate internal financial controls and compliance with accounting standards. The company paid penalties of ₹20 lakh to ROC and ₹33 lakh to Regional Director for violations under Sections 197 and 134 of Companies Act for previous years. Contingent liabilities totaled ₹122.90 crore for alleged excess extraction of minerals and ₹72.15 crore in income tax matters.
Outlook and Market Position
The company expects to achieve cumulative monthly production run rate of over 40,000 tonnes by end of calendar year 2026, with domestic market share expected to increase to 40% of output. Chrome ore production is targeted to scale up to 1.2 million tpa by FY31. Market capitalization as of 30th March 2026 stood at ₹6,487.98 crore, reflecting strong investor confidence in the company's expansion strategy and market leadership position.