Merger Details

The Board of Directors of KFIL had approved the Scheme of Arrangement and Merger by Absorption of Oliver Engineering Private Limited (OEPL) and Adicca Energy Solutions Private Limited (AESPL) with KFIL and their respective shareholders on August 4, 2025.

The Hon'ble National Company Law Tribunal (NCLT), Mumbai sanctioned the scheme vide order dated June 2, 2026. The merger was effective from the appointed date of April 1, 2025.

All assets, liabilities, reserves, and surplus of the transferor companies were transferred to and vested in KFIL. The financial results for FY26, originally approved and filed on May 7, 2026, were updated to reflect the merger. Previous year's figures were restated as per Ind AS 103 - Business Combinations.

Unabsorbed depreciation and carried forward losses of the transferor companies were transferred to KFIL. Management evaluated the tax effect and recognized ₹141.28 crores as deferred tax asset as of April 1, 2025. During FY26, these losses and depreciation were utilized for income tax computation, resulting in a reversal of ₹110.38 crores of current tax expense.

The merger was accounted using the "pooling of interest method" as per Appendix C of Ind AS 103. Comparative financial information was restated as if the merger had occurred from the beginning of the comparative period.

Financial Results - Standalone (₹ in Crores)

Income Statement Highlights:

  • Revenue from Operations: Q4 FY26: ₹1,817.17 | FY26: ₹6,888.57 (FY25: ₹6,554.22)
  • Other Income: Q4 FY26: ₹44.35 | FY26: ₹62.36 (FY25: ₹49.69)
  • Total Income: Q4 FY26: ₹1,861.52 | FY26: ₹6,950.93 (FY25: ₹6,613.91)
  • Profit Before Tax: Q4 FY26: ₹169.87 | FY26: ₹494.17 (FY25: ₹405.86)
  • Tax Expense: Q4 FY26: ₹44.13 | FY26: ₹(10.57) (credit) (FY25: ₹114.86)
  • Profit After Tax: Q4 FY26: ₹125.74 | FY26: ₹504.74 (FY25: ₹291.00)
  • Earnings Per Share (₹): Q4 FY26: Basic ₹7.63, Diluted ₹7.61 | FY26: Basic ₹30.63, Diluted ₹30.53 (FY25: Basic ₹17.69, Diluted ₹17.59)

Exceptional Items:

An exceptional item of ₹17.66 crore was recorded in the quarter ended December 31, 2025 (Q3 FY26). This was due to the impact of the Government of India notifying the four Labour Codes on November 21, 2025, which changed the "wage definition." The impact was related to gratuity and compensated absences.

Dividend:

The Board declared an interim dividend of ₹3 per equity share (60%) for FY26 on February 10, 2026, which was paid on March 2, 2026. The Board meeting on June 12, 2026, recommended a final dividend of ₹3 per equity share (60%) for FY26, subject to shareholder approval at the ensuing AGM.

Capital Raising:

During the quarter, ₹300 crores was raised via commercial paper issuance for working capital requirements and general corporate purposes. The outstanding value of commercial papers as of March 31, 2026, was ₹294.98 crores.

Share Capital:

Consequent to the allotment of 66,260 equity shares (₹5 each) pursuant to the KFIL Employee Stock Option Scheme during the quarter, the paid-up equity share capital increased to ₹82.46 crores (164,921,643 shares).

Key Financial Ratios - Standalone

  • Debt to Equity Ratio: 2.74 (Mar-26)
  • Debt Service Coverage Ratio: 2.23 (Annualized)
  • Interest Service Coverage Ratio: 4.96 (Annualized)
  • Net Worth: ₹2,485.48 crores (Mar-26)
  • Current Ratio: 1.11 (Mar-26)
  • Operating Margin: 11.96% (FY26)
  • Net Profit Margin: 7.33% (FY26)

Financial Results - Consolidated (₹ in Crores)

The consolidated results include the subsidiaries and the impact of the merger.

  • Revenue from Operations: FY26: ₹6,888.57 (FY25: ₹6,564.23)
  • Profit After Tax (attributable to equity shareholders): FY26: ₹507.22 (FY25: ₹294.02)
  • Earnings Per Share (₹): FY26: Basic ₹30.78, Diluted ₹30.68 (FY25: Basic ₹17.87, Diluted ₹17.77)

Segment Information - Consolidated

The company operates in three segments: Casting, Tube, and Steel.

  • Casting Segment Revenue: FY26: ₹4,314.19 crores
  • Tube Segment Revenue: FY26: ₹2,342.74 crores
  • Steel Segment Revenue: FY26: ₹1,697.54 crores

Cash Flow Statement - Standalone

  • Net Cash from Operating Activities: FY26: ₹941.98 crores
  • Net Cash used in Investing Activities: FY26: ₹(443.74) crores
  • Net Cash used in Financing Activities: FY26: ₹(453.47) crores
  • Cash and Cash Equivalents at end: ₹86.95 crores (Mar-26)