Company Overview

Kirloskar Ferrous Industries Limited (KFIL), a flagship company of Kirloskar Group, reported strong financial performance for FY2025-26 with revenue from operations increasing 5% to ₹6,888.57 Crores and profit after tax reaching ₹504.74 Crores (₹507.22 Crores consolidated). The company declared a total dividend of 120% for FY26, including an interim 60% already paid and a final 60% recommended subject to shareholder approval at the 35th AGM scheduled for August 5, 2026.

Strategic Developments and Merger Completion

The company completed the significant merger of Oliver Engineering Private Limited and Adicca Energy Solutions Private Limited effective April 1, 2025, following NCLT approval on June 2, 2026. This merger strengthened integrated operations and added machining capabilities, resulting in a deferred tax asset recognition of ₹141.28 Crores on transferred losses and depreciation. During FY26, ₹110.38 Crores of current tax expense was reversed due to utilization of carried forward losses.

Operational Performance

Casting volume grew 15% to 1.53 lakh MT with expanded customer base from 26 to 29 customers. Tube sales reached a record 1.89 lakh MT (12% growth), including a 17,000 MT contract with a PSU for oil & gas applications. Steel business volume grew 17% to 85,644 MT. The company made major investments in green energy, achieving 82 MW solar capacity with targets for additional 35 MW solar and 25 MW wind by Q2 FY27. Green Steel certification was obtained at the Jejuri plant with DNV verification under ISO 14067:2018.

Financial Position and Subsidiaries

Total assets stood at ₹6,588.95 Crores with property, plant and equipment valued at ₹6,477.43 Crores (net block ₹3,643.42 Crores). The company maintained a strong financial position with current ratio of 1.11 and debt-equity ratio of 0.27. Subsidiary ISMT Enterprises SA was liquidated during the year, resulting in a gain of ₹0.50 Crores. Other subsidiaries include Tridem Port and Power, Nagapattinam Energy, Best Exim, Marshal Microware Infrastructure, and Success Power and Infraprojects.

ESG and Sustainability Performance

The company demonstrated strong ESG commitment with 100% employee training coverage (2,508 employees) and 100% worker training (6,756 workers). Safety performance improved significantly with Lost Time Injury Frequency Rate for employees reducing to 1.29 (from 2.80 in FY25) and for workers to 1.67 (from 2.02). Environmental metrics included total energy consumption of 19,288,102.33 GJ (3.5% from renewable sources), water withdrawal of 2.85 million kiloliters, and GHG emissions of 1.86 million metric tonnes CO2 equivalent. CSR expenditure totaled ₹9.41 Crores focused on education, health, environment, and rural development.

Corporate Governance and Regulatory Compliance

The Board saw appointments including Ms. Aditi Atul Kirloskar and Mr. Aman Rahul Kirloskar as Additional Directors. Secretarial Audit Report by M. J. Risbud & Co. contained no qualifications, with statutory auditors Kirtane & Pandit LLP and P G Bhagwat LLP issuing unmodified opinions. The company faces ongoing tax litigations totaling ₹90.59 Crores and contingent liabilities of ₹478.14 Crores. The AGM agenda includes financial statement adoption, dividend declaration, director reappointments, and special resolutions for ₹1,000 Crore NCD issuance.

Forward Outlook

The report contains forward-looking statements based on reasonable assumptions subject to industry developments, market conditions, and government regulations. The company continues to focus on expansion projects including Jambunatha iron ore mine (1.2 MTPA capacity), Koppal steel plant expansion, and Baramati tube mill expansion to 4 lakh MT capacity.