Date: 6 August 2026

Financial Results (Operational Highlights)

Production Quantities Q1 FY27 vs Q1 FY26:

  • Pig Iron: 165,120 metric tons (vs 157,112 tons) - +5% YoY
  • Castings: 43,800 metric tons (vs 36,929 tons) - +19% YoY
  • Tubes: 51,968 metric tons (vs 56,558 tons) - -8% YoY

Sales Quantities Q1 FY27 vs Q1 FY26:

  • Pig Iron (External): 128,737 metric tons (vs 132,392 tons) - -3% YoY
  • Castings: 41,345 metric tons (vs 34,941 tons) - +18% YoY
  • Tubes: 41,512 metric tons (vs 48,461 tons) - -14% YoY

Current EBITDA Margin: 12-13% for Q1 FY27

Operational Updates & Expansion Plans

Current Projects Under Execution:

  • 35-megawatt solar plant in commissioning stage
  • 12 windmills of 2.1 megawatt each expected commissioning June-September 2026
  • 2-part foundry in Solapur with 15,000 metric ton per annum capacity for large castings
  • Rajpura foundry expansion in 2 phases:
  • Phase 1: Expand from 25,000 to 40,000-50,000 metric tons per annum (currently at 2,200 tons/month)
  • Phase 2: Expand to 70,000 metric tons per annum (6,000 tons/month)
  • Hiriyur pig iron plant upgradation to 360,000 metric ton capacity with efficiency improvements
  • Oxygen plant and enhanced pulverized coal injection in Koppal blast furnaces (expected completion Feb-Mar 2027)
  • Jejuri rolling capacity enhancement from 15,000 to 25,000 metric tons (240,000 tons external sales of alloy steel products)
  • Premium couplings project in Baramati (ordering in next few weeks)

Long-term Capacity Targets:

  • Total casting capacity across 6 foundries: 270,000 metric tons per annum
  • Casting sales target: 300,000 metric tons per annum (medium term)
  • Tube capacity target: 350,000-400,000 metric tons per annum
  • Pig iron production target: 900,000 metric tons per annum (possibly 1 million tons)
  • External steel sales target: 240,000 metric tons

Cost Pressures & Challenges

Power and Fuel Costs:

  • Increased by INR 58 crore year-on-year in Q1 FY27
  • Breakdown: INR 28-29 crore due to rate increase, INR 28-29 crore due to quantity increase
  • LPG costs in Solapur doubled compared to pre-war levels
  • Regulatory changes impacted power trading benefits (INR 10 crores per annum benefit lost)
  • Green power usage reduced from 17 hours to 8 hours allowed

Other Cost Factors:

  • Forest development fee contingent liability of INR 350 crores (8% fee, Supreme Court case sub judice)
  • Coking coal costs expected to remain high through June-August 2026 period

Market Conditions & Guidance

Volume Guidance for FY27:

  • Pig Iron: Target close to 700,000 metric tons
  • Castings: Expected 17-20% growth (from 162,000 to ~188,000 tons)
  • Steel (External): Target 100,000-110,000 metric tons (+20% growth from 84,000 tons)
  • Tubes: Expected 10% volumetric growth
  • Overall: At least 15% volumetric growth expected

Market Outlook:

  • Pig iron prices showing improvement with international prices supporting domestic prices
  • Casting demand strong across tractors, automobiles, earthmoving equipment, stationary engines
  • Tube market subdued due to oil and gas sector slowdown and Chinese dumping
  • Order book: 23,000 tons from ONGC and Oil India (expected completion in next 2 quarters)

Capital Expenditure

Capex Plan:

  • Current year (FY27): INR 600-700 crores
  • 4-year plan: INR 3,000-3,500 crores
  • Major projects: Steel plant at Koppal, expander mill for large capacity seamless tubes at Baramati, beneficiation and pellet plant, iron ore mines operationalization at Koppal

Technology & Value Addition

Machining Capabilities:

  • Machine shops operational in Koppal, Solapur, and Rajpura
  • Supplying fully machined components ready for assembly
  • Expanding machining capacity across all locations

Advanced Manufacturing:

  • 3D printing and proto manufacturing facility operational
  • Exploring compacted graphite castings and large exotic steel castings
  • No-bake resin sand foundry capabilities being developed

Management Outlook

Management expressed optimism about improved performance in coming quarters due to:

  • Stabilization/improvement in commodity prices
  • Price increase pass-through to customers in castings and steel businesses
  • Volume recovery in remaining three quarters of FY27
  • Completion of ongoing expansion projects