Financial Performance - Standalone (Q1 FY27)

Revenue & Income:

  • Revenue from Operations: ₹1,771.5 Crores (Q4 FY26: ₹1,817.2 Cr, Q1 FY25: ₹1,698.1 Cr)
  • Other Income: ₹17.4 Crores (Q4 FY26: ₹44.4 Cr, Q1 FY25: ₹8.5 Cr)
  • Total Income: ₹1,788.9 Crores

Expenses Breakdown:

  • Cost of Materials Consumed: ₹1,005.1 Crores (Q4 FY26: ₹979.9 Cr, Q1 FY25: ₹957.7 Cr)
  • Employee Benefits Expense: ₹98.9 Crores (Q4 FY26: ₹90.9 Cr, Q1 FY25: ₹87.1 Cr)
  • Finance Costs: ₹29.5 Crores (Q4 FY26: ₹29.9 Cr, Q1 FY25: ₹34.0 Cr)
  • Depreciation and Amortization: ₹69.3 Crores (Q4 FY26: ₹69.2 Cr, Q1 FY25: ₹64.1 Cr)
  • Other Expenses: ₹505.0 Crores (Q4 FY26: ₹464.8 Cr, Q1 FY25: ₹399.9 Cr)
  • Changes in Inventories: (₹53.2) Crores (negative indicates inventory reduction)

Profitability:

  • Profit Before Tax (before exceptional items): ₹134.4 Crores (Q4 FY26: ₹169.9 Cr, Q1 FY25: ₹127.2 Cr)
  • Exceptional Items: ₹29.3 Crores (not specified nature)
  • Profit Before Tax (after exceptional items): ₹105.09 Crores
  • Profit After Tax: ₹82.3 Crores (Q4 FY26: ₹125.7 Cr, Q1 FY25: ₹235.5 Cr)
  • EBITDA (excluding other income & before exceptional items): ₹215.7 Crores (Q4 FY26: ₹224.6 Cr, Q1 FY25: ₹216.9 Cr)

Operational Metrics - Sales Volume & Realizations

Sales Volume (MT):

  • Pig Iron: 128,737 MT (QoQ: +2%, YoY: -3%)
  • Castings: 41,345 MT (QoQ: +6%, YoY: +18%)
  • Steel: 22,633 MT (QoQ: -9%, YoY: +13%)
  • Tubes: 41,512 MT (QoQ: -19%, YoY: -14%)

Sales Value (₹ Crores):

  • Pig Iron: ₹546 Cr (QoQ: +10%, YoY: +6%)
  • Castings: ₹527 Cr (QoQ: +5%, YoY: +24%)
  • Steel: ₹168 Cr (QoQ: -1%, YoY: +17%)
  • Tubes: ₹475 Cr (QoQ: -16%, YoY: -14%)
  • Others: ₹55 Cr (QoQ: -31%, YoY: -13%)

Realizations (₹/MT):

  • Pig Iron: ₹42,383 (QoQ: +7%, YoY: +9%)
  • Castings: ₹127,535 (QoQ: -1%, YoY: +5%)
  • Steel: ₹74,434 (QoQ: +9%, YoY: +4%)
  • Tubes: ₹114,521 (QoQ: +3%, YoY: 0%)

Consolidated Financial Performance

KFIL also provided consolidated financials showing similar trends to standalone performance with minor variations in employee benefits expense and exceptional items handling.

Project Updates & Capex Pipeline

Key Ongoing Projects with Completion Timeline:

1. Coke Bunker Heating with flue gases at Hiriyur Plant - Q3 FY27 (objective: reduce coke consumption)

2. 149 TPD Oxygen Plant at Koppal - Q4 FY27 (objective: reduce coke consumption and productivity improvement)

3. Machining capacity enhancement - ONGOING

4. New Foundry Line at Solapur - Phase 1: Q3 FY27 | Phase 2: Q4 FY28-29 (for large castings)

5. Solar Project - 35 MW - Q2 FY27 (power cost reduction)

6. Wind Mill Project - 25 MW - Q2 FY27 (power cost reduction)

Strategic Priorities for FY27

KFIL outlined five strategic pillars for FY27:

1. Cost Leadership: Through renewable energy (60 MW total), coke moisture reduction initiatives

2. Product Mix Upgrade: Focus on value-added castings, tubes for auto/bearing/hydraulics

3. Market Diversification: Grow export casting share, new customer additions

4. Operational Resilience: Debottlenecking capex, maintenance optimization

5. Sustainability & Governance: Green energy maximization, ESG disclosures alignment with SEBI BRSR Core

Macro Environment Context

The presentation noted strong domestic demand driven by government infrastructure spending, with specific mentions of:

  • Tractors: Healthy demand from mechanization and rural infrastructure
  • Commercial Vehicles: Growth supported by infrastructure and mining
  • Alloy Steel Market: 25.6% YoY consumption growth to 3.0 million tonnes in Q1 FY27
  • Input commodities: Steel demand robust, iron ore prices softened, coking coal prices firm

Company Overview

KFIL is an integrated ferrous manufacturer operating manufacturing facilities at Koppal (Karnataka), Hiriyur (Karnataka), Solapur (Maharashtra), Rajpura (Punjab), Jejuri (Maharashtra), Baramati (Maharashtra) and Ahilyanagar (Maharashtra).