Key Quantitative Figures (Q2 FY27 Performance)

Financial Performance:

  • Total Revenue: ₹2,057 crores (16% YoY growth from ₹1,755 crores)
  • Profit Before Tax (PBT): ₹138 crores (15% YoY growth from ₹120 crores)

Segment-wise Revenue:

  • Pig Iron: ₹581 crores (20% YoY growth from ₹483.9 crores)
  • Castings: ₹633 crores (30% YoY growth from ₹487.8 crores)
  • Steel: ₹206 crores (48% YoY growth from ₹139 crores)
  • Tubes: Approximately ₹637 crores (0.5% YoY growth)

Production Volumes (6 months):

  • Pig Iron Hot Metal: 331,896 metric tons (3% YoY growth from 322,000 metric tons)
  • Castings: 93,000 metric tons (20% YoY growth from 78,000 metric tons)
  • Steel: 133,000 metric tons (14% YoY growth from 117,000 metric tons)
  • Tubes: 7.5% YoY decline

Q2 FY27 Sales Volumes:

  • Pig Iron External Sales: 134,000 metric tons (3.5% YoY growth from 128,000 metric tons)
  • Castings Net Sales: 47,888 metric tons (20% YoY growth from 39,980 metric tons)
  • Tubes: 48,547 metric tons (2% YoY decline from 49,588 metric tons)

Realization Per Ton:

  • Pig Iron: ₹43,054 (12.4% YoY increase from ₹38,000)
  • Castings: ₹130,000 (6.8% YoY increase from ₹121,000)
  • Tubes: ₹116,953 (1.6% YoY increase from ₹113,998)
  • Steel: ₹77,500 (7.6% YoY increase from ₹70,700)

Operational Highlights:

  • Export: 31,000 metric tons of pig iron shipped during the quarter
  • All three pig iron furnaces operational with maintenance stoppages in earlier months
  • Casting demand strong from tractor, automotive, earth moving, and stationary engine markets

Expansion Projects and Capacity Updates

Foundry Expansion:

  • Solapur Phase 1 & 2: Production ramping to 5,200 metric tons/month, targeting 6,000 metric tons/month (18,000/quarter)
  • Rajpura Phase 2: To be commissioned by 31 March 2027, adding capacity to ~4,000 metric tons/month
  • Large Casting (Two-Part/No-Bake) Foundry: 15,000 metric tons/year capacity, commissioning expected by January 2027 for castings up to 2 tons

Steel and Tube Projects:

  • Jejuri Rolling Mill capacity expansion in progress
  • Baramati Expander mill project in execution
  • Ahmednagar small piercing mills for product portfolio improvement
  • Koppal Alloy Steel Plant: Technology design partners finalized, equipment ordering expected in 2-3 months, 20-month execution timeline

Machining Capacity:

  • Current machining revenue: ₹50-60 crores annually (~₹5 crores/month)
  • Target: ₹100 crores machining revenue within 1-2 years
  • Machine shops established at all three locations (Koppal, Solapur, Rajpura)

Market Outlook and Demand Commentary

Pig Iron:

  • International prices were favorable during the quarter leading to export opportunity
  • Domestic market showing recovery from challenging previous year
  • Expect production increase with oxygen enrichment and PCI implementation by year-end

Castings:

  • Strong demand continues from all sectors
  • Some potential corrections expected in tractor industry demand
  • Auto and earth moving equipment demand remains strong
  • Commitment to customers exceeds 300,000 metric tons annually against current capacity of 250,000 metric tons

Tubes:

  • Recovery from weak Q1, but market remains challenging
  • Anti-dumping duty extended for 5 years against Chinese imports
  • Targeting 100,000+ metric tons in H2 FY27 to achieve annual growth
  • Expect margin improvement with new orders at better pricing

Steel:

  • Prices improved but strong pickup in steel demand not yet visible

Management Transition

Succession planning underway with recent appointments including Deputy MD and CFO. Management emphasized smooth transition and organizational continuity, with exact timelines not specified.