Indian Metals & Ferro Alloys Ltd

Subject and board update

• Unaudited standalone and consolidated results for quarter ended 30 June 2026 released.
• Board approved the results on 4 August 2026.

Standalone financial highlights

• Standalone revenue from operations: ₹960.45 crore; total income: ₹972.42 crore.
• Standalone profit before tax: ₹256.82 crore; profit after tax: ₹191.49 crore.
• Standalone EPS: ₹35.49.

Consolidated financial highlights

• Consolidated total income: ₹973.36 crore; revenue from operations: ₹960.45 crore.
• Consolidated profit before tax: ₹258.31 crore; profit for the quarter: ₹192.59 crore; EPS: ₹35.65.

Renewable power agreement

• Definitive agreement to procure renewable power; aggregate consideration ₹110.18 crore payable in tranches through June 2027.

Financial Performance

• Q1 FY27 reported highest ever revenues and profitability.
• Q1 output reached 80,000 tonnes versus about 65,000 tonnes quarterly average.
• Realization around INR 119,000 per tonne in Q1; Q2 expected similar.
• Q4 forex MTM impact: INR 32 crores; Q1 forex gains; lower other expenses via cost efficiencies.
• Chrome ore stock on hand about 6 lakh tonnes; ferrochrome stock targeted 17–18k tonnes.
• FY27 tonnage guidance reduced from 400,000 to a lower level due to load limits.
• FY27 annual production guidance around 380,000 tonnes; FY28 475,000–500,000.

Operating Update

• KNR-1 first tapping expected around the third week of the month.
• KNR-2 now has four furnaces; run-rate targeted near 120,000 tonnes by Q4.
• Total capacity from KNR-1/2 about 0.5 million tonnes; ramp to 380k (FY27) and 475k–500k (FY28).
• Two transformer sets plus a spare ordered; 15 MVA capacity added; replacement planned in Q2/Q3.
• Gas cleaning plant work pending; load restricted to meet emission norms.

Q&A Highlights

• South Africa ferrochrome supply impact: tariff may affect chrome units; price outcome uncertain.
• Domestic sales mix around 19% in Q1; mix can shift between domestic and export.
• EBITDA per ton uplift not guided; full ramp could add INR 1,500–2,000 per ton.
• West Asia crisis: no material impact; 95% exports to Far East; freight costs up offset by prices.
• Met coke prices moved up slightly; potential Q3 impact on margins.

Outlook and Guidance

• FY27 production guidance ~380,000 tonnes; previously ~400,000.
• KNR-1/2 ramp to support higher volumes; first tapping this month; full commissioning by Q4.
• Annual capacity outlook: ~0.5 million tonnes; FY28 target 475,000–500,000.

Risks and Watchpoints

• Transformer loading constraints and gas cleaning plant work affecting load ramp.
• Power availability constraints; 15 MVA addition; potential partial load in near term.
• Environmental clearance for KNR-2 50k-ton furnace; clarity by mid-2027.
• Met coke and ore price volatility; currency and freight cost movements.

Resolutions proposed

• Special Resolution to appoint Dr Deepak Mohanty as Non-Executive Independent Director for five years from 30 June 2026.
• Ordinary Resolution to enhance commission to Independent Directors up to 0.5% of net profits, max ₹1.5 crore.

Outcome

• Outcome: results not yet announced; will be declared by 12 September 2026.

Director appointment details

• Role: Non-Executive Independent Director; term five years from 30 June 2026.
• Independence confirmed; background includes RBI, IMF, PFRDA, FICCI roles.

Capital and governance impact

• Capital impact: no share capital changes or buybacks proposed.

Meeting Details

• Date and time: Aug 12, 2026, 10:30 A.M. onwards.
• Type and mode: group meeting with investors/analysts; venue Mumbai (physical).
• Event/organiser: Investor Meetings by Indian Metals & Ferro Alloys Ltd.
• Key participants: company officials (Company Secretary & Compliance Officer).
• Purpose: general investor/analyst interaction under SEBI LODR.

Financial performance

• Revenue from operations: ₹2,826.31 Cr; prior year ₹2,564.57 Cr.
• PAT: ₹424.36 Cr; EPS: ₹78.65.
• EBITDA (pre-exceptional): ₹587.23 Cr; margin ~20.8%.
• Total Income: ₹2,893.05 Cr; Cash Profit: ₹487.30 Cr.
• Net worth: ₹2,691.73 Cr; Debt/Equity: 0.36.
• Interim dividend ₹5 per share; final ₹7.50 per share proposed.

Expansion and milestones

• KNR-2 Tata Steel ferro chrome plant acquired; 150,000 MT capacity.
• Four furnaces in KNR-2 operational; fifth furnace under construction.
• KNR-1 greenfield expansion progressing; commissioning in H1 FY27.
• Ethanol plant Therubali: 120 KLD; commissioning in Q2 FY27.
• 135 MW hybrid renewable energy programme; 70 MW PPA with JSW Renew Energy Twelve Ltd.
• 65 MW hybrid PPA contracted with EG URJA STROT for renewables.
• AmpIn Energy project terminated; ₹12.32 Cr refunded.

Operations and production

• Ferro Chrome production: 267,301 tonnes; domestic sales 48,769; exports 221,355.
• Chrome ore ramp-up to 810,612 tonnes; captive ore supply fully meeting needs.
• Power generation: 1,138 MU; total capacity ~204.5 MW; 135 MW under execution.
• Post-expansion ferro chrome capacity ~534,000 MT; total furnace capacity 256 MVA; 99 MVA under construction.
• Mining: Sukinda 273,802 t; Mahagiri 536,810 t; output growth toward 1.2 MT by FY31.

Capital structure and liquidity

• Equity share capital: ₹53.96 Cr; promoters hold 58.69%.
• Net worth: ₹2,691.73 Cr; Debt-to-Equity: 0.36.
• Long-term borrowings ₹293.41 Cr; current borrowings ₹630.28 Cr.
• Cash and cash equivalents ₹32.32 Cr; CWIP ₹794.46 Cr; gross block ₹2,563.56 Cr.
• Interim dividend ₹5 per share; final ₹7.50 per share proposed.

Governance and risk

• Board changes: Dr Barada Kanta Mishra appointed Non-Executive Chair in 2025.
• Nalini Mohanty retired; Bijay Das retired; Kiran Dhingra appointed Feb 2026.
• Independent Directors: Ravindran, Mishra, Amrein, Dhingra; MD Subhrakant Panda; MD & COO Mohapatra.
• Internal controls: Protiviti India engaged for 2026-27; 4 Board meetings in 2025-26.
• Secretarial: Sunita Jyotirmoy & Associates; statutory auditors Walker Chandiok.

ESG and CSR

• ESG: Scope 1&2 emissions reduced by 11%; 33.01% Renewable Purchase Obligation achieved via RECs.
• Renewables: 70 MW PPA with JSW Renew Energy Twelve; 65 MW with EG URJA STROT.
• ZLD: Zero liquid discharge across all sites; 100% fly ash utilisation.
• CSR reach: 27,11,170 beneficiaries across 690 villages; five CSR pillars.
• LTIFR: 0.170; no fatalities; 9,000 safety trainings conducted.

CSR and social impact

• CSR in aspirational Rayagada district: ₹23.20 Cr allocated.
• CSR spend FY2025-26: ₹10.12 Cr; approved ₹9.79 Cr; no unspent CSR liability.
• Bansidhar & Ila Panda Foundation and IMPaCT active in education, healthcare, infrastructure.
• Community impact: infrastructure, water, sanitation, livelihoods; education and women empowerment.
• CSR governance: CSR Committee chaired by Kiran Dhingra.

Audits and assurances

• Statutory audit: Walker Chandiok & Co; no material irregularities reported.
• Secretarial audit: Sunita Jyotirmoy & Associates; no qualification.
• Internal audit: Protiviti India for 2026-27; IFC and RCMM in place.

Outlook and risks

• India GDP growth forecast 6.8%-7.2% for FY2026-27; stainless steel demand supports ferro chrome.
• Material security: captive chrome ore; cost benefits from energy transition and renewables.
• Risks: commodity price volatility; energy costs; currency and policy shifts; geopolitical dynamics.

AGM details

• Date/time: 04 August 2026, 3:00 PM IST; mode: VC/OAVM; deemed venue: registered office.
• Record date for final dividend: 31 July 2026.
• Cut-off for remote e-voting/AGM voting: 28 July 2026.
• E-voting window: 31 July 2026 09:00 to 3 August 2026 17:00.
• Register closure: 01–04 August 2026; AGM will be conducted by VC/OAVM.

Dividend

• Interim dividend paid: Rs 5 per equity share (paid 11 Nov 2025).
• Final dividend proposed: Rs 7.50 per equity share; payable from 05 Aug 2026, subject to approvals.

Key resolutions

• Ordinary: Adoption of the standalone and consolidated financial statements for FY2025-26.
• Ordinary: Interim dividend approved and final dividend declared for FY2025-26.
• Ordinary: Re-appointment of Bijayananda Mohapatra as Director (rotating).
• Ordinary: Ratification of Cost Auditors’ remuneration for FY2026-27 (M/s S.S. Sonthalia & Co.).
• Special: Enhancement of remuneration to Mrs Shaifalika Panda for six years from 01 Jun 2026.

Director changes & appointments

• Appointment by postal ballot: Ms Kiran Dhingra appointed Independent Director for five years (effective 04 Feb 2026).
• Background: Bijayananda Mohapatra to be re-appointed; several directors retired/re-appointed in prior periods.

Auditors

• Cost Auditor: M/s S.S. Sonthalia & Co. appointed for 2026-27; remuneration Rs 1,00,000 plus expenses.
• Secretarial Auditor: M/s Sunita Jyotirmoy & Associates appointed for five years from 63rd AGM to 68th AGM.
• Statutory Auditor: Walker Chandiok & Co. LLP; remuneration noted in disclosures.

Material related party transactions

• RPT: Enhancement of remuneration payable to Mrs Shaifalika Panda (related party; CSR Chief).
• Term: 6 years from 01 Jun 2026; components include salary, perquisites, and performance pay; board approvals obtained.
• Related parties involved include spouses/relatives of MD and directors; RPTs are at arm’s length per statements.

Other material approvals

• Postal-ballot approval: Appointment of Kiran Dhingra as Independent Director approved 12 Mar 2026.
• Reminders: RPT disclosures, governance policies, and annual approvals filed as required.