Kirloskar Ferrous Industries Ltd

Financial performance

• Pig iron production: 1,65,120 MT vs 1,57,112 MT; +5%.
• Castings production: 43,800 MT vs 36,929 MT; +19%.
• Tube production: 51,968 MT vs 56,558 MT; -8%.
• External sales: 1,28,737 MT vs 1,32,392 MT; -3%.
• Casting sales: 41,345 MT vs 34,941 MT; +18%.
• Tube sales: 41,512 MT vs 48,461 MT; -14%.
• Q1 EBITDA margin: 12%–13%.
• Realizable capacity across six foundries: 270,000 MT/yr.

Project progress and capacity

• 35 MW solar plant commissioning; 12 windmills (2.1 MW each) expected by Jun–Sep FY27.
• Solapur: 2-part foundry, 15,000 MT/yr; no-bake foundry 1,250 MT/mo by Oct.
• Rajpura: Phase 1 40,000–50,000 MT/yr; Phase 2 to ~70,000 MT/yr; total ~110,000 MT across six foundries.
• Total realizable capacity across six foundries ~270,000 MT/yr (Koppal ~110k, Solapur ~90k, Rajpura ~70k).
• Koppal pig iron upgrades; liquid metal target ~900,000–1,000,000 MT/yr; 0.5 MT pig iron for sale.
• Large casting capacity target: one customer; Solapur no-bake/2-part capacity ~1,250 MT/mo; 1 year to reach 500–600 MT/mo.

Outlook and guidance

• Capex guidance for the year: INR 600–700 crores; higher in subsequent years.
• Tube capacity target: ~350,000 MT/yr; expansion through expander mill (2 years) and beyond to ~400,000 MT/yr.
• Pig iron capacity: target ~900,000–1,000,000 MT/yr; potential to sell ~0.5 MT if steel-making persists.
• Realizable castings capacity target: ~270,000 MT/yr; plan to reach ~300,000 MT in medium term.
• Medium-term revenue aspiration: INR 14,000 crores with 3L casting, 3L casting sales, 4L tube sales.

Q&A highlights

• Q1 EBITDA seen at 12–13%; improvement expected from pig iron pricing and casting demand.
• Pig iron volumes guided ~7,00,000 MT for the year; volumes to be supported by exports.
• Castings growth expected >15% in remaining quarters; price realization to improve with commodity trends.
• Solapur large-casting foundry: 1,250 MT/mo; potential to expand if demand warrants.
• Power trading benefits reduced by regulation; solar/wind expected to yield 70–80 crores annual savings.
• Forest development fee contingent liability ~INR 350 crores; sub judice; judgment pending.

Operational update

• Additional 35 MW DC solar plant at Mantha, Helas, Jalna, Maharashtra completed; operations commenced on 6 August 2026.

Capacity and project scope

• Total Jalna solar capacity now 105 MW DC.
• Project cost for the enhancement ₹97 crore net of recoverable taxes.

Financing and impact

• Financed by borrowings and internal accruals.
• Captive generation to reduce power costs.

Director changes

• Reappointment of Independent Director Sathya Moorthy Venkataramani for term up to 21 Oct 2031 (AGM 5 Aug 2026).
• Appointment of Independent Director Pallavi Pratap Gokhale for term up to 11 Jun 2031.

Meeting Details

• Date and time: 6 August 2026 at 4:00 p.m. IST.
• Type and mode: group, virtual conference call for investors and analysts.
• Organiser: Kirloskar Ferrous Industries Limited.

Purpose

• Discuss unaudited standalone and consolidated results for quarter ended 30 June 2026.

Additional Notes

• Audio recording of the conference call uploaded on the company's website.

AGM Details

• AGM held on 5 August 2026 at 4:00 p.m. via VC/OAVM.
• Record date for voting: 29 July 2026; total members on record: 93,171.
• Attendance via VC: Promoter Group 11, Public 66.

Key Resolutions

• Resolution 1 (Ordinary): Adoption of Audited Financial Statements; Passed.
• Resolution 2 (Ordinary): Confirmation of Interim and Final Dividend; Passed.
• Resolution 3 (Ordinary): Reappointment of Nishikant Balakrishna Ek as Executive Director—Operations; Passed.
• Resolution 4 (Ordinary): Ratification of remuneration of Cost Auditor; Passed.
• Resolution 5 (Special): Board authority to borrow up to ₹1,000 crores via debentures; Passed.
• Resolution 6 (Special): Reappointment of Sathya Moorthy Venkataramani as Independent Director to 21 Oct 2031; Passed.
• Resolution 7 (Special): Appointment of Pallavi Pratap Gokhale as Independent Director to 11 Jun 2031; Passed.

Voting Results

• Resolution 1: Passed with near-unanimous in-favour.
• Resolution 2: Passed; dividend confirmed and declared.
• Resolution 3: Passed; strong approval with limited opposition.
• Resolution 4: Passed; cost auditor remuneration ratified.
• Resolution 5: Passed; borrowing authority granted.
• Resolution 6: Passed; independent director reappointed.
• Resolution 7: Passed; independent director appointment.

Dividend

• Interim dividend approved and Final dividend declared for the financial year.

Directors

• Executive Director—Operations reappointed for the next term.
• Independent Directors appointed/reappointed for specified terms.

Auditors

• Cost Auditor remuneration ratified.

Borrowings & Other Approvals

• Board empowered to borrow up to ₹1,000 crores via non-convertible debentures.

Related Party Transactions

• No material related party transactions disclosed.

Meeting Details

• Date: 5 August 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve unaudited standalone and consolidated financial results for quarter ended 30 June 2026.

Other Notes

• No other material notes disclosed.

AGM details and dividend proposal

• 35th AGM on 5 August 2026 at 4:00 PM IST via VC/OAVM.
• Final dividend of ₹3 per equity share for FY2025–26 proposed for approval.
• Record date fixed at 17 July 2026 to determine entitlements.
• Dividend payout within 30 days of AGM; TDS applicable.
• E-voting cut-off date 29 July 2026; remote voting 2–4 August 2026.
• Annual report and AGM notice available electronically on company and BSE sites.
• AGM held without physical presence; attendance via VC/OAVM.