Kirloskar Ferrous Industries Ltd Q4 FY26 Earnings Analysis
Published 18 Aug 2026 | Ferrous Metals | Market Cap: ₹7.1K Cr
Price
₹433
Market Cap
₹7.1K Cr
P/E Ratio
18.3
Earnings Summary
Targeting 15% volume growth in casting for FY27, aiming for ~1,85,000 to 1,90,000 metric tons including Oliver Engineering volumes. Kirloskar Ferrous aims for 15% volume growth in castings for FY27, targeting external sales of around 1,85,000 to 1,90,000 metric tons including Oliver Engineering.
📊 Revenue & Sales Performance
- →Targeting 15% volume growth in casting for FY27, aiming for ~1,85,000 to 1,90,000 metric tons including Oliver Engineering volumes.
- →Oliver Engineering expected to increase production from ~13,500 tons to 24,000 tons in FY27.
- →Solapur casting production targeted to rise from ~4,200 tons/month to ~5,000 tons/month (approx. 60,000 tons annually).
- →Seamless tube volume to grow by 10-11%, from 1,68,800 tons to about 1,88,700 tons in FY27.
- →Pig iron volumes primarily for external sales, with overall pig iron and steel prices expected to rise, aiding sales realization.
- →Plans to expand seamless tube capacity to 4 lakh tons/year by adding ~1,50,000 tons capacity.
- →Continuous capex of INR 600-700 crores annually for capacity expansion, backward integration, and foundry setup to support volume growth.
- →Long-term aim to increase casting volumes to 3 lakh metric tons per annum in 3-4 years through new foundries and product development.
📈 Profitability & Margins
- →Kirloskar Ferrous aims for 15% volume growth in castings for FY27, targeting external sales of around 1,85,000 to 1,90,000 metric tons including Oliver Engineering.
- →Seamless tube volume expected to grow 10-11% in FY27, with sales increasing from 1,68,800 to about 1,88,700 tons.
- →Anticipated recovery in sales realization for tubes by 5-6% in FY27, partially recovering last year's 10% value decline.
- →Power cost savings due to commissioning of solar (35 MW) and wind (25 MW) projects, expected INR 70 crores saved in FY26 and additional INR 45-90 crores in FY27.
- →EBITDA margins targeted to improve from around 12.5% towards a comfortable 15% level by managing volumes, realizations, cost efficiencies, and energy savings.
- →Continued capex of INR 600-700 crores annually planned for capacity expansions, backward integration (mines, pellet plants), and energy projects, supporting volume and profitability growth.
🏗️ Capital Expenditure Plans
- →Planned capex of about INR 600-700 crores per year across pig iron, foundry, steel, and tube segments.
- →Investment of INR 125-150 crores to upgrade Hiriyur blast furnace for capacity increase (up to 250,000-300,000 tons p.a.) and cost reduction; payback under 2 years.
- →Expansion of tube capacity at Baramati plant to 4 lakh metric tons per annum by adding 150,000 tons to existing 230,000 tons; expected investment around INR 500 crores over 1.5 years.
- →Commissioning of 25 MW wind and 35 MW solar power projects by August-September to enhance green energy utilization.
- →Battery storage systems planned to improve renewable energy utilization under new regulations.
- →Operationalization of Jambunath Gudda iron ore mines plus plans for beneficiation and pellet plants for quality and volume improvement.
- →Sixth and seventh casting foundries planned to meet volume growth targets up to 3 lakh tons per annum.
💰 Fundraising & Capital Structure
- →No explicit mention of any new fundraising through debt or equity in the transcript.
- →The company has been focusing on reducing borrowings; borrowing has been brought down substantially.
- →Capex plans for FY27 and FY28 are around INR 600-700 crores per year for various projects including tube capacity expansion, blast furnace upgrades, and backward integration.
- →The company expects to fund these investments through improved cash generation rather than new borrowing.
- →No clear indication of intent for equity raise or new debt issuance as of the current discussion.
📋 Order Book & Pipeline
- →R.V. Gumaste mentioned there are pending orders from the last tenders for the seamless tubes business, with expectations for new tenders this year to pick up more orders.
- →Export orders are growing, especially in the oil and gas segment, and infrastructure reconstruction is driving demand.
- →For pig iron, there is typically a 15-day order book, with monthly orders often booked in advance by regular customers.
- →The company is expecting to achieve a seamless tubes volume growth of about 10%-11% in FY27.
- →Casting orders target approximately 1,85,000 to 1,90,000 metric tons of production/sales in FY27, including at least 5,000 tons from Solapur and 25,000 from Oliver.
- →They expect to reach 45,000 tons per quarter in casting volumes soon after merger benefits materialize.
- →ONGC orders, seen as high-value, are delayed but expected to pick up soon.
Key Metrics
Frequently Asked Questions
What were Kirloskar Ferrous Industries Ltd Q4 FY26 results?
Targeting 15% volume growth in casting for FY27, aiming for ~1,85,000 to 1,90,000 metric tons including Oliver Engineering volumes. Kirloskar Ferrous aims for 15% volume growth in castings for FY27, targeting external sales of around 1,85,000 to 1,90,000 metric tons including Oliver Engineering.
What is Kirloskar Ferrous Industries Ltd share price analysis?
Kirloskar Ferrous Industries Ltd currently shows a neutral. The stock trades at a P/E of 18.2 with a market cap of ₹7,134 Cr. Investors should review the full earnings analysis for detailed insights.
Is Kirloskar Ferrous Industries Ltd planning capital expenditure?
Planned capex of about INR 600-700 crores per year across pig iron, foundry, steel, and tube segments.
This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.