Shri Hare-Krishna Sponge Iron LtdQ3 FY25Ferrous Metals

Shri Hare-Krishna Sponge Iron Ltd

Q3 FY25 Earnings Call Analysis

Management growth scorecard

Revenue

Category 1

Margin

Category 1

Fundraise

Yes

Order

N/A

Capex

Yes

4 of 4 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 1

→FY26 revenues expected to grow 20-25% over FY25.
→FY27 revenues projected at INR 160 crores, a 60-70% increase compared to FY25.
→Post FY27, sales expected to triple relative to FY25 within three years.
→Casting division to start production by May/June 2026, targeting INR 60-70 crores revenue in the first year.
→New high alloy casting products (tooth points, grinding media, chain links) to contribute significantly.
→Sponge iron capacity currently at 36,050 metric tons with ~84% utilization.
→High alloy casting capacity planned around 18,000 metric tons/year, with full utilization anticipated by FY28-29.
→Expansion backed by internal accruals and some bank borrowing, with limited interest cost increase expected.

Margin guidance

Category 1

→FY27 revenue is expected to be INR160 crores, a 60-70% increase compared to FY25.
→Revenue growth is driven by new segments: high alloy casting (tooth points, grinding media, steel chain links) starting June 2026, induction furnace, and rolling mill starting March-April 2026.
→Casting segment expected to generate INR60-70 crores in its first year.
→Full utilization of the high alloy casting capacity (18,000 MT) anticipated by FY28-29.
→Operating margins projected around 13-14% aided by captive green power generation reducing power costs.
→EBITDA and profit margins likely to improve with enhanced turnover and cost efficiencies.
→Management expects turnover to triple over 3 years compared to FY25, signaling strong long-term growth in earnings and profitability.
→EPS growth is implied with increased revenues and stable to improving margins due to operational optimization and new product introduction.

Get access to all 5 sections — revenue, margin, fundraise, orderbook, and capex — for Shri Hare-Krishna Sponge Iron Ltd and 1,400+ other companies.

Fundraise plans

Yes

→The company plans its capex funding from a combination of internal sources and bank borrowings.
→Maximum utilization of internal resources such as reserves and surplus is intended.
→If additional funds are required, the company may take some bank debt.
→Interest cost is expected to not rise significantly as internal resources will be primarily used.
→There was no explicit mention of new equity fundraising or another IPO during the call.
→The existing IPO proceeds seem to be utilized for power plant installation and expansions.
→Overall, debt may be taken as needed, but no major fundraising plans through equity or additional IPO were disclosed.

Order book

The transcript provided does not explicitly mention specific details about the current or expected order book or pending orders for Shri Hare-Krishna Sponge Iron Limited. However, some relevant points can be summarized: - The company is launching a unique product (high alloy casting, including tooth points) expected to substitute imports, indicating ongoing customer engagement. - They have already negotiated with customers for new products and plan to showcase them at the upcoming IMTEX/Excon event in Bangalore (December 9-13, 2025), suggesting anticipated orders. - The expected revenue from the new casting segment in the first year (FY26-27) is INR 60-70 crores. - The high alloy casting capacity is planned at 18,000 metric tons per year, with full utilization expected by FY28-29. - The company anticipates a significant increase in turnover, tripling by FY27-28, indicating strong market demand and order inflows. No direct figures or order book size was disclosed.

Capex plans

Yes

→Shri Hare-Krishna Sponge Iron Limited is undertaking significant capex investments:
→ - Commissioning a captive power plant starting January 2026, using waste hot gases and rice waste to generate green power.
→ - Starting an induction furnace and rolling mill around March-April 2026.
→ - Launching a high alloy casting division (tooth points, grinding media balls, specialized chain links) around May-June 2026.
→The high alloy casting capacity is planned at approximately 18,000 metric tons per year.
→Capex funding will primarily come from internal resources combined with bank debt; IPO proceeds are not explicitly stated as the main source.
→Expected financial impact: Revenue anticipated to grow by 60-70% in FY27 versus FY25, reaching around INR160 crores.
→New product launches aim to replace imports and focus on value-added segments aligned with "Make in India."

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