The corporate has offered almost 600 tonnes of castings from its just lately commissioned Oliver foundry in Punjab and expects to extend manufacturing to 1,500 tons per 30 days within the coming months. Castings stay the corporate’s dominant phase, contributing 43 p.c to complete income as of March 2025 adopted by the tube enterprise at 23 p.c and metal merchandise at 18 p.c.
Administration expects that enhancing backward integration, together with ramping up captive iron‐ore mining, will additional bolster margins and defend the corporate from uncooked‐materials volatility.
The corporate was capable of increase earnings from the pig‐iron phase regardless of a downturn in benchmark costs attributable to decrease coking‐coal prices and in‐home iron‐ore provide from Kirloskar Bharat mines. “We count on to extend our personal iron ore consumption on this 12 months and thereby get extra advantages when it comes to lowered iron ore value,” stated RV Gumaste, MD, Kirloskar Ferrous through the earnings name after declaring March quarter numbers on Could 09. For FY26, the corporate expects to eat at the very least 250,000 tonnes of its personal ore in contrast with 57,000 tonnes within the earlier 12 months, unlocking substantial financial savings on one in all its greatest value heads.
In a bid to boost inexperienced power initiatives, it plans to double the solar energy capability to 55-60 megawatts (MW) in FY26. The corporate goals so as to add 12.6 MW of wind energy and 35 MW of photo voltaic capability within the present monetary 12 months, with one other 50-60 MW of photo voltaic deliberate for the subsequent monetary 12 months.
Regardless of headwinds in uncooked‐metal and pig‐iron costs, the corporate is assured of sustaining 14-16 p.c working margin earlier than depreciation and amortization (EBITDA margin) in each its casting and tube divisions. “We proceed to work on two fronts, reducing manufacturing prices and shifting combine towards increased‐worth merchandise,” Gumaste defined.“Kirloskar Ferrous continues to stay nicely paced on margin growth path amidst new initiatives underway to scale back uncooked materials value, coupled with margin accretive product profile,” JM Monetary Institutional Securities stated in a report. The broking agency has maintained a ‘Purchase’ name on the inventory. Nevertheless, it has lowered the value goal by 17% to Rs 610 and lowered earnings forecast by 22% for FY26, citing decrease quantity progress. The inventory was traded at Rs582 on Thursday on the BSE.
