Kirloskar Ferrous Plant Hit by Fuel Supply Issues
- By Kotak News Desk
- 18 Mar 2026 at 5:05 PM IST
- Market News
- 4m
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Kirloskar Ferrous Industries has partially slowed operations at its Solapur plant due to LPG supply issues linked to West Asia tensions. While financials remain stable, production may be affected if the disruption continues.
Kirloskar Ferrous Industries, a leading manufacturer of pig iron and grey iron castings, has run into a supply issue at its Solapur plant, with LPG availability getting hit due to the ongoing situation in West Asia.
The company said one of its two high-pressure moulding lines has been affected since 17 March, and operations on that line have slowed.
The rest of the plant is running, but even a partial disruption can start showing up in output if it stretches beyond a few days.
The company has said it is looking at alternatives, though that usually takes time to stabilise.
The closing price of Kirloskar Ferrous Industries Ltd shares on 18 March 2026 was ₹374.45 on the National Stock Exchange (NSE).
What Is Behind The Disruption?
LPG supply has become uneven, and that has started to affect industrial users.
In this case, the Solapur unit depends on LPG for part of its production process. With supply tightening, one of the moulding lines could not be operated normally.
The company has not indicated how long the situation might last, which keeps things a bit open-ended.
There is also the larger issue of logistics. Even if supply improves, delays in movement can keep operations patchy for a while.
How Do The Numbers Look Right Now?
On a year-on-year basis, Q3FY26 revenue has risen by 0.7%, moving to ₹1,618 crore from ₹1,607 crore. Profit for the quarter has slipped by 1.8%, to ₹53.3 crore from ₹54.3 crore in the previous year of the same quarter. What stands out more is the operating performance, where margins have improved.
EBITDA | ₹186.3 crore | ₹173.4 crore |
Margin | 11.5% | 10.8% |
So, while profit is marginally lower, the core business has held up reasonably well.
Established in 1991, Kirloskar Ferrous Industries supplies its offerings to the automotive, engine, compressor, textile, and pump industries.
The firm belongs to the Kirloskar Group, which has been around for 130 years and is highly recognised in the field of manufacturing and engineering.
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What Can Investors Expect Next?
The key thing to watch is how long the supply issue continues. If LPG availability improves quickly, the impact may remain limited.
If not, production could stay uneven for some time. That usually shows up first in volumes and then in earnings.
Investors will also keep an eye on how the company manages fuel alternatives. That often decides how quickly operations return to normal.
Sources:
CNBC TV18
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