Kirloskar Ferrous Q1 FY 2026-27 Results: Revenue Rises 4% To ₹1,772 Crore

Kirloskar Ferrous Q1 FY 2026-27 results showed steady revenue growth, although higher operating costs weighed on profitability. Revenue from operations rose 4% year-on-year to ₹1,771.5 crore, while profit before tax before exceptional items increased 6% to ₹134.4 crore.

Operating performance remained largely stable during the quarter. Earnings before interest, taxes, depreciation and amortisation (EBITDA) before exceptional items and excluding other income stood at ₹215.7 crore, while the EBITDA margin came in at 12.2%.

The company reported an exceptional expense of ₹29.3 crore, resulting in a reported profit before tax (PBT) of ₹105.1 crore. Profit after tax (PAT) stood at ₹82.3 crore. Finance costs eased to ₹29.5 crore from a year earlier.

Kirloskar Ferrous Q1 FY 2026-27 Results Summary

Lower raw material costs provided some support during the quarter, with material cost falling to 53.7% of revenue from 58.6% a year ago. However, this benefit was partly offset by higher energy expenses as power cost increased to 9.3% of revenue, compared with 6.2% in the corresponding quarter last year.

The balance sheet remained comfortable with gross debt at ₹1,156 crore and a net debt-to-EBITDA ratio of 1.29 times. The company has incurred ₹131 crore in capital expenditure so far this financial year, mainly towards efficiency improvement and renewable energy projects. Working capital also improved, with inventory days reducing to 45 from 57 in the previous quarter, although debtor days increased to 55.

The castings business continued to be the strongest performer during the quarter. Castings volume increased 18% year-on-year to 41,345 metric tonnes, while revenue from the segment grew 24% to ₹527 crore. Pig iron revenue also increased to ₹546 crore, supported by improved realisations of ₹42,383 per metric tonne, even though volumes were lower than a year ago.

The steel business also reported growth, with revenue rising to ₹168 crore as both volumes and realisations improved over the previous year. In contrast, the tube business remained under pressure, with volumes and revenue declining during the quarter.

Management Commentary And Stock Price

The company said demand is expected to remain healthy, supported by government infrastructure spending, improving industrial activity and a recovery in rural markets, although geopolitical uncertainties could keep pressure on power, fuel and logistics costs.

Kirloskar Ferrous also plans to improve operating efficiency through renewable energy projects, debottlenecking initiatives and higher value-added products. The company is targeting completion of its 35 MW solar project and 25 MW wind project in Q2 FY27, while a 149 tonnes-per-day oxygen plant at Koppal and the first phase of the Solapur foundry expansion are scheduled for completion later in the financial year.

At the close of the day on 5 August 2026, Kirloskar Ferrous’ share price was ₹461.25 on the National Stock Exchange.

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