Kirloskar Ferrous Industries500245Earnings call transcript

Q2 FY'27 call: topline Rs. 2,057 crores, PBT Rs. 138 crores; castings and steel lead growth

Q2 FY'27 earnings call transcript.

By ScoutQuest · Sat 7 Nov 2026, 6:25 PM IST · 3 min read

Topline of Rs. 2,057 crores against Rs. 1,755 crores in the same quarter last year, a growth of 16%.
PBT of Rs. 138 crores, up from Rs. 120 crores in the same quarter last year.
Sales value by segment: pig iron Rs. 581 crores against Rs. 483.9 crores (up 20%), castings Rs. 633 crores against Rs. 487.8 crores (almost 30% growth), and external steel sales Rs. 206 crores against Rs. 139 crores (up 48%).
Steel and tube taken together grew 0.5%, after a challenging first quarter.

Pig iron hot metal production for the six months was 3,31,896 metric tons against 3,22,000 metric tons, a productivity improvement of 3%.
Casting production moved to 93,000 metric tons from 78,000 metric tons, a growth of 20%.
Steel production was 1,33,000 against 1,17,000 last year, up almost 14%; tubes were down 7.5%.
In the quarter, external pig iron sales were 1,34,000 against 1,28,000, an increase of 3.5%.
Casting net sales were 47,888 against 39,980, about 20% higher; gross sales crossed 50,000 for the first time.
Tube sales were 48,547 against 49,588, down about 2%.

Pig iron average realisation ex-works at Rs. 43,054 against Rs. 38,000, an improvement of 12.4%.
Casting realisation at Rs. 1,30,000 per ton against Rs. 1,21,000, up 6.8%.
Tube realisation at Rs. 1,16,953 against Rs. 1,13,998, up 1.6%.
Steel realisation at Rs. 77,500 against Rs. 70,700, an improvement of 7.6%.

Management said the company faced higher coking coal prices and an adverse rupee-dollar exchange rate over the last three to four quarters, but could pass on some of the cost increases to customers.
All three pig iron furnaces are running as of now.

Solapur second foundry line: phase one and phase two are almost done; the focus is on ramping up output, currently at 5,200 metric tons of production and sales, and more than 15,000 every quarter.
The stated effort is to take utilisation from both foundries past 6,000 metric tons per month, or 18,000 metric tons per quarter.
Rajpura foundry: capacity is sold out. Phase two is to be brought up by financial year end, 31 March, taking capacity to close to 4,000 metric tons per month; another 24,000 could come from Rajpura with phase two, with readiness targeted at least by quarter one of next year to serve north customers.
Jejuri rolling mill expansion, the Baramati expander mill and small piercing mills in Ahmednagar saw some delays due to market conditions and technology finalisation; management said it has entered the execution stage.
Koppal alloy steel plant: technology design partners have been ordered and tied up, and the company is at the stage of commercial negotiation and ordering equipment. The project is expected to be taken up full blast in the next two to three months, with around 20 months for execution and implementation.

Casting demand was good from tractors, automotive, and the earth moving and stationary engine markets; foundries across all three locations were fully loaded in quarter two as well as October.
Management said it is watching for possible small corrections in demand from the tractor industry, while auto and earth moving equipment continue to show strong casting demand.
The company exported one cargo of 31,000 metric tons of pig iron as international prices were good and export realisation was better than domestic. It continues to focus on the domestic market for better realisation and remains open to exports when international prices are better.

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