Indian Metals & Ferro Alloys Limited (IMFA) has announced its financial results for the second quarter and half year ended September 30, 2026. The company provided an overview of its operational developments, capacity expansions, and future outlook. Key discussions included the performance of its KNR-2 unit, new capex approvals for chrome ore mining and low-carbon ferrochrome production, and market dynamics for ferrochrome.
IMFA Announces Q2 and H1 FY27 Financial Results
Indian Metals & Ferro Alloys Limited (IMFA) has submitted its earnings for the second quarter and the first half of the fiscal year 2027. The company detailed its performance, highlighting significant increases compared to the corresponding periods in the previous year, primarily attributed to capacity additions and improved pricing. Key operational developments and strategic expansions were also discussed.
Operational Performance and Capacity Expansion
The company reported that its capacity addition, particularly with the KNR-2 unit acquired from Tata Steel, has come online. While initial production in the first half was slightly lower than planned due to transformer parameters, output in October reached a rated capacity of approximately 84,000 tons per annum, with a target of 100,000 tons per annum from existing furnaces by December. The greenfield unit, KNR-1, achieved hot metal tapping on August 25th, with the second furnace expected around November 15th, positioning the third quarter to cross 100,000 tons of output for the first time.
Strategic Investments and Market Outlook
IMFA’s board has approved a capex of approximately INR375 crores. This investment is designated for increasing chrome ore output from the Mahagiri underground mines from 6 lakh tons to 7.5 lakh tons, ultimately aiming for a total output beyond 1.2 million tons. Additionally, a capex for low-carbon ferrochrome production has been announced to bolster margins and diversify the product basket.
The market outlook remains strong, with expectations that while ferrochrome production in South Africa is ramping up, China’s output may reduce. IMFA is confident in its competitive position and the resilience of its business model. The company also noted that while metallurgical coke prices are rising, its in-house chrome ore provides a degree of insulation. Margins are expected to be supported by volume increases, with the second half of FY27 anticipated to be strong.
Financial Highlights and Future Projections
Discussions during the call touched upon cost per ton, which saw a slight increase due to met coke prices, underground mining mix, and startup costs for the greenfield site. However, the company anticipates that economies of scale from the Kalinganagar site will lead to robust EBITDA margins, projected to be INR1500 to INR2000 per ton higher over an 18-month period. Volume guidance for FY27 output is set at 380,000 tons, with sales volume expected to match production. The company is also exploring opportunities in low-carbon ferrochrome and has a 120 KLD ethanol project expected to be commissioned in January 2027, with projected revenues of INR320 crores and an EBITDA of around 10%.
Source: BSE
