Transcript of the conference call
KIRLFER · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Kirloskar Ferrous reported Q1 FY26 sales of Rs. 1,685 crore (+8.5% YoY), EBITDA of Rs. 214 crore (+14% YoY), PBT of Rs. 130 crore, and PAT of Rs. 96 crore. Casting volumes grew 6% while tubes grew 32% YoY. Management guided that the tube division can reach 14% EBITDA at 200,000 MT annual volumes (targeted within FY26 itself). A major Rs. 700-800 crore mini blast furnace project at Koppal is starting, with 2.5-year completion timeline, aimed at reducing steel manufacturing cost for the tubes business. CAPEX of Rs. 500-600 crore planned for FY26 and Rs. 2,000-2,500 crore over 3-4 years to roughly double volumes across segments. Power and fuel cost fell to 6.1% of sales (from 8.9%), aided by the 70 MW power plant. Management flagged ongoing Chinese dumping in seamless tubes and a 38% drop in pig iron prices over 2 years, pressuring margins. NSE listing application to be filed soon.
Positive signals on volume growth and a clear margin roadmap for tubes, but near-term pressure persists in pig iron and steel due to weak realisations and import dumping. Shareholders can expect steady volume-led growth with margin expansion in tubes once the 200,000 MT run-rate is achieved, while the pig iron and steel segments remain a drag in the short term.