Indian Metals and Ferro Alloys (533047) Q2 24/25 earnings summary

Executive summary

• Q2 profits exceeded expectations, supported by solid operations, efficiency and an integrated operating model.

• Management described the balance sheet as debt-free; ICRA affirmed long-term ratings at AA- with stable outlook and short-term rating at A1+.

• The board declared an interim dividend of ₹10 per share and approved a postal ballot seeking approval for Utkal Coal Limited’s amalgamation.

Financial highlights

• Q2 standalone revenue was ₹691.92 crore; profit before tax was ₹177.56 crore and profit was ₹132.73 crore, versus ₹123.50 crore and ₹89.96 crore a year earlier.

• Q2 consolidated revenue was ₹691.92 crore; profit before tax was ₹170.31 crore and profit was ₹125.21 crore, versus ₹123.15 crore and ₹89.34 crore a year earlier.

• H1 standalone revenue was ₹1,354.20 crore and profit ₹250.25 crore; consolidated revenue was ₹1,354.20 crore and profit ₹238.55 crore.

• Q2 EBITDA was INR 176 crore, with a 25.8% margin; reported production cost was INR 69,600.

• Q2 power and fuel expense was INR 101 crore, separately presented from raw-material consumption; coke cost was INR 16,545 and variable power cost INR 3.85 per unit.

Outlook and guidance

• Margins are expected to remain broadly similar over the next two quarters; forecasts beyond that depend on demand, supply and pricing.

• Output growth is constrained by full-capacity production; the next 1 lakh-ton ferrochrome capacity addition is expected in Q2 FY26.

• The ethanol plant is expected to operate by Dec 2025, with revenue expected in Jan–Mar 2026; projected full-utilization EBITDA margin is 14%–15%, with a six-year payback period.