Indian Metals and Ferro Alloys (533047) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 standalone revenue was ₹718.65 crore versus ₹691.92 crore YoY; profit was ₹98.77 crore versus ₹125.72 crore, but rose 8% QoQ from ₹91.48 crore.

• Q2 EBITDA was ₹138 crore with a 19.3% margin; higher ferrochrome realizations are expected to support stronger Q3 and Q4 performance.

• Approved a ₹610 crore base-consideration agreement to acquire Tata Steel’s Kalinganagar plant; expanded capacity is expected to exceed 500,000 tons.

• Declared an interim dividend of ₹5 per ₹10 share, with 11 November 2025 as the record date and payment due by 3 December 2025.

Financial highlights

• Standalone H1 revenue was ₹1,360.19 crore versus ₹1,354.20 crore; profit was ₹190.25 crore versus ₹237.88 crore.

• Consolidated Q2 profit was ₹97.56 crore versus ₹125.21 crore YoY; H1 profit was ₹190.10 crore versus ₹238.55 crore.

• Q2 EBITDA was ₹138 crore versus ₹170 crore a year earlier; excluding one-time RPO and forex mark-to-market impacts, EBITDA would exceed ₹170 crore.

• Average realization rose to ₹101,000 per ton in Q2 from ₹95,000 in Q1 and ~₹81,000 in Q4 FY25.

• Standalone Q2 PBT was ₹131.98 crore versus ₹170.55 crore; H1 PBT was ₹256.28 crore versus ₹325.63 crore.

Outlook and guidance

• Q3 EBITDA and margins are expected to exceed Q2, with stronger realizations and no comparable one-time RPO impact; the positive trend is expected to continue in Q4 barring exceptional conditions.

• FY27 production target is ~400,000 tons: ~260,000 from existing capacity, 70,000–80,000 from the acquired unit and the balance from greenfield capacity.

• FY26 ore-raising target is 850,000 tons, progressing toward 1.2 million; captive mines and stock are expected to cover existing, greenfield and acquired capacity needs.

• No long-term price or margin forecast; historical steady-state EBITDA cited at ₹18,000–₹20,000 per ton, with results dependent on market conditions.

• Kalinganagar acquisition completion is subject to approvals and ATA conditions; management targeted closure within three months, while the filing indicated 3–6 months.