Indian Metals and Ferro Alloys (533047) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 consolidated revenue was ₹702.83 crore and profit attributable to owners was ₹131.29 crore, versus ₹643.22 crore and ₹93.32 crore in Q3 FY25.

• 9M FY26 consolidated revenue was ₹2,063.02 crore and profit attributable to owners was ₹321.06 crore, versus ₹1,997.42 crore and ₹331.40 crore in 9M FY25.

• Q3 profitability improved as ferrochrome realizations rose; productivity and efficiency remained priorities, with costs broadly stable.

• Integrated operations, captive mines and power generation were cited as supports for cost competitiveness and resilience amid market uncertainty.

Financial highlights

• Q3 FY26 consolidated PBT was ₹161.43 crore versus ₹123.47 crore YoY; total expenses were ₹563.14 crore versus ₹536.96 crore.

• Standalone Q3 FY26 revenue was ₹702.83 crore and profit was ₹130.67 crore, versus ₹643.22 crore and ₹93.14 crore YoY; 9M revenue was ₹2,063.02 crore and profit ₹320.92 crore.

• Ferrochrome realizations rose ~INR 5,500–6,000/ton from Q2 to Q3, driving improved EBITDA margins.

• Power-generation costs rose slightly with coal prices; variable power cost increased ~10–15 paise/unit, with no significant cost impact.

• Consolidated finance costs were ₹9.27 crore in Q3 FY26 versus ₹6.75 crore YoY, and ₹23.93 crore for 9M FY26 versus ₹16.36 crore.

Outlook and guidance

• If prices hold, Q4 FY26 EBITDA margins are expected to be similar to Q3; Q3-average pricing is expected to carry through, possibly with a slight upward bias.

• Ferrochrome production guidance: ~265,000 tons for FY26, ~400,000 tons in FY27 and 475,000–500,000 tons in FY28, subject to unexpected developments.

• Chrome ore raising targets are ~850,000 tons in FY26 and 1 million tons in FY27; captive mines are expected to supply existing and expanded smelting capacity.

• KNR1’s first furnace is expected to commission in June 2026, with the second shortly thereafter; the ethanol unit is expected to commission in March 2026, contributing revenue from FY27.

• Tata Steel plant acquisition is expected to close in Q4 FY26, potentially in February; meaningful output and financial contribution are expected from Q1 FY27.