Indian Metals and Ferro Alloys (533047) Q4 25/26 earnings summary

Executive summary

• FY26 revenue reached ₹2,826.31 crore, up 9.26% YoY, and PAT was ₹424.36 crore, up 10.90%, supported by firm ferrochrome prices and operating efficiency.

• Q4 FY26 revenue was ₹763.29 crore, EBITDA ₹159.09 crore and PAT ₹103.44 crore, versus ₹47.07 crore PAT a year earlier; higher realizations and volume gains supported the result.

• Kalinganagar acquisition closed Feb. 27, 2026 for ₹610 crore plus ₹25.03 crore of assumed net working capital; all four furnaces were operational in March.

• Management expects Q1 FY27 prices, margins and output to improve from Q4, with ferrochrome demand fundamentals and cost resilience supporting the outlook.

Financial highlights

• Q4 FY26 ferrochrome realizations were ~₹109,000/ton versus ~₹87,000/ton YoY; costs rose marginally, mainly on chrome ore royalty and thermal coal.

• FY26 EBITDA was ₹587.23 crore versus ₹530.51 crore in FY25; PBT was ₹553.12 crore versus ₹512.04 crore.

• Q4 PAT declined 20.84% QoQ to ₹103.44 crore from ₹130.67 crore; EBITDA fell 3.19% QoQ to ₹159.09 crore from ₹164.33 crore.

• Q4 included a ₹27.97 crore notional derivative MTM loss; actual forex loss was ₹3 crore, while full-year forex gains embedded in revenue exceeded budget by ₹80 crore.

• FY26 operating cash flow was ₹318.80 crore versus ₹586.06 crore; investing cash outflow was ₹753.09 crore, including ₹1,335.49 crore of property, plant and equipment and project additions.

Outlook and guidance

• Ferrochrome output is expected at ~400,000 tons in FY27 and ~475,000–500,000 tons in FY28; annualized capacity of 500,000 tons is targeted by Nov.–Dec. 2026.

• Q1 FY27 sales are expected at ~80,000 tons versus a typical 65,000–67,000 tons per quarter; Q1 prices are higher than Q4, with Q2 prices expected to be similar to Q1.

• Kalinganagar furnace commissioning is targeted for July and September 2026; steady-state operations and ₹3,000–₹4,000/ton EBITDA cost savings are expected from Q4 FY27 onward.

• The 120 KLD grain-based ethanol project is expected to commission in Q2 FY27; pre-commissioning is scheduled for July, with initial output toward late August.

• Hybrid renewable sourcing is expected to reach ~35%–40% of energy consumption in FY28; 135 MW is contracted, including 70 MW expected from July 2026.