Kirloskar Ferrous Q2FY26 Concall Decoded – Iron, Steel & Solar Dreams: A Meltdown with a Green Tinge

1. Opening Hook

When your pig iron prices crash harder than Bitcoin in 2022, what do you do? You fire up all three blast furnaces, talk about renewable energy, and smile through the furnace heat. Kirloskar Ferrous (KFIL) just did that. With pig iron margins under pressure and competitors allegedly “selling at a loss,” management insists they’re forging profits out of thin air—and sunlight. Literally. Solar and wind projects are the new saviors in this industrial saga. Keep reading; it’s not every day an iron maker sounds this hopeful while admitting, “we don’t cover our costs.” 🔥

2. At a Glance

• Revenue ₹1,736 Cr (↑3%) – Growth slower than molten iron cooling in winter.
• EBITDA ₹214 Cr (↑10%) – CFO deserves a medal for optimism (and cost control).
• EBITDA Margin ~12.3% – Not bad, considering pig iron’s acting like a penny stock.
• PBT ₹126 Cr (↑9.4%) – Still in the green despite price burns.
• Pig Iron down 11% YoY – Prices fell faster than investor patience.
• Casting Sales 36,673 MT (↓2%) – Tractors kept the castings rolling.
• Tube Sales 49,588 MT (↑24%) – Tubes did the heavy lifting.
• Steel Sales 19,616 MT (↑4%) – Flat as a tempered plate.

3. Management’s Key Commentary

“We operated all three blast furnaces, sold 131,508 tons of pig iron.”
(Translation: We didn’t let the furnaces rest—even if profits did.)

“Pig iron prices dropped 11%, but we managed to grow EBITDA.”
(Translation: Margin magic, or maybe Excel magic—who’s asking? 😏*)

“Casting demand from tractors continues strong.”
(Translation: Farmers saved the quarter. Literally.)

“Pig iron producers, including us, are not covering costs.”
(Translation: Pain shared is pain halved.)

“We are pursuing solar, wind, steelmaking, and copper projects.”
(Translation: Diversify or die trying.)

“We hope pig iron prices have bottomed out.”
(Translation: Hope is now a KPI.)

“Oliver Foundry merger will take casting capacity to 1.7 lakh tons.”
(Translation: If the pig won’t fly, at least the cast will cast better.)

4. Numbers Decoded