1. At a Glance – Blink and You’ll Miss the Plot
₹108 Cr market cap. ₹38.8 stock price. Book value of ₹70 staring at the market like “beta, mujhe toh ignore hi kar diya.”
Return in last 3 months? -21%.
Return in last 6 months? -31%.
ROCE? -3.49% (yes, negative).
Debt? ₹0 (yes, finally zero).
And then comes the plot twist — Q3 FY26 PAT of ₹3.88 Cr, up 43% QoQ, while sales grew a modest 6% QoQ. This is a company that defaulted, got sued, sold overseas assets, paid off lenders, shut units, and still walked back into profitability like a stubborn South Indian action hero who refuses to die before interval.
Indsil is not a clean compounder. It is not a momentum darling. It is a balance-sheet survival story happening inside one of the most cyclical, unforgiving industries — ferro alloys.
So the real question is not “cheap or expensive?”
The real question is: Is this a turnaround or just a dead cat doing parkour?
2. Introduction – From Defaults to Detox
Indsil Hydro Power & Manganese Ltd has been around since 1990, quietly supplying ferro alloys to steelmakers while occasionally blowing up its own balance sheet.
Between FY20 and FY24, things went downhill fast:
- Debt ballooned
- Interest costs ate profits
- Operations got shut
- Lenders knocked
- Defaults were disclosed… repeatedly
By early 2024, this stock wasn’t an investment — it was a case study in stress management.
Then came the nuclear option:
- Overseas smelter in Oman sold
- ₹84.63 Cr borrowings cleared
- Debt reduced to zero by H1 FY25
What remains today is a much smaller, cleaner, but scarred ferro alloy company trying to restart profitability with:
- 3 Indian smelters
- Integrated power (hydro + thermal)
- A volatile but improving P&L
This is not a growth story.
This is a rehabilitation story.
3. Business Model – WTF Do They Even Do?
Indsil makes ferro alloys, the ugly but essential ingredients in steelmaking.
Core Products:
- Ultra Low Carbon Silico Manganese → stainless & special steel
- Low Carbon Silico Manganese → steel & foundries
- Ferro Silicon → stainless steel (via JV earlier)
- Ferro Chrome → deoxidation & alloying
If steel is the biryani, ferro alloys are the masala — invisible, messy, but absolutely non-negotiable.
Manufacturing Setup:
- Palakkad (Kerala) – 14,000 TPY LC SiMn
- Raipur (Chhattisgarh) – 19,200 TPY LC SiMn
- Vizianagaram (AP) – 7,200 TPY FeSi
Power Integration:
- Rajakkad Hydro Power Plant – Kerala
- Raipur Thermal Power Plant – Chhattisgarh
Translation: They try to control electricity costs, which is life-or-death in ferro alloys.
Still, with steel cycles swinging like a pendulum, margins behave like a heart-rate monitor.
4. Financials
