Indian Metals & Ferro Alloys Ltd: ₹2,544 Cr Sales, ₹900 Cr Expansion – From Ferrochrome King to Renewable-Powered Giant

1. At a Glance

IMFA is basically the stainless steel industry’s secret sauce — a fully integrated ferrochrome maker that controls 20% of India’s production and 25% of exports. FY25 saw ₹2,544 Cr sales, ₹359 Cr PAT, and an 11x P/E — cheap enough to make value investors drool into their spreadsheets. But don’t let the low P/E fool you; sales growth over 5 years is a lazy 9.7% CAGR. Still, the company’s pulling a big flex — ₹900 Cr ferrochrome expansion plus renewable power PPAs. Translation: they’re building capacity like a gym rat in bulk season, but running on solar and wind instead of protein shakes.

2. Introduction

Born in 1961, IMFA has grown from a modest Odisha-based smelter into India’s largest fully integrated ferrochrome producer. They mine their own chrome ore, generate captive power, and run smelters — basically, they control the entire chain from dirt to shiny steel ingredient.

Exports dominate, with China, Japan, and Taiwan as primary customers. The business is cyclical — riding the global stainless steel demand wave — but vertical integration helps them survive price whiplash better than smaller peers. FY25 was a steady year despite a 7% TTM revenue drop, as margins remained decent and debt stayed manageable.

The next big thing? The expansion of 96,000 MT ferrochrome capacity and the embrace of renewable energy — a double