Indian Metals & Ferro Alloys Ltd (IMFA) Q2FY26 — 99 MVA of New Firepower, ₹610 Cr Tata Steel Deal, and the Chrome Kings Are Back in Business
1. At a Glance
What do you call a company that mines its own ore, generates its own power, and sells shiny metal to Japan, Korea, and China — while casually dropping ₹610 crore to buy a Tata Steel plant? You call it IMFA – the chrome-plated overachiever of Odisha.
At ₹1,231 per share, this ferrochrome kingpin has roasted its competition like a smelter furnace. The stock is up 73.2% in 3 months and 82.9% in 1 year, making it one of the hottest commodities on Dalal Street. The company now flaunts a market cap of ₹6,649 crore, P/E of 20.1, and a respectable dividend yield of 1.63% — because why not share a little chrome with shareholders?
Latest Q2FY26 numbers tell a slightly spicier story: Revenue ₹719 crore, up 3.9% QoQ, but PAT ₹97.5 crore, down 22% QoQ — proving that even the biggest furnaces have cooling phases. With ROE of 17% and ROCE of 21.3%, IMFA remains as efficient as an Oriya mom running a 5 a.m. temple queue.
And just as investors were catching their breath, IMFA announced the acquisition of Tata Steel’s Kalinganagar ferrochrome plant (99 MVA furnace, ₹610 crore). That’s right — the chrome empire just got another blast furnace, pushing total smelting capacity beyond 0.5 million tonnes.
Welcome to the IMFA saga — where power, chrome, and cheeky dividends meet Odisha industrial swagger.
2. Introduction
If the periodic table ever got a Bollywood remake, IMFA would play “FeCr” — the unsung hero behind every shiny stainless steel plate, elevator, and fancy kitchen sink.
Founded in 1961 (when India was still figuring out color TV), IMFA quietly built a vertically integrated empire — from chrome ore mining in Sukinda and Mahagiri to smelting and exporting ferrochrome to global giants like POSCO, Tsingshan, and Marubeni. Today, 96% of its revenue comes from exports, mostly to Asia’s stainless-steel superpowers.
But this isn’t just another metals story — it’s a masterclass in self-reliance. The company not only mines its own ore but also generates over 200 MW of captive power, cutting dependence on unreliable grids and volatile suppliers. Think of it as the “Jio of ferrochrome” — integrated, efficient, and low-cost.
Still, the ferrochrome industry is cyclical. One year you’re printing money, the next you’re praying to the price charts. IMFA knows that pain — profits have danced to global stainless-steel demand and Chinese price tantrums.
Yet, here’s the punchline: even after years of volatility, IMFA’s ROE has averaged 18.7% over 5 years, Debt-to-Equity stands at 0.17, and interest coverage is 14.3x. In short, the company doesn’t just survive the cycle — it roasts it alive in its furnaces.
So grab your safety goggles — this chrome saga has heat, drama, and dividends.
3. Business Model – WTF Do They Even Do?
IMFA’s business model is beautifully simple — dig it, melt it, sell it. But don’t let that simplicity fool you; this company runs an integrated setup that would make even Reliance blush.
Step 2: Smelt it into ferrochrome using two mega plants — Therubali and Choudwar in Odisha.
Step 3: Power the whole show with captive plants generating 204.55 MW.
Step 4: Ship the finished metal to customers worldwide — mostly stainless-steel producers in China, Japan, Taiwan, and Korea.
IMFA’s customer list reads like a global metal mafia roll call: POSCO, Tsingshan Group, Marubeni, E-United, Viraj Profiles, Jindal Stainless — basically, anyone who wants steel that doesn’t rust.
And because it’s vertically integrated, IMFA laughs all the way to the smelter. No raw material shocks, no power shortages, and no dependency drama. In short — it controls its destiny like a South Indian mother-in-law controls wedding menus.
Add to that, a joint venture with POSCO that runs a 30 MVA furnace (35,000 TPA) with a 25-year offtake contract. That’s not business — that’s a chrome marriage with lifetime commitment.
Now, they’re doubling down with an upcoming 100,000 TPA expansion at Kalinga Nagar, costing ₹550 crore, plus the newly announced Tata Steel Kalinganagar acquisition (₹610 crore). Combined, that’s a future production monster.
The logic? When the next upcycle hits, IMFA will already have the capacity, the ore, and the power — and everyone else will just be playing catch-up.
4. Financials Overview
Source table
Metric (₹ Cr)
Latest Qtr (Sep’25)
YoY Qtr (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue
719
692
642
3.9%
12.0%
EBITDA
138
170
125
-18.8%
10.4%
PAT
97.5
125
93
-22.0%
4.8%
EPS (₹)
18.07
23.17
17.11
-22.0%
5.6%
EBITDA margins cooled to 19% vs. 25% last year — global ferrochrome prices did the tango. Yet, with 12% sequential revenue growth, IMFA’s operations are still humming.
Annualised EPS comes to ₹72.3, implying a P/E of ~17x on current
