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1. At a Glance
Kirloskar Ferrous Industries makes pig iron, castings, steel and seamless tubes. Revenue in the three months to June 2026 was ₹1,771.51 crore, against ₹1,698.07 crore a year earlier. Operating profit was ₹215.72 crore, against ₹216.86 crore in the same quarter last year. Net profit was ₹82.32 crore, where a year earlier it was ₹235.47 crore.
The filing names two causes for the movement in that third line. Last year’s June quarter carried a deferred tax credit, and the tax line read minus ₹108.25 crore. It was recognised on unabsorbed depreciation and carried-forward losses from the Oliver and Adicca merger. This year’s quarter carries an exceptional item of ₹29.33 crore. That is stamp duty and related expenses on the merger of ISMT Limited into the company. The National Company Law Tribunal, the court that approves mergers of Indian companies, ordered that scheme. Profit before exceptional items and tax was ₹134.42 crore, against ₹127.22 crore.
Castings volumes rose 18% from a year earlier, to 41,345 tonnes. Tube volumes fell 14%, to 41,512 tonnes. Power cost 9.3% of revenue in the quarter, against 6.2% a year earlier. A company that melts iron for a living spent the quarter talking about electricity bills. Management attributes ₹58 crore of the rise in other expenses to power and fuel, roughly half tariff and half consumption. A 35 megawatt solar plant at Jalna began operating on 6 August. Solar capacity at Jalna now stands at 105 megawatts, at a project cost of about ₹97 crore.
2. Introduction
Kirloskar Ferrous Industries was incorporated in 1991 and belongs to the Pune-based Kirloskar Group. The group has 136 years of Indian manufacturing behind it. The company makes pig iron and ferrous castings: cylinder blocks, cylinder heads, transmission parts and housings. The buyers are makers of cars and lorries, tractors and diesel engines. Management puts the company’s share of the foundry-grade pig iron market at 22 to 25%. It puts the share of castings at 19 to 20%.
The company that reported this quarter is larger than that description implies. In the year to March 2022 it entered seamless pipes by buying the erstwhile ISMT Limited out of insolvency. The Insolvency and Bankruptcy Code is the law under which bankrupt Indian companies are sold to new owners. ISMT brought steelmaking at Jejuri and tube manufacturing at Baramati and Ahilyanagar. In September 2023 the company bought Oliver Engineering, a 28,000 tonne castings plant in Punjab.
Both purchases have since been folded structurally into the parent. The National Company Law Tribunal approved the merger of Oliver Engineering and Adicca Energy Solutions on 2 June 2026. The ISMT scheme is what produced this quarter’s stamp duty charge. There are four products now: pig iron, castings, steel and tubes. Koppal, Hiriyur and Solapur are the older plants, with Rajpura arriving alongside Oliver.
Recent corporate housekeeping has been steady. In October 2025 the company disclosed a ₹358 crore contract with ONGC for EUE tubing, running to 20 October 2026. In May 2026 the board allotted 52,900 shares to employees under the staff scheme. It also approved raising up to ₹1,000 crore through non-convertible debentures, which are a form of borrowing. The 35th annual general meeting on 5 August 2026 authorised that borrowing, approved the dividend and reappointed directors. Kirtane & Pandit LLP ceased as statutory auditor on 5 August 2026, and P G Bhagwat LLP continues.
ICRA, a credit-rating agency, reaffirmed its ratings on 30 December 2025. It rates the long-term facilities AA with a stable outlook, and the commercial paper at A1 plus. Commercial paper is short-term borrowing sold to lenders for a few months at a time. The rated envelope covers ₹4,828.51 crore of facilities.
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3. Business Model: WTF Do They Even Do?
They dig it, melt it, pour it, roll it, and then bore a hole through the middle of it.
Start at the top. Pig iron is high-quality foundry grade, sold to foundries and steel mills, and also used in-house. Castings are grey iron and machined pieces, each weighing more than 50 kilograms. They go to vehicle makers and their first-tier suppliers, in lorries, tractors, engines and construction equipment. The steel is bearing and special steel, and the company is among India’s leading bearing steel producers. Seamless tubes come off the PQF and Assel mills, in diameters from 6 to 273 millimetres. Those tubes go to vehicles, oil and gas, mining, power and defence. Axles and steering columns are the value-added end of the same line.
Each stage eats the previous stage’s output. The company’s presentation calls this a natural cost hedge. Pig iron from the blast furnaces feeds the casting operations, and steel made at Jejuri feeds the tube mills. Vertical integration here is not a strategy slide, it is a pipe.
Underneath sits a cost structure most single-product manufacturers would find slightly show-offy. There is a sinter plant, a coke oven plant, captive power and pulverised coal injection. Koppal adds waste heat recovery, and three steam turbines sit alongside it. Solar runs at Solapur, and 105 megawatts of it now runs at Jalna. ICRA, a credit-rating agency, says the Bharath iron ore mine has partly reduced
