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1. At a Glance
Kirloskar Ferrous Industries reported Q1 FY27 revenue of ₹1,771.51 crore, against ₹1,698.07 crore a year earlier. Operating profit came in at ₹215.72 crore versus ₹216.86 crore. Two lines that barely moved, sitting above a profit line that moved a great deal: PAT of ₹82.32 crore against ₹235.47 crore in Q1 FY26.
The gap has two named causes in the filing. Last year’s June quarter carried a deferred tax credit — the tax line reads minus ₹108.25 crore, recognised on unabsorbed depreciation and carry-forward losses from the Oliver and Adicca merger. This year’s quarter carries an exceptional item of ₹29.33 crore, being stamp duty and associated expenses on the NCLT-ordered merger of ISMT Limited into the company. Profit before exceptional items and tax was ₹134.42 crore, against ₹127.22 crore.
Elsewhere the quarter did quarter-things. Castings sales volume rose 18% YoY to 41,345 MT. Tubes fell 14% to 41,512 MT. Power costs ran at 9.3% of revenue versus 6.2% a year ago, and management put ₹58 crore of the other-expenses increase down to power and fuel — roughly half tariff, half consumption. A 35 MW DC solar plant at Jalna commenced operations on 6 August, taking solar there to 105 MW DC at a project cost of about ₹97 crore.
A company that makes molten iron for a living spent the quarter thinking mostly about electricity bills. More on that.
2. Introduction
KFIL was incorporated in 1991 and belongs to the Pune-based Kirloskar Group, a house with 136 years of Indian manufacturing behind it. It makes pig iron and ferrous castings — cylinder blocks, cylinder heads, transmission parts, housings — for automobile, tractor and diesel engine customers, and per management holds 22–25% of the foundry-grade pig iron market and 19–20% of castings.
The company that reported this quarter is bigger than that description implies. In FY2022 it entered the seamless pipes business through the IBC route, acquiring the erstwhile ISMT Limited, which brought steelmaking at Jejuri and tube manufacturing at Baramati and Ahilyanagar. In September 2023 it acquired Oliver Engineering Private Limited, a 28,000 MT castings plant in Punjab. Both acquisitions have since been folded structurally into the parent: the NCLT approved the merger of Oliver Engineering and Adicca Energy Solutions into KFIL on 2 June 2026, and the ISMT scheme produced this quarter’s stamp duty charge.
Four products now: pig iron, castings, steel, tubes. Plants at Koppal, Hiriyur, Solapur, Rajpura, Jejuri, Baramati and Ahilyanagar.
Recent corporate housekeeping has been steady. In October 2025 the company disclosed a ₹358 crore contract with ONGC for supply of EUE tubing, running to 20 October 2026. In May 2026 the board allotted 52,900 ESOP shares and approved raising up to ₹1,000 crore through NCDs; the 35th AGM on 5 August 2026 authorised that borrowing, approved the dividend and reappointed directors. Kirtane & Pandit LLP ceased as statutory auditor on 5 August 2026; P G Bhagwat LLP continues.
ICRA reaffirmed its ratings on 30 December 2025 — [ICRA]AA (Stable) on the long-term facilities, [ICRA]A1+ on commercial paper, across a rated envelope of ₹4,828.51 crore.
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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: high-quality foundry grade, sold to foundries and steel mills, and also consumed internally. Then castings — grey iron and machined, over 50 kg apiece, sold to OEMs and Tier-1 suppliers in commercial vehicles, tractors, engines and construction equipment. Then steel: bearing and special steels, with KFIL among India’s leading bearing steel producers. Then seamless tubes from the PQF and Assel mills, in diameters from 6 mm to 273 mm, going to automotive, oil & gas, mining, power and defence, plus value-added items like axles and steering columns.
The elegance is that each stage eats the previous one’s output. The presentation calls it a natural cost hedge: pig iron from the blast furnaces feeds the casting operations, and the steel made at Jejuri feeds the tube mills. Vertical integration here isn’t a strategy slide, it’s a pipe.
Underneath sits a cost structure most single-product manufacturers would find slightly show-offy. A sinter plant. A coke oven plant. Captive power. Pulverized coal injection. Waste heat recovery at Koppal. Three steam turbines. Solar at Solapur, and now 105 MW DC of it at Jalna. Per ICRA, commencement at the Bharath iron ore mine has partially reduced reliance on bought-in iron ore.
The Q1 FY27 end-user mix reads like a census of things that move. Pig iron: auto 34%, pumps 22%, steel 17%, tubes 8%, pipes 8%, general engineering 3%. Castings: tractor industry 40%, deemed export CV 18%, domestic CV 16%, auto PV & UV 10%, engines 8%, off-highway 8%. Tubes: trade 20%, boiler 16%, OCTG 15%, general engineering 15%, auto 13%, bearing 12%, exports 7%, projects 2%. Steel: auto 68%, bearing 25%, others 7%.
Segment revenue for the quarter: castings ₹1,192.09 crore, tubes ₹540.81
