Kirloskar Ferrous Industries Allots 52,900 Equity Shares Under ESOP, Board Approves ₹1,000 Crore NCD Fund Raise

At its board meeting held on 7 May 2026, Kirloskar Ferrous Industries Limited (KFIL), a listed material subsidiary of kirloskar industries , announced two significant corporate developments: the allotment of equity shares under its Employee Stock Option Schemes and the approval of a substantial debt fund-raising plan. Kirloskar Industries informed the stock exchanges of these developments in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Equity Share Allotment Under ESOP Schemes

The Board of Directors of Kirloskar Ferrous Industries approved the allotment of 52,900 equity shares of ₹5 each upon the exercise of stock options by eligible employees under the KFIL Employee Stock Option Schemes. This allotment has resulted in an increase in the company's issued, subscribed, and paid-up share capital. The following table summarises the key details of the allotment:

Parameter: Details Shares Allotted: 52,900 equity shares Face Value per Share: ₹5 Allotment Scheme: KFIL Employee Stock Option Schemes Revised Paid-up Share Capital: ₹82,48,72,715 Total Equity Shares Post-Allotment: 16,49,74,543 equity shares of ₹5 each Board Meeting Date: 7 May 2026

Consequently, the issued, subscribed, and paid-up share capital of Kirloskar Ferrous Industries now stands at ₹82,48,72,715, comprising 16,49,74,543 equity shares of ₹5 each.

Board Approves ₹1,000 Crore NCD Fund Raise

In a separate resolution at the same board meeting, the Board of Directors of Kirloskar Ferrous Industries approved a proposal to seek member approval for fund raising not exceeding ₹1,000 Crores. The fund raising is proposed to be carried out through the issuance of Non-convertible Debentures (NCDs) in one or more tranches. The key details of the proposed fund raise are outlined below:

Parameter: Details Fund Raise Limit: Not exceeding ₹1,000 Crores Instrument: Non-convertible Debentures (NCDs) Issuance Structure: One or more tranches Approval Required: Members of the Company Board Approval Date: 7 May 2026

The board's approval marks the initiation of the process to seek shareholder consent for the proposed debt issuance.

Regulatory Disclosure by Kirloskar Industries

Kirloskar Industries, as the parent company of KFIL, filed the requisite intimation with the stock exchanges in line with its obligations as a listed entity with a material subsidiary. The disclosure was made pursuant to Regulation 30 of the SEBI Listing Regulations, with the enclosure of KFIL's original intimation filed with the exchanges where KFIL's shares are listed. The communication was signed by Ashwini Mali, Company Secretary of Kirloskar Industries, and the KFIL disclosure was signed by Mayuresh Gharpure, Company Secretary of Kirloskar Ferrous Industries.

Kirloskar Industries Limited's listed material subsidiary, Kirloskar Ferrous Industries Limited (KFIL), has reported its audited financial results — both standalone and consolidated — for the quarter and the year ended March 31, 2026. The Board of Directors approved the results at its meeting held on May 7, 2026, which commenced at 3:00 p.m. and concluded at 6:00 p.m. Statutory auditors Kirtane & Pandit LLP and P G Bhagwat LLP have issued audit reports with an unmodified opinion on both the standalone and consolidated financial results. The results were filed with the stock exchanges pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Standalone Financial Performance

KFIL delivered a strong standalone performance for the quarter and full year ended March 31, 2026. Revenue from operations for the quarter stood at ₹1,780.99 crore, compared to ₹1,736.19 crore in the corresponding quarter of the previous year. Total income for the quarter rose to ₹1,828.01 crore from ₹1,764.33 crore. Net profit for the quarter came in at ₹130.00 crore, up from ₹95.56 crore. For the full year, revenue from operations grew to ₹6,783.92 crore from ₹6,566.26 crore, while net profit increased to ₹375.59 crore from ₹317.28 crore.

The following table summarises the key standalone financial results (₹ in Crores):

Metric: Q4 FY26 (Audited) Q3 FY26 (Unaudited) Q4 FY25 (Audited) FY26 (Audited) FY25 (Audited) Revenue from Operations: 1,780.99 1,589.88 1,736.19 6,783.92 6,566.26 Other Income: 47.02 9.65 28.14 77.97 62.34 Total Income: 1,828.01 1,599.53 1,764.33 6,861.89 6,628.60 Total Expenses: 1,651.30 1,500.54 1,636.63 6,328.89 6,196.46 Profit Before Exceptional Items & Tax: 176.71 98.99 127.70 532.00 432.14 Exceptional Items: — 17.57 — 17.57 — Profit Before Tax: 176.71 81.42 127.70 514.43 432.14 Total Tax Expense: 46.71 23.92 32.14 138.84 114.86 Net Profit: 130.00 57.50 95.56 375.59 317.28 Total Comprehensive Income: 132.43 58.04 91.78 381.33 306.55 Basic EPS (₹): 7.89 3.49 5.80 22.79 19.29 Diluted EPS (₹): 7.87 3.48 5.77 22.72 19.18

During the quarter, 66,260 equity shares of ₹5 each were allotted pursuant to the KFL Employee Stock Option Schemes, increasing the paid-up equity share capital to ₹824,608,215, comprising 164,921,643 equity shares of ₹5 each. Reserves excluding revaluation reserves stood at ₹3,681.92 crore as at March 31, 2026. During the year, ₹300 crore was raised through commercial papers for working capital requirements and general corporate purposes, with total outstanding commercial papers as on March 31, 2026 at ₹294.98 crore.

Standalone Key Financial Ratios

The following table presents key standalone financial ratios as at March 31, 2026:

Metric: Q4 FY26 Q3 FY26 Q4 FY25 FY26 FY25 Debt-Equity Ratio: 0.27 0.33 0.37 0.27 0.37 Debt Service Coverage Ratio (Annualised): 2.78 1.77 2.25 2.25 2.02 Interest Service Coverage Ratio (Annualised): 6.90 3.82 4.61 5.10 3.99 Net Worth (₹ Crore): 2,396.84 2,311.90 2,098.36 2,396.84 2,098.36 Current Ratio: 1.07 1.13 1.07 1.07 1.07 Operating Margin (%): 12.68% 10.39% 11.44% 12.06% 11.54% Net Profit Margin (%): 7.30% 3.62% 5.50% 5.54% 4.83%

Standalone Balance Sheet Highlights

On a standalone basis, total assets as at March 31, 2026 stood at ₹6,577.53 crore compared to ₹6,353.57 crore as at March 31, 2025. Total equity increased to ₹3,764.68 crore from ₹3,466.68 crore. Non-current borrowings declined to ₹236.76 crore from ₹417.12 crore, reflecting the company's continued deleveraging. Cash and cash equivalents rose to ₹81.92 crore from ₹41.82 crore.

Balance Sheet Item: 31st March 2026 (₹ Cr) 31st March 2025 (₹ Cr) Total Non-Current Assets: 4,133.27 3,976.75 Total Current Assets: 2,444.26 2,376.82 Total Assets: 6,577.53 6,353.57 Total Equity: 3,764.68 3,466.68 Total Non-Current Liabilities: 533.03 675.75 Total Current Liabilities: 2,279.82 2,211.14 Total Equity and Liabilities: 6,577.53 6,353.57

Standalone Cash Flow Summary

Net cash from operating activities for the year ended March 31, 2026 improved significantly to ₹952.37 crore from ₹661.79 crore in the previous year. Net cash used in investing activities was ₹458.80 crore, while net cash used in financing activities was ₹453.47 crore. Cash and cash equivalents at the end of the period stood at ₹81.92 crore, up from ₹41.82 crore at the beginning of the period.

Consolidated Financial Performance

On a consolidated basis, KFIL reported revenue from operations of ₹1,817.16 crore for the quarter ended March 31, 2026, compared to ₹1,736.95 crore in the year-ago quarter. Total income for the quarter was ₹1,861.51 crore. Consolidated net profit for the quarter stood at ₹123.10 crore against ₹92.34 crore in the corresponding quarter of the previous year. For the full year, consolidated revenue from operations grew to ₹6,888.57 crore from ₹6,564.23 crore, while net profit rose to ₹357.81 crore from ₹294.04 crore.

Metric: Q4 FY26 (Audited) Q3 FY26 (Unaudited) Q4 FY25 (Audited) FY26 (Audited) FY25 (Audited) Revenue from Operations: 1,817.16 1,618.01 1,736.95 6,888.57 6,564.23 Total Income: 1,861.51 1,623.13 1,761.34 6,950.93 6,616.81 Profit Before Exceptional Items & Tax: 169.81 94.90 123.66 511.80 408.49 Exceptional Items: — 17.66 — 15.15 — Profit Before Tax: 169.81 77.24 123.66 496.65 408.49 Net Profit: 123.10 53.32 92.34 357.81 294.04 Total Comprehensive Income: 125.54 53.87 88.49 361.57 283.27 Basic EPS (₹): 7.47 3.23 5.61 21.71 17.87 Diluted EPS (₹): 7.45 3.22 5.58 21.64 17.77

Consolidated net worth as at March 31, 2026 stood at ₹2,340.73 crore, up from ₹2,060.03 crore. The consolidated operating margin for the full year was 12.23% compared to 11.52% in the previous year, while the net profit margin improved to 5.19% from 4.48%.

Segment-Wise Performance (Consolidated)

KFIL operates across three segments — Casting, Tube, and Steel. The Casting segment remained the largest contributor to revenue and profitability. The following table presents consolidated segment revenue and results for the quarter and year ended March 31, 2026 (₹ in Crores):

Segment: Q4 FY26 Revenue FY26 Revenue Q4 FY26 Profit FY26 Profit Casting: 1,121.42 4,314.19 148.77 397.10 Tube: 631.03 2,342.74 37.27 181.16 Steel: 421.01 1,697.54 11.83 57.20 Less: Inter-Segment Revenue: (356.30) (1,465.90) — — Net Revenue from Operations: 1,817.16 6,888.57 — —

Exceptional Items and Regulatory Notes

On November 21, 2025, the Government of India notified four Labour Codes consolidating 29 existing labour laws. Due to changes in the wage definition, an impact of ₹17.57 crore (standalone) and ₹17.66 crore (consolidated) related to gratuity and compensated absences was recorded under Exceptional Items for the quarter ended December 31, 2025. The company continues to monitor the finalisation of Central Rules, State Rules, and government clarifications on other aspects of the Labour Code. Additionally, during the quarter ended June 30, 2025, the voluntary liquidation of subsidiary iSMIT Enterprises SA Luxembourg was initiated, and on September 1, 2025, the entity's name was deleted from the Luxembourg Trade Registry. Consequently, a credit balance of ₹2.01 crore in Foreign Currency Translation Reserve was reclassified to the statement of profit and loss, and a gain of ₹0.50 crore arising on account of loss of control was recognised.

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