Kirloskar Ferrous Industries Allots 52,900 ESOP Shares, Board Approves NCD Fundraise of Up to ₹1,000 Crores

Kirloskar Ferrous Industries announced two significant corporate actions at its Board of Directors meeting held on 7 May 2026. The company disclosed the allotment of equity shares under its employee stock option schemes and the Board's approval to raise funds through Non-convertible Debentures (NCDs), both pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

ESOP Share Allotment Increases Paid-Up Capital

The Board allotted 52,900 equity shares of ₹5 each upon exercise of stock options under the KFIL Employee Stock Option Schemes. Following this allotment, the company's issued, subscribed, and paid-up share capital has been revised upward. The key details of the updated share capital structure are presented below:

Parameter: Details Shares Allotted: 52,900 equity shares Face Value per Share: ₹5 Scheme: KFIL Employee Stock Option Schemes Updated Paid-Up Share Capital: ₹82,48,72,715 Total Equity Shares (Post-Allotment): 16,49,74,543 shares of ₹5 each

The allotment reflects the exercise of stock options by eligible employees under the company's existing ESOP framework, resulting in a corresponding increase in the total number of outstanding equity shares.

Board Approves NCD Fundraise of Up to ₹1,000 Crores

In a separate resolution at the same meeting, the Board of Directors approved seeking approval from the Members of the Company for fund raising not exceeding ₹1,000 Crores. The fundraise is proposed to be executed through the issuance of Non-convertible Debentures in one or more tranches. The key details of the proposed fundraise are as follows:

Parameter: Details Instrument Type: Non-convertible Debentures (NCDs) Maximum Fund Raise: ₹1,000 Crores Issuance Structure: One or more tranches Approval Required: Members of the Company

The Board's approval marks the initiation of the process, with member approval being a prerequisite before the issuance can proceed.

Regulatory Disclosure

Both developments were communicated to BSE Limited on 7 May 2026 by Company Secretary Mayuresh Gharpure, in compliance with the applicable SEBI listing regulations. The disclosures were made under Ref No. 3315/26 and are part of the company's ongoing regulatory reporting obligations.

Kirloskar Ferrous Industries Limited announced its audited financial results for the quarter and year ended March 31, 2026, following a Board of Directors meeting held on May 7, 2026. On a consolidated basis, the company reported a net profit of ₹357.81 crore for the full year, a significant increase from ₹294.04 crore in the previous year. Total consolidated income for FY26 stood at ₹6,950.93 crore, up from ₹6,616.81 crore in FY25. For the quarter ended March 31, 2026, the company posted a consolidated profit of ₹123.10 crore on a total income of ₹1,861.51 crore. Statutory auditors Kirtane & Pandit LLP and P G Bhagwat LLP issued an unmodified opinion on both the standalone and consolidated audited financial results.

Standalone and Consolidated Financial Performance

The audited results reflect growth across both standalone and consolidated metrics. On a standalone basis, the company reported a profit of ₹375.59 crore for FY26, compared to ₹317.28 crore in FY25, with total income of ₹6,861.89 crore against ₹6,628.60 crore in the prior year. Revenue from operations on a standalone basis rose to ₹6,783.92 crore from ₹6,566.26 crore. The following table summarises the key financial metrics across both bases:

Metric: Standalone FY26 (₹ Cr) Standalone FY25 (₹ Cr) Consolidated FY26 (₹ Cr) Consolidated FY25 (₹ Cr) Revenue from Operations: 6,783.92 6,566.26 6,888.57 6,564.23 Total Income: 6,861.89 6,628.60 6,950.93 6,616.81 Profit for the Period: 375.59 317.28 357.81 294.04 Basic EPS (₹): 22.79 19.29 21.71 17.87 Diluted EPS (₹): 22.72 19.18 21.64 17.77

For the quarter ended March 31, 2026, standalone profit stood at ₹130.00 crore on total income of ₹1,828.01 crore, compared to ₹95.56 crore and ₹1,764.33 crore respectively in the same quarter of the prior year.

Segment Performance

The company operates across three segments — Casting, Tube, and Steel. Consolidated segment revenue for FY26 showed growth in the Casting and Tube segments. The Casting segment remained the largest contributor, while the Tube segment recorded a notable improvement in profitability. The table below presents the consolidated segment results for FY26:

Segment: Revenue FY26 (₹ Cr) Revenue FY25 (₹ Cr) Profit Before Tax & Interest FY26 (₹ Cr) Profit Before Tax & Interest FY25 (₹ Cr) Casting: 4,314.19 4,047.38 397.10 348.85 Tube: 2,342.74 2,294.31 181.16 119.21 Steel: 1,697.54 1,680.17 57.20 59.63

After deducting inter-segment revenue of ₹1,465.90 crore, net consolidated revenue from operations for FY26 stood at ₹6,888.57 crore.

Key Financial Ratios and Balance Sheet Position

The company maintained a healthy financial position as of March 31, 2026. On a standalone basis, net worth stood at ₹2,396.84 crore, while consolidated net worth was ₹2,340.73 crore. The standalone debt-equity ratio improved to 0.27 from 0.37 in the prior year, and the consolidated debt-equity ratio similarly improved to 0.28 from 0.37. Key ratios are presented below:

Ratio: Standalone FY26 Standalone FY25 Consolidated FY26 Consolidated FY25 Debt-Equity Ratio: 0.27 0.37 0.28 0.37 Debt Service Coverage Ratio (Annualised): 2.25 2.02 2.27 2.00 Interest Service Coverage Ratio (Annualised): 5.10 3.99 5.08 3.83 Net Worth (₹ Cr): 2,396.84 2,098.36 2,340.73 2,060.03 Operating Margin (%): 12.06% 11.54% 12.22% 11.52% Net Profit Margin (%): 5.54% 4.83% 5.19% 4.48% Current Ratio: 1.07 1.07 1.06 1.06

Standalone total assets as of March 31, 2026 stood at ₹6,577.53 crore, up from ₹6,353.57 crore in the prior year. Consolidated total assets were ₹6,559.07 crore compared to ₹6,348.72 crore previously. Cash and cash equivalents on a standalone basis increased to ₹81.92 crore from ₹41.82 crore, while consolidated cash and cash equivalents rose to ₹87.00 crore from ₹42.24 crore.

Operational Highlights and Corporate Developments

During the quarter ended March 31, 2026, the company raised ₹300 crore via commercial papers for working capital requirements and general corporate purposes, with total outstanding commercial papers as on March 31, 2026 standing at ₹294.98 crore. The Board also reviewed the impact of the new Labour Codes notified by the Government of India on November 21, 2025, which consolidate 29 existing labour laws. Due to changes in the wage definition, an exceptional item 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. Additionally, during the quarter ended June 30, 2025, the company initiated voluntary liquidation of its subsidiary ISMT Enterprises SA Luxembourg; the entity was deregistered from the Luxembourg Trade Registry on September 1, 2025. Consequent to the allotment of 66,260 equity shares under KFIL Employee Stock Option Schemes during the quarter, the paid-up equity share capital increased to ₹824,608,215 comprising 164,921,643 equity shares of ₹5 each. Net cash from standalone operating activities for FY26 stood at ₹952.37 crore, up from ₹661.79 crore in FY25, while consolidated net cash from operating activities was ₹941.98 crore compared to ₹655.79 crore previously.

Investor Conference Call Details

To discuss the financial results, the company scheduled a conference call for investors and analysts on Friday, May 8, 2026, at 4:00 p.m. IST. The call was represented by senior management, including Managing Director Mr. R.V. Gumaste and Executive Director (Finance) & CFO Mr. R.S. Srivatsan.

Access Type: Details Date & Time: Friday, May 8, 2026, at 4:00 p.m. IST Universal Access: +91 22 6280 1342, +91 22 7115 8243 USA: 18667462133 UK: 08081011573 Singapore: 8001012045

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