Kirloskar Ferrous Industries Reports Strong FY26 Audited Financial Results

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.

Q4 Standalone Operating Performance

On a standalone basis for the quarter ended March 31, 2026, Kirloskar Ferrous Industries delivered a notable improvement in operating metrics year-on-year. Standalone net profit rose to ₹1.3B rupees from ₹956M in the same period of the prior year, while revenue grew to ₹17.81B rupees from ₹17.4B. EBITDA improved to ₹2.26B rupees from ₹1.99B, with the EBITDA margin expanding to 12.69% from 11.46% year-on-year. The table below presents the Q4 standalone operating highlights:

Metric: Q4 FY26 Q4 FY25 Change (YoY) Net Profit: 1.3B Rupees 956M Rupees Increase Revenue: 17.81B Rupees 17.4B Rupees Increase EBITDA: 2.26B Rupees 1.99B Rupees Increase EBITDA Margin: 12.69% 11.46% +123 bps

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

Kirloskar Ferrous Industries Limited has received a significant regulatory milestone in its corporate restructuring initiative, with the National Company Law Tribunal (NCLT) Mumbai issuing an order on April 16, 2026, advancing the company's merger scheme proceedings.

NCLT Order Details

The NCLT has approved the progression of Company Petition No. C.P.(CAA)/46(MB)2026 relating to the scheme of arrangement and merger by absorption of two wholly-owned subsidiaries with Kirloskar Ferrous Industries Limited. The order was uploaded on the NCLT website on April 16, 2026, following a hearing conducted on April 9, 2026.

Parameter: Details Petition Number: C.P.(CAA)/46(MB)2026 Hearing Date: April 9, 2026 Order Upload Date: April 16, 2026 Final Hearing Date: May 15, 2026 Transferor Companies: Oliver Engineering Private Limited, Adicca Energy Solutions Private Limited Transferee Company: Kirloskar Ferrous Industries Limited

Merger Scheme Structure

The approved scheme involves the merger by absorption of Oliver Engineering Private Limited (OEPL) and Adicca Energy Solutions Private Limited (AESPL) with Kirloskar Ferrous Industries Limited. Both OEPL and AESPL are wholly-owned subsidiaries of the company. The scheme encompasses the respective shareholders of all three entities involved in the corporate restructuring.

Regulatory Compliance Requirements

The NCLT order mandates several compliance requirements that the company must fulfill before the final hearing:

Statutory Notifications: Issuance of notices to statutory and regulatory authorities as per Section 230(5) of the Companies Act, 2013

Newspaper Publication: Publishing hearing notices in two local newspapers - Financial Express (English) and Loksatta (Marathi) in Pune, at least 10 days before the hearing date

Authority Notifications: Informing statutory authorities about the hearing date as per Rule 8 of the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016

Website Hosting: Posting notices and scheme copies on respective company websites

Legal Framework and Process

The merger proceedings are being conducted under Sections 230-232 of the Companies Act, 2013. The tribunal has directed that statutory authorities must submit their representations, if any, within thirty days of receiving the notice. Failure to respond within this timeframe will be presumed as having no objections to the proposed scheme.

The company has been represented by Mr. Hemant Sethi as legal counsel before the NCLT Mumbai bench, comprising Hon'ble Member (Technical) Sh. Prabhat Kumar and Hon'ble Member (Judicial) Sh. Sushil Mahadeorao Kochey.

Next Steps

With the petition formally admitted for hearing and final disposal on May 15, 2026, Kirloskar Ferrous Industries Limited must complete all mandated compliance requirements before the scheduled date. The company has communicated this development to BSE Limited under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding this significant corporate restructuring initiative.

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