News ArticleKirloskar Ferrous Industries Limited Posts 16% Revenue Growth to Rs. 2,057 Crores in Q2 FY'27
Pig iron and casting sales increase with improved price realizations; steel and tubes show mixed performance amid supply challenges
Kirloskar Ferrous Industries Limited announced a 16% increase in revenue to Rs. 2,057 crores for Q2 FY'27 with improvements in pig iron and casting production and sales. The company highlighted a 12.4% rise in pig iron prices and continued strong demand in castings from automotive and tractor sectors, with partial recovery in steel and tube segments amid ongoing market challenges.
Kirloskar Ferrous Industries Limited
Earnings Call Transcript
Kirloskar Ferrous Industries Limited reported a 16% growth in revenue to Rs. 2,057 crores for the quarter ended September 2026, with pig iron and casting segments driving increased sales and production volumes. The company partially recovered from price and supply challenges, providing volume and pricing updates during its Q2 FY'27 earnings call.
The company recorded a profit before tax (PBT) of Rs. 138 crores, up from Rs. 120 crores in the corresponding quarter last year. Pig iron sales revenue grew 20% to Rs. 581 crores, supported by production of 1,34,000 metric tons in the quarter and a 12.4% increase in average realizations to Rs. 43,054 per ton.
Casting revenue increased nearly 30% to Rs. 633 crores, with production rising to 93,000 metric tons. Demand remained strong from automotive, tractor, earth moving, and stationary engine sectors. Tubes segment sales dipped slightly by 2% with challenging market conditions, while steel external sales grew 48% to Rs. 206 crores.
The company reported production improvements in pig iron and casting, with pig iron production increasing 3% year-over-year to over 3,31,000 metric tons in six months and castings up 20%. Tubes production decreased by 7.5%, but steel production rose 14%.
Price realizations improved across most product segments, with pig iron and steel prices rising 12.4% and 7.6% respectively, while casting prices increased 6.8%. Tube price recovery was more modest at 1.6%.
Kirloskar Ferrous also noted an export shipment of 31,000 metric tons of pig iron, achieving better realizations than domestic sales, and plans to continue focusing primarily on the domestic market, considering international price dynamics.
Highlights
- Kirloskar Ferrous Limited posted Rs. 2,057 crore revenue for Q2 FY'27, a 16% increase from Rs. 1,755 crore in Q2 FY'26.
- Profit before tax rose to Rs. 138 crore versus Rs. 120 crore year-on-year.
- Pig iron sales grew 20% to Rs. 581 crore with 3.5% higher sales volume in Q2.
- Casting sales increased nearly 30% to Rs. 633 crore, supported by strong demand from automotive and tractor sectors.
- Steel external sales jumped 48% to Rs. 206 crore, while tubes sales dipped 2%.
- Average price realizations improved across pig iron (+12.4%), casting (+6.8%), and steel (+7.6%) segments in Q2 FY'27 compared to last year’s quarter, with modest recovery in tubes (+1.6%).
Key Data Snapshot
What happened
- Kirloskar Ferrous Industries Limited increased quarterly revenue by 16% in Q2 FY'27 to Rs. 2,057 crores.
- Profit Before Tax rose to Rs. 138 crores versus Rs. 120 crores in the prior year quarter.
- The growth was primarily driven by higher sales and production in pig iron and castings.
- Price realizations improved for pig iron, castings and steel products, partially offsetting previous cost pressures.
Key details
- Pig iron sales advanced 20% year-on-year to Rs. 581 crores with production at 1,34,000 metric tons in the quarter.
- Casting sales rose approximately 30% to Rs. 633 crores driven by robust demand from tractor, automotive, earth moving and stationary engine sectors.
- Steel external sales increased 48% to Rs. 206 crores, while tube segment sales declined slightly by 2%.
- Average realizations increased by 12.4% for pig iron, 6.8% for castings, and 7.6% for steel compared to the prior year quarter.
- The company exported 31,000 metric tons of pig iron during the quarter, securing better pricing than domestic sales.
Operational performance
- Pig iron production for the first six months improved 3% year-over-year to 3,31,896 metric tons with three furnaces operational.
- Casting production increased 20% to 93,000 metric tons compared to the previous year period.
- Steel production grew 14% to 1,33,000 metric tons, but tube production declined by 7.5%.
- The company continues to face challenges related to coal prices and currency exchange rates impacting cost structures.
Highlights
- Kirloskar Ferrous Limited posted Rs. 2,057 crore revenue for Q2 FY'27, a 16% increase from Rs. 1,755 crore in Q2 FY'26.
- Profit before tax rose to Rs. 138 crore versus Rs. 120 crore year-on-year.
- Pig iron sales grew 20% to Rs. 581 crore with 3.5% higher sales volume in Q2.
- Casting sales increased nearly 30% to Rs. 633 crore, supported by strong demand from automotive and tractor sectors.
- Steel external sales jumped 48% to Rs. 206 crore, while tubes sales dipped 2%.
- Average price realizations improved across pig iron (+12.4%), casting (+6.8%), and steel (+7.6%) segments in Q2 FY'27 compared to last year’s quarter, with modest recovery in tubes (+1.6%).
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
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