IFGL Refractories Resumes Kandla Operations After LPG Supply Halt

IFGL Refractories has confirmed the full resumption of operations at its Kandla manufacturing facility in Gujarat, effective March 23, 2026. The plant is now fully functional across all product lines following a temporary halt.

Operations Back Online After LPG Disruption

Confirmation came on March 23, 2026, that IFGL Refractories' Kandla facility in Gujarat had resumed full operations. The plant had been temporarily idled since March 20, 2026, due to an LPG supply disruption. All product lines are now reportedly operational.

Cause of the Supply Halt

The disruption stemmed from an LPG shortage affecting industrial units across India around March 20, 2026, reportedly linked to a West Asian conflict. This supply issue forced temporary shutdowns for various businesses, including IFGL Refractories' Kandla plant. At the time, the company indicated it was unable to fully quantify the impact.

Importance of the Kandla Facility

The Kandla facility is a critical manufacturing hub for IFGL Refractories, making its full operational status essential for meeting production targets and customer demand. Continuity here ensures revenue streams are maintained and minimizes losses from idle capacity.

Impact on Production and Sales

With operations back online, shareholders can expect a normalization of production from the Kandla plant. This should facilitate the fulfillment of outstanding orders and the resumption of normal sales from the facility. The company noted it will continue to monitor any remaining effects from the supply issue.

Financial and Operational Snapshot

In the third quarter of fiscal year 2026 (Q3 FY26), IFGL Refractories reported consolidated revenue of ₹468.64 crore, marking a 23.70% year-on-year increase. The company posted a consolidated net loss of ₹3.08 crore for the same quarter. The Kandla plant's manufacturing capacity was noted at 2.4 lakh pieces per annum as of July 2020.

Industry Risks and Peer Landscape

IFGL Refractories operates within the cyclical steel industry, its primary customer base. The company faces challenges including intense competition that limits pricing power, and reliance on imported raw materials, which creates vulnerability to supply chain disruptions and price volatility.

IFGL competes with major players in the Indian refractory sector such as RHI Magnesita India Ltd., Vesuvius India Ltd., and TRL Krosaki Refractories Ltd. These peers also navigate similar challenges related to raw material sourcing and industry cyclicality.

What to Track Next

Investors will be watching for management's commentary on any persistent effects from the LPG disruption. Continued monitoring of the Kandla plant's operational efficiency and production output post-resumption will be key. Future guidance on the demand outlook and potential cost pressures will also be important.