Kirloskar Ferrous Industries Limited Reports 9% Net Profit Growth in Q2 FY26

Kirloskar Ferrous Industries Limited (KFIL), a prominent manufacturer of castings, pig iron, steel, and seamless tubes, has released its unaudited financial results for the second quarter of the fiscal year 2025-26.

On a standalone basis, the company reported revenue from operations of ₹1,728 crore, marking a 4% increase from ₹1,667.1 crore in the same quarter last year. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), excluding other income and exceptional items, rose by 9% to ₹213.6 crore from ₹195.4 crore, with the EBITDA margin improving to 12.4% from 11.7%. Profit Before Tax (PBT), excluding exceptional items, saw a 9% growth to ₹125.9 crore, and Net Profit (PAT) increased by 9% to ₹92.3 crore, up from ₹84.9 crore in Q2 FY25.

Consolidated figures also showed positive trends. Revenue from operations grew by 5% year-on-year to ₹1,755.3 crore. Consolidated EBITDA (excluding other income and exceptional items) increased by 10% to ₹214.4 crore, with margins widening to 12.2% from 11.6%. Consolidated PBT (excluding exceptional items) rose 11% to ₹119.9 crore, and consolidated PAT climbed 11% to ₹86.3 crore from ₹77.6 crore in Q2 FY25.

RV Gumaste, Managing Director of KFIL, commented that the quarter presented a mixed scenario with steady demand for all products but margin pressure on iron and steel. He highlighted strong demand for castings from the tractor and automotive sectors. Despite a drop in realizations and commodity headwinds, the company maintained strong performance in both top-line and profitability. Future prospects look promising with Oliver Engineering ramping up production and securing of tube volumes through an ONGC order for the second half of the fiscal year.

Impact: This financial report provides investors with a clear picture of KFIL's performance, indicating resilience and growth in its key business segments. The positive outlook driven by order books and production ramp-ups suggests potential for continued investor confidence. The growth in revenue and profit, coupled with margin improvements, is a positive indicator for the company's operational efficiency and market position. The challenges faced in iron and steel margins and commodity price fluctuations are important factors for investors to consider.

Impact Rating: 6/10

Difficult Terms: EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. This metric measures a company's operating performance before accounting for financing decisions, accounting decisions, and tax environments. It provides a measure of the company's ability to generate earnings from its core operations. PBT: Profit Before Tax. This is the profit a company has earned before the government has taken its share of taxes. It includes all revenues minus all expenses except income tax. PAT: Profit After Tax. This is the company's net profit after all expenses, including taxes, have been deducted from its total revenues. It is often referred to as the company's net earnings.