Kirloskar Ferrous Industries Ltd(KIRLFER)

NSE: KIRLFERBSE: 500245

₹ 450.4-0.35%refreshed 23 Oct, 03:50 pm ISTMarket cap: ₹ 7,431 crWebsite: www.kirloskarferrous.com; www.kirloskar.comUpdated: 24 Oct 2026

About

Kirloskar Ferrous Industries Ltd makes pig iron, ductile iron castings, seamless steel tubes, and alloy steel at plants in Karnataka, Maharashtra, and Punjab. In FY26 the company reported revenue of ₹6,888.57 cr across three segments: castings (51.6%), tubes (28.0%), and steel (20.3%). It operates blast furnaces at Koppal and Hiriyur, six foundries, a tube mill at Baramati and Ahmednagar, and a steel rolling mill at Jejuri.^[1][2][3]

Business segments

Casting segment contributed 51.6% of FY26 revenue at ₹4,314.19 cr, with EBIT margin of 9.2%.^[2]
Tube segment was 28.0% of FY26 revenue at ₹2,342.74 cr, with EBIT margin of 7.7%.^[2]
Steel segment contributed 20.3% of FY26 revenue at ₹1,697.54 cr, with EBIT margin of 3.4%.^[2]

Operations and capacity

Pig iron and hot metal is produced at blast furnaces in Koppal (MBF1 and MBF2) and Hiriyur; total hot metal capacity is ~7,20,000 MT/year, with internal consumption of ~1,00,000 MT/year for steelmaking.^[4][5]
Six foundries are in operation across Koppal, Solapur, and Rajpura (Oliver Engineering); installed casting capacity across all six is 2,70,000 MT/year as of Q1 FY27.^[6]
Machine shops are operational at all three foundry locations (Koppal, Solapur, Rajpura), supplying fully machined components ready for assembly as of Q1 FY27.^[6]
Seamless tube production is at Baramati and Ahmednagar; current tube capacity is ~2,30,000 MT/year from existing equipment.^[4]
Alloy steel is produced and rolled at Jejuri (rolling mill); steel external sales were ~84,000 MT in FY26.^[6][3]
Existing 70 MW solar plant is fully operational; 35 MW new solar plant was in commissioning stage and 12 windmills of 2.1 MW each were expected to commission between June and September 2026.^[6]

Key operating volumes and realisations

Pig iron production in Q1 FY27 was 1,65,120 MT (+5% YoY); external pig iron sales were 1,28,737 MT (-3% YoY) in Q1 FY27.^[6]
Casting production rose 19% YoY to 43,800 MT in Q1 FY27; casting sales rose 18% YoY to 41,345 MT.^[6]
Tube production fell 8% YoY to 51,968 MT in Q1 FY27; tube sales dropped 14% YoY to 41,512 MT, attributed to absence of high-realisation export and oil & gas orders.^[6]
Pig iron realisation recovered from ₹36,704/MT in Q3 FY26 to ₹39,332/MT in Q4 FY26; the company was exporting ~30,000 MT/month of pig iron in Q1 FY27 at realisations slightly above domestic prices.^[6][3]
Casting realisation was ₹1,31,812/MT in Q4 FY26 (+8% QoQ); tube realisation was ₹1,11,394/MT in Q4 FY26 (-6% YoY).^[3]
FY26 full-year pig iron external sales were 5,13,043 MT (flat YoY); casting sales 1,40,245 MT (+6% YoY); tube sales 1,88,704 MT (+12% YoY).^[3]

Power and cost structure

Solar power savings were ₹70 cr in FY26; power cost as a percentage of revenue fell from 8.5% in Q4 FY25 to 6.1% in Q4 FY26.^[3]
In Q1 FY27, power and fuel costs rose ~₹58 cr YoY; roughly half from rate increases (~₹28-29 cr) and half from production volume growth.^[6]
A regulatory change cut permissible green power usage from 17 to 8 hours per day, eliminating ~₹10 cr/year of power trading benefit; projected annual savings from new solar and wind reduced from ~₹100 cr to ~₹80 cr.^[6]

Customers and distribution

Casting customers expanded from 26 to 29 in FY26, adding customers in diesel engines, earthmoving equipment, and TREM V tractors; KFIL holds single-source status for ~80% of developed casting parts.^[3][4]
Export share in castings rose from 20% to 28% in FY26; commercial vehicle segment share rose from 12% to 16%.^[3]
ONGC is a named tube customer; a large oil-country tubular goods order from ONGC was executed in Q4 FY26.^[4]

Expansion and capex

Rajpura foundry Phase 1 expansion to 40,000-45,000 MT/year is targeted within 8 months of Q1 FY27; Phase 2 subsequently to 70,000 MT/year (6,000 MT/month).^[6]
Two-part (no-bake/large casting) foundry at Solapur (1,250 MT/month, 15,000 MT/year Phase 1+2) was delayed to October 2026 commissioning from an earlier July 2026 target; one customer has indicated intent to take full capacity.^[6]
Steel plant at Koppal: government clearances in place as of Q1 FY27, with preliminary work done; construction start expected within 2-3 months, commissioning in ~2 years, targeting 2,40,000 MT/year external alloy steel sales.^[6]
Hiriyur blast furnace upgrade of ₹125-150 cr is planned to raise capacity to 2,50,000-3,00,000 MT/year; total group capex guided at ₹600-700 cr in FY27, rising to ₹3,000-3,500 cr over 4 years.^[3][6]
Pellet/beneficiation plant and iron ore mine operationalisation at Koppal have commenced execution as of Q1 FY27.^[6]

Recent developments

Oliver Engineering (Rajpura foundry) merger into KFIL standalone was targeted for July-August 2026; Oliver produced 17,500 MT in FY26 and was running at ~2,200 MT/month and sold out as of Q1 FY27.^[3][6]
Hiriyur blast furnace was shut for ~3.5 months in FY26 due to weak pig iron market realisations, reducing FY26 pig iron production by ~68,000 MT versus the prior year.^[3]
FY26 capex was ₹456 cr; gross debt stood at ₹1,034 cr at end-FY26 with net debt/EBITDA of 1.14x.^[3]
A premium couplings manufacturing facility at Baramati was being planned as of Q1 FY27, with the equipment order to be placed within a few weeks and operations targeted within 12 months.^[6]

Market Cap

₹7,431 Cr

High / Low

₹547 / 336

Stock P/E

21.4

Price / Book

1.9

Book Value

₹234

EPS

₹30.8

No. of Shares

16.49 Cr

ROCE

13.3%

ROE

13.9%

OPM

9.2%

Debt / Equity

0.27

Sales

₹6,889 Cr

Net Profit

₹507 Cr

Promoter holding

50.8%

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Kirloskar Ferrous Industries Ltd(KIRLFER)

About

Business segments

Operations and capacity

Key operating volumes and realisations

Power and cost structure

Customers and distribution

Expansion and capex

Recent developments

Signal history

The analysis Screener can't give you

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