Indian Metals Q4 FY26 Earnings Call — Analysis (NSE: IMFA)
Q4 PAT triples YoY to ₹103 Cr on higher realisations and KNR2 output; management guides FY27 volume of ~400kt and 60:40 domestic pivot.
The take
Q4FY26 Revenue ₹763 Cr ( +34.58% YoY ) .
Results
Q4 FY26 revenue ₹763 Cr (up 34.6% YoY), net profit ₹103.16 Cr (up 118% YoY); ferrochrome production 68,500 tonnes including 2,200t from KNR2; realisations at ₹1,09,000/t vs ₹87,000/t in Q4 FY25.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue | ₹763 Cr | +34.58% | yoy · Q4FY26 · over Q4FY25 |
| Net Profit | ₹103.16 Cr | +118.13% | yoy · Q4FY26 · over Q4FY25 (₹47 Cr) |
| Production | 68,500 tonnes | point_in_time · Q4FY26 · incl. 2,200 tonnes from KNR2 acquisition (furnaces switched on in Mar) | |
| Realisation per tonne | ₹1,09,000 | +₹22,000/t | yoy · Q4FY26 · vs ₹87,000/t in Q4FY25 |
Guidance
FY27 ferrochrome output targeted at ~400,000 tonnes, FY28 at 475–500kt; EBITDA/t cost reduction of ₹3,000–4,000 expected from Q4 FY27.
Key themes
Capacity expansion and domestic pivot
Operational commentary
- KNR 2 acquisition closed Feb 27, 2026; furnaces operating smoothly at ~6,000 t/m (70% utilisation), contributing to Q4.
- KNR 1 greenfield: pre-commissioning from May 30; first furnace switch-on July 10–15, second by end-Aug/early-Sep 2026; slight delay due to manpower and heat.
- Domestic sales pivot: targeting 60:40 export:domestic mix by Nov–Dec 2026 when capacity hits 5 lakh tpa run-rate; existing international customers seek additional tonnage.
- Renewable energy: 70 MW hybrid RE from JSW Energy to start Jul 2026; 65 MW from Enfinity Global tied up for Jun 2027; total 135 MW to reduce carbon cost and stabilise power rates.
- Ethanol project: pre-commissioning Jul 2026, commissioning in Q2 FY27, output expected end-August.
- Mining: FY27 chrome ore target 10 lakh tonnes; eventual sustained output 12 lakh tpa from underground operations; investment ~₹1,000 Cr.
- Coal linkage benefits: fresh linkages to reduce thermal coal cost by ₹400–500/t from H2 FY27.
- South African special tariff: $0.62/kWh proposed for ferrochrome; management sees chrome-unit neutrality, but uncertain outcome.
Analyst Q&A
Q. What is the hedging policy and impact of rupee depreciation on other expenses?
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