Kirl. Ferrous Q1 FY27 Results (NSE: KIRLFER)
Signal: Steady quarter
The read
The operating trajectory is mixed: revenue grew 4% YoY to ₹1771.51 Cr on strong castings and steel volumes, but adjusted EBITDA fell 1% to ₹215.7 Cr and margin contracted 60bps to 12.2% under coking-coal pressure; the 65% PAT decline to ₹82.34 Cr is additionally distorted by exceptional items representing 27.9% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,771.51 Cr | +4% | N/A |
| EBIT | ₹163.91 Cr | N/A | |
| Net profit | ₹82.34 Cr | -65% | |
| EBIT margin | 13.2% |
P&L walk
Consolidated revenue increased 4% YoY to ₹1771.51 Cr, while EBITDA before exceptional items declined 1% to ₹215.7 Cr and its margin contracted 60bps to 12.2%; PAT fell 65% to ₹82.3 Cr, with exceptional items materially distorting the bottom line.
Segments
Although no segment results table is provided, castings and steel were the momentum drivers with volume growth of 18% and 13% respectively, while the tubes business moderated as planned.
Key positives
- Castings volume grew 18% YoY and steel volume grew 13% YoY, providing the main support for 4% revenue growth to ₹1771.51 Cr.
- Value-added castings progressed and new tubes customers were added, supporting the stated product-mix and market-expansion strategy.
- PBT before exceptional items increased 6% YoY to ₹134.4 Cr despite adjusted EBITDA declining 1%, indicating support from below-EBITDA items and other operating factors.
Key concerns
- Adjusted EBITDA margin contracted from 12.8% to 12.2%, a 60bps YoY decline, as firm coking-coal prices offset volume growth.
- PAT declined 65% YoY to ₹82.34 Cr from ₹238.0 Cr consolidated, making reported earnings materially weaker than the underlying 6% growth in PBT before exceptional items.
- The tubes segment was deliberately moderated, creating a near-term drag on the benefit from stronger castings and steel volumes.
Earnings quality: includes an exceptional item
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