Indian Metals & Ferro Alloys Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Indian Metals & Ferro Alloys Ltd filed with BSE on 03 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
IMFA reported Q4 FY26 production of about 68,500 tons, including initial output from the newly acquired KNR 2 facility, with PAT rising to Rs 103 crore from Rs 47 crore in the year-ago quarter on higher realizations. Management said realizations rose from roughly Rs 87,000 a ton to about Rs 109,000 a ton, aided by rupee depreciation, while costs rose marginally due to higher chrome royalty and thermal coal prices. The company also gave updates on the KNR 1 greenfield project, an ethanol project, renewable energy tie-ups, and mining capacity expansion plans.
Numbers mentioned
Production: about 68,500 tons (Q4 FY26)
p. 3
“We registered production of about a little 68,500 tons.”
Subhrakant Panda, page 3 of the filed PDF · View the filing
PAT: INR103 crores (Q4 FY26)
p. 4
“That is why you see a substantial jump in the PAT from about INR47 crores in the corresponding quarter to INR103 crores in the current quarter.”
Subhrakant Panda, page 4 of the filed PDF · View the filing
Realization per ton: INR109,000 a ton (Q4 FY26)
p. 10
“the jump in realization is from INR87,000 a ton to INR109,000 a ton”
Subhrakant Panda, page 10 of the filed PDF · View the filing
KNR 2 production included in quarter: about 2,200 tons (Q4 FY26)
p. 4
“So, we have about, I think, 2,200 tons odd production included in the quarter.”
Subhrakant Panda, page 4 of the filed PDF · View the filing
Current KNR run-rate output: approximately 6,000 tons a month (Q1 FY27)
p. 4
“all furnaces are running smoothly, and we are getting approximately 6,000 tons a month output”
Subhrakant Panda, page 4 of the filed PDF · View the filing
Notional forex mark-to-market loss: about INR28 crores (Q4 FY26)
p. 10
“I have said about INR28 crores of that is actually the notional amount which has been put in.”
Saunak Gupta, page 10 of the filed PDF · View the filing
Actual forex loss: INR3 crores (Q4 FY26)
p. 10
“Actual during this quarter, even though there has been a sharp depreciation of rupee, but the actual loss is only limited to INR3 crores.”
Saunak Gupta, page 10 of the filed PDF · View the filing
Forex gain embedded in revenue: almost INR80 crores plus than budgeted (FY26)
p. 10
“Whereas our Forex gain almost for the full year, which is embedded in the revenue is almost INR80 crores plus than what we had budgeted.”
Saunak Gupta, page 10 of the filed PDF · View the filing
Mining output: crossed 8 lakh tons (FY26)
p. 12
“FY '26, we crossed 8 lakh tons.”
Subhrakant Panda, page 12 of the filed PDF · View the filing
Underground ore output at Mahagiri: 536,000 tons
p. 12
“Mahagari as against 6 lakhs, we are already at 536,000 from underground operations.”
Subhrakant Panda, page 12 of the filed PDF · View the filing
Capex spent by April: INR600-odd crores
p. 7
“On the capex, as you know, we have already spent INR600-odd crores by April.”
Saunak Gupta, page 7 of the filed PDF · View the filing
Unutilized term loan: INR170 crores
p. 7
“We have unutilized balance of INR170 crores from there which we will use along with the internal accruals.”
Saunak Gupta, page 7 of the filed PDF · View the filing
Rupee closing rate Q4: INR93.65 (Q4 FY26)
p. 14
“So it was INR93.65.”
Saunak Gupta, page 14 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Ferrochrome output — 400,000 tons · FY27
stated firmly by Subhrakant Panda
p. 15
“for FY '27, the expected output is about 400,000 tons, which will go up to about 475,000 to 500,000 tons for FY '28.”
Subhrakant Panda, page 15 of the filed PDF · View the filing
KNR 1 furnace commissioning — switching on around July 10 to 15 · July 2026
stated firmly by Subhrakant Panda
p. 4
“we will broadly switch on around July 10 to 15 is what we're expecting.”
Subhrakant Panda, page 4 of the filed PDF · View the filing
Ethanol project commissioning — commissioning in Q2 of FY '27 · Q2 FY27
stated firmly by Subhrakant Panda
p. 5
“we will be taking up pre-commissioning activities in July, as we have mentioned, and commissioning in Q2 of FY '27.”
Subhrakant Panda, page 5 of the filed PDF · View the filing
Export vs domestic sales mix — 60-40 in favor of exports · by next year
stated conditionally by Subhrakant Panda
p. 13
“We are looking at going from 90-10 to 60-40 by sometime next year.”
Subhrakant Panda, page 13 of the filed PDF · View the filing
Mining capacity — 10 lakh tons · FY27
stated firmly by Subhrakant Panda
p. 12
“And FY '27, the target is for 10 lakh tons.”
Subhrakant Panda, page 12 of the filed PDF · View the filing
Mining capacity — 12 lakh tons per annum
stated as an aspiration by Subhrakant Panda
p. 12
“We will be at the 10 lakh ton mark for a couple of years, and then we will gradually take it up to 12 lakh tons.”
Subhrakant Panda, page 12 of the filed PDF · View the filing
EBITDA cost reduction per ton — INR3,000 to INR4,000 a ton · Q4 of FY '27 onwards
stated conditionally by Subhrakant Panda
p. 13
“if I say, from Q4 of FY '27 onwards is when we would truly have steady-state operations across the board.”
Subhrakant Panda, page 13 of the filed PDF · View the filing
Renewable energy share of total energy consumption — 35% to 40% · FY28
stated as an aspiration by Subhrakant Panda
p. 15
“broadly, I would say that next fiscal, FY '28, we broadly would expect about 35% to 40% of our total energy consumption to be from renewable sources.”
Subhrakant Panda, page 15 of the filed PDF · View the filing
Partially built 33 MVA furnace commissioning — June 2027 · June 2027
stated conditionally by Subhrakant Panda
p. 9
“But we would hope to target commissioning around June 2027.”
Subhrakant Panda, page 9 of the filed PDF · View the filing
Q2 FY27 pricing expectation — around the same as Q1 · Q2 FY27
stated conditionally by Subhrakant Panda
p. 15
“We expect it to be around the same as Q1 as of now.”
Subhrakant Panda, page 15 of the filed PDF · View the filing
Q1 FY27 sales volume — about 80,000 tons · Q1 FY27
stated firmly by Subhrakant Panda
p. 15
“In Q1, we will be looking at about 80,000 tons because of the additional output from KNR 2, which is coming in.”
Subhrakant Panda, page 15 of the filed PDF · View the filing
Coal linkage cost savings — INR400 to INR500 a ton cheaper · H2 of FY '27
stated conditionally by Subhrakant Panda
p. 7
“those benefits will start flowing probably from Q3 of this year that coal sourcing through linkages is also the pricing is going to be about INR400 to INR500 a ton cheaper.”
Subhrakant Panda, page 7 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the impact would likely be net-net neutral for chrome units even if the tariff is approved, since increased South African output could reduce Chinese ferrochrome production.
Answered by Subhrakant Panda
Asked by Parthiv Jhonsa: What is the impact of South African power tariff changes on global ferrochrome competition?
p. 6
“we believe that by and large, even if these tariffs are approved, it will be sort of net-net neutral in terms of chrome units.”
Subhrakant Panda, page 6 of the filed PDF · View the filing
Management explained that about 25-30% of forex exposure is hedged, and the mark-to-market loss from rupee depreciation was largely notional rather than a realized loss.
Answered by Subhrakant Panda
Asked by Aashav Patel: Can you explain the hedging policy and the jump in other expenses?
p. 10
“we look to hedge about 25% to 30% of our outstandings at any of our net foreign exchange exposure and primarily try to make balance the downside while also locking in some of the upside.”
Subhrakant Panda, page 10 of the filed PDF · View the filing
Management said the full cost savings depend on both KNR 1 and KNR 2 operating together and stabilizing, with some near-term start-up cost aberrations.
Answered by Subhrakant Panda
Asked by Aashav Patel: Are the expected EBITDA cost savings from KNR 2 synergies already visible?
p. 11
“when entire KNR complex comprising 1 and 2 is up and running is where we are looking at a weighted average reduction in EBITDA cost by INR3,000 to INR4,000 on account of better logistics.”
Subhrakant Panda, page 11 of the filed PDF · View the filing
Management declined to give a specific EBITDA per ton target, citing sector volatility, but said prices are expected to remain elevated due to cost pressures and underinvestment in new capacity.
Answered by Subhrakant Panda
Asked by Vinit Thakur: What is the targeted EBITDA per ton for ferrochrome?
p. 12
“we do feel that due to cost pressures, ferrochrome prices in line with other commodities are going to remain elevated.”
Subhrakant Panda, page 12 of the filed PDF · View the filing
Management said Q1 FY27 is looking better than Q4 FY26 with higher prices and volumes, and expects Q2 pricing to be similar to Q1.
Answered by Subhrakant Panda
Asked by Saket Kapoor: How will realizations behave in H1 FY27?
p. 15
“Q1 is looking definitely better than Q4 of FY '26. Q1 FY '27 is definitely looking better.”
Subhrakant Panda, page 15 of the filed PDF · View the filing
Management said they are seriously evaluating participation in critical mineral blocks and see it as adjacent to their mining and processing skill set, though details are limited at this stage.
Answered by Subhrakant Panda
Asked by Kaushal Kedia: What are the company's aspirations in critical minerals?
p. 16
“we are looking to participate in some of these critical mineral blocks, which are coming up in Odisha and elsewhere in the country.”
Subhrakant Panda, page 16 of the filed PDF · View the filing
Risks flagged
Higher freight and domestic logistics costs due to West Asia crisis and fuel price increases
p. 4
“direct impact we have seen is in terms of higher freight costs and domestic logistics costs because of increase in fuel prices”
Subhrakant Panda, page 4 of the filed PDF · View the filing
Elevated ore prices raising chrome royalty costs
p. 4
“Costs are up marginally, primarily on account of royalty on chrome, which has gone up a little bit due to elevated ore prices.”
Subhrakant Panda, page 4 of the filed PDF · View the filing
Slight delay in KNR 1 commissioning due to manpower demobilization and extreme temperatures
p. 4
“there was a partial manpower demobilization because of various reasons, people moving out for elections, etc.”
Subhrakant Panda, page 4 of the filed PDF · View the filing
Potential pressure on ferrochrome prices if South African production rises without a corresponding fall in Chinese output
p. 6
“if ferrochrome production in South Africa picks up and Chinese ferrochrome production doesn't go down, then you will certainly see pressure on prices”
Subhrakant Panda, page 6 of the filed PDF · View the filing
Mark-to-market notional losses from rupee depreciation on hedged forex exposure
p. 14
“that 25% to 30% that we have hedged, that is what is resulting in the mark-to-market losses”
Subhrakant Panda, page 14 of the filed PDF · View the filing
Reduced investment income due to lower cash balances after acquisition funding
p. 14
“cash in the books has gone down from INR900-odd, INR950 crores to about INR400 crores, INR450 crores.”
Subhrakant Panda, page 14 of the filed PDF · View the filing
Start-up cost inefficiencies during furnace heating and stabilization periods
p. 16
“until and unless you cross 80% and ideally 90% levels, your rates per unit cost is high”
Subhrakant Panda, page 16 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.