Kirloskar Ferrous Industries Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Kirloskar Ferrous Industries Ltd filed with BSE on 13 Aug 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
Kirloskar Ferrous reported pig iron production up 5%, casting production up 19%, and tube production down 8% year-on-year for Q1 FY27. Management said other expenses rose due to higher power and fuel costs, partly from regulatory changes affecting green power usage, and current EBITDA margin stood at 12% to 13%. Management discussed multiple ongoing capacity expansion projects across pig iron, castings, steel and tubes, and described plans to pass on cost increases to customers in the coming quarters.
Numbers mentioned
Pig iron production: 1,65,120 metric ton (Q1 FY27)
p. 3
“we produced 1,65,120 metric ton of pig iron against last year's 1,57,112 metric ton, an increase of 5 %”
R.V. Gumaste, page 3 of the filed PDF · View the filing
Casting production: 43,800 tons (Q1 FY27)
p. 3
“And in case of castings, against last year first quarter 36,929 ton, we produced 43,800 tons, an increase of 19%”
R.V. Gumaste, page 3 of the filed PDF · View the filing
Tube production: 51,968 metric tons (Q1 FY27)
p. 3
“whereas the tube total production last year was 56,558 metric tons. Against that, we have come down to 51,968 metric tons, which is a drop of 8%”
R.V. Gumaste, page 3 of the filed PDF · View the filing
Pig iron external sales: 1,28,737 metric ton (Q1 FY27)
p. 3
“we sold 1,28,737 metric ton in quarter 1 external sales against 1,32,392 tons in the quarter”
R.V. Gumaste, page 3 of the filed PDF · View the filing
Casting sales: 41,345 metric tons (Q1 FY27)
p. 3
“casting sales is 41,345 metric tons against 34,941 metric tons, which is an increase of 18% compared to last year's first quarter”
R.V. Gumaste, page 3 of the filed PDF · View the filing
Tube sales: 41,512 tons (Q1 FY27)
p. 3
“Tube sales totalled 41,512 tons against last year's 48,461 metric tons, which is a drop of almost 14%”
R.V. Gumaste, page 3 of the filed PDF · View the filing
EBITDA margin: 12% to 13% (Q1 FY27)
p. 8
“currently for quarter 1, we are at 12% to 13% EBITDA”
R.V. Gumaste, page 8 of the filed PDF · View the filing
Increase in other expenses: INR100 crores year-on-year (Q1 FY27)
p. 5
“So we've seen a jump in other expenses by about INR100 crores year-on-year and about INR50 crores sequentially”
Nirmal, page 5 of the filed PDF · View the filing
Power and fuel cost increase: INR58 crores (Q1 FY27)
p. 5
“The increase is INR58 crores. And out of INR100 crores, INR 58 crores is in power and fuel”
R.V. Gumaste, page 5 of the filed PDF · View the filing
Forest development fee contingent liability: INR 350 crores
p. 6
“we've disclosed the contingent liability with forest development fee of about INR 350 crores”
Nirmal, page 6 of the filed PDF · View the filing
Steel and tube EBITDA margin range: 14% to 17%
p. 9
“our steel and tube EBITDA margins have been in the range of 14% to 17% in that bracket”
R.V. Gumaste, page 9 of the filed PDF · View the filing
Pig iron sales volume (current month): 58,000 tons
p. 13
“we plan today this month, 58,000 tons of pig iron sales”
R.V. Gumaste, page 13 of the filed PDF · View the filing
Casting sales (previous period): 84,000 tons
p. 11
“We did about 84,000 tons”
R.V. Gumaste, page 11 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.
Pig iron sales volume — close to 7 lakh metric tons · this year
stated as an aspiration by R.V. Gumaste
p. 10
“I have visibility on pig iron, and I think quite good opportunity still for us to go very close to 7 lakh metric tons for this year, it could be slightly less”
R.V. Gumaste, page 10 of the filed PDF · View the filing
Casting sales growth — more than 15% growth · this year
stated conditionally by R.V. Gumaste
p. 11
“I think we should be able to achieve more than 15% growth, something like gross sales of 1,62,000 going to maybe 1,88,000”
R.V. Gumaste, page 11 of the filed PDF · View the filing
Steel external sales — 1 lakh to 1,10,000 metric tons
stated as an aspiration by R.V. Gumaste
p. 11
“I think we will be able to do external sales of at least 1 lakh to 1,10,000 metric tons, which also amounts to more than 20% growth”
R.V. Gumaste, page 11 of the filed PDF · View the filing
Tube volumetric growth — 10%
stated as an aspiration by R.V. Gumaste
p. 11
“I think we are looking at least volumetric growth of 10% coming in tube compared to last year”
R.V. Gumaste, page 11 of the filed PDF · View the filing
Overall volumetric growth — at least 15%
stated as an aspiration by R.V. Gumaste
p. 11
“I think overall, this will ensure that the volumetric growth of at least 15% coming overall with all the products”
R.V. Gumaste, page 11 of the filed PDF · View the filing
No-bake/2-part casting foundry commissioning — October
stated firmly by R.V. Gumaste
p. 8
“So I think by October, we will commission the no-bake or 2-part casting foundry”
R.V. Gumaste, page 8 of the filed PDF · View the filing
Rajpura foundry Phase 1 expansion — 40,000 to 50,000 metric ton per annum · next 8 months
stated firmly by R.V. Gumaste
p. 4
“in the next 8 months, we will expand the capacity to 2x of that, at least go up to 40,000 to 45,000 metric tons per annum”
R.V. Gumaste, page 4 of the filed PDF · View the filing
Hiriyur pig iron plant and Koppal blast furnace projects completion — February, March
stated firmly by R.V. Gumaste
p. 4
“we expect by February, March, we complete those projects”
R.V. Gumaste, page 4 of the filed PDF · View the filing
Casting capacity — 3 lakh metric ton per annum · 3 to 4 years
stated as an aspiration by R.V. Gumaste
p. 11
“if we bring more foundry, I expect that in 3 to 4 years, we'll be able to reach to 3 lakh metric ton per annum in case of castings”
R.V. Gumaste, page 11 of the filed PDF · View the filing
Pig iron liquid metal capacity — 9 lakh metric tons per annum, possibly 1 million ton
stated as an aspiration by R.V. Gumaste
p. 11
“we will produce 9 lakh metric tons per annum of liquid metal. Maybe slightly more, but not less. It could go to even 1 million ton possibly if we are able to operate at high efficiency”
R.V. Gumaste, page 11 of the filed PDF · View the filing
Tube capacity — 3,50,000 metric ton per annum · 3 to 4 years
stated as an aspiration by R.V. Gumaste
p. 12
“With respect to tube, I have clarity with respect to 3,50,000 metric ton per annum, which should happen on completion of expander mill”
R.V. Gumaste, page 12 of the filed PDF · View the filing
Steel external sales capacity — 2,40,000 metric ton external sale · 2 years
stated firmly by R.V. Gumaste
p. 12
“steel going to 2,40,000 metric ton external sale, we can achieve along with steel making or steel commissioning in Koppal, which is 2 years down the line”
R.V. Gumaste, page 12 of the filed PDF · View the filing
Large castings capacity ramp-up — 500 to 600 tons per month · 1 year to 1.5 years
stated as an aspiration by R.V. Gumaste
p. 12
“I'm looking at within 1 year out of the 1,250 at least we should be able to go to 500 to 600 tons per month down the line in 1 year to 1.5 years”
R.V. Gumaste, page 12 of the filed PDF · View the filing
MBF to steelmaking conversion decision — next 2, 3 months
stated firmly by R.V. Gumaste
p. 12
“I think within next 2, 3 months, we go to the next stage and make it ready to get commissioned within 2 years”
R.V. Gumaste, page 12 of the filed PDF · View the filing
ONGC/Oil India tube order completion — next 2 quarters
stated firmly by R.V. Gumaste
p. 12
“I think that order should be completed in the next 2 quarters”
R.V. Gumaste, page 12 of the filed PDF · View the filing
Annual capex — INR 600 crores to INR 700 crores · this year
stated conditionally by R.V. Gumaste
p. 13
“I think first of all, this year, I feel that we should be in the range of INR 600 crores, INR 700 crores of capex, but should be able to pick up higher levels”
R.V. Gumaste, page 13 of the filed PDF · View the filing
Total capex over next 4 years — INR 3,000 crores to INR 3,500 crores · next 4 years
stated firmly by R.V. Gumaste
p. 13
“Around INR 3,000 crores to INR 3,500 crores in next 4 years”
R.V. Gumaste, page 13 of the filed PDF · View the filing
EBITDA margin target for castings — 15% plus/minus 1%
stated as an aspiration by R.V. Gumaste
p. 9
“I'm a firm believer that 15% EBITDA plus/minus 1% is a right level to operate on castings”
R.V. Gumaste, page 9 of the filed PDF · View the filing
Power cost as percentage of company level — 5% to 6%
stated as an aspiration by R.V. Gumaste
p. 15
“what do we do in terms of our vision to bring at least the power cost to a level like 5% to 6% company level”
R.V. Gumaste, page 15 of the filed PDF · View the filing
Oil and gas tube portfolio expansion to 18 inches — 18 inches · 2 years
stated firmly by R.V. Gumaste
p. 16
“Going up to 18 inch will take 2 years from now”
R.V. Gumaste, page 16 of the filed PDF · View the filing
Rolling mill capacity — 25,000 per month, annually 3 lakh tons · within next 18 months
stated firmly by R.V. Gumaste
p. 16
“we are enhancing the rolling mill capacity to 25,000 per month, annually 3 lakh tons”
R.V. Gumaste, page 16 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 attributed the increase primarily to power and fuel costs, split between rate increases and quantity increases, plus regulatory changes affecting green power usage.
Answered by R.V. Gumaste
Asked by Nirmal: What led to the jump in other expenses year-on-year and sequentially?
p. 5
“The increase is INR58 crores. And out of INR100 crores, INR 58 crores is in power and fuel”
R.V. Gumaste, page 5 of the filed PDF · View the filing
Management said the regulation change reduces the benefit from green power projects but they remain within acceptable limits, with payback period extending slightly.
Answered by R.V. Gumaste
Asked by Nirmal: Does the power trading regulation change affect savings from solar and windmill projects?
p. 6
“Say instead of getting INR100 crores benefit in a year, we may get INR80 crores benefit in a year. Payback period from 3 years may go to 3.6 or 3.7 years.”
R.V. Gumaste, page 6 of the filed PDF · View the filing
Management explained the matter is pending before the Supreme Court after a favorable High Court ruling.
Answered by R. S. Srivatsan
Asked by Nirmal: What is the status of the forest development fee contingent liability?
p. 6
“Government of Karnataka had levied forest development fees in 2016. Then we all went to the high court and the petition came in favour of us. Then government has gone to the Supreme Court and still Supreme Court judgment has not come.”
R. S. Srivatsan, page 6 of the filed PDF · View the filing
Management said pig iron price recovery should support overall company EBITDA and pig iron EBITDA improvement, benefiting castings and steel/tube segments as well.
Answered by R.V. Gumaste
Asked by Saket Kapoor: How is the EBITDA margin trajectory expected to shape up given the commodity price recovery?
p. 9
“I expect now that we have some support on the pig iron. So it should support us for improving the overall company level EBITDA as well as pig iron EBITDA improvement, which supports for the casting and steel tube as well.”
R.V. Gumaste, page 9 of the filed PDF · View the filing
Management gave volume targets for each segment, projecting overall volumetric growth of at least 15%.
Answered by R.V. Gumaste
Asked by Dhruvesh Kanakia: What volume growth can be expected across pig iron, castings, steel and tubes for the remaining 9 months?
p. 11
“I think overall, this will ensure that the volumetric growth of at least 15% coming overall with all the products.”
R.V. Gumaste, page 11 of the filed PDF · View the filing
Management said the company carries 3 months of coal stock, so June-July-August will see higher-cost coal before prices potentially ease.
Answered by R.V. Gumaste
Asked by Sahil Sanghvi: What is the current coking coal cost impact and will it increase further next quarter?
p. 12
“I think June, July, August would be the period where we are going to have this high-cost coal.”
R.V. Gumaste, page 12 of the filed PDF · View the filing
Management said they still expect substantial benefit from solar and wind projects, though slightly lower than originally projected due to regulatory and seasonal factors.
Answered by R.V. Gumaste
Asked by Anurag Patil: How will the elevated power costs and regulatory changes net out against expected solar/wind savings?
p. 15
“So I would say that whatever we have done investment, it is safe. And instead of getting higher, we are getting slightly lower, but it is still a substantial thing.”
R.V. Gumaste, page 15 of the filed PDF · View the filing
Management described increasing processing capacity for oil and gas tubes, building premium coupling manufacturing, and expanding the pipe diameter portfolio to address more of the market.
Answered by R.V. Gumaste
Asked by Pratik Kothari: What internal steps are being taken to increase the share of high-margin oil and gas tubes?
p. 16
“Third one is the increase the portfolio offerings. We are offering only up to 10 inches, and it covers only around 60% of the market, what we are able to address. And if we go up to 18 inches, we will be able to address the market another 40%.”
R.V. Gumaste, page 16 of the filed PDF · View the filing
Risks flagged
Higher power and fuel costs due to geopolitical conditions, including doubled LPG costs in Solapur
p. 4
“For example, the LPG consumption in Solapur, the cost has got doubled compared to the efficient purchasing before the war.”
R.V. Gumaste, page 4 of the filed PDF · View the filing
Regulatory change limiting green power usage hours from 17 to 8 hours reduces solar and wind savings
p. 5
“Earlier, we were allowed to use the green power for 17 hours. Now it is only allowed for 8 hours.”
R.V. Gumaste, page 5 of the filed PDF · View the filing
Loss of power trading benefit due to regulatory change
p. 5
“We used to get about INR10 crores per annum of benefit by power trading. Whatever is the gap of our green power versus what we could buy from exchange that has stopped.”
R.V. Gumaste, page 5 of the filed PDF · View the filing
Subdued demand and dumping from China affecting tube segment pricing
p. 10
“we are into wait and watch situation on the tubes because of dumping from China continuing as well as the subdued demand condition as on today.”
R.V. Gumaste, page 10 of the filed PDF · View the filing
Oil and gas tube export volumes affected by geopolitical turmoil
p. 14
“oil and gas into turmoil. But we are still hopeful that with high fuel prices as well as reconstruction requirements in the Middle East.”
R.V. Gumaste, page 14 of the filed PDF · View the filing
Inability to pass on cost increases in tube business due to market dynamics
p. 10
“In case of tube, it is a market dynamics and nothing to do with. There's no understanding in the market for price escalation.”
R.V. Gumaste, page 10 of the filed PDF · View the filing
Elevated coking coal cost stock rolling through the P&L
p. 13
“June, July, August would be higher than April, May, June.”
R.V. Gumaste, page 13 of the filed PDF · View the filing
Cautionary capex positioning due to geopolitical scenarios like war and tariffs
p. 13
“I would say what really controls is also some cautionary positions being taken because of the geopolitical scenarios. Like war happening or some tariffs announcement.”
R.V. Gumaste, page 13 of the filed PDF · View the filing
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