Kirloskar Ferrous Industries earnings calls.

Kirloskar Ferrous Industries reported a mixed Q1 FY27 with operational improvements offset by challenges. Pig iron production rose 5% YoY to 1,65,120 MT, while castings surged 19% to 43,800 tons driven by strong demand from tractors, auto, and off-highway sectors. However, tubes production declined 8% to 51,968 MT due to subdued oil & gas activity and geopolitical disruptions affecting exports. The company faces margin pressure from doubled LPG costs and regulatory changes limiting power trading benefits, with other expenses jumping ~58 crore YoY primarily from power and fuel. Management targets 15%+ volumetric growth across products and aims for improved realizations as commodity prices stabilize. Major capex programs including 35 MW solar and 12 MW wind commissioning (Q2 FY27), Rajpura foundry expansion (doubling capacity to 40-50,000 MT/month), and Koppal steelmaking (NBF to BF upgrade) are progressing. A significant contingent liability of INR 350 crore related to forest development fees remains pending at the Supreme Court. Key risks include volatile input costs, weak tube demand, and regulatory uncertainty around green energy investments.