Archive · 7 Nov 2025
Kirloskar Ferrous Industries Q2 FY26 Revenue Beats Expectations, Profitability Trails
Kirloskar Ferrous Industries released its financial report for the second quarter of the fiscal year 2026.
The company's sales were better than expected, possibly due to selling more cast parts and tubes.
However, the profits did not grow as much as expected because the costs of making these parts went up, especially for the casting and steel parts of the business.
Even though they have their own source of iron and the cost of coal went down, the company's overall profit margins were not as good as analysts thought they would be.
The company has plans for the future, like growing its solar power business and starting to supply castings to new customers like Oliver and Ford.
They are also looking to use more of their own iron ore and make more special types of steel.
Analysts are keeping a 'Buy' rating on the stock but will adjust their predictions after a meeting with the company.
Kirloskar Ferrous Industries (KFIL) reported Q2 FY26 consolidated revenue of Rs 17.6 billion, a 5.4% increase year-on-year and 3.4% increase quarter-on-quarter, exceeding analyst expectations.
Consolidated EBITDA was Rs 2.1 billion, up 10.5% year-on-year but down 1.1% quarter-on-quarter, with EBITDA margins at 12.2%.
Consolidated Adjusted Profit After Tax (PAT) rose 11.1% year-on-year to Rs 863 million but fell 9.3% quarter-on-quarter.
Profitability was impacted by lower margins in the casting and steel segments, despite captive iron ore and lower coking coal costs.
The company has future growth triggers including scaling solar power, new casting volumes from Oliver and Ford, and increased forward integration with specialty steel.
- Who
- Kirloskar Ferrous Industries (KFIL)
- What
- Announced Q2 FY26 financial results showing revenue exceeding expectations but profitability below forecasts.
- When
- Q2 FY26
- Where
- India
- Why
- Revenue beat attributed to higher casting volumes and tube revenues; profitability impacted by lower margins in casting and steel segments.
MNCL Research Expectations
Kirloskar Ferrous Industries (KFIL) Q2 FY26 Performance
Revenue
MNCL Research Expectations
Expected revenue of Rs 17 billion.
Kirloskar Ferrous Industries (KFIL) Q2 FY26 Performance
Reported consolidated revenue of Rs 17.6 billion, a 5.4% increase year-on-year and 3.4% increase quarter-on-quarter, exceeding expectations.
Profitability
MNCL Research Expectations
Profitability was below expectations due to lower casting and steel segment margins, with unclear reasons for weak gross margins despite captive iron ore and lower coking coal costs.
Kirloskar Ferrous Industries (KFIL) Q2 FY26 Performance
Consolidated EBITDA was Rs 2.1 billion, up 10.5% year-on-year but down 1.1% quarter-on-quarter, with EBITDA margins at 12.2%. Consolidated Adjusted Profit After Tax (PAT) rose 11.1% year-on-year to Rs 863 million but fell 9.3% quarter-on-quarter, pressured by weak operating profitability.
- Company
- Kirloskar Ferrous Industries (KFIL)
- Reporting Period
- Q2 FY26
- Consolidated Revenue
- Rs 17.6 billion (+5.4% y/y, +3.4% q/q)
- Consolidated EBITDA
- Rs 2.1 billion (+10.5% y/y, -1.1% q/q)
- EBITDA Margin
- 12.2% (+57bps y/y, -56bps q/q)
- Consolidated Adjusted PAT
- Rs 863 million (+11.1% yoy, -9.3% qoq)
- Analyst Rating
- BUY
- Analyst Target Price
- Rs 690 (under revision)
Sources
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Kirloskar Ferrous Industries’ Q2 consolidated PAT up 11% to ₹86.3 crore
