IMFA Q2 profit rises 51% as EBITDA margin reaches 24.28%

Indian Metals and Ferro Alloys Limited (IMFA) reported standalone profit after tax of Rs 148.77 crore in Q2 FY27, up 50.62% year on year, as revenue from operations rose 34.72% to Rs 968.17 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) margin reached 24.28%.

How did IMFA perform in Q2 FY27?

IMFA reported higher Q2 FY27 earnings as revenue, production and ferro-chrome realisations increased from Q2 FY26. Revenue from operations rose by Rs 249.52 crore to Rs 968.17 crore, while EBITDA increased by Rs 96.70 crore to Rs 235.04 crore. The company said the margin improvement primarily reflected higher sales volumes and price realisation.

Profit after tax (PAT) reached Rs 148.77 crore in Q2 FY27, compared with Rs 98.77 crore in Q2 FY26. PAT margin increased by 1.84 percentage points to 15.26%, while non-annualised earnings per share rose to 27.57 rupees from 18.31 rupees. Q2 FY27 was also IMFA's highest-ever quarterly production period, with output of 86,652 metric tonnes (MT).

What drove IMFA's EBITDA margin expansion?

IMFA said Q2 FY27 EBITDA margin rose to 24.28% from 19.25% in Q2 FY26 primarily because sales volume and price realisation increased. The 5.03-percentage-point expansion meant EBITDA grew 69.90% to Rs 235.04 crore, faster than the 34.72% rise in revenue from operations.

Costs also increased with output and project activity in Q2 FY27. Cost of materials consumed rose to Rs 386.24 crore from Rs 254.40 crore, while power and fuel costs increased to Rs 178.26 crore from Rs 116.09 crore. IMFA attributed the power and fuel increase to higher production and start-up and stabilisation costs at its Kalinganagar plants.

Other expenses rose by Rs 29.98 crore year on year to Rs 151.85 crore in Q2 FY27. IMFA cited higher consumption of spares and consumables, production overheads, planned preventive maintenance and mark-to-market effects on foreign-exchange exposures. The exchange rate moved from 94.60 rupees per US dollar at the end of Q1 FY27 to 95.98 rupees at the end of Q2 FY27.

How did IMFA's first-half earnings compare?

IMFA's H1 FY27 PAT rose 78.85% year on year to Rs 340.26 crore, exceeding the 50.62% growth recorded in Q2 FY27 alone. Revenue from operations for H1 FY27 increased 41.79% to Rs 1,928.62 crore from Rs 1,360.19 crore, while EBITDA rose 95.71% to Rs 516.31 crore from Rs 263.81 crore.

H1 FY27 EBITDA margin increased to 26.77% from 19.40%, a 7.37-percentage-point change, and stood above the 24.28% margin reported for Q2 FY27. PAT margin rose to 17.47% from 13.60%, and non-annualised earnings per share increased to 63.06 rupees from 35.26 rupees. The board recommended an interim dividend of 5 rupees per equity share with a face value of 10 rupees, representing 50%.

What is IMFA spending on capacity and integration?

IMFA is expanding ferro-chrome capacity through the 100,000-tonnes-per-annum (TPA) KNR-1 greenfield project at Kalinganagar, where furnace-1 recorded its first tapping of hot metal on 25 August 2026. Production volumes are being progressively ramped up, and the company scheduled commissioning of the second furnace for November 2026.

The KNR-2 acquisition was fully integrated by H1 FY27, with all four furnaces operational and about 35,000 MT of material produced from the plant in the six-month period. IMFA also received approvals for 1.2 million TPA of ore capacity, supported by a Rs 1,000 crore investment to scale mining operations in line with future ferro-chrome production targets. Its Sukinda underground mining expansion is progressing towards completion by FY31.

IMFA increased contracted renewable-energy capacity from 70 megawatts (MW) to 135 MW in Q1 FY27 and signed a 29-year agreement with EG Urja Strot Pvt. Ltd. for an additional 65 MW of hybrid power capacity. As at 30 September 2026, invested funds including mutual funds, bonds and fixed deposits stood at Rs 574 crore, while long-term debt for KNR-1 and ethanol stood at Rs 464 crore.

What changed in IMFA's balance sheet by September 2026?

IMFA's standalone total assets increased to Rs 5,004.78 crore at September 2026 from Rs 4,306.19 crore at March 2026. Property, plant and equipment and intangible assets increased by Rs 438.40 crore to Rs 1,780.05 crore, while capital work in progress declined by Rs 104.72 crore to Rs 687.02 crore.

The balance-sheet expansion coincided with higher equity and liabilities. Total equity rose to Rs 2,976.86 crore from Rs 2,691.73 crore, while non-current liabilities increased to Rs 573.90 crore from Rs 429.86 crore. Long-term borrowings rose to Rs 422.09 crore from Rs 293.41 crore, and short-term borrowings increased to Rs 787.61 crore from Rs 630.28 crore between March and September 2026.

Current assets reached Rs 1,962.83 crore at September 2026, compared with Rs 1,687.74 crore at March 2026. Inventories increased to Rs 964.62 crore from Rs 815.34 crore, investments rose to Rs 489.76 crore from Rs 353.95 crore, and cash and cash equivalents increased to Rs 64.16 crore from Rs 32.32 crore.

Conclusion

IMFA's Q2 FY27 result combined 34.72% revenue growth with EBITDA growth of 69.90% and PAT growth of 50.62%. Higher sales volumes and price realisation lifted EBITDA margin by 5.03 percentage points despite increases in materials, power, fuel, maintenance and foreign-exchange-related costs. H1 FY27 PAT rose 78.85% to Rs 340.26 crore, with EBITDA margin reaching 26.77%.

The next disclosed milestones are the planned November 2026 commissioning of KNR-1's second furnace, the scheduled mid-November 2026 start of trial runs at the 120-kilolitres-per-day ethanol facility, and expected integrated commissioning of that project in January 2027. IMFA is also progressing the approved 1.2 million TPA mining-capacity expansion and Sukinda underground mine plan targeted for completion by FY31.