Kirloskar Ferrous FY26 profit rises 22% to ₹358 cr

Board clears audited FY26 numbers

Kirloskar Ferrous Industries Limited (KFIL) announced its audited financial results for the quarter and year ended March 31, 2026, after a Board of Directors meeting held on May 7, 2026. The release included both standalone and consolidated financial statements for FY26 and the March quarter. The company reported year-on-year improvement across profit, income, and several balance sheet indicators.

Statutory auditors Kirtane & Pandit LLP and P G Bhagwat LLP issued an unmodified opinion on both the standalone and consolidated audited financial results. Alongside the financial update, the company also disclosed certain financing activity during the quarter and referenced a proposed group restructuring step involving mergers.

Consolidated FY26: profit up, income higher

On a consolidated basis, KFIL reported net profit of ₹357.81 crore for FY26, compared with ₹294.04 crore in FY25. Total consolidated income for FY26 stood at ₹6,950.93 crore, up from ₹6,616.81 crore in the prior year.

For the quarter ended March 31, 2026, the company posted consolidated profit of ₹123.10 crore on total income of ₹1,861.51 crore. Another data cut in the provided figures also states consolidated quarterly sales of ₹1,817.16 crore for March 2026 versus ₹1,736.95 crore for March 2025, and full-year net consolidated revenue from operations of ₹6,888.57 crore for FY26 after deducting inter-segment revenue of ₹1,465.90 crore.

The same set of figures shows FY26 consolidated sales increasing to ₹6,888.57 crore from ₹6,564.23 crore in FY25, alongside consolidated net profit rising to ₹357.81 crore from ₹294.03 crore.

Standalone FY26: profit and income improve

On a standalone basis, KFIL reported FY26 profit of ₹375.59 crore, compared with ₹317.28 crore in FY25. Standalone total income was ₹6,861.89 crore in FY26 versus ₹6,628.60 crore in FY25. Revenue from operations on a standalone basis increased to ₹6,783.92 crore from ₹6,566.26 crore.

For the March 2026 quarter, standalone profit was ₹130.00 crore on total income of ₹1,828.01 crore. In the same quarter of the prior year, standalone profit was ₹95.56 crore and total income was ₹1,764.33 crore.

Q4 standalone operations: margin expands year-on-year

KFIL’s standalone operating performance for the March 2026 quarter showed an improvement in profitability metrics. Standalone net profit increased to ₹130 crore (₹1.3 billion) from ₹95.6 crore (₹956 million) in the year-ago period. Revenue for the quarter rose to ₹1,781 crore (₹17.81 billion) from ₹1,740 crore (₹17.4 billion).

EBITDA for the quarter improved to ₹226 crore (₹2.26 billion) from ₹199 crore (₹1.99 billion). The EBITDA margin expanded to 12.69% from 11.46% year-on-year, as per the disclosed operating metrics.

Cash flows strengthen in FY26

The audited results also highlighted stronger operating cash generation. Net cash from standalone operating activities for FY26 stood at ₹952.37 crore, up from ₹661.79 crore in FY25. On a consolidated basis, net cash from operating activities was ₹941.98 crore compared with ₹655.79 crore previously.

In addition, cash and cash equivalents increased year-on-year. Standalone cash and cash equivalents rose to ₹81.92 crore from ₹41.82 crore, while consolidated cash and cash equivalents increased to ₹87.00 crore from ₹42.24 crore.

Balance sheet snapshot: net worth and assets rise

As of March 31, 2026, standalone net worth stood at ₹2,396.84 crore, while consolidated net worth was ₹2,340.73 crore. Total assets also moved higher on both bases. Standalone total assets were ₹6,577.53 crore, up from ₹6,353.57 crore in the prior year. Consolidated total assets were ₹6,559.07 crore compared with ₹6,348.72 crore previously.

These metrics, along with higher operating cash flows, provide context on the company’s financial position at year-end, based on the disclosed audited numbers.

Leverage indicators improve: debt-equity down

KFIL reported an improvement in leverage ratios year-on-year. The standalone debt-equity ratio improved to 0.27 from 0.37 in the prior year. The consolidated debt-equity ratio also improved to 0.28 from 0.37.

The ratio movement was disclosed alongside year-end balance sheet numbers and cash and cash equivalent balances. While the financial update does not attribute the change to specific actions, the ratios indicate lower debt relative to equity compared to the previous year.

Working-capital funding: commercial paper issuance

During the quarter ended March 31, 2026, the company raised ₹300 crore via commercial papers for working capital requirements and general corporate purposes. Total outstanding commercial papers as of March 31, 2026 stood at ₹294.98 crore.

In a separate BSE disclosure excerpt included in the provided material, outstanding borrowing of the company as on March 31 (in ₹ crore) was stated as ₹509.21 crore.

Proposed mergers: OEPL and AESPL to be absorbed

KFIL also referenced an approved scheme that involves the merger by absorption of Oliver Engineering Private Limited (OEPL) and Adicca Energy Solutions Private Limited (AESPL) with Kirloskar Ferrous Industries Limited. The disclosure in the provided text describes the entities and the merger structure, but does not provide timelines or financial impact estimates.

Separately, Kirloskar Industries Limited informed BSE and NSE on May 8, 2026 about a Regulation 30 disclosure by its listed material subsidiary, KFIL, noting that KFIL held an investor and analyst conference call on May 8, 2026 at 4:00 p.m. IST to discuss the audited results, with an audio recording uploaded to the company website.

Key reported figures at a glance

Why the audited print matters for investors

The FY26 audited numbers show higher profit on both consolidated and standalone bases, along with higher total income. For the March quarter, the standalone operating disclosure points to year-on-year margin expansion to 12.69%, supported by a rise in EBITDA to ₹226 crore.

The balance sheet indicators disclosed with the results show higher net worth, higher total assets, and higher cash and cash equivalents compared with the previous year. The reported improvement in debt-equity ratios, together with higher operating cash flows, is a key signal in assessing leverage and liquidity trends for a manufacturing business.

Closing note

Kirloskar Ferrous Industries’ FY26 audited results reflect higher income and profit versus FY25, stronger Q4 standalone operating metrics, and improved reported leverage ratios. The company has also disclosed commercial paper funding during the quarter and an approved merger-by-absorption scheme involving OEPL and AESPL. Any next steps on the scheme and further updates are expected through subsequent company filings and investor communications.