Kirloskar Ferrous targets over 35% renewable power by FY27

Kirloskar Ferrous Industries Limited targets more than 35% of its power from renewable sources by the end of financial year 2027 (FY27). The plan is supported by a 35-megawatt (MW) solar project commissioned in QII FY2026-27 and a 25 MW wind project scheduled for QIII FY2026-27, alongside blast-furnace fuel-efficiency projects.

How will Kirloskar Ferrous reach more than 35% renewable power by FY27-end?

Kirloskar Ferrous plans to reach a renewable-power share of more than 35% by the end of FY27 through its solar and wind projects. Its 35 MW solar project was commissioned in QII FY2026-27, while the 25 MW wind mill project is scheduled for QIII FY2026-27. Both projects are listed in the FY27 project update with power-cost reduction as their stated objective.

The two projects represent 60 MW of renewable capacity when combined, although Kirloskar Ferrous does not disclose their expected electricity generation, its total power consumption or the individual contribution each asset will make to the more-than-35% target. The solar asset had been commissioned in QII FY2026-27, whereas the wind project remained scheduled for the following quarter.

Kirloskar Ferrous places the more-than-35% renewable-power objective in its FY27 sustainability and governance priorities, not only in its power-cost plan. The same list includes pursuing GreenCo or similar manufacturing certification for key plants, creating a Scope 1 and Scope 2 emissions baseline and intensity-reduction roadmap for FY27 BRSR reporting, and strengthening disclosures aligned with SEBI BRSR Core requirements.

What cost-efficiency projects accompany Kirloskar Ferrous's renewable plan?

Kirloskar Ferrous is coupling renewable power with projects intended to lower coke use and improve blast-furnace productivity. Its FY27 cost-leadership plan includes pulverized coal injection and oxygen enrichment across both blast furnaces, as well as coke-moisture reduction initiatives. Kirloskar Ferrous states that the Koppal coke-moisture initiative is done, while the Hiriyur initiative is planned during FY27.

At Hiriyur, Kirloskar Ferrous has scheduled coke-bunker heating using flue gases for QIV FY2026-27. The stated mechanism is removal of moisture from coke to reduce coke consumption. This is a process-efficiency project at the Hiriyur plant rather than an electricity-generation asset such as the 35 MW solar project or the planned 25 MW wind project.

Kirloskar Ferrous also lists a 149-tonnes-per-day (TPD) oxygen plant at Koppal for completion in QIV FY2026-27. The company states that this plant is intended to reduce coke consumption and improve productivity. The oxygen plant, flue-gas heating, pulverized coal injection and oxygen enrichment address fuel intensity, while the solar and wind projects address power costs.

Kirloskar Ferrous targets an improvement in earnings before interest, tax, depreciation and amortisation (EBITDA) margin from cost initiatives alone, but it provides no numerical margin target or estimated savings from the 35 MW solar plant, 25 MW wind project or coke-efficiency investments. The presentation therefore identifies projects and mechanisms without quantifying the financial outcome.

What capital spending and balance-sheet data has Kirloskar Ferrous disclosed?

Kirloskar Ferrous reported year-to-date FY27 capital expenditure of Rs 274 crore as of September 2026, described as spending on efficiency and green energy. This links current capital expenditure to the renewable and operating-efficiency agenda, but the presentation does not allocate the Rs 274 crore between solar, wind, blast-furnace projects and other initiatives.

On a standalone basis, Kirloskar Ferrous reported gross debt of Rs 1,260 crore as of September 2026 and net debt to EBITDA of 1.40 times. The presentation defines net debt as gross debt less cash and bank balances. It does not state whether a particular borrowing funded the 35 MW solar project or the proposed 25 MW wind project.

Working-capital indicators moved in opposite directions in the disclosed comparison. Debtor days rose to 56 in Q2 FY27 from 50 in Q4 FY26, while inventory days fell to 46 from 48. Compared with Q2 FY25, debtor days increased by six days from 50, whereas inventory days declined by 16 days from 62.

How does Kirloskar Ferrous's FY27 plan extend beyond electricity costs?

Kirloskar Ferrous combines cost leadership with capacity and product-mix projects in FY27. A two-part new foundry line at Solapur is intended for large castings, with Phase 1 projected for QIII FY2026-27 and Phase 2 for QIV FY2028-29. The company also identifies ongoing machining-capacity enhancement to raise machine-shop capacity.

The product-mix plan includes executing large-tube orders, increasing the share of value-added or engineered castings, and shifting tube mix toward oil country tubular goods (OCTG) and projects. Kirloskar Ferrous says these measures are intended to reinforce order-book and revenue visibility and improve realisation per metric tonne, but does not disclose order values, expected volumes or target mix percentages.

Kirloskar Ferrous also plans to grow deemed and direct export castings and add customers in industrial bearings, boiler and hydraulics tubes. Its castings customer base was 29 in FY27 Q2, unchanged from FY27 Q1 and FY26 but higher than 26 in FY25. The FY27 Q2 total comprised 11 auto utility-vehicle and commercial-vehicle customers, 10 tractor customers, five diesel-engine customers and three construction-equipment customers.

Its end-user mix shows the range of manufacturing lines covered by the operating programme. Auto represented 55% of pig-iron end users and pumps 25%, while tractors accounted for 39% of castings end users. In tubes, trade was the largest disclosed category at 23%, followed by OCTG at 15% and boiler and GE at 14% each.

Conclusion

Kirloskar Ferrous has disclosed a dated FY27 cost strategy rather than a general renewable-energy ambition. The 35 MW solar project was commissioned in QII FY2026-27, the 25 MW wind project is scheduled for QIII FY2026-27, and the company targets more than 35% of power from renewables by FY27-end. Coke-saving and productivity projects at Koppal and Hiriyur provide a separate route to operating-cost improvement.

The next disclosed milestones are the QIII FY2026-27 wind-project schedule and QIV FY2026-27 completion targets for Hiriyur coke-bunker heating and the 149 TPD Koppal oxygen plant. Kirloskar Ferrous also projects Phase 1 of its Solapur foundry line in QIII FY2026-27, while Phase 2 is scheduled for QIV FY2028-29. The presentation does not disclose expected renewable generation, project-level savings or the size of the targeted EBITDA-margin improvement.