IMFA margin stays at 29.29% as ferro chrome output tops 80,000 tonnes
The standalone margin was 11.13 percentage points above the median for 47 reported Commodities peers, while management outlined capacity and energy expansion.
Filed 04 Aug 2026, 13:50 IST · Indian Metals & Ferro Alloys Ltd (IMFA)
Key takeaways
- IMFA’s standalone Q1FY27 operating margin of 29.29% was 11.13 percentage points above the 18.16% median for 47 Commodities peers.
- Ferro chrome production exceeded 80,000 tonnes for the first time in the quarter, with all four KNR 2 furnaces operational.
- Management said the Greenfield Project is expected to be stabilised by Q3, taking operating smelting capacity above half a million tonnes.
Price around the results
Production crossed 80,000 tonnes
IMFA’s standalone quarter included its first ferro chrome production above 80,000 tonnes, after all four KNR 2 furnaces became operational. Other income of Rs 11.97 cr was modest relative to profit before tax of Rs 256.82 cr, so reported profitability was primarily operating-led.
Operating margin led the peer set
The 29.29% operating margin was 11.13 percentage points above the 18.16% median across 47 Commodities peers that had reported the quarter. This places IMFA among the higher-margin companies in the peer group, with the company ranked 43rd from the bottom.
Expansion is moving beyond ferro chrome
Management said the Greenfield Project is expected to be fully commissioned and stabilised by Q3, taking operating smelting capacity above half a million tonnes. The company also said an additional 65 MWp of hybrid renewable energy is expected by June 2027, while contracted renewable capacity increased from 70 MW to 135 MW in Q1FY27. Management said the ethanol unit’s trial run is now expected in October 2026 after geopolitical and monsoon-related delays.
Mining approvals support the next capacity phase
Management said approvals were received for 1.2 million TPA of ore capacity, backed by a Rs 1,000 cr investment. The company said its broader expansion includes higher captive chrome ore raising and a doubling of ferro chrome smelting capacity, alongside diversification into ethanol and hybrid renewable energy.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹960 cr |
| Other income | ₹12 cr |
| Expenses | ₹679 cr |
| Operating profit | ₹281 cr |
| Operating margin (%) | 29.29% |
| Interest | ₹13 cr |
| Depreciation | ₹23 cr |
| Profit before tax | ₹257 cr |
| Tax | ₹65 cr |
| Net profit | ₹191 cr |
| EPS (₹) | ₹35.49 |
Operating margin of 29.29% compares with a Commodities sector median of 18.16% across 47 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Total ferro chrome production exceeded 80,000 tonnes for the first time during the quarter.
Guidance & outlook
- The Greenfield Project is expected to be fully commissioned and stabilised by Q3, taking operating smelting capacity above half a million tonnes.
- The additional 65 MWp hybrid renewable energy is expected to be available by June 2027.
- Around 40% of IMFA’s energy consumption is expected to come from non-fossil sources by the middle of next year.
- The ethanol unit’s trial run is expected in October 2026.
Expansion
- Mining approvals were received for 1.2 million TPA ore capacity, backed by a ₹1,000 crore investment.
New initiatives
- Contracted renewable energy capacity increased from 70 MW to 135 MW in Q1 FY27.
- The company is diversifying into ethanol and hybrid renewable energy while increasing captive chrome ore raising and ferro chrome smelting capacity.
Problems & risks
- The ethanol project was delayed by geopolitical uncertainty and monsoon-related disruptions.
- The ethanol project’s pre-commissioning was delayed by geopolitical and monsoon-related disruptions.
What to watch
- Whether the Greenfield Project is stabilised by Q3 and operating smelting capacity moves above half a million tonnes.
- Whether the additional 65 MWp hybrid renewable energy is available by June 2027.
- Whether the ethanol unit begins its trial run in October 2026.