Indian Metals & Ferro Alloys Ltd. (IMFA), India’s largest fully integrated ferro chrome producer, delivered its best-ever quarterly performance in Q1 FY27. The company achieved record revenue, EBITDA, and profit after tax (PAT), supported by higher ferro chrome production, firm global prices, operational efficiency, and the successful integration of its KNR-2 acquisition.

Alongside strong financial performance, IMFA continued making significant progress on its expansion projects, renewable energy initiatives, mining capacity enhancement, and ethanol diversification strategy, positioning itself for long-term sustainable growth.

About IMFA

Established in 1961 and headquartered in Bhubaneswar, Odisha, Indian Metals & Ferro Alloys Ltd. (IMFA) is India’s leading fully integrated producer of value-added ferro chrome and one of the world’s top producers.

The company operates across the entire value chain, including:

• Captive chrome ore mines
• Ferro chrome manufacturing plants
• Captive power generation facilities
• Renewable energy projects
• Mining operations

This integrated business model provides IMFA with a significant competitive advantage through better cost control, supply security, and operational efficiency.

Company Overview

IMFA continues to strengthen its leadership position in the ferro chrome industry.

Key Highlights

• India’s No.1 Ferro Chrome Producer
• Among the Top 6 Global Ferro Chrome Producers
• AA Credit Rating by ICRA
• Listed on both NSE and BSE
• Fully backward-integrated operations
• Secure captive mining and power assets

The company plans to significantly expand its production capacity over the next few years.

Financial Year	Installed Capacity
FY26	384,000 TPA
FY27	484,000 TPA
FY28	534,000 TPA

This expansion is expected to further strengthen IMFA’s market leadership.

Integrated Business Model

One of IMFA’s biggest strengths is its fully integrated operating model.

The company combines:

• Ferro chrome production
• Captive chrome ore mining
• Coal-based power generation
• Solar power generation
• Hybrid renewable energy

Approximately 80% of ferro chrome sales are exported through long-term contracts, primarily to Far East markets. The company is also investing heavily in hybrid renewable energy to improve sustainability while reducing energy costs.

Record Q1 FY27 Financial Performance

IMFA reported exceptional growth across all key financial metrics.

Revenue from Operations

• ₹960.45 crore
• Up 49.71% YoY

EBITDA

• ₹281.27 crore
• Up from ₹125.47 crore last year

EBITDA Margin

• Improved to 29.29%
• Compared to 19.56% in Q1 FY26

Profit After Tax (PAT)

• ₹191.49 crore
• More than doubled from ₹91.48 crore

PAT Margin

• Improved to 19.69%
• Compared to 13.81% in Q1 FY26

The strong improvement reflects better price realization, higher production volumes, and continued operational efficiency.

Operational Performance Reaches New Highs

The company achieved record production during the quarter.

Ferro Chrome Production

• 80,690 tonnes
• Highest quarterly production ever

Ferro Chrome Sales

• 79,268 tonnes

Chrome Ore Production

• 272,555 tonnes

Power Generation

• 289 million units

Production growth was primarily driven by the successful integration of KNR-2 and increased operational efficiency.

Greenfield KNR-1 Expansion Nearing Completion

One of the biggest developments during the quarter was the progress of the KNR-1 Greenfield Ferro Chrome Project.

Management confirmed:

• Consent to Operate received
• Factory License received
• First furnace switching-on process underway
• First hot metal expected in August 2026
• Second furnace expected in September 2026

Once fully operational, KNR-1 will substantially increase IMFA’s production capacity and support future revenue growth.

KNR-2 Acquisition Successfully Integrated

IMFA also completed the integration of the KNR-2 acquisition.

Highlights include:

• All four furnaces operational
• Approximately 14,000 tonnes dispatched during Q1 FY27
• Significant contribution to quarterly revenue and profitability

This acquisition has already begun generating operational benefits and higher production volumes.

Mining Expansion Supports Future Growth

To support expanding ferro chrome production, IMFA is investing heavily in mining capacity.

The company has:

• Received approvals for 1.2 million tonnes per annum chrome ore capacity
• Planned an investment of ₹1,000 crore
• Strengthened long-term raw material security

This expansion will ensure sufficient captive ore availability for future production growth.

Renewable Energy Expansion

Sustainability remains a major strategic priority.

During the quarter, IMFA:

• Increased contracted renewable energy capacity from 70 MW to 135 MW
• Signed a 29-year agreement for an additional 65 MW hybrid renewable energy project
• Expects nearly 40% of total energy consumption to come from non-fossil fuel sources by mid-2027

These investments are expected to lower operating costs while supporting environmental goals.

Ethanol Diversification Project

Beyond ferro chrome, IMFA is diversifying into ethanol production.

The company is constructing a 120 KLD grain-based ethanol plant at Therubali, Odisha.

Current status:

• Mechanical erection in the final stage
• Pre-commissioning expected in October 2026
• Commercial commissioning expected in November 2026

Although geopolitical developments and monsoon-related disruptions caused minor delays, management stated there is no material financial impact on the company.

Strong Cost Leadership

IMFA continues to benefit from its integrated business model.

Key competitive advantages include:

• Captive chrome ore mines
• Captive power generation
• Renewable energy investments
• Operational efficiency
• Long-term export contracts

These strengths allow the company to maintain industry-leading cost competitiveness while supporting higher margins.

Management Commentary

Managing Director Subhrakant Panda attributed the record quarterly performance to:

• Higher ferro chrome production
• Successful acquisition integration
• Strong market prices
• Continued operational efficiency

He also highlighted the company’s long-term vision of becoming a diversified, future-ready enterprise through:

• Capacity expansion
• Increased captive mining
• Hybrid renewable energy
• Ethanol production

Management expects operating smelting capacity to exceed half a million tonnes annually after completion of ongoing projects.

Financial Strength

IMFA continues to maintain a healthy balance sheet.

As of June 30, 2026:

• Invested funds: ₹555 crore
• Long-term debt for KNR-1 and Ethanol projects: ₹419 crore

This provides sufficient financial flexibility to execute ongoing expansion plans while maintaining a strong capital structure.

Growth Outlook

Looking ahead, IMFA expects multiple growth drivers to support future performance:

• Full commissioning of KNR-1
• Higher ferro chrome production capacity
• Increased captive mining
• Expansion of renewable energy
• Commissioning of the ethanol plant
• Continued export demand
• Improved operating efficiencies

The company remains confident about global ferro chrome demand and believes its integrated business model will continue delivering sustainable long-term value.