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Kirloskar Ferrous Industries expects volume growth across its pig iron, casting and tube businesses in the financial year 2026-27 (FY27), and renewable energy investments supporting margins in the second half of the year, Managing Director RV Gumaste said.
The company is commissioning 35 MW of solar power and 25 MW of wind power over the next few months. According to Gumaste, these projects are expected to generate cost savings of ₹40-50 crore and contribute to profitability from the second quarter onward, with a larger impact expected in the second half.
The outlook comes as Kirloskar Ferrous recently secured a $13.5 million export order for 30,000 tonne of pig iron, with shipments scheduled to be completed by August 2026. While the company described the order as a relatively small part of its business, management believes it could open new export opportunities as international pig iron prices improve.
The company clarified that the cargo will be shipped to Africa, with a UK-based buyer facilitating the transaction. Gumaste said export realisations are currently higher than domestic sales after accounting for freight costs and product-grade differences, making the deal margin accretive.
Kirloskar Ferrous expects pig iron volumes to increase by around 75,000 metric tonne this year, translating into growth of about 11-12%. The company is operating all three blast furnaces and does not foresee production disruptions due to market conditions.
The castings business is also expected to expand. Demand from tractor manufacturers, automobile companies and earthmoving equipment makers remains supportive, according to Gumaste.
He said the company is targeting a 17-18% increase in casting production and sales during the current year after recording around 14% growth in the previous year.
The company is also expanding capacity at its Oliver Foundry facility in Punjab. The plant, which currently has a capacity of 25,000 metric tonne per annum, is operating at full utilisation. Kirloskar Ferrous has started work to double capacity by March 2027 to meet customer demand in northern India.
For the seamless tubes business, he expects demand conditions to improve after a slower start to the year caused by delays in infrastructure projects and weaker export activity. Gumaste said the company is aiming for at least 10% growth in the segment.
The company expects margins in the pig iron business to improve due to higher selling prices and operational initiatives. He also expects support from cost reduction measures and the upcoming renewable energy projects.
For the full interview, watch the accompanying video Catch all the latest updates from the stock market here
The company is commissioning 35 MW of solar power and 25 MW of wind power over the next few months. According to Gumaste, these projects are expected to generate cost savings of ₹40-50 crore and contribute to profitability from the second quarter onward, with a larger impact expected in the second half.
The outlook comes as Kirloskar Ferrous recently secured a $13.5 million export order for 30,000 tonne of pig iron, with shipments scheduled to be completed by August 2026. While the company described the order as a relatively small part of its business, management believes it could open new export opportunities as international pig iron prices improve.
The company clarified that the cargo will be shipped to Africa, with a UK-based buyer facilitating the transaction. Gumaste said export realisations are currently higher than domestic sales after accounting for freight costs and product-grade differences, making the deal margin accretive.
Kirloskar Ferrous expects pig iron volumes to increase by around 75,000 metric tonne this year, translating into growth of about 11-12%. The company is operating all three blast furnaces and does not foresee production disruptions due to market conditions.
The castings business is also expected to expand. Demand from tractor manufacturers, automobile companies and earthmoving equipment makers remains supportive, according to Gumaste.
He said the company is targeting a 17-18% increase in casting production and sales during the current year after recording around 14% growth in the previous year.
The company is also expanding capacity at its Oliver Foundry facility in Punjab. The plant, which currently has a capacity of 25,000 metric tonne per annum, is operating at full utilisation. Kirloskar Ferrous has started work to double capacity by March 2027 to meet customer demand in northern India.
For the seamless tubes business, he expects demand conditions to improve after a slower start to the year caused by delays in infrastructure projects and weaker export activity. Gumaste said the company is aiming for at least 10% growth in the segment.
The company expects margins in the pig iron business to improve due to higher selling prices and operational initiatives. He also expects support from cost reduction measures and the upcoming renewable energy projects.
For the full interview, watch the accompanying video Catch all the latest updates from the stock market here
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