IMFA Q1 FY26 Earnings Call – Key Highlights from CFO Remarks & Q&A

Date: July 31, 2025

CFO Remarks (Mr. Saunak Gupta)

1. Financial Highlights
Standalone Revenue: ₹641.54 crore (up from ₹567.15 crore in Q4 FY25)

EBITDA: ₹125.47 crore (up 78% QoQ from ₹70.52 crore)

PAT: ₹91.48 crore (up from ₹47.07 crore in Q4)

2. Margins
EBITDA margin improved to 19.56% (from 12.43% in Q4).

Margin uplift driven by modest price recovery and better operating leverage.

3. Product Volumes
Ferrochrome production: 65,929 MT

Sales: 66,580 MT

Chrome ore raising: 103,780 MT

Power generation: 278 MU

4. Exports
Export revenue: ₹556.26 crore

Exports contributed ~87% of standalone revenue.

5. Balance Sheet & Capex
IMFA remains long-term debt free.

Ongoing Kalinganagar and ethanol projects are being funded through internal accruals.

Capex plans remain on schedule; no liquidity concerns flagged.

Q&A Highlights
(Based on Management responses )

1. Export Pricing Trends
• There has been a modest improvement in international ferrochrome prices compared to Q4.
• While signs of recovery are emerging, pricing remains below historical averages.
• The uptick has not yet translated into meaningful margin expansion.

2. Chinese and Global Demand
• Some positive traction seen from Chinese buyers going into Q2.
• Global benchmark prices have moved slightly up, especially for shipments to the US and China.
• However, demand remains cautious and volume uptick is gradual.

3. Domestic Market Conditions
• Domestic demand continues to remain soft.
• Order flow exists but actual dispatches are delayed due to liquidity constraints and working capital tightness among buyers.
• Infrastructure-led domestic demand is expected to pick up, but not immediately.

4. Volume & Realization Comparison
• Realizations improved marginally in Q1 versus Q4.
• Volumes held steady, with stable plant operations and no supply disruptions.
• Overall impact on margins was neutral due to input cost pressures continuing.

5. Competitive Position & Global Supply Dynamics
• South African supply issues continue to disrupt global markets.
• Indian producers, including IMFA, benefit from reliable delivery and integrated operations.
• Customers are increasingly valuing consistency and long-term contracts.

6. Liquidity Management & Buyer Behavior
• Downstream players are facing stretched payment cycles.
• Payment delays and limited working capital availability have led to a cautious demand environment.
• IMFA continues to maintain strict credit control and disciplined dispatch planning.

7. Operational Efficiencies
• Cost management remains a key focus area.
• Captive power continues to offer insulation from energy cost volatility.
• Efforts are ongoing to optimize furnace productivity and logistics costs.

8. Institutional Ownership & Stake Availability
• No promoter stake sale is planned.
• The company is open to increased institutional participation via market-based routes.
• Improving float and visibility among institutional investors is a priority.

Source -Earnings call recording, please check https://www.bseindia.com/xml-data/corpfiling/AttachLive/2dbdb525-58dc-4ccb-b732-75f77fcc74b2.pdf