Indian Metals and Ferro Alloys Ltd (IMFA), the country's largest producer of valuable ferrochrome, reported a 50.62% rise in net profit in Q2FY27. Profit reached INR 148.77 crore, compared to INR 98.77 crore in the same period last fiscal year.
The company's revenue increased by 34.72%, amounting to INR 968.17 crore compared to INR 718.65 crore. The EBITDA margin grew to INR 235.04 crore in the quarter ending September 30, up from INR 138.34 crore the previous year.
The main driver for the growth in revenue and profitability was the increase in production and sales volumes following capacity expansion. This is supported by the company's integrated business model, which includes its own chrome raw material mining, ferrochrome production, and power generation.
The results of the Bhubaneswar-based company for the first half of FY27 also showed significant growth. Revenue increased by 41.79%, reaching INR 1,928.62 crore compared to INR 1,360.19 crore for the six months of FY26. Meanwhile, EBITDA almost doubled, rising by 95.72% to INR 516.31 crore from INR 263.81 crore, and profit after tax grew by 78.86% to INR 340.26 crore from INR 190.25 crore.
Exports as a Key Business Factor
Exports continued to play an important role in IMFA's operations. Export revenue in Q2FY27 stood at INR 817.54 crore, higher than the INR 603.96 crore recorded in the quarter a year earlier. Export sales accounted for approximately 84% of the company's quarterly revenue. For the first half of FY27, exports grew to INR 1,611.15 crore from INR 1,160.22 crore in the corresponding period last year.
Expansion of Production Capacity in Kalinganagar
The expansion of production capacity in Kalinganagar, Odisha, is expected to provide an additional boost to the company's business development. IMFA's greenfield project, KNR-1, was officially inaugurated by Chief Minister Mohan Charan Majhi on October 14. The first melting furnace has started operating, work on the second furnace has begun, and hot metal pouring is expected to commence soon.
After the launch of the new facility, IMFA's total installed capacity for ferrochrome production will increase to 534,000 tonnes annually. This will strengthen the company's position as India's largest ferrochrome producer and place it among leading global manufacturers.
The company reported that ferrochrome production in Q2FY27 increased to 86,652 tonnes from 65,671 tonnes in Q2FY26, representing a growth of nearly 32%. Sales volumes rose to 81,998 tonnes from 69,765 tonnes, an increase of about 17.5%. For the first half of FY27, production amounted to 167,342 tonnes compared to 131,600 tonnes the previous year, and sales increased to 161,265 tonnes from 136,345 tonnes.
The company also continues to strengthen its raw material supply capabilities through its own mining operations. Chrome ore mining in Q2FY27 was 144,697 tonnes compared to 169,615 tonnes in the corresponding quarter last year. However, for the first half, the figure significantly increased to 417,253 tonnes compared to 273,395 tonnes in the first half of FY26.
Power generation in the September quarter was 301 million units compared to 309 million units in Q2FY26. For the first half of FY27, generation reached 589 million units, showing almost no change compared to 588 million units in the same period last year. The company is also diversifying its energy portfolio by transitioning to hybrid renewable energy sources.
As part of further efforts to ensure raw material security and diversify its product portfolio, IMFA's board of directors approved capital expenditure of INR 375 crore. These funds are earmarked for increasing chrome raw material mining capacity and developing low-carbon ferrochrome production. The proposed investments will support the company's expanded smelting operations by ensuring access to its own chrome raw materials and creating opportunities for low-carbon ferrochrome production.
Subrakant Panda, Managing Director of IMFA, stated that the company maintains a focus on its fully integrated business model, which remains resilient and competitive across various market cycles. He noted that the substantial expansion of smelting capacity following the commissioning of the Kalinganagar project will meet growing demand.
Panda expressed confidence in the prospects for ferrochrome prices, believing that prices will remain supported due to pricing pressure exerted on non-integrated producers. He added that 'along with capacity expansion and the transition to hybrid renewable energy, the production of niche grades and the proposed diversification into low-carbon ferrochrome will broaden the product range and increase margins.'
Established in 1961, IMFA operates production complexes in Terebali, Choudwar, and Kalinganagar, supported by its own chrome raw material mines in Sukinda and Mahagiri. Its captive power portfolio includes 200 MW of coal capacity and 4.55 MW of solar energy. In addition to its core ferrochrome business, IMFA is also diversifying through the construction of a 120 kiloliter per day grain-based ethanol plant in Terebali, Odisha.
