Transcript of the conference call

Ref No. 3391/26 7 November 2026 The Department of Corporate Services BSE Limited P. J. Towers, Dalal Street, Fort, Mumbai 400001 (Scrip code : 500245) Dear Sir / Madam, Subject : Transcript of the conference call Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in continuation of earlier communication vide letter No. 3387/26 dated 2 November 2026; this is to inform that the transcript of the conference call for investors and analysts held on Monday, 2 November 2026 at 3:30 p.m. (IST) is enclosed herewith and has been available at the website of the Company viz. www.kirloskarferrous.com Please take the same on record. Thanking you, Yours faithfully, For Kirloskar Ferrous Industries Limited Mayuresh Gharpure Company Secretary Encl : a/a Kirloskar Ferrous Industries Limited A Kirloskar Group Company Registered Office : 'One Avante', Level 5, Karve Road, Kothrud, Pune 411038, Maharashtra Telephone : +91 (20) 69065040 Email : kfilinvestor@kirloskar.com Website : www.kirloskarferrous.com CIN : L27101PN1991PLC063223 Kirloskar Ferrous Industries Limited 2 November 2026 “Kirloskar Ferrous Industries Limited Q2 FY'27 Earnings Conference Call” 2 November 2026 MANAGEMENT: MR. R. V. GUMASTE - MANAGING DIRECTOR MR. AJAY PATIL - JOINT MANAGING DIRECTOR MR. R. S. SRIVATSAN - EXECUTIVE DIRECTOR (FINANCE) & CHIEF FINANCIAL OFFICER MODERATOR: MR. PALLAV AGARWAL - ANTIQUE STOCK BROKING Page 1 of 14 Kirloskar Ferrous Industries Limited 2 November 2026 Moderator: Ladies and gentlemen, good day and welcome to Kirloskar Ferrous Industries Limited Q2 FY'27 Earnings Conference Call hosted by Antique Stock Broking Limited. As a reminder, all participants' line will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing ‘*’ then ‘0’ on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pallav Agarwal from Antique Stock Broking. Thank you and over to you, sir. Pallav Agarwal: Thank you, Ikra and good afternoon, everyone. Warm welcome to the Kirloskar Ferrous Industries Q2 FY'27 Earnings Call. We have the Senior Management of the company represented by Mr. R. V. Gumaste, the Managing Director; Mr. Ajay Patil, the Joint Managing Director and Mr. R. S. Srivatsan, the Executive Director (Finance) and the CFO. So, now I would like to hand over the call to Mr. Gumaste for his opening comments. Over to you, sir. R. V. Gumaste: Yeah, thank you, Pallav. First of all, let me welcome all the Investors to the Call. So, thank you very much for joining this conference call. Let me briefly touch upon the quarter performance and then we will keep it open for question answers: The Quarter 2 this year, we completed the quarter with a topline of Rs. 2,057 crores against the last year same quarter Rs. 1,755 crores, a topline growth of 16% and the bottom-line PBT is Rs. 138 crores, going up from Rs. 120 crores last quarter, last year this quarter. And going to little bit details on the volume front and let me first of all go on to the sales volume. For the sales value coming from different sectors, we had a growth of 20% on the pig iron from Rs. 581 crores in this quarter against Rs. 483.9 crores, 20% on that. And castings have grown from Rs. 487.8 crores to Rs. 633 crores, almost 30% growth on that. Whereas steel and tube, we faced the big challenges in quarter 1 and Quarter 2 also it's recovered, but still growth is 0.5%. Whereas steel has done well against last year Rs. 139 crores, we have done Rs. 206 crores, a growth of 48% external sales on steel. Pig iron production is going well with all the three furnaces running except maintenance stoppages what we have seen in the earlier months and we are running all the three furnaces as of now. And we are at pig iron hot metal production for the six months at 3,31,896 metric tons against 3,22,000 metric tons. So, we have productivity improvement of 3% over the last year, whereas casting has moved to 93,000 metric ton of production from 78,000 which is 20% Page 2 of 14 Kirloskar Ferrous Industries Limited 2 November 2026 growth, whereas we have been down 7.5% in tubes and up almost 14% in steel, we have produced 1,33,000 against 1,17,000 last year. And more specifically to this quarter, I would say that we have an external sales of pig iron of 1,34,000 against 1,28,000, increase of 3.5%. I think casting gross sales for the first time we crossed 50,000, net sales is 47,888 against 39,980, which is about 20% more than last year's second quarter. Whereas on the tubes, this year we did 48,547 against 49,588 which is down about 2%. Coming to the sales realizations: I think there has been a positive movement as all of you know that we had to face the challenges of higher coal prices, coking coal prices and also rupee dollar exchange rate was adverse for us all along the last three, four quarters. But we could pass on some of the cost increases because of this to customers. Last year, pig iron price ex-works average realization was Rs. 38,000, which has moved to Rs. 43,054 which is 12.4% improvement in the pig iron prices, whereas casting prices have also moved up almost by 6.8% compared to last year. We are at Rs. 1,30,000 per ton against Rs. 1,21,000 last year, whereas the recovery in tube has been slower, we are at Rs. 1,16,953 against last year's Rs. 1,13,998 at 1.6%, whereas steel has moved from Rs. 70,700 to Rs. 77,500, which is an improvement of 7.6. So, it looks like we have come out of the low commodity cycle, gradually going up. We will naturally face some challenges in case of value-added product, whereas the basic product we get some advantage. Demand for the castings from all sectors was going on very well in quarter one and subsequently in quarter two. The demand for castings was good from tractor, automotive and also the earth moving and stationary engine market. As all of you know, some talk on the slowness coming into the tractor, but our foundries across all the three locations were fully loaded in quarter two as well as October. We have to be carefully watching, there can be small corrections in demand coming from the tractor industry, whereas auto and earth moving equipment continue strong demand for castings. So, whereas pig iron, I think there was interesting development during last quarter is that the international prices were good and many of the pig iron manufacturers went in for exports. We also exported one cargo of 31,000 metric tons and as we realized better in export than domestic. We continue to focus on domestic market with better realization and we will be keen to make export as the prices internationally are better than the domestic. With these comments and opening comments, I would request for the questions and be happy to answer them. Thank you very much. Page 3 of 14 Kirloskar Ferrous Industries Limited 2 November 2026 Moderator: Thank you very much. Ladies and gentlemen, we will now begin with the question and answer session. The first question is from the line of Pratik Kothari from Unique PMS. Please go ahead. Pratik Kothari: Good afternoon. So, first on the project, when we see that you seem to have announced this phase two of our Solapur, the large casting. So, one is the phase one kind of sold out. I mean, do we have visibility there and hence this phase two or this is just in line of phase one getting done? And two, we still don't see the Jejuri Steel timelines there. So, we were to start that project, but we are yet to decide. So, where are we on that? R. V. Gumaste: Yeah. First of all, let me take up the casting related question first. First of all, we are almost done with phase one and phase two of second foundry line in Solapur. What we are working on is ramping up the production and output and increasing the sales. That is the pro [Showing first 8,000 characters — download PDF for full document]