Transcript of the conference call

Ref No. 3360/26 13 August 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. 3357/26 dated 6 August 2026; this is to inform that the transcript of the conference call for investors and analysts held on Thursday, 6 August 2026 at 4:00 p.m. (IST) is enclosed herewith and has been available at the website of the Company viz. www.kirloskarferrous.com You are requested to 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 Q1 of FY '27 Earnings Conference Call” 6 August 2026 MANAGEMENT: MR. R.V. GUMASTE – MANAGING DIRECTOR – KIRLOSKAR FERROUS INDUSTRIES LIMITED MR. R. S. SRIVATSAN – EXECUTIVE DIRECTOR (FINANCE) AND CHIEF FINANCIAL OFFICER – KIRLOSKAR FERROUS INDUSTRIES LIMITED MODERATOR: MR. PALLAV AGARWAL – ANTIQUE STOCK BROKING LIMITED Page 1 of 15 Kirloskar Ferrous Industries Limited 6 August 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Kirloskar Ferrous Industries Limited Q1 FY '27 Earnings Conference Call hosted by Antique Stock Broking Limited. As a reminder, all participant lines 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 the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this call 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: Yes. Thank you, Shruti, and good afternoon, everyone. A very warm welcome to the Kirloskar Ferrous Industries First Quarter FY '27 Earnings Call. We have the senior management team of the company, represented by Mr. R.V. Gumaste, the Managing Director; and Mr. R. S. Srivatsan, the Executive Director, (Finance) and CFO. I would now like to hand over the call to Mr. Gumaste for his opening remarks. Over to you, sir. R.V. Gumaste: Yes. Thank you, Pallav. Let me, first of all, welcome all the analysts and investors to this call, quarter 1 Kirloskar Ferrous Industries Limited. And I would like to start with a few highlights, before we start with the question and answers. All of you have already seen the results published by the company. And just to bring on the production and sales quantities, with respect to pig iron, we produced 1,65,120 metric ton of pig iron against last year's 1,57,112 metric ton, an increase of 5 %. And in case of castings, against last year first quarter 36,929 ton, we produced 43,800 tons, an increase of 19%, whereas the tube total production last year was 56,558 metric tons. Against that, we have come down to 51,968 metric tons, which is a drop of 8%. Coming to the sales quantities, we sold 1,28,737 metric ton in quarter 1 external sales against 1,32,392 tons in the quarter. So it's a drop of 3%, which indicates that internal consumption was higher because last year Q1, we had stoppage of Jejuri plant for a few days. So the consumption in this year first quarter is more than last year's first quarter. And casting sales is 41,345 metric tons against 34,941 metric tons, which is an increase of 18% compared to last year's first quarter. Tube sales totalled 41,512 tons against last year's 48,461 metric tons, which is a drop of almost 14%. During the quarter, we improved sales realization on pig iron and we could hold the sales realization on castings, whereas the tube product mix, we could not hold on to the sales realization. We had to sell more of line pipes in the absence of high realizing export orders as well as realizing oil and gas tubes. We continue to work on our all the projects. There's no change in our project plans. And currently, we are right now executing all the important projects, completion of 35-megawatt solar plant already in the stage of commissioning and 12 windmills of 2.1 megawatt each. And we expect all this will get commissioned in the quarters to June to September. Page 2 of 15 Kirloskar Ferrous Industries Limited 6 August 2026 Completion of 2-part foundry in Solapur with a capacity of 15,000 metric ton per annum for producing the large castings. Expansion of Rajpura in 2 phases. Phase 1 is expanding the present capacity to between 40,000 to 50,000 metric ton per annum. The existing capacity is about 25,000 metric ton per annum and which means about 2,200 metric ton per month, and we have started producing and selling that quantity. The capacity at Rajpura foundry is totally sold out. So in the next 8 months, we will expand the capacity to 2x of that, at least go up to 40,000 to 45,000 metric tons per annum and subsequently in Phase 2, take it to 6,000 tons per month or 70,000 metric tons per annum. With this, we will have a producible capacity of 1,10,000 at Koppal close to 90,000 in Solapur and Rajpura with Phase 2 implementation, 70,000 metric tons. So, we will have a realizable capacity across all the 6 foundries put together will have a capacity of 270,000 metric ton per annum. We are also working for upgradation of Hiriyur pig iron plant with the capacity to produce pig iron upto 360,000 metric ton also bring the efficiency in terms of reduced coal consumption with pulverized coal injection, bell-less top and all the features what we have incorporated in MBF blast furnace 1 and 2 at Koppal. We are also progressing well on oxygen plant and the enhanced pulverized coal injection in Koppal blast furnace 1 and 2, and we expect by February, March, we complete those projects. We've also taken up the rolling capacity enhancement at Jejuri to go to 25,000 metric ton of rolling against 15,000 metric ton rolling today. So the capacity will go to 3 lakh metric ton rolling out of which 240,000 tons will be saleable product, external sales of alloy steel products. We have also started the project for premium couplings to be made in Baramati. And we expect to order this project in next few weeks' time. In addition to this, we are also progressing on the 3 large projects, which is steel plant at Koppal and expander mill to produce large capacity seamless tubes at Baramati and beneficiation and pellet plant and operationalization of iron ore mines at Koppal. All these 3 projects are at different stages of execution and some of them, especially the large ones are at the start of the project. So, we continue to be focused and continue to focus on the growth so that we double the capacity in castings as well as in steel sales and tube going up to 350,000 to 400,000 metric ton per annum. As all of you know, because of the geopolitical conditions, there has been disturbance, especially in the export of steel tubes as well as power and fuel costs. For example, the LPG consumption in Solapur, the cost has got doubled compared to the efficient purchasing before the war. We hope that the fuel costs will come down or adjust a little bit, but we have impact of higher power and fuel cost, especially in Maharashtra and Solapur as well as other steel and tube plants in Maharashtra. Page 3 of 15 Kirloskar Ferrous Industries Limited 6 August 2026 We have been able to pass on the cost increase to customers in case of castings. In case of alloy steels, so still under discussions. We expect that we will pass on that cost increase to customers. In terms of tubes, we are looking forward to close the tenders [Showing first 8,000 characters — download PDF for full document]