Synopsis:
IMFA reported steady sequential growth in revenue and profit for Q2FY26, declared an interim dividend of Rs. 5 per share, and announced the acquisition of Tata Steel’s Kalinganagar ferro chrome plant for Rs. 610 crore. The Mukul Agrawal stock jumped over 5 percent post results.
A leading ferro alloy stock rallied sharply after announcing its Q2FY26 results and a major capacity-boosting acquisition. Investor sentiment turned positive following steady sequential growth and news of the Tata Steel deal, which positions the company as the largest domestic producer.
Indian Metals & Ferro Alloys Ltd (IMFA), with a market capitalisation of Rs. 6,639.05 crore, opened at Rs. 1,204 and touched an intraday high of Rs. 1,275 against the previous close of Rs. 1,208.45, marking a rise of 5.5 percent. Prominent investor Mukul Mahavir Agrawal holds a 1.11 percent stake in the company.
Financial Snapshot – Q2FY26 Consolidated
Indian Metals & Ferro Alloys Ltd announced its financial results for the quarter ended September 2025.
Quarter-on-Quarter (QoQ): Revenue rose 11.98 percent to Rs. 719 crore from Rs. 642 crore in Q1FY26. Profit before tax (PBT) increased 3.97 percent to Rs. 131 crore from Rs. 126 crore, while net profit grew 5.38 percent to Rs. 98 crore from Rs. 93 crore. Other income for the quarter declined 27.27 percent to Rs. 16 crore from Rs. 22 crore.
Year-on-Year (YoY): Revenue grew 3.90 percent from Rs. 692 crore in Q2FY25 to Rs. 719 crore in Q2FY26. PBT declined 22.94 percent from Rs. 170 crore to Rs. 131 crore, while net profit fell 21.60 percent from Rs. 125 crore to Rs. 98 crore. Other income also declined 15.79 percent from Rs. 19 crore to Rs. 16 crore.
Dividend Announcement
The company declared an interim dividend of Rs. 5 per equity share of face value Rs. 10 each for FY26. The record date to determine eligible shareholders is Tuesday, 11th November 2025, and the dividend will be paid on or before Wednesday, 3rd December 2025.
Acquisition Update
Indian Metals & Ferro Alloys Ltd signed definitive agreements to acquire Tata Steel Limited’s ferro chrome plant located in Kalinganagar, Odisha. The asset transfer deal adds 99 MVA furnace capacity (66 MVA existing and 33 MVA under construction) for a base purchase consideration of Rs. 610 crore, making IMFA the country’s largest producer and sixth-largest globally, with a total capacity exceeding 0.5 million tonnes.
Spread across 115 acres, the facility has four furnaces capable of producing 100,000 tonnes per annum, which will rise to 150,000 tonnes once the fifth furnace is commissioned. The plant’s proximity to IMFA’s captive chrome ore mines and upcoming greenfield expansion is expected to yield significant cost savings and operational synergies. The transaction is expected to close within three months, subject to approvals.
Management Commentary
Commenting on the results, Mr. Subhrakant Panda, Managing Director, IMFA, said: “Ferro Chrome prices moved up noticeably towards the end of the second quarter due to elevated chrome ore costs for non-integrated producers and a sharp cutback in output in South Africa. This is partially reflected in the current results, and we expect to see the full impact in the ongoing quarter with the increase in benchmark as well as higher spot prices.”
Commenting on the acquisition, he added: “I am delighted to announce this transformational acquisition which will fast track our expansion plans. Along with our ongoing greenfield expansion, it will take total installed capacity beyond 0.5 million tonnes enabling us to increase our market share with a particular focus on domestic sales at a time when demand for ferro chrome is increasing due to India’s rapid economic growth.”
Mr. Panda further stated: “We are committed to creating value for stakeholders and, building on the strong foundation of a fully integrated business model, will work to realise cost savings and operational synergies which will have a positive impact on the bottom line. Further, the acquisition is being funded from internal accruals, which speaks to the strength of the Balance Sheet.”
Indian Metals & Ferro Alloys Ltd (IMFA) is India’s leading fully integrated producer of value-added ferro chrome with 190 MVA installed furnace capacity, translating to an output of 284,000 tonnes per annum. Founded in 1961 and headquartered in Bhubaneswar, Odisha, IMFA operates manufacturing complexes in Therubali and Choudwar, supported by captive power generation of 204.5 MW (including 4.5 MWp solar) and captive chrome ore mines in Sukinda and Mahagiri.
Written by Manan Gangwar
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