IMFA: Ferrochrome Scale-Up Boosts Shareholder Value

Indian Metals & Ferro Alloys (IMFA), India's top integrated ferrochrome maker, mines chromite at Sukinda and Mahagiri, smelts at Odisha plants, and generates captive power. This setup ensures low costs and steady output of 284,000 tonnes yearly, with 91% exports to steel giants. Record FY25 chrome ore production hit 702,000 tonnes, giving shareholders reliable earnings amid volatile prices.​ Q2 FY26 revenue rose 3.9% YoY to Rs 720 crore, but PAT dipped 22% to Rs 98 crore as margins fell to 19% from raw material costs. Sequential recovery showed net profit up 95% QoQ to Rs 92 crore, with sales at Rs 642 crore. ROE at 17% and ROCE 21% signal strong capital efficiency, benefiting owners through solid returns despite cycles.​ Big wins include Tata Steel plant buy at Rs 610 crore, adding 150,000 tonnes capacity to reach 534,000 tonnes—making

India's largest, sixth globally. Greenfield project adds 100,000 tonnes by H2 FY27. Funded internally, this scales volumes to 400,000 tonnes next year, lifting profits and dividends for shareholders.​ Diversification shines: 110 MW hybrid power deals cut costs by 2026, plus 120 KLPD ethanol plant taps fuel blending. These hedge risks, stabilize cash flows, and open new revenue, compounding value long-term. At EV/EBITDA 15x above industry 10x, premium pricing reflects growth, but chrome price drops or execution slips could hurt. Overall, expansions and integration make IMFA hugely beneficial—turning scale into shareholder wealth far beyond mining peers.