India: IMFA’s ferro chrome production rises 22% y-o-y in Q1FY’26

• Chrome ore production doubles y-o-y in Q1FY’27
• IMFA sets long-term ferro chrome capacity target of 534,000 t/y

India’s largest integrated ferro chrome producer, IMFA, reported a strong operational performance in Q1FY’27, with ferro chrome production rising by 22% y-o-y to 80,690 t, compared with 65,929 t in Q1FY’26. On a q-o-q basis, output increased by 18% from 68,506 t in Q4FY’26. The rise was primarily driven by the successful integration of the Kalignagar ferro chrome plant unit (KNR-2) following its acquisition from Tata Steel. All four furnaces remained operational at the unit throughout the quarter.

Ferro chrome sales also improved by 19% y-o-y to 79,268 t, reflecting healthy dispatches during the quarter. IMFA stated that approximately 14,000 t of material was dispatched from the acquired KNR-2 facility, contributing significantly to revenues and profitability.

Chrome ore production surges on expanded mining operations

On the raw material front, IMFA reported a sharp increase in captive chrome ore production, which climbed to 272,555 t in Q1FY’27 from 103,780 t a year earlier, while remaining largely stable q-o-q. The substantial increase follows the company’s expanded mining footprint, strengthening backward integration and ensuring a reliable supply of chrome ore for its growing ferro chrome operations.

The company has also secured approvals to increase its mining capacity to 1.2 mnt/year, supported by an investment of around INR 1,000 crore, aligning ore availability with its future smelting expansion plans.

Capacity expansion to support future ferro chrome supply

IMFA’s greenfield KNR-1 ferro chrome project remains on schedule, with the first furnace expected to begin hot metal tapping in August 2026, followed by the commissioning of the second furnace in September 2026. Once operational, the project will raise the company’s installed ferro chrome capacity from 384,000 t/year to 484,000 t/year during FY’27, with a longer-term target of 534,000 t/year.

Commenting on the earnings, Subhrakant Panda, Managing Director, said, “The record performance during the quarter is on account of higher ferro chrome output, boosted by the strategic acquisition, and firm prices, coupled with a continuing focus on operational efficiency. With the greenfield project expected to be fully commissioned and stabilised by Q3, we will close out the year with operating smelting capacity of more than half a million tonnes.”

He added, “IMFA is focused on creating a future-ready, diversified business, and we are confident about the market fundamentals and our own resilience basis a fully-integrated, net debt-free business model. Significant investment to increase captive chrome ore raising, double ferro chrome smelting capacity, and pivot to hybrid renewable energy alongside a diversification into ethanol will enable us to deliver superior performance going ahead.”