New Delhi [India], November 4 : Indian Metals & Ferro Alloys Ltd (IMFA), the country's leading fully integrated ferro alloys producer, has signed definitive agreements to acquire Tata Steel Limited's ferro chrome plant in Kalinganagar, Odisha. The acquisition, valued at Rs 610 crore, will add 99 MVA furnace capacity, comprising 66 MVA operational and 33 MVA under construction, taking IMFA's total installed capacity to over 0.5 million tonnes per annum.
As per an IMFA release, the Kalinganagar facility, spread across 115 acres, has four furnaces capable of producing 100,000 tonnes annually, which will increase to 150,000 tonnes once the fifth furnace is commissioned. The plant's close proximity to IMFA's captive chrome ore mines and its upcoming greenfield project is expected to generate significant cost efficiencies and operational synergies. The transaction is expected to close within three months, subject to necessary approvals and conditions.
Commenting on the acquisition, IMFA Managing Director Subhrakant Panda said, "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."
He added that the deal reflects IMFA's strong financial position. "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," Panda said.
IMFA also approved its financial results for the second quarter of FY26, reporting a revenue of Rs 718.65 crore and an EBITDA of Rs 138.34 crore, representing an EBITDA margin of 19.25 per cent. Profit after tax stood at Rs 98.77 crore, reflecting a PAT margin of 13.74 per cent. The company declared a 50 per cent interim dividend, equivalent to Rs 5 per share.
Revenue for the first half of FY26 reached Rs 1,360.19 crore, compared to Rs 1,354.20 crore in the same period last year. Exports during Q2 FY26 amounted to Rs 603.96 crore, marginally higher than Rs 556.26 crore in Q1 FY26.
Panda noted that market conditions are showing signs of improvement. "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," he said.
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