IMFA | 📈 IMFA Plans Capacity Expansion to 5 Lakh Tons by FY28 with 380,000 Tons Target for FY27

🚀 Capacity Growth: IMFA produced approximately 265,000 tons of ferrochrome in FY26 from existing units at Therubali and Chaudwar. The company plans to increase output significantly to 380,000 tons in FY27 by adding capacity via new furnaces at Greenfield (KN1) and Kalinganagar (KN2).
🔥 Furnace Commissioning: The first furnace at the Greenfield KN1 project recently began tapping hot metal and is expected to start contributing in a meaningful way from September 2026. The KN2 unit at Kalinganagar, commissioned in April 2026 with Tata Steel, produced about 160,000-170,000 tons in FY26. A second furnace at the same facility will stabilize by October 2026.
📆 FY28 Capacity Target: IMFA targets 475,000 to 500,000 tons of ferrochrome production by FY28, reinforcing its aggressive expansion strategy beyond FY27.
💹 Margin Stability: The margin profile is anticipated to remain stable because ferrochrome benefits from minimal duty protection (~3-5%). Pricing differentials between domestic and export markets are insignificant, so margin improvements depend largely on cost optimizations and scale efficiencies.
🌐 Sales Mix & Working Capital: The current sales split favors exports at approximately 60% versus 40% domestic. Domestic sales help improve working capital by avoiding inventory buildup, leading to a more favorable working capital cycle.
⚙️ Cost Optimization: IMFA is engaged in efforts to reduce unit costs and realize efficiency gains at higher production scales, which could enhance margins alongside steady sales.