IMFA targets near-doubling of ferrochrome capacity by FY28
The company plans to lift capacity from 265,000 tonnes in FY26 to 500,000 tonnes by FY28, while doubling its cost-savings guidance.
— 3 earlier stories on Indian Metals & Ferro Alloys Ltd. →What's new
- Capacity expansion roadmap targets 400,000 tonnes in FY27 and up to 500,000 tonnes in FY28.
- EBITDA cost savings guidance doubled to ₹3,000-4,000 per tonne.
- Renewable energy capacity is set to reach 135 MW by mid-2027.
Why this matters
Management expects global underinvestment in ferrochrome to keep prices high while they scale production. Doubling the cost-savings target is an attempt to protect margins, though the delay in realizing these benefits until Q4 FY27 means the bottom-line impact remains distant.
What we're watching
- The ramp-up speed of the recently acquired Tata Steel Kalinganagar plant.
- Actual realization of cost savings starting in Q4 FY27.
- Progress on the 135 MW renewable energy target by mid-2027.
The full read
Indian Metals & Ferro Alloys is moving to capture market share through aggressive capacity expansion. From a base of 265,000 tonnes in FY26, the company plans to hit 400,000 tonnes in FY27 and up to 500,000 tonnes by FY28. To support this growth, management doubled its EBITDA cost-savings guidance to ₹3,000-4,000 per tonne, though these benefits are back-loaded to Q4 FY27. The company is also integrating the Kalinganagar plant acquired from Tata Steel and building out its renewable energy footprint to 135 MW by mid-2027. Management expects global underinvestment in ferrochrome to keep prices high. The strategy is to scale volume and cut costs to capitalize on what they view as a long-term price floor. The test is whether the operational ramp-up meets these ambitious timelines.
Questions answered
- What is the timeline for IMFA's capacity expansion?
- The company plans to grow from 265,000 tonnes in FY26 to 400,000 tonnes in FY27, reaching 475,000-500,000 tonnes by FY28.
- How has the company changed its cost-savings outlook?
- Management doubled its expected EBITDA cost savings to ₹3,000-4,000 per tonne, though they do not expect to see the full benefit until Q4 FY27.
- What is the status of the Kalinganagar plant acquisition?
- The plant acquired from Tata Steel is currently in the ramp-up phase.
- What are the company's targets for renewable energy?
- IMFA expects its renewable energy capacity to reach 135 MW by the middle of 2027.
Story so far
All notes on IMFA →- 27 May 2026 · 5:31 PM IST IMFA targets near-doubling of ferrochrome capacity by FY28
- today IMFA board approves FY26 results and declares ₹7.50 dividend
- today IMFA profit doubles in Q4 as ferro chrome prices hold firm
- 2d ago IMFA secures 65 MW of hybrid renewable power with ₹110 cr investment