IFGL Refractori.

IFGL Refractories reported a steady Q2 FY26 performance with consolidated total income growing 18% year-on-year to INR 490 crores. Standalone total income also increased by 12% year-on-year to INR 288 crores. Consolidated EBITDA stood at INR 40 crores with an 8.2% margin, while standalone EBITDA was INR 37.4 crores with a 13% margin. Profit after tax for the consolidated entity was INR 12.7 crores, growing 5% year-on-year, reflecting impacts from product mix, lower export off-take, higher employee costs, and initial plant operation expenses.

The company's Indian operations demonstrated exceptional performance, with domestic revenue growing a robust 27% year-on-year in Q2 FY26 and 29% in H1 FY26, reaching INR 440 crores. This strategic focus on 'India-made India sold' has resulted in the domestic market contributing 78% of standalone revenue in H1 FY26, a significant increase from 69% in H1 FY25. This growth is supported by new customer additions and higher penetration across both steel and cement plants, along with new product introductions.

While India remains a bright spot, other regions show mixed trends. U.S. operations delivered a strong performance with 26% revenue growth in Q2, driven by tariff policy changes, price adjustments, and demand rebound. European operations, particularly Sheffield, showed steady performance despite overall demand weakness, with Monocon UK expected to achieve breakeven by this financial year or early next year. The export business, however, declined by 20% year-on-year to INR 60 crores in Q2 FY26, reflecting a strategic shift towards the domestic market and moderate overseas demand.

Management provided an outlook on the global steel industry, the key demand driver for refractories. Global steel demand is expected to remain stable at 1,749 million tons in 2025, with a modest 1.3% rebound to 1,773 million tons in 2026. India is projected to be the most dynamic growth market, with steel demand growing around 9% annually over 2025 and 2026. In contrast, China's steel demand is expected to contract moderately by 2% in 2025 and 1% in 2026, primarily due to a slowdown in the housing market.

IFGL Refractories is undertaking significant capital expenditure to expand its footprint. A greenfield project at Khordha, Odisha, with an estimated investment of INR 300-350 crores, is progressing well and is expected to be completed by the end of FY28. Additionally, a second greenfield project in Gujarat, a joint venture with an outlay of around INR 300 crores, is under regulatory approval and targeted for completion by early FY29. These projects aim to strengthen the company's position in both ferrous and non-ferrous refractories.

The company is focusing on product innovation, particularly in ladle refractories with magnesia carbon, which were not previously offered. This new product line has achieved volumes of almost 500-600 tons a month within six months, enhancing the share of spend with existing customers. The Sheffield technology transfer is also progressing, expected to be completed by December 2025, enabling new product testing for shotcreting applications in India. This focus on high-performance refractories and total solutions is expected to drive future growth.