Indian Metals & Ferro Alloys Ltd Management Discussions

Global Economic Review (FY 2025–26)

The global economy remained resilient during FY 2025–26 despite persistent geopolitical tensions, evolving trade policies, and uneven recovery across key markets. Global growth is estimated at 3.3% in CY 2025, with a similar trajectory expected in CY 2026. This resilience has been supported by sustained investment inArtificial Intelligence (AI), digital infrastructure, advanced manufacturing, and technology-led capital expenditure, which helped offset the impact of tariff-related disruptions and broader macroeconomic uncertainties.

Global inflation moderated meaningfully during the year, with headline inflation declining to 4.1% in 2025 from 5.8% in 2024. The easing inflation environment was driven by softer commodity and energy prices, improved supply chain stability, and the gradual normalisation of monetary conditions across major economies. This has enabled several Central Banks to move toward a more accommodative policy stance.

The metals and mining sector continued to play a critical role in global industrial activity, supported by infrastructure development, green energy transition, and expanding stainless steel consumption. The global ferro chrome market, valued at approximately USD 20.83 billion in 2025, continued to witness healthy demand, primarily led by the stainless steel industry, particularly across automotive, construction, and renewable energy applications. The Asia-Pacific region remained the largest demand centre, accounting for nearly 75% of global ferro chrome consumption, underscoring its strategic importance in the global metals value chain.

Regional Outlook

The Asia-Pacific Region continued to serve as the principal engine of global economic expansion, contributing materially to growth. Regional economic momentum was supported by strong domestic demand, industrial investment, high-tech manufacturing, green infrastructure development, and supply chain realignment. India remained a major driver of growth while economic activity in China stabilised after a period of uncertainty.

India Economic Review (FY 2025–26)

India continued to reinforce its position as the fastest-growing major economy globally during FY 2025–26. Real GDP growth is estimated in the range of 7.4% to 7.6%, outperforming earlier expectations and reflecting the strength of the countrys domestic economic fundamentals.

This growth was underpinned by a strong combination of private consumption, public capital expenditure, improving rural demand, and resilient services sector performance. Private Final Consumption Expenditure (PFCE) rose to 61.5% of GDP, marking its highest level since 2011–12, supported by improved agricultural output, better rural cash flows, and tax rationalisation measures that aided urban spending sentiment.

India also demonstrated continued consolidation on the fiscal front. The Union Governments fiscal deficit was revised to 4.4% for FY 2025–26, with the glide path indicating 4.3% for the following year which reflects a continued commitment to fiscal discipline while sustaining growth-supportive capital expenditure.

Inflation remained well contained during the year. Headline retail inflation averaged 1.7% during April–December 2025, significantly lower than the previous year, supported by stable food and fuel prices. This benign inflation environment improved real purchasing power, supported consumption, and strengthened the broader macroeconomic outlook.

Indias structural growth story also remained intact, supported by strong services exports, digitalisation, manufacturing-linked policy initiatives, and infrastructure-led investment. Looking ahead, Indias GDP growth is expected to remain robust at approximately 6.8% to 7.2% in FY 2026–27, despite global trade uncertainties and external demand fluctuations. This augurs well for the manufacturing sector, including ferro chrome which stands to gain both from overall economic growth as well as increasing per capita stainless steel consumption.

Industry Overview (FY 2025–26)

Global Chrome Ore Industry

The global chrome ore industry remained strategically important during FY 2025–26, supported by continued demand from the stainless steel and ferro alloy sectors. Global chrome ore output is estimated to have reached approximately 40.50 million tonnes in CY 2025, reflecting stable year-on-year growth.

South Africa continued to remain the dominant global producer, accounting for nearly 60% of total global output. However, the global supply chain remained vulnerable to regional disruptions. During late 2025, South Africa faced significant rail and logistics bottlenecks which constrained exports and created intermittent tightness in global chrome ore availability.

In this environment, Indias chrome ore raising assumes importance as it sustains domestic ferro chrome production. Chrome Ore output increased during the year with captive chrome ore mines too chipping in even as Odisha Mining Corporation (OMC) reporting a particularly strong performance.

Ferro Chrome Industry Overview

Global Ferro Chrome Industry

Ferro Chrome is a critical input for the global stainless steel industry, which accounts for the majority of global demand. The industry was supported by long-term structural demand from construction, transportation, industrial manufacturing, consumer durables, and renewable energy-linked infrastructure.

South Africa, the worlds largest chrome ore producer, continued to face structural challenges in ferro chrome smeltingduetoelevatedelectricitytariffsandoperatingcosts.

Power tariffs in the country have increased significantly over the past decade, resulting in large-scale smelter shutdowns and lower domestic ferro chrome production.

During FY 2025–26, the South African government and Eskom introduced targeted tariff support measures for certain ferro chrome producers in an effort to revive the sector and prevent further capacity closures. Despite these interventions, industry utilisation levels remained materially below historical levels, with only a limited number of smelters operating.

These developments are expected to continue reshaping the global ferro chrome supply landscape, creating opportunities for cost-competitive and integrated producers in India with captive ore and access to power.

The global ferro chrome market was valued at approximately USD 20.83 billion in CY 2025 and is projected to maintain healthy medium-term growth. Demand remained broadly supported by continued stainless steel consumption, especially across Asia-Pacific, which continues to dominate both production and end-use demand

Lead High-Carbon Ferro Chrome Producing Regions, (CY 2025 Estimates)

India continued to improve its standing as a competitive ferro chrome producer, supported by: availability of chrome ore reserves proximity of mining assets to production clusters port access for exports sustained growth in domestic stainless steel demand

The domestic ferro chrome industry remained largely resilient despite pricing pressure, with fully integrated producers taking the lead even as non-integrated producers struggled at times with ore availability and cost pressures.

Production of ferro chrome is resource-intensive, typically requiring ~2.5 tonnes of chrome ore, ~0.6 tonnes of metallurgical coke, and ~4000 units of power per tonne, making cost competitiveness highly dependent on raw material and energy access.

Integrated producers with captive ore and power have a structural advantage leading to inherent resilience, with volatility in input costs impacting non-integrated producers significantly.

Key Industry Highlights – Ferro Chrome (FY 2025–26)

The ferro chrome market continued to benefit from strong linkages to the stainless steel value chain

Indian production improved during the year, supported by higher domestic offtake and better capacity utilisation

Integrated producers remained better positioned to with stand market volatility due to captiveore and power

Global supply disruptions in some geographies created export opportunities for Indian players

https://www.reuters.com/sustainability/boards-policy-regulation/south-africa-cuts-electricity-tariffs-struggling-ferrochrome-firms-2026-02-27

Stainless Steel Industry Overview

Stainless Steel Industry

The global stainless steel industry recorded healthy growth during FY 2025–26, supported by recovery across key end-use sectors such as automotive, infrastructure, industrial manufacturing, consumer appliances, and clean energy systems.

Global stainless steel production increased to a record 66.8 million metric tonnes in CY 2025, reflecting strong demand recovery and sustained industrial consumption. Stainless steel continues to remain a strategically important material due to its corrosion resistance, durability, recyclability, and long life-cycle economics.

China continued to remain the largest driver of global stainless steel demand and ferro chrome consumption during FY 2025–26. Government-led stimulus measures focused on infrastructure, manufacturing upgrades, urban redevelopment, transportation systems, and industrial modernisation are expected to support medium-term stainless steel demand across key sectors.

In addition, investments in renewable energy infrastructure, industrial equipment, pipelines, railways, and consumer durable replacement programs are expected to sustain stainless steel consumption despite moderation in certain real estate-linked segments of the economy.

Given Chinas dominant position in global stainless steel production, policy support for industrial activity and infrastructure development is expected to remain a key demand driver for the global ferro chrome industry.

The market also continued to benefit from rising demand for specialised and higher-grade stainless steel products, particularly in sectors such as: transportation renewable energy railways urban infrastructure industrial equipment consumer durables

Regional Stainless Steel Production

Region	2025 (MT)	2024 (MT)	% Change
China	42.40	39.44	+7.5%
Asia (excl. China / South Korea)	7.90	7.32	+7.9%
Europe	6.20	6.08	+2.0%
USA	2.10	1.95	+7.7%
Others	8.20	7.83	+4.7%
Total	66.80	62.62	+6.7%

Indian Stainless Steel Industry

Indiacontinuedtoremainoneofthestrongestgrowthmarkets for stainless steel globally during FY 2025–26. Domestic demand is estimated to have grown by approximately 9%, significantly above the global average, driven by a broad-based rise in demand across infrastructure, transportation, industrial manufacturing, and urban development.

Despite this growth, Indias per capita stainless steel consumption remains materially lower than the global average, indicating substantial headroom for demand expansion over the long term.

Key Growth Drivers – India

Infrastructure & Railways:

Expansion in railways, station redevelopment, and transportation infrastructure continued to support demand for stainless steel-intensive applications

Architecture, Building & Construction:

Growing urbanisation and increased use of corrosion-resistant materials in public and coastal infrastructure supported consumption

Industrial Manufacturing:

Continued momentum under the Make in India initiative supported demand for stainless steel in engineering, machinery, and fabricated products

Energy Transition:

Renewable energy, clean mobility, and long-life industrial systems are increasingly supporting stainless steel demand

Why Stainless Steel Matters for Ferro Chrome

The stainless steel industry remains the single most important demand driver for ferro chrome. Accordingly, growth in stainless steel production and consumption directly supports long-term demand visibility for ferro chrome producers. The continued expansion of stainless steel-intensive sectors globally and in India remains a key positive for the broader ferro alloy ecosystem.

https://gmk.center/en/news/china-s-policy-for-2026-will-support-demand-for-stainless-steel

Regional Insights and Growth Drivers

Asia-Pacific

The Asia-Pacific region remained the largest market for chrome ore, ferro chrome, and stainless steel during FY 2025–26. Demand was supported by:

strong urbanisation infrastructure investment manufacturing growth rising industrial consumption in China and India

Chinas continued infrastructure investment, industrial modernisation programs, and stimulus measures are expected to support long-term stainless steel demand across the region, thereby benefiting the broader ferro alloys value chain.

North America

North America emerged as a region of strategic interest as policymakers and manufacturers increasingly focused on supply chain resilience, domestic industrial capacity, and reduced import dependence for critical industrial inputs.

Europe

Europe remained a relatively stable demand centre, supported by gradual industrial normalisation and automotive recovery. However, the regions transition toward low-carbon industrial sourcing is expected to increasingly influence raw material and ferro alloys procurement decisions.

Sustainability and Green Metals

The industry is witnessing a structural shift toward:

lower-emission production routes

cleaner power usage traceable sourcing

environmentally compliant alloy production

These themes are expected to become increasingly important for export competitiveness and customer preference, particularly in developed markets.

Strengths

Integrated producers with access to captive ore and power are better positioned to protect margins amid volatility

Indias mineral base, production clusters and port connectivity provide structural advantages

Strong domestic demand growth in stainless steel supports downstream demand visibility

Opportunities

Indias stainless steel demand continues to grow faster than the global average, offering strong domestic market potential

Demand for green metal, low-carbon alloys and traceable sourcing offers a long-term strategic opportunity

Value-added and specialised stainless steel applications offer downstream growth opportunities

Challenges

Changing ore quality profiles in some geographies are increasing beneficiation and processing requirements

Elevated energy costs remain a significant operating challenge, particularly for non-integrated producers

Volatility in input costs and selling prices impact profitability

Threats

Supply concentration across a limited number of ore-producing geographies creates exposure to disruptions and price spikes.

Environmental regulations, carbontrade mechanisms and compliance costs will increasingly affect competitiveness

Periodic demand-supply imbalance can put pressure on margins https://gmk.center/en/news/china-s-policy-for-2026-will-support-demand-for-stainless-steel

Ethanol Industry Overview

Global Ethanol Industry

The global ethanol industry continued to expand during FY 2025–26, supported by increasing focus on clean energy, fuel blending mandates, and decarbonisation strategies. Ethanol remained an important component of the global biofuels landscape while also finding application in industrial, pharmaceutical, and food-related uses.

The global market remained led by major producing nations such as the United States and Brazil, while several emerging markets continued to strengthen blending programs and domestic production capacity.

Global fuel markets continued to witness increasing adoption of ethanol blending mandates as countries focused on decarbonisation, energy security, and reduced fossil fuel dependence. Several economies are progressively increasing blending ratios and encouraging flex-fuel vehicle ecosystems, supporting long-term demand visibility for biofuels globally.

The global biofuels market is also witnessing increasing investment toward grain-based ethanol, second-generation biofuels, and diversified feedstock technologies aimed at improving sustainability and supply resilience.

Indian Ethanol Industry

Indias ethanol industry marked a significant year during FY 2025–26, supported by strong policy momentum, rapid capacity additions, and rising domestic blending demand.

The sector continued to benefit from:

strong government support

procurement-led visibility through Oil Marketing Companies (OMCs)

increasing blending implementation growing feedstock diversification

A notable trend during the year was the increasing emphasis on grain-based and flexible feedstock capacity, aimed at improving supply reliability and reducing dependence on sugar-linked cycles.

India achieved the milestone of 20% ethanol blending (E20) ahead of its original target timeline, reflecting strong policy execution and rapid expansion of domestic ethanol production capacity. The Government continues to strengthen the biofuel ecosystem through measures supporting grain-based ethanol production, feedstock diversification, and higher blending adoption.

During FY 2025–26, regulatory momentum continued toward expanded ethanol usage, including policy proposals for higher ethanol fuel blends such as E85 and E100 for compatible vehicles. In parallel, nationwide implementation of E20-compliant fuel supply and vehicle transition is expected to further support long-term ethanol demand growth.

The industry is also witnessing a structural shift toward grain-based ethanol production to improve supply stability and reduce dependence on sugar-linked cycles, thereby enhancing feedstock flexibility and long-term supply reliability.

Key Industry Themes

Blending-led demand continues to provide long-term growth visibility

Capacity expansion has been significant, shifting focus toward efficient utilisation and feedstock management

Grain-based ethanol and next-generation biofuel applications are emerging as important strategic opportunities

SCOT Analysis – Ethanol (FY 2025–26)

Strengths

Strong policy support and a visible blending roadmap continue to underpin sector growth

OMC-led offtake provides demand certainty for producers

Opportunities

Grain-based ethanol, feedstock diversification, and future biofuel applications offer long-term opportunity

Challenges

Feedstock economics, agricultural variability, and pricing pressures remain important challenges

Input cost inflation and margin sensitivity may impact profitability

Threats

Weather volatility, food vs fuel concerns, and potential policy recalibration remain sector risks

Strategic Industry Outlook

The FY 2025–26 period reinforced the strategic importance of chrome ore, ferro chrome, stainless steel, and energy-transition-linked industrial materials within the broader manufacturing and industrial economy.

Looking ahead, the industry is expected to be shaped by the following key themes: i. Raw Material Security and Supply Chain Localisation

Producers are likely to increasingly focus on backward integration and resource security to reduce dependence on volatile global supply chains. This also provides a structural cost advantage and enhances margin stability by mitigating exposure to raw material price volatility. ii. Low-Carbon and Sustainable Production

Decarbonisation, renewable energy integration, and cleaner industrial processes are expected to become increasingly important for competitiveness and export relevance. iii. Rising Domestic Industrial Demand in India

Indias infrastructure, manufacturing, transport, and urban development sectors are expected to continue supporting long-term demand growth across the metals and materials ecosystem. iv. Shift Toward Value-Added and Specialised Products

Demand is expected to increasingly move toward higher-grade, application-specific, and premium products across stainless steel and allied materials.

v. Operating Leverage from capacity expansion

Increasing scale and higher capacity utilisation are expected to improve cost efficiency and margins through better absorption of fixed costs. vi. Strategic Relevance of Transition Materials

Chrome, ferro alloys, stainless steel, and selected energy-transition materials are expected to remain structurally important in the evolving global industrial landscape.

Sources: h t t p s :// w w w. u s g s . g o v / p u b l i c a t i o n s / m i ne ra l - c o m m o d i t y - summaries-2026 h t t p s : // p r a g a t i v a d i . c o m / o m c - r e c o r d s - h i g h e s t - m i n e r a l -production-in-fy-2025-26/ https://news.metal.com/newscontent/103132994-High-Carbon-Ferrochrome-Market-2024-Review-and-2025-Outlook-[SMM-Analysis] https://www.google.com/search?q=https://www.worldstainless.org/ statistics/crude-steel-production/ https://www.ibef.org/industry/steel https://www.nsws.gov.in/portal/scheme/ethanol-policy https://www.indiabudget.gov.in/economicsurvey/ https://www.drishtiias.com/daily-updates/daily-news-analysis/indias-ethanol-blending-programme-and-the-path-to-e100

Business Segment Review

Ferro Alloys

IMFAs smelting business remains primarily export-oriented, supplying value-added ferro chrome to leading stainless steel producers globally alongside domestic buyers. Backed by an integrated operating model, the Company continues to deliver stable operations with strong cost efficiencies. With ongoing expansions and strategic acquisition, the Company will significantly enhance its production capacity, positioning itself among the largest ferro chrome producers globally, while also reorienting supplies to the domestic market.

Ferro Alloy Production and Sales (tonnes)

(in tonnes)

	FY 2026	FY 2025	% Change
Production	267,301	260,190	2.73
Domestic sales	48,769	34,066	43.16
International sales	221,355	225,801	(1.97)

Post expansion, total ferro chrome capacity is expected to increase to ~534,000 tonnes per annum, strengthening the Companys global positioning.

Note: Production remained broadly stable with improved realisations in FY26, supported by better pricing environment in later quarters

Margin improvement is expected to be supported by structural cost advantages including captive ore usage, renewable energy integration, proximity to mines, and operating leverage from increased scale, which together are expected to reduce per-tonne costs.

Power Generation & Sales

IMFA operates a captive power generation system critical for cost-efficient ferro chrome production. The Company continues to strengthen its energy mix by pivoting towards hybrid renewable energy for its enhanced smelting capacity.

Power Generation and Sales (million units)

(in tonnes)

	FY 2026	FY 2025	% Change
Power generation	1138	1092	4.21
Sales	-	-	-

Total installed capacity: ~204.5 MW (coal + solar)

Additional 135 MW hybrid renewable energy under execution

Long-term PPAs signed to support low-carbon transition

The integration of renewable power through long-term PPAs is expected to lower blended power costs and enhance cost competitiveness

Mining

IMFA operates captive chrome ore mines at Sukinda and Mahagiri, ensuring raw material security for its smelting operations.

Chrome ore requirements are fully met through captive mines. The Company meets 100% of its chrome ore requirements through captive mines, ensuring strong raw material security and resilience.

Focus is on sustainable mining and operational efficiency

Chrome Production (tonnes)

(in tonnes)

	FY 2026	FY 2025	% Change
Sukinda	273,802	285,851	(4.22)
Mahagiri	536,810	416,012	29.04

Chrome ore production is being scaled up in line with smelting capacity expansion, with plans to increase output to 1.2 million tonnes per annum, ensuring continued captive sourcing.

Expansion roadmap:

Chrome Ore raising of 1 million tpa in FY27

Further expansion to 1.2 million tpa by FY31 The transition to underground mining will support long-term resource sustainability.

Financial Review

Financial performance

(Rs. in Crore)

	FY 2026	FY 2025	FY 2023-24	FY 2022-23	FY 2021-22
Revenue from operations	2826.31	2564.57	2780.17	2,676.39	2,602.95
Other Income	66.74	66.74	42.33	25.66	18.06
Total Income	2893.05	2631.31	2822.50	2,702.05	2,621.01
EBITDA (before exceptional items)	587.23	530.51	649.83	514.48	828.83
Profit/(Loss) after tax	424.36	378.09	363.69	225.73	507.87
Cash Profit	487.30	432.69	441.72	333.01	618.09
Earnings per share ( )	78.65	70.08	67.41	41.84	94.13
Cash EPS	90.31	80.20	81.87	61.72	114.56
Net worth	2691.73	2322.29	2079.34	1858.86	1,700.86
Capital Employed	3729.91	2797.43	2187.48	1,970.33	1,945.85
Fixed assets [including Capital Work in Progress	2365.40	1124.99	1,075.02	1038.84	991.59
(CWIP)]

Key Ratio and Margins

(Rs. in Crore)

	FY 2026	FY 2025	FY 2023-24	FY 2022-23	FY 2021-22
Debtors turnover ratio (times)	15.80	20.24	24.62	23.33	22.04
Inventory turnover ratio (times)	1.36	1.41	1.71	2.30	2.06
Interest coverage ratio (times)	15.59	17.73	15.30	6	11.70
Current ratio (times)	1.42	2.67	2.39	2.09	1.61
Debt equity ratio (times)	0.36	0.18	0.13	0.20	0.30
Operating profit margin (%) (before exceptional)	20.83	21.23	20.58	15.34	27.70
Net profit margin (%) (after exceptional)	15.19	14.92	13.26	8.55	19.80

Change in Financial Ratios

(Rs. in Crore)

	FY 2026	FY 2025	Change (%)	Significance
Debtors turnover ratio	15.80	20.24	(21.94)
Inventory turnover ratio	1.36	1.41	(3.55)	Not significant
Interest coverage ratio	15.59	17.73	(12.07)	Not significant
Current ratio	1.42	2.67	(46.82)	Due to utilisation of cash reserves in business acquisition
Debt equity ratio (times)	0.36	0.18	100	Due to higher term loan availed for business expansion and diversification
Operating profit margin (%) (before exceptional items)	20.83	21.23	(1.88)	Not significant
Net profit margin (%) (after exceptional items)	15.19	14.92	1.81	Not significant
Return on Net worth (%) after exceptional items	15.77	16.25	(2.95)	Not significant
Return on Equity (%)	16.93	17.18	(1.46)	Not significant
Cash EPS	90.32	80.20	12.62	Not significant

Source of Funds

Own Funds

IMFAs net worth stood at H2691.72 Crore as on 31^st March, 2026, vis-?-vis H2322.29 Crore as on 31^st March, 2025.

Equity

The Company has 53,954,106 equity shares with a face value if H10/- per share in the market. Its promoters held 58.69% of them as on 31^st March 2026.

Reserves

IMFAs reserves stood at H2637.76 Crore as on 31^st March, 2026, compared to H2268.33 Crore as on 31^st March, 2025. Free reserves constituted 95.30% of the total reserves.

Application of Funds

Gross Block

The Companys gross block of fixed assets stood at H2563.56 Crore as on 31^st March, 2026, vis-?-vis H1993.78 Crore as on 31^st March, 2025.

Capital Work In-Progress

IMFAs capital work-in-progress was amounted to H794.46 Crore as on 31^st March, 2026 as against H74.52 Crores as on 31^st March,2025. Capex investments in greenfield project of Ferro Chrome Plant in Kalinganagar, Underground Mine in Sukinda and Ethanol Plant in Therubali are the key components of capital work in progress in FY26 end.

Long-term Borrowings

Long-term borrowings stood at H296.35 Crore as on 31^st March, 2026, as against H0.21 Crore as on 31^st March, 2025. The Company has partially drawn down funds against the H 470 crores loan sanctioned for the greenfield project at Kalinganagar and Ethanol Plant in Therubali while maintaining adequate cash reserves; thus maintaining financial flexibility and cost arbitrage over the return on capital employed.

(Rs. in Crore)

Particulars	FY 2026	FY 2025
Long-term loans	293.41	0.02
Current maturities of long-term obligations	2.94	0.19
Lease obligation
Current maturities of finance lease obligations/Lease payables	1.77	1.69
Long-term maturities of finance lease obligations/Lease payables	56.43	39.70

Human Resource

At IMFA, organisational strength is anchored in its people and shared values. Over the years, the Company has managed at transition and growth while continuing to reinforce its organisational fabric. It remains focused on creating a work environment that supports employee performance, strengthens engagement and prioritises overall well-being. This, in turn, contributes directly to organisational effectiveness.

The Company has also integrated advanced digital technologies to improve efficiency, enhance workforce visibility and enable faster, data-driven decision-making. The implementation of Darwinbox HRMS platform has brought core HR processes onto a single system, improving transparency, enabling real-time insights, and supporting informed decision-making. It has also delivered a more intuitive employee experience across devices. ^st During FY 2025–26, people-focused initiatives strengthened . the employee experience and improved alignment across locations. These efforts supported smoother team integration and reinforced a culture built on trust, collaboration, recognition, learning and ethical conduct. Increased adoption of digital platforms further improved accessibility, transparency and operational efficiency during the year. Overall, the year reflected a clear emphasis on integration, innovation and inclusion, marking progress towards a more unified and forward-looking workforce.

FY 2025–26 represents steady progress in IMFAs people journey, with stronger alignment and a defined focus on capability building. Through continued initiatives in people integration, learning, digital transformation, recognition and employee well-being, the Company has strengthened its people practices. These efforts have supported the development of a workplace that is adaptable and aligned with long-term growth.

Pillars of HR transformation

Cultivating a Culture of Inclusion and Agility	Learning and Development
IMFA fosters a collaborative environment where diverse perspectives drive innovation and operational excellence.	The Company remains steadfast in promoting a culture of continuous learning and development, with a strategic focus on enhancing employee capabilities. Its Learning and Development initiatives empower employees to unlock their full potential, while building a future-ready workforce capable of supporting sustainable growth.
The year witnessed the strong cultural reform with clear values and behaviours projecting what inclusion and agility look like in IMFA, which was followed key strategies,	FY 2025–26 reflect a strong shift towards building a future-ready, capability-driven, and digitally enabled workforce. Following list of initiatives reflects the commitment for a greater future ahead,
Driving Agility: Encouraged a mindset of adaptability, enabling employees to embrace new ways of working with confidence	Functional Skill Development: Focused Skills development programs which indicates a practical L&D strategy closely aligned with operational effectiveness and business continuity.
Last-Mile Adoption: Focused on ensuring effective implementation across all levels through continuous follow-ups and support
Cultivating a Culture of Inclusion and Agility	Learning and Development
Leadership Advocacy: "Walk the talk"; Leaders actively championed change initiatives, reinforcing purpose, building trust, and driving inclusion.	Leadership Development: The integration of EDPs/LDPs signals movement toward personalised leadership development.
Inclusive Workforce Integration: The revamped onboarding programme "AARAMBH 2.0" and introduction of the IMFA Buddy Programme significantly strengthened employee assimilation and engagement.	Industry-academia Collaboration: IMFA partnered with Indian Institute of Technology Bhubaneswar for a specialised Graduate Engineer
	Trainee (GET) Programme improving employer branding and long-term talent sustainability.
	Digital Learning Transformation: Combined with the HRMS implementation, this demonstrates IMFAs transition toward a digitally integrated people development ecosystem.
Enhancing Engagement and Belongingness	Driving Performance and Retention
Employee engagement remains a key priority for IMFA.	IMFA has introduced targeted training modules to provide employees with greater clarity on their job roles while emphasising the significance of meaningful work. These efforts have strengthened performance management practices, driving greater accountability and productivity.
The Company believes that a highly engaged workforce drives productivity, stronger retention and a collaborative, performance-oriented work environment.	As a result, the Company has seen improved employee retention, ensuring a loyal and high-performing workforce committed to achieving organisational goals.
Celebrating Special Days and Achievements: To strengthen emotional connection and workplace camaraderie, IMFA celebrated:	Enterprise-Wide HRMS Transformation: A major milestone during the year was the implementation of the complete HRMS solution improving significantly the operational efficiency and while reducing dependency on manual interventions and fragmented systems.
Employee birthdays Work anniversaries Professional milestones:
Employee Communication & Transparency by promoting open dialogues, encouraging employees feedback and build accessible leadership has been key to creating a strong trusting culture.	Restructured Performance Management System (PMS): The Company digitised its Performance Management System aligned with Balanced Scorecard (BSC) principles to create a more transparent, standardised, and accountable performance culture.
Reinforced IMFAs legacy Values, people-first philosophy, and cultural foundations, especially during workforce diversification and expansion.	IMFA significantly strengthened its culture of recognition through multiple recognition platforms and supported performance and retention. Using a digitally enabled recognition practice improved participation, visibility, and inclusivity in recognition practices across geographically dispersed teams.
To strengthen ethical awareness and cultural alignment,effective story-telling method is being adopted for more relatable and engaging employees connect with organisational values and behavioural expectations.

Key priorities for Human Resource in FY 2026

Strengthening cultural alignment and integration

Enhancing Employee Experience

Advancing Capability Development

Driving Performance and Recognition

Digital Transformation

Industrial Relations Harmonisation

Strengthening Cultural Alignment and Integration

SAMPARK, a communication platform, was introduced to strengthen transparency and build trust across the organisation.

SUCHARITA, a storytelling-based methodology, was continued as part of ongoing efforts to reinforce a culture grounded in high ethical standards.

Through focused leadership communication and proactive HR interventions, seamless onboarding of employees from the acquired unit was achieved, marking a key milestone in aligning them with IMFAs culture.

Structured change management initiatives supported the smooth adoption of a robust Performance Management System (PMS), automated HR processes and easily accessible policies.

Enhancing Employee Experience

The entire employee life cycle was reviewed to improve overall experience, leading to initiatives such as reduction in workweek, introduction of special leave provisions, enhanced social security benefits and expanded health coverage.

Efforts to celebrate employees life events and milestones through thoughtful gestures helped build a sense of belonging and ensured employees felt valued both as individuals and for their contributions.

"AARAMBH 2.0," a redesigned New Employee Orientation Programme, was launched to enable structured onboarding and smoother assimilation, supported by the IMFA Buddy Programme to strengthen early integration and belonging.

Advancing Capability Development

Continued investments were made to build a future-ready workforce through structured learning interventions, with 23,078 training man-hours recorded across locations, including 15,702 man-hours for executives and 7,376 man-hours for non-executives, reflecting a sustained focus on learning and capability development.

Safety remained a key priority and was supported through specialised training programmes; an exclusive Bootcamp for GETs was conducted in collaboration with a premier institute to prepare them for corporate roles, while leadership development initiatives were undertaken to build future leaders, alongside strategic alliances with leading business schools for mid and senior executives.

A two-day "Samanvaya" programme was conducted for non-executives to strengthen skills related to cost, quality and productivity, while also promoting a collaborative and harmonious workplace.

Driving Performance and Recognition

The Performance Management System (PMS) was digitised and aligned with Balanced Scorecard (BSC) principles to improve transparency and consistency in the appraisal process, thereby fostering a more accountable and performance-driven culture.

To promote a culture of appreciation, the Peer-to-Peer Appreciation Programme, "Hi Five," was introduced to enable employees to recognise and acknowledge each others contributions.

The "IMFA Icon Award" and "IMFA Achievers Award" were launched as flagship recognition programmes to acknowledge excellence and high-impact contributions.

Digital Transformation

HR transformation during the year was driven by digital initiatives aimed at building an integrated ecosystem that enables automation and seamless execution of HR processes.

The introduction of the Human Resource Management System (HRMS) improved process efficiency and enhanced employee experience, while an integrated Learning Management System (LMS) was implemented to support continuous, self-paced learning with easy access to development resources.

Industrial Relations Harmonisation

During the year, industrial relations across all locations remained a key focus area, supported by sustained efforts to maintain a stable and harmonious work environment. Proactive engagement with employees and union representatives enabled the rollout of change management initiatives across locations, resulting in improved productivity and growth. Structured dialogue mechanisms and capability-building initiatives strengthened mutual trust and improved communication.

Health and Safety

The Company places the health and safety of its workforce at the centre of its operations and continues to strengthen its safety culture across the organisation. Safety remains deeply embedded in the Companys way of working, helping create a secure workplace, support employee morale, ensure regulatory compliance and contribute to long-term operational sustainability.

Key Highlights: Safety

Therubali:

1. AI Camera installed at Cast house and Refractory for safety monitoring system.

2. IR camera installed at TCP#3 to monitor the healthiness of Furnace Shell Refractory Lining

3. Interconnecting walkway installed backside of TCP#1,2 & 3 to restrict unauthorised entry to cast house.

4. Arc Flash Study conducted by External Experts and ARC flash boundary marked in MCC control rooms.

5. Dry type transformer installed at BQTP Substation to eliminate hazards related to transformer oil.

6. Static discharge pad installed at the entrance of Liquid Oxygen tank, LPG, and LDO storage area.

7. HAZOP Study Conducted for our Furnaces to identify the process hazards and control measures .

8. Manual operated driving mechanism replaced with motor operated driving mechanism in all the 6 nos. of 132 kV isolators at Switchyard with facility to operate the isolator from a safe distance for human safety.

Choudwar:

1. An LDO Tanker Earthing Integrity Monitoring System has been implemented at 120 MW PP. It ensures proper grounding through clamps and cables, provides continuous monitoring, visual alerts for faults, and automatically stops unloading if earthing integrity is compromised.

2. A nitrogen line has been installed from the foot-over bridge to Boiler-6, improving shutdown operations and ensuring safe purging practices.

3. An oxygen analyser has been installed near the 120 CHP tunnel at BC-3 & 4 to monitor oxygen levels and prevent suffocation risks before entry.

4. Indication lamps and permanent track identification have been provided at the 120 CHP track hopper area to clearly distinguish active and non-active tracks.

5. QR codes have been implemented in the 120 MW PP switchgear room for instant access to drawings, safety procedures,andtechnicalinstructions,reducinghumanerror.

6. LPG gas leakage detectors/transmitters have been installed in the gas bank area of 120 MW PP Canteen. An alarm system in the food preparation area provides immediate alerts in case of leakage.

7. For the first time Off Site Mock Drill was conducted near Gandhi Chak in service road of NH-55 in collaboration with District Administration and Deputy Director of F&B, Cuttack.

Mines: (SMC and MMC)

1. Optical smoke detectors, manual call points, and hooters integrated with fire alarm panels have been installed across all electrical control centres, substations, laboratories, and stores to ensure effective smoke detection and early warning.

2. Solar Road delineators on haul road provided for enhanced road safety & visibility. (SMC)

3. Traffic baton lights for directing vehicles used by Supervisors for enhanced road safety. (SMC)

4. A real-time weather monitoring system implemented with automated data collection and remote management capabilities.

5. MMC (UG) has implemented a leaky feeder communication system, wherein walkie-talkies are provided to frontline personnel and base stations are installed on HEMMs to improve communication and reduce traffic congestion in underground decline roads.

6. SMC utilises walkie-talkies as a communication system, offering a secure and direct one-to-many communication capability.

Kalinganagar Projects

1. Magnetic Scrap Collection Initiative

Hand lifting magnets were introduced for housekeeping to easily collect small nails, screws, and steel scrap. This improved cleaning efficiency, reduced injury risk from sharp metal pieces, and kept work areas cleaner and safer.

2. Tool Lanyard System for Work at Height

Tools were secured with tagging arrangements and tool lanyards during height work, eliminating the risk of falling tools and improving worker safety.

3. Right people for right job

Color-coded helmet stickers were introduced to identify worker trades and skill levels. This ensures proper deployment, supervision, and safer operations.

Key Highlights: Health

1. 100% coverage for all new employees and high-risk contract workforce

2. Increased frequency for high-exposure groups (furnace, mining, dust zones)

3. Integration with IME data to identify emerging risks

4. Monthly awareness sessions covering: Heat stress management Respiratory protection, Lifestyle diseases (diabetes, hypertension)

5. High-Risk Vendor & Contract Workforce Health Counselling

6. Strengthening Occupational Health Centre (OHC) Capability

7. Alcohol checking on daily basis at main gate before entering.

8. Mandatory Vertigo test for all the employees including contract work men for carrying out job at Work at Height.

9. Special test as per the statutory obligation for contractor workmen engaged in Canteen.

10. Special awareness programs on Blood Donation camps, Eye Check up etc.

11. Conduct Health Check up camps to the near by villages by BIPF team.

Environment initiatives

The Company remains committed to integrating sustainability across the organisation. Its environmental initiatives continue to focus on reducing adverse environmental impact, conserving natural resources and supporting a more sustainable future.

Key Highlights: Environment

Therubali:

1. Replacement of bag filters at both the GCPs with highly efficient bag filters; with high temp. withstanding fibre glass filter bags and PTFE bags to minimise the particulate emission from GCP stack.

2. Reduction of carbon emissions by adopting cleaner alternatives such as reduction in consumption of LDO in Refractory and substituting LDO with LPG at Briquette Plants.

3. Installation of water efficient cistern type flush tank of low capacity to reduce the domestic water consumption from 10 Liters to 6 Liters per flush.

4. Installation of an Ultrasonic type of Weather Monitoring Station for real time tracking of Meteorological parameters.

5. Installation of Wheel washing using hydraulic press and filters including recirculation of wastewater at railway siding areas.

6. Installation of Retrofit – Emission Control Device (RECD) on DG sets for reduction of particulate matter in the ambient air.

Choudwar:

1. A Low-Density Aggregate (LDA) plant has been installed to utilise fly ash, producing an alternative to natural aggregates (Waste to Wealth).

2. Bed ash from the power plant is utilised for backfilling in captive underground mines, replacing river sand and promoting mineral conservation.

3. 100% ash utilisation has been achieved since start of plant operation by supplying fly ash to local brick manufacturing units, cement industries, and other construction projects.

4. An organic waste converter has been installed at the plant canteen and colony to convert food waste, kitchen waste, vegetable waste, and garden waste into organic manure.

5. As part of its renewable energy transition, IMFA has signed a 25-year and 29 year Power Purchase Agreement (PPA) to procure 135 MWp of clean energy for captive use

6. Infrastructure has been developed for biomass pellet co-firing in the boiler.

7. IMFA is a pioneering industry in Odisha for implementing online AAQMS and CEMS for boiler flue gas monitoring, with real-time data transmitted directly to the SPCB server. As a result of these and other appropriate measures, all environmental parameters remain well below the permissible limits throughout the year.

8. High-efficiency ESPs and GCPs have been installed to keep particulate matter (PM) emissions from flue gas well below permissible limit.

Mines: (SMC and MMC)

1. 3 Nos. of Continuous Ambient Air Quality monitoring stations were installed to monitor the air quality.

2. The Effluent Treatment Plant is equipped with real time analysers for Hexavalent Chromium, pH, Total Suspended Silids and Flow rate, which is connected to the SPCB.

3. The Mahagiri Mines has established the state-of-the-art Water Treatment Plant of 70 KL/Day capacity which treats the underground mines seepage water and the treated water is purely used for drinking and domestic purposes which ultimately reduces the use of fresh water.

4. Mines has established Sewage Treatment Plant of capacity 80 KL/Day, 40 KL/Day & 50 KL/ Day for the treatment of domestic wastewater from colony as well from office building & canteen, the treated water is used up for green belt development and reused for flushing of toilets.

5. The mines taken steps for water conservation by implementing Roof Top Rainwater Harvesting projects at mines and nearby schools from which around 54485 cum/ year water is recharged to the ground water table.

Awards: Safety Health and Environment

Received Internation Safety Award from British Safety Council in Pass category for Unit-III CHD for the year 2025.

IMFA received 4.25 Star Energy Conservation Award-2024 from CII Eastern Region.

Unit-III received Odisha State Energy Conservation Award-2025 in the category of CPP/IPP.

SMC & MMC have been awarded "Kalinga Env. Excellence Award" in 5-star category for performance Yr-2024 at 10^th National Conclave on Environment Energy & Climate Change.

Sukinda & Mahagiri Mines (Chromite) emerged as the Winner in the "Best Safety Practices Award of the Year" category in the Mining & Minerals Excellence Awards 2025 in association with MGMI at 11^th Asian Mining Congress held on 30^th Oct 2025

Mahagiri Mines (Chromite) receives " Certificate of Appreciation" for the 11^th FICCI Awards for Excellence in Safety Systems.

MMC was honoured by the Honble Governor of Odisha, Dr Hari Babu Kambhampati, with the Pollution Control Appreciation Award 2025 in the Mines category at the 42^nd Foundation Day of the State Pollution Control Board (SPCB), Odisha

Mahagiri Mines (Chromite) got Best in Fresh Air Base (1^st prize) on the final day of Zonal Mines Rescue Competition 2025 held at MCL, Talcher. [16 Oct 2025]

Mahagiri Mines (Chromite) receives the FIMIs Hindustan Zinc Health & Safety Award 2024-25 for Best Occupational Health & Safety Performance in U/G Mines

Sukinda & Mahagiri Mines (Chromite) selected as a recipient of a British Safety Council International Safety Award -2026

Champions of Green Business Practices at the 4^th edition of ET Edge- Global Sustainability Alliance- Sustainable Organisations 2025

Sustainable Operations with Fly Ash Utilisation

At the Choudwar facility in Cuttack, IMFA operates three types of power plant boilers: 30MW, 50MW, and 120MW. The ash from the 50MW boiler, which isnt suitable for brickmaking, is used for land reclamation. Once the degraded land is filled with ash, its covered with soil and planted with greenery, turning barren areas into green zones.

The 30MW and 120MW CFBC boilers generate mostly fly ash of about 90%. The fly ash generated in CFBC boiler is suitable for brick manufacturing. This is used in Companys brick manufacturing units with a capacity of 100000 brick per day each and one Low Density Aggregate manufacturing unit having a production capacity of 60000 TPA.

In addition to this, IMFA supplies fly ash to external brick, cement, and ready-mix concrete companies, following all regulatory requirements. Transportation is done using tarpaulin-covered vehicles to ensure safety and environmental compliance.

We have achieved 100 % utilisation ash since beginning of power plant operation. Every month fly ash generation, utilisation and leftover stock is uploaded in companys website, CPCB website & CEA website.

Strategic Developments (FY 2025–26)

Acquisition of Kalinganagar Ferro Chrome Plant (KNR 2) – this development positioned the Company as the largest ferro chrome producer in India and amongst the foremost globally

Total capacity expected to exceed 0.5 million tonnes

Greenfield expansion (KNR 1) progressing toward commissioning in mid-2026

The proximity of new facilities to captive mines is expected to reduce logistics costs and improve operational efficiency

Energy Transition & Sustainability

135 MWp hybrid renewable PPA signed

Waste heat recovery and energy efficiency initiatives implemented

Reduction in emissions, water usage, and plastic waste reported These initiatives not only support environmental sustainability but also enhance long-term cost efficiency and competitiveness in global markets.

Future Outlook

The Company is well positioned for strong growth over the medium term, supported by capacity expansion, cost optimisation, and favourable industry dynamics. Your Company continues to maintain a strong financial position with a net long term debt-free balance sheet and robust cash reserves, enabling it to fund ongoing expansion and diversification initiatives.

The Companys medium-term growth is expected to be driven by the following key factors:

Capacity expansion through Kalinganagar projects (KNR 1 and KNR 2), significantly enhancing production scale

Strong backward integration with captive chrome ore and power

Rising domestic demand for stainless steel and ferro alloys

Continued focus on cost efficiency through operational efficiency improvement through automation and energy transition.

Improved capacity utilisation and scale benefits are expected to drive operating leverage and margin expansion.

The global ferro chrome industry remains subject to volatility and is driven by geopolitical developments, power costs, and supply disruptions. While South Africa has seen a sharp fall in output, ongoing efforts to offer lower tariffs to select producers could see a trend reversal. Structural challenges in key producing regions are creating opportunities for cost-competitive and integrated producers like IMFA to strengthen their global positioning.

IMFA remains focused on:

Capacity expansion through greenfield and acquisition-led growth

Strengthening domestic presence alongside export markets

Pivoting to hybrid renewable energy

Robust financial metrics and digital transformation

With the commissioning of Kalinganagar Ferro Chrome plant (KNR 1) in mid-2026 and completion of the strategic acquisition of KNR 2, the Company is well positioned to reinforce its leadership in the ferro chrome industry.

https://www.reuters.com/sustainability/boards-policy-regulation/south-africa-cuts-electricity-tariffs-struggling-ferrochrome-firms-2026-02-27

Risk Management

IMFA follows a structured framework to identify, assess, and mitigate key business risks. The Company leverages its integrated model to manage volatility and ensure operational resilience.

Key Risks and Mitigation

Risk Description	Mitigation Strategy	Impact outlook
Industry risk: Demand volatility driven by global stainless steel cycles and pricing fluctuations.	IMFAs fully integrated operations provides a competitive cost advantage as a ferro chrome producer to navigate the price volatility. Long term customer relation in the Far East Asia region that hasnt impacted the company from current middle east geopolitical disruptions.	Medium
	Ongoing business expansion and increased domestic market presence have further strengthened the Companys resilience against market volatility.
Raw Material Security risk: Availability & Dependency on sources.	Dependence on chrome ore quality and availability is effectively secured through captive mines in Odishas Sukinda and Mahagiri regions, ensuring a consistent and reliable ore supply.	Low
	Successful adoption of semi-coke imports from China and development of an alternative metcoke sourcing arrangement from Indonesia, supported by efficient shipment planning, have helped ensure uninterrupted operations.
Power & Energy Risk: High energy intensity of ferro chrome production	IMFA has developed its own thermal & renewable solar power generation capacity at its operational plants locations to support and secure its power requirements.	Medium
	The Company has secured long-term agreements with leading renewable energy developing companies for the supply of hybrid renewable power supporting its decarbonisation and renewable energy integration initiatives.
Regulatory risk: Non-compliance with regulatory requirements, changes in laws could negatively affect the Company	The Company has a focused corporate governance mechanism supported by robust internal control system, risk management process. audit firms Empanelled globally recognised as statutory & internal auditors to strengthen the regulatory compliances.	Medium
	A structured compliance tracking system is maintained to ensure adherence to regulatory requirements.
Operational Risk: Equipment efficiency and plant utilisation	IMFA continuously enhances operational efficiency and minimises disruptions through focused technology upgradation and process optimisation across critical operational areas.	Low
	Predictive and scheduled maintenance of critical equipment is regularly undertaken to improve reliability, performance, and asset life.
	Strong HSE policies and compliance monitoring systems help mitigate operational and safety risks.
Exchange rate risk: Export-oriented revenue exposure	Since the Company primarily focuses on export vis-a-vis low import, derivative strategies are undertaken for net exposure to mitigate the impact of foreign exchanges fluctuations on its cash flow and profitability.	Medium
Information technology & Security Risk	IMFAs IT & digital transformation infrastructure includes: Landscape modernisation initiatives including cloud adoption using Oracle Cloud Infrastructure and secure connectivity using Software Defined Wide Area Network (SDWAN).	Medium
	Oracle Fusion Enterprise system has been integrated with multiple systems like Oracle Enterprise Performance Management (EPM) for effective governance and controls.
	Implementation of Internal Financial Control (IFC) exception monitoring tool as a part of preaudit process.
	Employee hire to retire processes for lifecycle governance, Centralised Health, Safety & Environment (HSE) management for operational safety and security.

Internal Control System

The company continued its focus on strengthening the internal control environment through the implementation of Internal Financial control (IFC), Risk Control Matrix (RCM) framework. During the year, all the significant controls have been identified and deployed across all critical processes to ensure effective risk management, control monitoring and financial reporting reliability.

Company has engaged reputed global internal audit firms to carry out risk based internal audit as part of strengthening its internal control framework and governance processes.

The management and audit committee of the Board oversee and recommends corrective actions based on the audit findings to enhance operations.

Cautionary statement

The Management Discussion and Analysis section of the document may contain forward-looking statements regarding the Companys objectives and predictions, as defined by relevant laws and regulations. It is important to note that the actual results may differ significantly from these statements due to various risks and uncertainties. These risks and uncertainties may arise from economic and political conditions in India, fluctuations in interest rates and exchange rates, and the impact of new regulations and government policies on the Companys business and its ability to execute its strategies. The Company does not guarantee the accuracy of these forward-looking statements and does not commit to updating them.