“This acquisition gives us strategic synergy as the Kalinganagar unit is just 500 metres from our Greenfield project,” Panda said. The deal includes four furnaces with a combined capacity of 66 MVA and another 33 MVA furnace under construction. IMFA expects an additional ₹50 crore in capital expenditure to complete the commissioning.
Panda clarified that IMFA will meet all chrome ore requirements from its captive mines. “We are not looking at buying any ore from the market,” he said. The company plans to ramp up ore production from over 7 lakh tonne in the fiscal year 2024-25 (FY25) to about 8.5 lakh tonne in the fiscal year 2025-26 (FY26). With this, IMFA expects to scale up production to 4 lakh tonne in the fiscal year 2026-27 (FY27) and about 4.75 lakh tonne in the fiscal year 2027-28 (FY28).
On profitability, Panda said current EBITDA realisations are around ₹18,000-₹20,000 per tonne, with potential for improvement as output shifts closer to the mines. “Structurally, there will be some advantage when we produce more near the chrome ore sources,” he noted, adding that logistical benefits from the new location would support margins.
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Analysts expect the acquisition to significantly strengthen IMFA’s financials. Parthiv Jhonsa, Lead Analyst – Metal & Mining at Anand Rathi, said, “Achieving an EBITDA of over ₹20,000 per tonne is possible in this story. At a production level of around 4.75 lakh tonnes, this could translate to roughly ₹1,000–1,050 crore of EBITDA.”
The company, which has a current market capitalisation of ₹6,199.06 crore, has seen its shares gain more than 60% over the last year.
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