ALFA Finder
| Market Cap | ₹1,296.84 CrGeneral Industrials |
|---|---|
| PE TTM | 31.67xSector PE: 51.6x |
| RSI | 58.25Neutral Zone |
| Promoter Holding | 72.43%No Pledge |
| Metric | Q2-27 | Q1-27 | Q2-26 |
|---|---|---|---|
| Revenue from Operations | 553 | 512 | 489 |
| Other Income | 2.3 | 2.7 | 2.0 |
| Total Income | 555 | 515 | 491 |
| Profit Before Tax | 34.0 | 23.1 | 16.7 |
| Net Profit | 25.7 | 17.1 | 12.7 |
| Operating Margin | 6.1% | 4.5% | 3.4% |
| Net Profit QoQ | +50.3% | ||
| Net Profit YoY | +102.4% | ||
| Adj. Profit QoQ | +55.4% | ||
| Adj. Profit YoY | +115.6% | ||
Key highlights
- Net profit surged 102.4% YoY to ₹25.7 crore, up from ₹12.7 crore in the same quarter last year
- Revenue from operations grew to ₹553 crore, representing a 13.1% increase over Q2 FY26
- Operating margins expanded to 6.1%, compared to 3.4% in the year-ago period and 4.5% in Q1 FY27
- Domestic revenue from India operations contributed ₹319.7 crore to the consolidated topline
- Sequentially, net profit saw a 50.3% jump from ₹17.1 crore reported in the preceding June quarter
Strong Domestic and International Revenue Mix
IFGL Refractories recorded consolidated revenue from operations of ₹553 crore in Q2 FY27, a steady climb from ₹489 crore in the same period last year. The India segment remained the primary revenue driver, accounting for ₹319.7 crore. Internationally, Europe and America were significant contributors, generating ₹117.2 crore and ₹108.8 crore respectively.
This geographical spread helped mitigate localized risks, though the company noted that European operations reported a segment result loss of ₹0.89 crore for the quarter. Management has previously guided for at least double-digit domestic revenue growth for the full fiscal year.
Margin Recovery and Cost Dynamics
Operating margins showed a marked improvement, rising to 6.1% from 3.4% year-on-year. This expansion came as the company managed its cost of raw materials and components, which stood at ₹259.1 crore for the quarter. Sequential profit growth was even more pronounced at 50.3%, as net profit rose from ₹17.1 crore in Q1 FY27 to ₹25.7 crore.
The company also benefited from a lower depreciation and amortisation charge compared to the previous year, as the carrying value of goodwill from an earlier merger became nil as of March 31, 2026.
Strategic Exits and Saudi Expansion
- Terminated Joint Venture Agreement with Marvels International Group and Marvels Refractories (Anshan) effective October 14, 2026
- Incorporated a new wholly-owned subsidiary, IFGL Monocon Saudi Company Ltd, on July 11, 2026
- Targeting financial breakeven or profitability for international subsidiary Monocon UK by Q4 FY27
- Charged off ₹1.53 crore from capital work-in-progress related to IFGL-Marvels Refractories Limited
- Maintained stable promoter holding at 72.43% with zero shares pledged
Status of Ongoing Tax Litigation
In the opinion of the management, outcome of aforesaid proceedings will not materially impact Company's financial position and result of operations.
Legal Contingencies and Financial Notes
The company continues to face legal uncertainties regarding tax obligations. A key matter involves a High Court appeal concerning the 'Explanation' to Section 10AA(1) of the Income Tax Act, involving a tax amount of ₹8.32 crore. Additionally, the company is contesting a disallowance of depreciation on goodwill arising from an earlier amalgamation, with a total tax exposure and interest considered as a contingent liability.
Despite these pending cases, the statutory auditors issued an unmodified conclusion on the financial results for the quarter.
| Date | Announcement | Amount |
|---|---|---|
| 08 Aug 2026 | Q1 FY27 consolidated net profitSource: scanx.trade | ₹17.06 Cr |
| 30 May 2026 | Q4 FY26 consolidated net profitSource: kotakneo.com | ₹14.28 Cr |
| 14 Feb 2026 | Q3 FY26 consolidated net lossSource: jmfinancialservices.in | ₹-3.08 Cr |
| 08 Nov 2025 | Q2 FY26 consolidated net profitSource: kotakneo.com | ₹12.69 Cr |
| 09 Aug 2025 | Q1 FY26 consolidated net profitSource: geojit.com | ₹10.81 Cr |
| 24 May 2025 | Q4 FY25 consolidated net profitSource: kotakneo.com | ₹8.43 Cr |
What to watch next
- Outcome of the appeal before the Division Bench of Hon'ble High Court at Calcutta regarding Section 10AA(1) tax obligations
- Financial breakeven milestone for international subsidiary Monocon UK by the end of Q4 FY27
- Execution of the domestic double-digit revenue growth target for the full FY27 period
“The Company, supported by legal opinion, continues to believe that the aforesaid deductions claimed are sustainable on merits and remain unaffected, and has considered the above tax exposure (and consequential interest thereon, if any), as contingent liabilities.”
| Share price | ₹179.92 |
|---|---|
| Market capitalisation | ₹1,296.84 Cr |
| Revenue (annual) | ₹1,894.25 Cr |
| Net profit (annual) | ₹34.70 Cr |
| Revenue (latest quarter) | ₹512.37 Cr+6.09% vs previous quarter |
| Net profit (latest quarter) | ₹17.06 Cr+19.47% vs previous quarter |
| P/E (TTM) | 31.67×Sector 51.6× |
| Promoter holding | 72.43%0.00% QoQ |
| FII holding | 0.02%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by IFGL Refractories Ltd announcing Unaudited Financial Results for the quarter and six months ended September 30, 2026. Market figures from a third-party data provider.
