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IMFA Plans Rs 20 Billion Expansion, Eyes Mining & Ethanol
OIL & GAS

IMFA Plans Rs 20 Billion Expansion, Eyes Mining & Ethanol

Indian Metals & Ferro Alloys Ltd (IMFA), one of India’s leading ferrochrome producers, has announced a Rs 20 billion expansion strategy, including greenfield capacity addition, enhanced chromite ore mining, and a new foray into ethanol production.
The investment will be largely funded through internal accruals, with some reliance on term loans. The company's debt-to-equity ratio will remain below 0.5 per cent, reaffirming its position as a long-term net debt-free firm, according to Managing Director Subhrakant Panda.
A Rs 9 billion greenfield expansion at IMFA’s Kalinganagar facility in Odisha forms the cornerstone of this capex plan. It will see two new furnaces with a combined annual capacity of 100,000 tonnes, alongside a waste heat recovery power plant. The first furnace is set for commissioning by June 2026, with the second following shortly after. Around Rs 1.5–2 billion has already been deployed.
In parallel, IMFA is investing over Rs 10 billion to scale up mining operations, targeting 900,000 tonnes per annum capacity by 2026 and a further ramp-up to 1.2 million tonnes in Phase II. FY25 production stood at 700,000 tonnes, with FY26 targeted at 800,000 tonnes from the Sukinda and Mahagiri mines.
The company is also entering ethanol production with a Rs 1.6 billion investment in a 120 KLD plant at its Therubali site, expected to be operational in Q1 FY26. Panda described it as a value-accretive B2B business that leverages existing infrastructure and complements IMFA’s core strengths.
Internationally, the company continues to explore chromite opportunities while avoiding high-cost markets.
In Q1 FY26, IMFA produced 65,929 tonnes of ferrochrome and sold 66,580 tonnes—90 to 95 per cent of which were exports. Revenues stood at Rs 6.42 billion with a profit after tax of Rs 920 million.
Ferrochrome prices rose Rs 10,000 per tonne over Q4 FY25 levels, with July showing a further 3 to 3.5 per cent increase. Panda noted that improving global trade sentiment and domestic expansion through Kalinganagar would help IMFA diversify revenue and reduce reliance on volatile international markets. 

Indian Metals & Ferro Alloys Ltd (IMFA), one of India’s leading ferrochrome producers, has announced a Rs 20 billion expansion strategy, including greenfield capacity addition, enhanced chromite ore mining, and a new foray into ethanol production.The investment will be largely funded through internal accruals, with some reliance on term loans. The company's debt-to-equity ratio will remain below 0.5 per cent, reaffirming its position as a long-term net debt-free firm, according to Managing Director Subhrakant Panda.A Rs 9 billion greenfield expansion at IMFA’s Kalinganagar facility in Odisha forms the cornerstone of this capex plan. It will see two new furnaces with a combined annual capacity of 100,000 tonnes, alongside a waste heat recovery power plant. The first furnace is set for commissioning by June 2026, with the second following shortly after. Around Rs 1.5–2 billion has already been deployed.In parallel, IMFA is investing over Rs 10 billion to scale up mining operations, targeting 900,000 tonnes per annum capacity by 2026 and a further ramp-up to 1.2 million tonnes in Phase II. FY25 production stood at 700,000 tonnes, with FY26 targeted at 800,000 tonnes from the Sukinda and Mahagiri mines.The company is also entering ethanol production with a Rs 1.6 billion investment in a 120 KLD plant at its Therubali site, expected to be operational in Q1 FY26. Panda described it as a value-accretive B2B business that leverages existing infrastructure and complements IMFA’s core strengths.Internationally, the company continues to explore chromite opportunities while avoiding high-cost markets.In Q1 FY26, IMFA produced 65,929 tonnes of ferrochrome and sold 66,580 tonnes—90 to 95 per cent of which were exports. Revenues stood at Rs 6.42 billion with a profit after tax of Rs 920 million.Ferrochrome prices rose Rs 10,000 per tonne over Q4 FY25 levels, with July showing a further 3 to 3.5 per cent increase. Panda noted that improving global trade sentiment and domestic expansion through Kalinganagar would help IMFA diversify revenue and reduce reliance on volatile international markets. 

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