Indian Metals & Ferro Alloys Acquires Tata Steel’s Odisha Ferro Alloys Plant
Company Approves ₹610-Crore Deal, Reports Q2 Results, and Declares Interim Dividend
Bhubaneswar : Indian Metals & Ferro Alloys (IMFA) on Tuesday announced that it will acquire Tata Steel’s ferro alloys plant located in Odisha, marking a major expansion move for the company’s core business. The decision was approved during the board meeting held on November 4, where the company also released its Q2 FY26 financial results and declared an interim dividend.
As per the board resolution, IMFA will enter into an Asset Transfer Agreement (ATA) with Tata Steel Limited for the acquisition of the plant’s assets and associated interests. The total acquisition cost is set at ₹610 crore, in addition to applicable GST and the value of net working capital to be taken over at the time of closure.
IMFA stated that the acquisition aligns with its long-term strategy to accelerate growth in the ferro alloys segment by expanding production capacity. The plant’s location offers strategic benefits due to its proximity to IMFA’s captive mines and its upcoming greenfield project at Kalinganagar. The company said these synergies will strengthen its ability to meet rising domestic demand and explore new market opportunities.
According to the filing, the transaction is expected to be completed within three to six months, subject to statutory approvals and other conditions outlined in the ATA.
In its quarterly results, IMFA reported a standalone net profit of ₹98.77 crore for Q2 FY26, marking a decline of 21.4% compared to ₹125.72 crore recorded in the same period last year. Despite the dip in profit, the company’s standalone revenue from operations saw a year-on-year rise of 3.86%, reaching ₹718.65 crore.
The ferro alloys segment, the company’s primary revenue driver, posted a 4% YoY increase with earnings of ₹718.07 crore. However, segment EBIT declined nearly 15% YoY to ₹146.55 crore.
Revenue in the Power segment improved to ₹156.63 crore, though it reported an EBIT loss of ₹1.27 crore. The Mining segment experienced revenue growth to ₹106.37 crore but also reported an EBIT loss of ₹1.10 crore.
IMFA’s board also approved an interim dividend of ₹5 per equity share (face value ₹10) for the financial year ending March 31, 2026. The record date for determining eligible shareholders is November 11, 2025, and the dividend will be paid on or before December 3, 2025.
As of 2:45 PM on Tuesday, IMFA shares were trading 2.56% higher at ₹1,239.40 on the BSE following the announcements.
The acquisition of Tata Steel’s ferro alloys plant is expected to significantly boost IMFA’s production capabilities and strengthen its positioning within India’s growing metals and mining sector.
