Public sector company KIOCL reported a net profit of ₹53 crore in Q4 FY26, compared to a net loss of ₹36 crore in Q4 FY25. However, revenue from operations declined 11.6 per cent year-on-year (y-o-y) to ₹218 crore.
Revenue generation from its pellet plant fell sharply by 85 per cent y-o-y to ₹22 crore, from ₹150 crore in the corresponding quarter last year. Revenue from the pig iron plant stood at ₹0.45 crore after the segment failed to generate revenue in Q4 FY25 due to the shutdown of the Kudremukh plant. The downturn in revenue across both segments could be attributed to difficulties in obtaining raw materials, lower pellet prices in global markets, and changing export demand.
The company has continued to struggle operationally, reporting operating losses over several quarters. It also remains vulnerable to headwinds such as a surge in raw material costs and fluctuations in global pellet prices.
Recently, Mangaluru MLA Y Bharath Shetty proposed merging the company with NMDC to help increase its revenue. Other industry leaders have also suggested this, along with diversification into other business lines and securing captive mines.