KALANA - Kalana

📊 NSE: KALANA 🏢 Steel - Medium / Small 📅 Last Updated: 12/14/2025 8:46

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single reportable segment: Iron & Steel Products (manufacturing of M.S. Billets/Ingots and Alloy Steel Billets/Ingots). Revenue from operations for FY 2024-25 was INR 55.19 Cr.

Geographic Revenue Split

100% of revenue is generated from operations in India, specifically from manufacturing facilities located in Sanand and Viramgam, Gujarat.

Profitability Margins

For FY 2024-25, the Net Profit Ratio was 2.19%. Profit Before Tax (PBT) was INR 1.73 Cr and Net Profit was INR 1.21 Cr. However, H1 FY26 saw a significant decline, with Net Profit dropping to INR 0.0085 Cr (INR 0.85 Lakhs).

EBITDA Margin

Core operating profitability (PBT + Finance Costs + Depreciation) for FY 2024-25 was approximately INR 5.69 Cr, representing an estimated EBITDA margin of 10.3% on total income of INR 56.10 Cr.

Capital Expenditure

The company raised INR 32.59 Cr through an IPO in September 2024. As of September 30, 2025, INR 21.11 Cr has been utilized for setting up rolling mills at Sanand (INR 2.00 Cr) and Viramgam (INR 10.51 Cr), with INR 11.48 Cr remaining unutilized.

Credit Rating & Borrowing

Not disclosed in available documents. The company maintains a very low Debt-to-Equity ratio of 0.06 and a high Debt Service Coverage Ratio of 1793.10 as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

Steel scrap, iron, and various alloys used in the manufacturing of M.S. Billets and Alloy Steel Billets.

Import Sources

Primarily sourced from domestic markets in Gujarat; specific international import sources are not disclosed.

Capacity Expansion

The company is expanding downstream by setting up rolling mills at Sanand (Survey No. 4/1) and Viramgam (Survey No. 452). Total IPO-funded capex for these projects is INR 28.98 Cr.

Raw Material Costs

Not explicitly disclosed as a percentage of revenue; however, the company maintains an inventory turnover of 12.98 days, indicating rapid processing of raw materials.

Manufacturing Efficiency

Inventory turnover of 12.98 days and trade receivable turnover of 13.16 indicate efficient working capital cycles and manufacturing throughput.

Logistics & Distribution

Not disclosed in available documents; however, proximity to the Sanand-Viramgam industrial highway provides a logistical advantage.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is driven by transitioning from a billet manufacturer to an integrated steel player through the establishment of new rolling mills in Sanand and Viramgam. This INR 32.59 Cr expansion aims to capture higher margins in finished steel products.

Products & Services

M.S. Billets/Ingots and Alloy Steel Billets/Ingots of various grades.

Brand Portfolio

Kalana Ispat.

New Products/Services

Rolling mill products are expected to be launched following the completion of the Sanand and Viramgam facilities, significantly expanding the product portfolio.

Market Expansion

Targeting the industrial and infrastructure sectors within Gujarat and neighboring states.

🌍 External Factors

Industry Trends

The Indian steel industry is benefiting from strong long-term fundamentals and large-scale government investments in infrastructure.

Competitive Landscape

Operates in the highly competitive SME steel sector, competing with both local players and larger integrated mills.

Competitive Moat

Localized manufacturing presence in the Sanand industrial hub provides a cost advantage in logistics and proximity to a large B2B customer base in Gujarat.

Macro Economic Sensitivity

Highly sensitive to Indian GDP growth and infrastructure investments, which drive demand for iron and steel products.

Consumer Behavior

Demand is driven by B2B industrial requirements and infrastructure project cycles.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with the Companies Act 2013, SEBI (LODR) Regulations 2015, and NSE Emerge listing requirements.

Taxation Policy Impact

The company is subject to standard Indian corporate tax rates; effective tax paid in FY 2024-25 was INR 0.74 Cr on PBT of INR 1.73 Cr (~42% including deferred tax adjustments).