Kirloskar Ferrous Secures ₹358 Crore ONGC Contract for Tubing and Accessories Supply; Shares Rise 2.19%

Pune, October 23, 2025: As of 12:15 PM on Thursday, the share price of Kirloskar Ferrous Industries Ltd (BSE: 500245) was up 2.19%, after receiving a ₹358 crore (including 12% Goods and Services Tax, which is subject to subsequent government notification) order from Oil and Natural Gas Corporation Ltd (ONGC) for customary EUE tubing, pup joints and crossovers for a period of one year (October 21, 2025 to October 20, 2026).

Kirloskar Ferrous Industries Ltd, a group company of Kirloskar Group, is a major producer of ductile iron castings, precision engineering, and pig iron. Based in Pune, it is a BSE-listed stock under the scrip code 500245. It supplies major industrial, automotive, and engineering houses across India.

Contract Details

Kirloskar Ferrous Industries Ltd has received an order worth ₹358 crore from Oil and Natural Gas Corporation Ltd (ONGC), inclusive of 12% Goods and Services Tax (GST), which is subject to future government notifications. The company has reported no related party transactions.

Under this agreement, Kirloskar Ferrous will provide customary EUE tubing, pup joints, and crossovers over the period of October 21, 2025, through October 20, 2026. This type of transaction is a typical domestic order for the company.

Strategic Significance

This order strengthens Kirloskar Ferrous’ industrial orderbook, highlighting the company’s growing presence in India’s power supply chain. The one-year engagement with ONGC ensures stable order visibility for FY26 and supports the company’s expansion into high-precision engineering components.

The supply of critical tubing and accessories supports drilling and exploration of local oil fields, a segment that has received more attention from the government as a drive for more indigenous energy production gathers pace.

Management Outlook

The administration sees this order as a healthy pipeline opportunity that strengthens its operating throughput in its metal and components business segment. Stable margins will persist for the company, driven by steady volumes from core industrial customers such as ONGC.

Share Price Update

At 12:15 PM IST, Kirloskar Ferrous Industries Ltd shares were trading at ₹527.90, up 2.19%. The stock opened at ₹529.90, hitting a high of ₹546.60 and a low of ₹520.00 during the day. With a market capitalisation of ₹8,680 crore, the company has a price-to-earnings (P/E) ratio of 27.27. Its dividend yield stands at 1.04%, with a quarterly dividend of ₹1.37 per share. Over the past 52 weeks, the stock has traded between ₹423.00 and ₹699.75.

REF:https://www.bseindia.com/xml-data/corpfiling/AttachLive/9fccf84d-885e-426c-b47e-74d33f202592.pdf

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