INDIAN METALS & FERRO ALLOYS LIMITED (NSE: IMFA) Q2 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
Subhrakant Panda — MD and CEO
Saunak Gupta — Chief Financial Officer
Analysts:
Abhishek Savant — Analyst
Aashav Patel — Analyst
Parthiv Jhonsa — Analyst
Harsh Vasa — Analyst
Kaushal Kedia — Analyst
Madhur Chaturvedi — Analyst
Joe Shah — Analyst
Sanket Kapoor — Analyst
Manan Vandur — Analyst
A.M. Lodha — Analyst
Rita Ghose — Analyst
Vinit Thakur — Analyst
Akshita Thakur — Analyst
Pritesh Chheda — Analyst
Pragyam Laddha — Analyst
Aditya — Analyst
Presentation:
operator
Sa. Sa. Sa. Sa. It. Sa. Sam. Ladies and gentlemen, good day and welcome to the Indian Metals and Ferro Alloys Limited Q3 FY26 earnings call hosted by Veritas Reputation PR Private Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions once the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Abhishek Sawant from Veritas Reputation. Thank you.
And over to you sir.
Abhishek Savant — Analyst
Thank you, Alex. Good afternoon once again to everyone. On behalf of Indian Metals and Ferro Alloys Ltd. I welcome you all to the Q3FY26 earnings conference call. We appreciate your time and interest in joining us today to discuss the company’s performance for the quarter ended December 31, 2025. Following the opening remarks by our management, we will open the floor for the Q and A session. Kindly keep your questions concise and relevant to allow broader participation. Infa India’s leading fully integrated producer of ferroalloys has demonstrated a significant improvement and resilience in Quarter 3 FY26 despite the ongoing market challenges.
This performance underscores the company’s focus on operational excellence, disciplined execution and long term value creation. As you all know, the company has signed definite agreements to acquire Tata Steel Limited ferrochrome plant at Kalinka Nagar in Odisha adding 99 MVA of furnace capacity for a base consideration of 610 crores. This acquisition will make India India’s largest ferrochrome manufacturer and the sixth largest globally with a total capacity exceeding 0.5 million tonnes. The financial results are available on our website and have been filed with the stock exchanges. For your reference. Before we begin, I would like to remind you that some of the statements made today in our discussion will be forward looking in nature.
These are based on the company’s current expectations and are subject to various risks and uncertainties that could cause actual outcomes to differ materially. Joining us on the call today are Mr. Shubrakhan Panda, Managing Director Mr. Shauna Gupta, Chief Financial Officer Mr. Binay Agarwala, Head of the Power Business Unit Mr. Sandeep Narade, Head Mines Business Unit and Mr. Suresh Babu, Head Ferro Alloys Business Unit. With that I would like to hand over the call to Mr. Shubhrakant Panda, our Managing Director for the update on the overall performance. Over to you sir.
Subhrakant Panda — MD and CEO
Thank you, Abhishek. And at the outset, I would like to extend a warm welcome to all of you who have taken time out to join the this call and to talk about INFA’s Q3 results. So let me start out with an opening statement and then of course we will move on to the Q and A section. First, a word about the performance. I’m quite pleased to report to you about the robust set of numbers that we have reported for the third quarter of FY26 where our EBITDA and PAT numbers have gone up as we had indicated, on account of the improvement in realizations in ferrochrome pricing.
Of course we have had a continued focus on productivity, on making sure that output is on track, focus on efficiency, that is Our various consumption norms and by and large costing has been stable with a slight increase in the power generation cost on account of coal prices. But other than that, during the quarter under review price the costing has remained stable and taking the improvement in realization into account, we are reporting these numbers. I will just quickly go through the production and the sales numbers for Q3 FY26. Ferrochrome production during the quarter has been 67,196 tonnes.
Power generation stands at 256.17 million units and chrome or raising during the quarter is 265,468 tonnes. And if you look at sales of ferrochrome during the quarter that stood at 64,802 tonnes. Ongoing expansion and Acquisition Plans as far as the greenfield project at Kalinganagar is concerned, or KNR1 as we refer to it, I’m glad to report that the project is on track and we expect to commission the first furnace in June 2026 and the second furnace shortly thereafter. So it’s at a very advanced stage and on track. Secondly, as far as the acquisition of the strategic acquisition is concerned, which we Refer to as knr2, we are in the process of obtaining various statutory and other government approvals and we expect to close out the deal in the ongoing fourth quarter of FY26, more specifically I think within the month of February itself.
Now, in as much as output from the acquisition is concerned, anything that we get in fourth quarter is going to be a little bit of a bonus, but we really expect volumes to come in in the true sense of the word in first quarter of FY27 and this is of course something which is going to be immediately value accretive. Finally, in as much as the ethanol project is concerned, that’s again at a very advanced stage and we expect to commission it in March 2026, that is next month. So there is a slight delay because we were initially targeting the second half of February, but there’s been a slight spillover on that and we are expecting to commission it in March.
And this is something after the initial sort of stabilization activity, we expect expect it to, you know, start contributing to the top line in, you know, starting April, so in FY27. So that is where, that is where we stand and in, you know, I would now like to move on to the Q and A section and, and we will do our best to answer your questions and provide further clarity and information about the company’s operations. Thank you.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press time one on their Touchstone telephone. If you wish to remove yourself from the question queue, you may press time. Two participants are requested to use handsets while asking a question. Also, please restrict yourselves to two questions. If you have any more questions, kindly rejoin the queue. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Ashaf Patel from Molecule Ventures, pms. Please go ahead.
Aashav Patel
Thank you for the opportunity. Congratulations to the entire team for a great set of numbers and special thanks to Mr. Panda for taking out the time and joining the con call. So my first question is sir, that globally realizations are very robust right now and they have increased from the recent lows. So do you expect Q4 we will be able to see most of the benefit of increased realization. And the second question, follow up on that, is that the demand buoyancy, how you are seeing at this point in time.
Subhrakant Panda
Thank you Ashok. Pleasure to be on the call to interact with you and other investors and analysts who have taken the time out. First, a word about realizations. As we had indicated in the last investor call, we were expecting a noticeable jump in realizations from Q2 to Q3. That has indeed translated through and our EBITDA numbers are a little above or EBITDA margins are a little above 23% in Q3. Now as far as Q4 is concerned, there was a slight dip in prices, but now they have again moved back up. So domestic prices are roughly in the 1-18-1:20,000 a tonne mark and Chinese prices are around 96 to 97 cents.
Now we expect these prices to continue during the ongoing quarter, barring any exceptional situations which I don’t foresee at this point in time to be very clear. And if so, we will certainly benefit from these realizations. Secondly, as far as demand is concerned, we have always been in a slightly different position to many of our peers where we believe in long term contracts and offtake arrangements where pricing is decided every month or every quarter depending upon the particular customer. What that basically means is that at least offtake is assured and we don’t really have spot sales, if I can put it in, you know, mention it in that manner.
But demand in general is buoyed by the fact that stainless steel has grown even though it is in low single digits, around 2 to 3%. But stainless steel output has increased and you know, correspondingly there has been, you know, sort of a constraint in ferrochrome production with South Africa bringing down its, you know, its output sharply. Producers in India and non integrated producers in India have also been been affected. So basically we do not see any issue in terms of placing our current capacity as well as the expanded capacity which is coming online. And as I said, in the ongoing quarter we see these realizations holding.
And as of now, the expectations is that it will translate through into the first quarter of FY27 as well, because that is where South Africa in particular has their winter tariffs and all that. And of course I know that there is a lot of chatter around the special electricity tariffs which have been announced. So I’ll broadly expand your question, ashrab, and answer that because that is something which is definitely something that everybody is closely tracking. So as you may have read, the tariffs in South Africa were broadly around 13 and a half cents or thereabouts.
And what Eskom, which is the utility, has announced is approval from Narsa, which is the regulator, to bring that down to 87 cents for Glencore and Sanancour and which is valid for one year. But there are, you know, I mean, I think that is predicated on a couple of things. One, that as we understand that the tariff of $0.87 covers broadly Eskom’s variable cost and some degree of legacy costs, but not their full overheads. So that in itself to my mind casts some sort of uncertainty about how practicable this is. And secondly, that NARSA has also said that the difference between the tariff to be paid by these two customers and what is actually required by Eskom is to be borne by the government.
The question here is that how practical is it for, for only two companies to get a special tariff? But again, that’s, you know, that’s not in my scope of competence or control. But what we, you know, what we would, what we Certainly are waiting to see is, you know, how sustainable is this tariff. And secondly, we believe that even if these companies start up production, it should lead to some, you know, when, when ferrochrome production in South Africa had come down sharply, the ore exports to China moved up. You know, I wouldn’t say correspondingly but certainly as a, as a consequence.
So now with ferrochrome, if it were to pick up in South Africa, logically it should lead to some, you know, lowering of chrome ore exports to China and therefore lower ferrochrome production in China. So at some level we think it may turn out to be a zero sum game. But more than anything else I wanted to make the point that I’m more concerned about what is in our control and the fact that we have a fully integrated business model and we are efficient, we are competitive, a lot of focus on productivity and efficiency. I would focus on, on our capabilities rather than get distracted by the noise around what is happening elsewhere.
Aashav Patel
Sure, got it. Thank you for a very detailed answer. So sir, my follow up is that there is this structural shift which is happening globally in the ferrochrome industry. Now the cost curve for most of the top producing countries is moving significantly upwards. So given your multi decade experience in the industry, how significant do you see this and how beneficial it is for integrated player like ourselves?
Saunak Gupta
So you are absolutely right that there is a cost. You know, there are cost pressures on non integrated producers because you know, chrome or prices are moving up. If you look at UG2 prices in South Africa, they’re around $300 a tonne. I haven’t kept track of domestic prices in India but they are, they continue to be elevated. So as a result there are significant cost pressures. And from that point of view, the fact that we have a fully integrated business model is what adds to our resilience and competitiveness. Now one has to see how this plays out.
But one of the reasons ferrochrome prices have moved up is as I said, there is growth in stainless steel. Not tear away growth but there is growth in stainless steel. But more importantly there are cost pressures. So if demand improves further on account of stimulus measures in China, on account of some of the geopolitical issues, you know, sort of moving towards revolution, etc. If demand were to pick up a little bit more, you know, I definitely see ferrochrome prices moving up. And you know, equally a lot of non integrated producers in India have cut back production.
There have been cutbacks in production other than in South Africa. So we do see a sort of structural, sort of gap between demand and supply persisting over the next one to two years, which should be supportive of prices. But then again, I would say this with a caution that this is a general trend that we envisage, but we don’t really look at anything beyond the ongoing in the next quarter because experience has taught us not to get ahead of ourselves. But I don’t see any curveball coming out from the left field which significantly alters the market dynamics at this point in time.
Aashav Patel
Got it, sir. And sir, impact of Chinese NT involution is already visible on ground. Sorry, Chinese what? Chinese anti involution. The Chinese supply cuts the inefficient capacities which they plan to cut on.
Subhrakant Panda
That. No, I mean. Well, you know, whatever they have. I mean, ferrochrome production in China has picked up significantly in line with, with South Africa cutting back. And so I mean, if they’re taking some smaller inefficient furnaces out, they are adding capacity both in ferrochrome and the same exercise is happening in stainless steel. But you know, China is a consumer, as you know, they have a significant export duty on ferrochrome. So we don’t, you know, we don’t see increase in Chinese ferrochrome production being a threat in any manner to ferrochrome prices globally.
Aashav Patel
That’s all from my side, sir. All the best. I’ll come back in the queue. Thank you.
operator
Thank you. The next question comes from the line of Partiph Josna from Anand Rati Group. Please go ahead.
Parthiv Jhonsa
Yeah, hi. Thank you for the opportunity and congratulations on a great set of numbers. So just quickly wanted to again circle back to the entire South Africa tariff scenario. Considering, you know, if things work out in their favor, do you expect all the smelters from Glencoe and Samarco to come on stream or it is only for a certain smelters which would be there and a couple of meters which are actually not operational since some time now they will not come back on stream because if that happens, the supply crunch still persists, if I’m not mistaken.
Is the understanding and thinking correct, sir?
Subhrakant Panda
Parthik, thank you for your kind words on NIMPA’s numbers for the quarter. As far as South Africa is concerned, again to retreat tariffs. The tariff announced for two companies has come down from 13 and a half cents South African cents to 8.7 or 87 cents from 135 cents to 87 cents. And as I mentioned, what we read is that it covers Eskom’s variable cost and part of some legacy costs. So I think the concerns which have been, which have been expressed about how sustainable this is is on account of the fact that it is for two companies and certainly it will lead to demands from others expectations whether it is manganese, steel, aluminum, et cetera.
And the second that I mean obviously covering only variable costs may not be sustainable. And that is where NARSA has very clearly said that has to reimburse and the burden shouldn’t go on to the common to the average consumer. So. And the ferrochrome producers on their side are saying that 87 is not good enough and it needs to be 62. So you know, this is a situation which is in flux. It’s not something into which, I mean, you know, we are seeing it from outside and reading about it, but I don’t have any particular insight, but there is a lot of skepticism which has been expressed about how feasible is this and how sustainable is it going to be.
One and in terms of revival of ferrochrome production, I understand, you know, some of the smaller capacity, etcetera, Has I believe permanently shut down. Now if you look at the larger producers, I mean, I think their capacity can be divided into the more efficient ones like Glencore’s lion and the rest which are less efficient. So as of now, we don’t have any concrete information. Although I believe that Glencore might be restarting its line facilities in February or March. But then again, as I said, my expectation is that you can’t have ore exports to China at exactly the same levels even as ferrochrome prices picks up.
Because I mean, first of all there is the availability issue. And second, if there has been a distinct increase in Chinese silochrome production corresponding or consequential to a reduction in South African output. Now if Chinese output doesn’t go out, you know, doesn’t come down and South Africa adds its capacity, then logically ferrochrome prices will fall and forget about what it does to us. I mean that in itself is going to defeat the whole purpose of giving special tariffs to South African ferrochrome producers. So you know, you can’t look at one part of the equation and say that tariffs have been brought down and therefore, you know, everything is hunty dory.
I think this is a complex equation and there are multiple, multiple factors at play and you know, you plug one leak somewhere and it will show up somewhere else. So that’s, you know, that’s our take on the situation.
Parthiv Jhonsa
Thank you so much sir for such an elaborate answer, especially considering, you know, the entire global macros interlinked to the entire fact. So my second question is pertaining to your EBITDA per ton. I just wanted to, you know, get a sense that, you know, EBITDA per ton has actually surpassed its 25,000 mark, you know, especially after Q2 of 25. So after multiple quarters you have actually surpassed that mark. Just wanted to understand what has changed between Q2 to Q3, that there is substantial jump in the profitability and also how do you plan your Q4, you know, considering you have given the guidance at for 27 and 28.
Just wanted to get a sense of, you know, over raising guidance or whatever you can share for Q4 and also for the next few years.
Subhrakant Panda
So Bhatir, short answer to what has changed between Q2 and Q3 of FY26 and silochrome prices? Realizations have moved up by, you know, roughly by about five and a half to about roughly, I would say six thousand rupees a ton. So that is what translates through into the improved EBITDA margins. So in a single word it is prices. And as I said in ongoing Q4 we did see that the 11718 come down briefly to about 16 to 1 8,000. But again leading up to the Chinese New Year holidays where there tends to be a little bit of stocking up by by Chinese buyers and consequent to, you know, over constraints and elevated prices, domestic prices have moved back up to the 1 lakh 18 to 1 20,000 rupees a tonne mark.
So we do expect the current, I mean what the average pricing that we saw in Q3 to more or less translate through into Q4 possibly with a slight upward bias. So we are reasonably confident about, you know, similar EBITDA margins in the fourth quarter as well.
Parthiv Jhonsa
Perfect. And so about the orefing, I think you have done like 2 lakh 65,000 tonnes plus of an ore raising. So similar pace of continuing even in Q4.
Subhrakant Panda
So you know, Q3 and Q4 are the other good quarters for oreasing because it is post monsoons and you know where and even from a weather perspective you’re not in the peak summer etc. So Q3, Q4 are the peak ore raising is the peak ore raising time. Just a word on the general trajectory. So as you know in FY25 total ore raising was approximately 725,000 tonnes. And as far as FY26 is concerned, we are looking at 8 50,000 tonnes broadly speaking. And as we have said, every year for the next one or two years is going to be a Record because we are scaling up or raising to cater to increased demand.
And the excess stock that we have been carrying will start getting now consumed because of the additional capacity. And the board at its meeting yesterday also approved the annual budget for FY27. And that’s going to be a milestone year for us because we are targeting 1 million tonnes of ore raising, that is 10 lakh tonnes in FY27. So just to reiterate here, the obvious point, that our existing capacity, smelting capacity plus expansion plus acquisition is going to be catered to entirely from captive mines and we are not going to be buying any ore.
Parthiv Jhonsa
Okay, perfect. And just a very quick, very generic question on the greenfield facility, how better is the technology economic parameters compared to your other existing facilities? You know, if you can just quantify in a percentage terms.
Subhrakant Panda
So you know, when you talk about techno economic, the fact that it is, you know, I mean, we’re putting it up now. So whatever, whatever learnings we have from our previous furnaces and you know, whatever shortcomings that we see, we try to address that in the, in the design situation. We have moved to a closed furnace design which added to the capex a little bit, but obviously that enables us to get better norms and roughly about eight, eight and a half megawatts of power generation. But other question, which you and I in particular had this conversation during the CNBC panel post, the announcement of the acquisition is that Kalila Nagar is, from a logistics point of view, very friendly given that we are close to captive mines, close to stainless steel producers who are our consumers and close to.
So once we get over the initial stabilization phase and do keep in mind that when these furnaces, the new furnaces come online, we will have an initial period of, of stabilization and you know, the heating period means you are consuming energy without getting ferrochrome production in turn. But leaving that aside, when you’re in a steady state operation, we expect our weighted average average EBITDA cost for the expanded output to reduce by about 1500-2000 rupees a tonne on account of logistics, costs and all of that. So that is something that will obviously add to our margins.
Parthiv Jhonsa
So that basically means the current run rate of about 24. Yeah, sure, I’ll join in the queue. Join in the queue, no worries.
Subhrakant Panda
So I’ll just, I’ll quickly answer that question. I mean, obviously the variable, the most important variable here is what, you know, where ferrochrome prices, you know, how they pan out. We do expect, as I said, while we are not, we don’t do really projections of ferrochrome prices. We can only give a little bit of visibility into the ongoing quarter and the next quarter. But the dynamics are such, the market, market dynamics are such that you know there will be some volatility. It is not, it’s not going to be a steady line or only with the upward bias.
But you know our key commitment is that we have the wherewithal to be more competitive and more resilient than most. So that is one in terms of cost structure, I mean independent of this I believe we have seen the lowest prices in the recent past in metallurgical coke prices. And that’s something which is tending upwards a little bit. But then again all of this can put pressure on bringing cost pressures on the entire value chain and should translate into perhaps better hurricane prices because while we are fairly comfortable with our EBITDA margins, that number, you know doesn’t apply to that position, doesn’t apply to all, all producers.
operator
Thank you. The next question comes from the line of Harsh Vasa from SBI Securities. Please go ahead.
Harsh Vasa
Yeah, thank you for, for, for the opportunity and congratulations on a robust set of results. And to the entire, just. So my question was that what would be the capex for FY 26, 27, 28 if you could break up and the capex would be what for which part? Like the amount for example for the. Mines and for the greenfield and like. That, like the total. Sure. So I will, I will ask Shaunak Gupta, our CFO to respond to this question please. Yeah, hi.
Saunak Gupta
Actually on the capex side as you know in the K1 we have almost 60% has been spent out this year so about 40% will be remaining which will be around 300 odd crores will be the next year. And the other one would be your residual value of the ethanol project which mostly will be spending this year but about 50 odd crores will remain for next year. And for the mines we have around 200 crores of capital outlay or spend cash outflow next year. So approximately next year we are expecting somewhere around 600 plus a little bit more on the general capex that will be spending out and the following year it is primarily the expansion of the underground projects where the majority will come in in the following year.
So this is the overall outlay that we have somewhat planned for next two years and it is like 600 next year and another 400 to 500 the year following. So thousand crore will be for the next two years but majority of the spend is happening in this year. Itself.
Harsh Vasa
Okay, so like, like, so what was the like CAPEX which you have already incurred in this year.
Saunak Gupta
So we have already incurred overall 370 odd crores this year. Okay. And, and for the next three months any amount, tentative amount. So in next three months we have a plan of approximately 270 to 280 crores of spent. Okay, thank you sir, all the best. So, so thank you. I’ll just take this opportunity to, to just provide a little bit more insight just to remind everyone that as far as our acquisition is concerned which is at a base price of 610 crores plus GST plus net working capital that’s going to be funded entirely out of internal accruals. And in as much as our KNR1 project is concerned we do have a loan sanction of about I think 470 odd crores and the drawdown of long term debt as of now is a little short of 80 crores.
So we have, we have hardly drawn down, we have focused more on internal accruals to meet, to meet our CAPEX requirements thus far and we expect the strength of the balance sheet to continue even after the payout, etc. We will still have a comfortable cash position and of course with expanded capacity we will have expand, I mean enhanced working capital available. So the focus is still to be, you know, still to have a conservative bent of mind in terms of taking on total, taking on debt. Okay sir, so thank you so much for the elaborate answer.
Thank you and all the best. Thank you.
operator
Our next question comes from the line of Kaushal Kedia from Walford pms. Please go ahead.
Kaushal Kedia
Yeah, so thank you for taking my question. Sir, I have a, I have a generic question on the entire space. We heard the Vice President of the United States mention critical minerals and they had a conference where they invited their partners. So what do you think? Chromium is a critical mineral for the US and they are setting up a price flow for it. So I just wanted your thoughts on this. What is happening and what is this price flow that you read it.
Subhrakant Panda
So you know, as far as critical minerals are concerned, as all of you are obviously aware that China has an overwhelming position in terms of not just reserves that they are able to extract but also the processing thereof. And that is where I think the rest of the world is scrambling to get to some degree of self sufficiency. So if I look at it from India’s perspective, lots of initiatives announced by the central government which is the PLI Scheme for Rare Earth Permanent Magnets which is Outlays for recovering critical minerals from tailings. And as far as the current budget which was announced a few days ago is concerned, there is, you know, there was a reference to the critical minerals corridor comprising Odisha, Andhra and a few other states.
So clearly given the importance of critical minerals and rare earth elements, the fact that they use it from everything from, from household white goods to, to fighter aircraft and the sort, it’s something that, that all countries are scrambling. The US you know has announced this large fund that they’re creating to, to stock up on critical minerals. Secondly, through the other initiatives they’re looking at coordinated action. So that’s where I think critical minerals stand. And again I’ll take the opportunity to expand the question and respond. It’s an area which we have identified as a potential area of interest for us because there is a degree of similarity because it involves mining and processing of minerals.
So that’s something that we are closely evaluating. And when we find the right opportunity which is value attractive we will, we will move forward on it.
Kaushal Kedia
Thank you. Thank you for the answer sir. And I have a few accounting questions. What is the cash and balance sheet as of today? Would you respond to that please? So the total amount which you are having including the investments we have in mutual funds and bonds is close to 1100 crores we have in our balance sheet.
Harsh Vasa
So I understand the payment. Sure sir, yeah, the payment, yes. The 610 is the base one and with GST we expect somewhere around 700 crores will be the outflow. So we’ll still have 400 crores in our balance sheet plus whatever will be the future cash accruals from the business.
Saunak Gupta
So just to draw sense, so by the end of March we’ll have about 400 crores post the Tata payment and about 300 crores of capex that you mentioned earlier that you incur this year.
Saunak Gupta
Yes, yes. So we have capex but we also have unutilized. Whatever MD said is that we have about 470 crores of sanctioned term loan limit which we have utilized only about 80 crores. So overall around 390 crores we have unutilized which we will see how much we will utilize on that. And obviously the cash position that we have of around 400 crores. So just the back calculation, if the EBITDA margin continues to be the same for quarter four, also taking that into consideration we should be somewhere around 300 crores of cash in March hopefully.
Harsh Vasa
Yes, yes, you are right, you are right. It will be 300 plus crores of cash if the EBITDA continues in the. Same range and then if one.
Saunak Gupta
I would request you to rejoin the queue. Thank you. The next question. Let him finish this question. What, what is your final question, Koshal? Just give me one moment sir. He’s fallen back into the queue. We’ll move on to the next participant. Madur Chaturvedi from ma.
Saunak Gupta
I just wanted to just close on what Kal said. So the position is that whatever we were saying on 300 crores of capex payment that we’ll be doing we will be having in our hand 300 plus crores of cash position accrual after payment of whatever is the acquisition as well as unutilized term loan of 390 odd crores. So almost 700 crores will be there in our hand. So we will just see how we will be actually paying out those cash outlays. So we have sufficient funds in hand.
Harsh Vasa
Right?
Saunak Gupta
Yeah.
operator
Thank you sir. We’ll move to the next participant. That is Madhur Chaturvedi from MAIQ Investment Advisors llp. Please go ahead.
Madhur Chaturvedi
Hi, Suan sir, Sonak sir. Whole team, good afternoon. Thank you for taking the time and congratulations on a fantastic set of numbers. Thank you.
Subhrakant Panda
You guys have taken a lot of time and answered I think most people’s most questions. Just one sort of bookkeeping question from I think after a while just our ferrochrome production in tons was slightly more than our ferrochrome sales. Just was wondering is this a sort of sort of strategic thing for are we seeing a bigger order next quarter? Is this maybe an impact of the slight price increase we’ve seen? I just was wondering if there was any reason to that.
Saunak Gupta
So you know, broadly I would say Madhur that in terms of quarterly production we look at 65, 66,000 tonnes, maybe up a little bit, down a little bit there and thereabouts and similar sales. So I think in the recent, in the past two, three quarters, I think in Q2 there was a lot of pressure from customers for supplies which is where we ate into inventory a little bit and sold about, if I Remember correctly in Q2 the sales volume was close to 69,000 tonnes which was a bit of an outlier. But we have sort of come back to that 65, 66,000 ton sales and similar sort of production numbers.
We expect in terms of production for the ongoing FY26 we, you know, we expect to close at about 2,65,000 tonnes and sales broadly similar numbers. The real jump of course will come from Q1, FY27 onwards when additional volumes come into play. But short answer, not so much trying to gain the market but I mean obviously prices increase when there is demand. So it’s not just a question of trying to encash on higher prices but also making sure that our long term customers with whom we have relationships we try to meet their requirements in terms of additional tonnages as and when it comes up.
Madhur Chaturvedi
Absolutely. That makes perfect sense. Thanks a lot sir and best of luck for this quarter in the upcoming year.
Saunak Gupta
Thank you.
operator
Thank you. The next question comes from the line of Joe Shah from Seven Seas. Please go ahead.
Joe Shah
Congratulations. We are going very well on our growth plan as far as the KNR1 and KNR2 are concerned. So I think by June 26th will be quite well on this plant. Now second thing. Recently government of India has announced that coking coal is notified as a critical mineral. And my understanding is that in India we do not have low phosphorous coking coal available. And mostly we have inferior coking coal. So what is your take on this coking coal? Thank you.
Subhrakant Panda
So you’re absolutely right. As far as coking coal is concerned, India doesn’t have very large reserves of. I mean we have very large reserves of coal thermal coal but not large reserves at all of coking coal. And moreover, what is there is a grade that we cannot really use in the ferrochrome industry. Which is why especially given the grade of ferrochrome that we produce we are entirely dependent upon imported metallurgical coke from Colombia and from other sources. So yes, I mean the declaration of coking coal as a strategic mineral has definite implications for the steel industry.
This is a large import win for them. Development of coking coal mines domestically will ease some of that pressure. But realistically speaking no significant impact for the ferrochrome industry.
Joe Shah
Okay, now one more question about Chukminda chromite mines signed up by Tata Steel. Looking at the past happening of getting a copper mine in Madhya Pradesh, we also get excited. That impasse would also get this kind of really mine whenever it comes on table. So what is your idea?
Subhrakant Panda
So they’ve announced that they would surrender. It is the. The process is yet to be completed. So it is only when it is. You know, it’s only when it comes up for auction that we can have a strategy. But my answer would remain the same that as with any other opportunity we will evaluate anything which is. Which is interesting. We will certainly evaluate and we will move ahead if we see it as being value accretive. Okay, thank you.
operator
Thank you. The Next question comes from the line of Sanket Kapoor from Kapoor company. Please go ahead.
Sanket Kapoor
Yes you are. Yes. So firstly pertaining to our capex and the underground mining part. So if you could just outline to us what’s the roadmap, how much have we spent and pertaining to this underground mining what amount of the capex goes towards the equipment and whether we will be opting for the MBO route for the, for the ore that will be taken out or what is the thought process there.
Subhrakant Panda
So I’ll ask Shaunath to share the capex numbers. We also have Sandeep Narade who’s our mining bu head on the call. I don’t know if we have a ready, I mean broadly the figure for capex for underground mining is roughly a thousand crores. I don’t know if we have a ready breakup of how much goes into equipment and how much goes into development. But between Shaunak and Sandeep I’m sure they can answer your question. Shaunak.
Subhrakant Panda
Yeah. So on the overall capex budget of 1000 crores we have till now already ordered approximately 780 crores. But as the thing moves up the cash outlay is around 120 crores till now. And as I was saying that in next year there is a higher amount of, of cash outlay on this. And it is a mixture of both infrastructure capex payments as well as the development cost that we have to incur for building up the whole underground mines. That adds up. But I also ask Sandeep if he can just add a little more on that.
Sanket Kapoor
Just a point here sir. Sorry sir to interrupt. 780 crore of order tendering is on, on the equipment part. So are we importing these equipment or are we sourcing them?
Subhrakant Panda
No, no, no. 780 crores is not just equipment. It is also includes an element of development because you know the underground, I mean two ventilation shafts, the decline and the main shaft are all being being developed. So that is, I mean there are, there is a, there is a, there is a significant element of equipment in there like winders and all of that. But it’s not just. 780 crores is not just equipment. Sandeep, could you just have a broad overview?
Subhrakant Panda
Yes. So mostly we are operating on the MDO mode. You questioned about that MBO. So mostly it’s about MDO. And out of overall capex about 25% of amount will be spent by us for major equipments like the shaft winders and fans. Rest will be the service contract with the mbo. And sir, are we sourcing these equipment domestically because there are few players in the country that are developing in fact one player only Emico and Econ that develops I think so underground in mining equipment and then the gain will group. So are we in the. Yeah please. So all these equipments are not in our scope. They are in the scope of MDOs and they are developing in India and also getting from outside also.
Sanket Kapoor
Okay. And lastly Sir Pandaji for the ethanol part of the story sir.
Saunak Gupta
Yes. Firstly you.
Subhrakant Panda
You have articulated that it was the land that was available with to us and we were that was unutilized and the availability of I think so the RM was there in abundant that led to the project. But taking into account the the score, the line of interest that we have, what likelihood is going to be the story for ethanol? Because 250, 300 crore worth of project will also have management bandwidth and will have its own veggies and nuisances going ahead depending upon the government policy. So going ahead how much of this ethanol is going to be a part of infra in the foreseeable future?
Subhrakant Panda
Slight correction, it was not just available land but also other infrastructure such as railway sidings and all of that for bulk handling of raw material. That is one second as we scale up our ferrochrome capacity closer to the mines in Chowder of course there is no further scaling up but in Kalinganagar at some point in time that will lead to de emphasis on tyrugali. So therefore it is important for us to find alternate users on what we can do there. That is one second minor correction. The CapEx for the 120 KLD unit is 150 crores not 250.
It’s 150 crores and we have I believe adequately conveyed that this is a small diversification because we do need to see what we can do with and it is only if we believe that we crack the code and are able to. I mean this is more aligned given that it’s a B2B industrial product. It is more aligned with our philosophy than you know, FMCG for example, as I have been saying. But it is only, I mean if we believe that we have cracked the code and we can make it something value accretive that we will consider further expansions.
So as of now no further expansion commitments. We will review how this project plays out and then see what we want to take it forward. But I’ll just take this opportunity to reiterate that our primary focus remains the core business which is ferrochrome and that is where the maximum time, attention and focus will be. So I, I would hope that there isn’t any anxiety on that front.
operator
Yes sir. I’ll join the queue. If time permits. I. Can I raise one more question about the domestic. I’m sorry to interrupt. Sanket, I would. I’ll join the queue.
Sanket Kapoor
Not an issue. Thank you.
operator
The next question comes from the line of Manan Vandoor from Walford pms. Please go ahead.
Manan Vandur
Yes, thank you so much for the opportunity. So my one question was that what was the average cost of cost of Coke per ton in Q3 and what is the current price also for this current Q4 quarter?
Subhrakant Panda
So broadly, if I remember correct, Suresh, Suresh Babu who heads our Ferrolize business unit can, can provide the details. But broadly, if I remember correctly, we are currently consuming Coke which is around the $250 a ton mark and we are expecting that to move up a little bit in future procurements. Suresh, it is in INR. It is around $28,005 are expected to rise in the coming quarter. So 28, just a follow up on this. 28,000 was average for Q3 or you. Are saying is this current, current market price.
Manan Vandur
Okay, current is 28,000 and you are saying that around $5 can increase from here. And what was the average for Q3?
Subhrakant Panda
I think broadly we have broadly shared the details. You know I, I don’t want to go into specific products and specific inputs and exact pricing. Broadly we have shared the numbers that you know there had been in line with the pricing pressure on Ferrochrome realization pressure going back 2, 3/4. Coke prices that had come down noticeably and we believe it has hit rock bottom. And our current stock, what we are consuming is around the $250 mark. And I mean Suresh is a little aggressive when he looks at $5. I would say that there might be a slight bit more upward bias in terms of costing for metallurgical Coke.
But it is something that will add to our EBITDA cost a little bit but not something which will be very, very significant. Okay. And just I would request to rejoin the queue.
operator
Thank you. The next question comes from the line of Amit Lodha from Sanmati Consultants. Please go ahead.
A.M. Lodha
Hello.
operator
Please go ahead.
A.M. Lodha
Hello. Am I audible, sir?
operator
Yes you are, sir.
A.M. Lodha
Congratulations. A very good set of numbers and most of the question has been covered by the earliest analyst. So I have got only one question, sir, relating to shareholders.
Subhrakant Panda
Yes. Actually in recent times your stock prices has gone to a very good level and we have, we as an investor when the bought these shares and find very difficulty to get the required quantity of the shares from the market and the prices short of there is wide fluctuation in the prices of coming up and going down again 1500 then 1100. So there is a market for. Of course there is a market Processing management is nothing to do But I have prefer only one suggestion is all these Ferro alloy companies like Nava Noar Alloy then God Power and limited then Vedanta, then Hindustan Jing all are having the low denomination, sir.
They all are having one rupees or two. So I would request the management in the overall interest of the shareholder that management should consider this subdivision of the equity in appropriate either 1 rupees or 2 rupees as they manage both things so unable by small shareholders not only small senator plus mutual fund and they can easily get in the sales and they get out of the 10 when they want and that will. That will reduce the purchase wide futures in the market. That is the only suggestion for myself. Thank you very much.
Subhrakant Panda
Thank you. Thank you Amitji for your suggestion. We will certainly take that under consideration. I know this topic has come up about you know, having adequate floating stock to provide liquidity but there are pros and cons to everything. But this is certainly. We will certainly take your suggestion on board and always have the interests of shareholders paramount when we. When we look at taking any actions.
operator
Thank you. The next question comes from the line of Rita from Kotak securities. Please go ahead. Rita, please go ahead with your question and unmute yourself in case if you’re on mute.
Rita Ghose
Hello. First of all, congratulations to the management for such an excellent result. Thank you. I like to just ask on the question regarding what was the. Since I was not able to join the call earlier, can I have a repeated set of numbers for what was the EBITDA margin for the previous quarter and what is expected in the next quarter?
Subhrakant Panda
So EBITDA margins, you know, we have actually issued that in the press release. So previous quarter as in Q2 was if I remember correctly around the 18 to 19% number and EBITDA margin in Q3 FY26 is a little more than 23%.
Saunak Gupta
And what will be expected for Q4? So you know, provided prices hold, which is what we expect it to be. We. We expect it to be sort of similar. And secondly sir, in terms of what we say for the cope 28,000 price. So is it that 28,000 gets fully accommodated or there is a specific set of consumption of Coke which reduces the coke cost or there is a one to one ratio for reduced. So it’s roughly 0.65 tons of Coke per ton of ferrochrome. And is it the same case for ore as well that we. How much or we give that much. Roughly, roughly. Roughly two and roughly two and a half tons of cromwer per ton of ferrochrome. Okay, that’s it. From my side. Thank you so much.
operator
Thank you. Thank you. The next question comes from the line of Vinit Thakur from Plus 91AMC. Please go ahead.
Vinit Thakur
Hi sir. Good afternoon. So thank you for the opportunity. Thank you. I would just like to know what would be a sustainable EBITDA post the Tata Steel incorporation of the plant and when could we see the revenue coming from it as well on our. From that plant itself. So the second question is easier to answer which is that, you know, we expect meaningful contribution to top line and. Sorry, to top line and to financial numbers from Q1FY27 itself, as I mentioned, we’re looking to close the deal in the ongoing quarter, in fact possibly in February itself.
Subhrakant Panda
So we might get a little bit of output in March but we are not really taking that into consideration. If anything comes, that’s the bonus. But realistically speaking, from first quarter of FY27 and as far as sustainable margins are concerned, there are two factors. Clearly there is volatility both in realizations as well as in input costs. We are in as much as Thrombo is concerned, we are, you know, we are relatively sheltered in terms of, you know, any impact. But when it comes to metallurgical coke, when it comes to, you know, thermal coal for power generation, etc.
Obviously we are. We are exposed to a degree of volatility. But what will. Just to reiterate a point I had made earlier in the call, what will be a significant sustainable advantage of the KNR facilities? KNR 1 and 2 is that logistically it is far friendlier similar to or perhaps even better than Chowdhua. And therefore we are expecting between 1500-2000 rupees a tonne at least of reduction in weighted average EBITDA costing. Thank you. What would be our peak capex and peak that debt would be utilizing for the expansion? Could you answer that please? Yeah.
Vinit Thakur
So overall basis, as I had said earlier that the capex which we are having for the. So one more time, you want the capex for which item? Exactly?
Subhrakant Panda
I want the total capex like we are planning for New Year term. What would be our total capex plan and what would be our peak debt as well. So if a Kalikatangar 1 project we have a total capex plan of 800 odd crores so that we will be spending out by mid next year, that next financial year and and for ethanol we have 150 crores that already a major chunk will be spent by this year and the residual amount will be left by that. On the mine side we have said we have overall capex of 1000 crores but it is to be spent out in next four to five years as we go for the developments and these are the three key ones and the Kalinginagar two that is a Tata Steel unit that will be acquiring as asset transfer of the.
Of the unit that is with GST around 700 crores. So this is the overall spent out. Which we are doing and of course for the GST we will, we will get back wind at input tax credit.
Subhrakant Panda
Input tax credit. Right. What would be a big debt? I’m sorry to interrupt Vinit, I would request you to rejoin the queue. We’ll just answer that Shaunak. Peak debt so broadly at the moment the long term debt drawdown against the sanction limit is just short of 80 crores. The sanctioned amount is 470 crores but depending upon how the ongoing and the next quarters go we may not even draw down the full debt amount. So we’ll see how that. But theoretically the maximum it will go up to is450.470. Yes from a debt equity point of view we are not looking at. I mean our outer limit is 0.5 but we are not expecting to go beyond 0.3 at the at most.
operator
Thank you. The next question comes from the line of Akshita from SBI Life Insurance. Please go ahead.
Akshita Thakur
Hello. Yes. First of all congratulations sir for such a good performance in quarter three. Thank you. My question is regarding the market. What is the expected market in quarter four? How is the price is going to react. So broadly?
Subhrakant Panda
As I said early on in Q4 there was a slight dip in prices but now primarily on account I would say of Chinese demand stocking up before the new year holidays domestic prices have moved up to 1 lakh 18 to 1 20,000 rupees a tonne and Chinese prices are at about 96 to 97 cents. But in our case we have long term commitments and therefore offtake is not an issue at all and we’ll have to see how exactly the price plays out. But at the moment we are reasonably confident that price realization will stay around the same levels on an Average for the entire quarter will stay at the same levels as Q3 and therefore we can expect similar EBITDA margins.
Akshita Thakur
Okay sir, as of now what is our export and domestic ratio?
Subhrakant Panda
Very heavily skewed towards exports in excess of 90%. Going ahead in two years time we are expecting 60, 40, still slightly in favor of exports but certainly more sort of more focus on the domestic market to ensure that it is properly, you know, demand is properly met.
Akshita Thakur
And how much of our sales is dependent on ltc? I couldn’t understand, I couldn’t hear the question properly. What is our ratio for the LTP and spot mix? We are primarily long term contracts Akshita. As I mentioned we don’t, you know when we the difference between the two categories of long term contracts is where we have binding offtake contracts for one year or five years as in the case of Costco. But what we technically categorize as spot circumstances sales is repeat sales to the same customers without any monthly or annual commitment. So we don’t really do sort sales. Where.
Subhrakant Panda
We find new customers and all of that. Now with added tonnage we will certainly look at certain niche geographies and all of that. Plus we have also started producing niche ferrochrome with 015 phosphorus maximum and 1.5% silicon maximum which has a significant premium of about 25% or so. So for that we are selling now starting to sell to some, you know, specific customers in Japan. But other than that, I mean you could broadly call our entire marketing strategy as long term oriented.
Akshita Thakur
Okay sir, and can you just tell me what are the major customers like you mentioned Posco.
Subhrakant Panda
We have a joint venture with Fosco alongside a long term contract. We sell to customers in Taiwan and Japan. We do have sales in China, we sell some small quantities in Europe which will probably, we will look to perhaps increase a little bit when we expand our capacity.
Akshita Thakur
Okay, thank you.
operator
Thank you. The next question comes from the line of Pritesh from Lucky Investments. Please go ahead.
Pritesh Chheda
Yeah, sir, what is the volume guidance for FY27? The ferrochrome guidance? And so.
Subhrakant Panda
Yeah, so you know, so what we have indicated because we have the acquisition coming online and we have the commissioning of our greenfield unit taking place in starting June. So from the present levels of about 2,60,000 tonnes, give or take a little bit, we have indicated that we expect production volume in FY27 to be approximately 400,000 tonnes and we expect the volume in FY28 to be between 475 to 500,000 tonnes. These are of course Barring unexpected, any unexpected developments. But I don’t foresee anything of that sort.
Pritesh Chheda
So just to continue here, these capacities, what is the breakeven utilization level of these incremental capacities?
Subhrakant Panda
I don’t think we have really counted, I mean we have really analyze it in that manner. But we are absolutely running neck and neck in terms of our ability to produce and sell in terms of, you know, in terms of volume, given that, you know, the total consumption of Ferrocom worldwide is in the range of 1617 million tonnes enhanced capacity, placing that with that, I mean, and even now we face a lot of, I mean we’ve got a lot of pressure from customers to increase volumes. So that’s not a concern at all for us.
Pritesh Chheda
My question was what is the breakeven levels usually of these capacities? So they start producing after 50% capacity utilization, start churning out profits or from.
Subhrakant Panda
That angle I was asking. I understand, but that again depends upon a variety of factors. I mean if you don’t have captive ore then the breakeven levels will be much higher. But as I said that’s not something that we have specifically gone into debt. And just one confirmation. So based on the setup that you talked about Africa and it’s a zero. Sum game. And considering the capacity which is shut down the overall construct, does it make you believe that the ferrochrome prices will stay higher than what they were in the recent years that we saw? So usually the price oscillated from 85 to 95 and are we in a newer band? At least that directionally can be concluded or even that cannot be concluded.
Saunak Gupta
So you know, I think the way you put it at the end is a, is a better way to look at it which is that, I mean, you know, there will be some volatility going ahead. It would be foolish of me to see say that it’s only going to be in an upward direction here on there will be but I think in the near term what we can see, we are quite confident about the market dynamics. But if I were to stretch your question, I mean the period that you mentioned in your question, from one to two years, if you look at the last 10 years, clearly slowly but steadily the band has moved up.
And I just like to mention that last year when we had analyst and investor interaction, physical interaction in Mumbai, I had made a point that judging by our experience and what we see, I would broadly think that a fair price for ferrochrome is in that 1 lakh 5 to 1 lakh 10,000 range. I mean 1 lakh 10,000 range on average and taking into account account cost pressures and all of that. But you know there will be obviously a range you know, below and above that.
Pritesh Chheda
Okay. Okay. Thank you very much.
Subhrakant Panda
Thank you.
operator
Thank you. The next question comes from the line of Ashok Patel from Molecule Ventures, pms. Please go ahead.
Aashav Patel
Thank you for the follow on opportunity. My last question is the domestic look. As you rightly mentioned that most of our production volume is tied up with long term contracts and specifically more so tilted towards export side. But recently we have been observing over last few months domestic ferrokurum realizations have been much higher than the global ferrokorm realizations. So do you see a case for dedicating one of the two upcoming Kalinganagar facilities maybe specifically to cater to the domestic spot market and so that as a strategy to capture the spot increases better domestic spot increase in realizations better.
Subhrakant Panda
So Ashok, as I very clearly said we expect to move from 9010 that is 90% exports and 10% domestic market at present with enhanced capacity over the next two years to for it to be somewhere around 60, 40. So but you know that’s not only a reaction to domestic prices because there will be prices domestically or internationally will move up and down a little bit. But we believe as the market leader it is in many ways our responsibility to see that we are able to meet domestic demand. That should be our priority and that is what we intend to do.
Aashav Patel
Got it sir. All the best. Thank you.
Subhrakant Panda
Thank you.
operator
Thank you. The next question comes from the line of Aditya Mutation, an individual investor. Please go ahead.
Aditya
Hi, good afternoon sir. Almost all my questions have been answered. I just want to know what was our variable power cost for this quarter.
Subhrakant Panda
So as I said we don’t like to get into specific details but variable power costs moved up a little bit in line with you know, the quality of coal received as well as as you know, certain price increases but nothing very significant. So broadly I would categorize it as I mean it’s moved up by about 10 or 15 paisa per unit. So nothing that I would say that has added significantly to our cost structures. Okay, thank you sir. Thank you. I’ll get back in the queue.
operator
Thank you. The next question comes from the line of Pragyam Lada from Omni Securities. Please go ahead.
Pragyam Laddha
All my questions have been answered. Just one question. Do you see a one one off due to this Tata Kalingangar plant integration. Integration Q1 and Q2?
Subhrakant Panda
No, I don’t see any one off in that regard. But again when you start up all the furnaces. There will initial heating up period and some power consumption etc. So some startup costs will be there but nothing one off in terms of integration costs. You know, maybe some investments in aligning our ERPs and all that. Because they are on SAP, we are on Oracle. So. But nothing major in that regard. No major margin pressures. Right? No margin accretion in fact.
Pragyam Laddha
Okay, okay, okay, thank you.
operator
Thank you. The next question comes from the line of Joe Shah from Seven Seas Business Solution. Please go ahead.
Joe Shah
No. I think our worries would be South African production. I understand that there’s lot of movement to reduce power cost for supply to thermal core and Glencore to 62 cent. And people are over there. They are saying that the South African ministry is busily available unlike in India. But my counterpart met him just two days ago and he said there will not be any tariff on the export of Cromwell. They are very clear about it and they say that ultimately go to the minor which they are not ready to do. And second thing this.
Subhrakant Panda
This. This funding of this cheap power is concerned. They are saying that there are so many benefits involved in pushing up the entire economy of South Africa. So they are looking for no taking difficulty South African economy out by you know focusing on the ferro compression. And they are Planning to have 3.5 million ton to 4 million ton of ferro compression. And even they were saying that they are looking at India also as their market. Obviously we can have anti dumpy duty for South Africa to protect our market. But still, you know China and other places could be a bit difficult area.
So I would like to have your views. You know this is I think a real challenge coming to infa. The South African products and other things. We are quite safe. But the South African is a big worry for us also. So will you please give me your views, please.
Saunak Gupta
So you know, as I’ve said and I will reiterate that you know I wouldn’t want to focus on issues which are not in our control. I believe that we have the right business model thanks to our, you know, thanks to our captive minds and power generation. The ability to be resilient and competitive. And that is all that I would focus on. And we have the marketing relationships and the tie ups to be able to place this. And I believe that it is. You will not simply see an increase in production of ferrochrome in South Africa without corresponding, without a corresponding impact on Orexports.
And not to mention because of scaled back production last year their grid was relatively stable. So as I said this is a complex equation. It is not a simple thing that rates have been brought down and ferrochrome production will increase and therefore there will be an imbalance which will lead to lower prices. I believe there is far more, you know, it is a far more complex scenario and there are various trade offs involved. So is it something that we are looking at and observing? Absolutely. But we are confident about our ability to, you know, to be competitive.
And I think in the end that’s what matters.
Joe Shah
So you think that India, Indian ceruchron cost of Proton is, will be quite competitive as compared to the South African coastal product?
Saunak Gupta
I would not say Indian ferrochrome production cost but a fully integrated producer in India. Yes. Yeah, sure.
operator
Thank you. Ladies and gentlemen, the last question comes from the line of Anand Sinha from Coal India. Please go ahead. Hello. Please go ahead.
Harsh Vasa
Yes. Am I audible, sir?
Subhrakant Panda
Yes. Just to say that I am from Investment Limited. My name is Anand Sarda. Thank you for the opportunity and congratulations on the brilliant set of results. I just have a question that you know. Sir, there is 1 lakh 50,000 of capacity furnace capacity in the Tata project and about 50,000 tons of furnace capacity was incomplete. So do you have any kind of like, you know, what is the status of that and when can that be online?
Subhrakant Panda
So you’re right. The unit has four 16.5 MVA furnaces which are capable of producing 100,000 tons which are good to go. And There is a 33mpa furnace which is partially complete which can produce another 50,000 tonnes. Our estimate is approximately a year’s time and roughly 50 crores of capex to make that operational. So when we take control of the unit, our first focus will be on maximizing output from the existing operational furnaces. While of course evaluating and proceeding with completing the fifth furnace and getting that additional tonnage from there.
Harsh Vasa
Okay, thank you sir. And sir, like you said that you know you’re going to shift the international to domestic sales from 9010 to 6040 in maybe two years time. But immediately we can see that the ferrochrome prices in domestic market is quite higher as pointed by one of the fellow investors. Will the Tata Kalinganagar, true, the Tata acquisition, will that be particularly used for spot market in the next financial year? Sir.
Subhrakant Panda
So look, in the next financial year we will also have our greenfield project commission. So the point is that we will first and foremost give priority to, you know, wherever we have contractual commitments. That is what is our topmost priority. We are not going to divert tonnages because of higher realizations elsewhere because I think it is important to be considered a credible and reliable supplier. The second point I have made conceptually is that as the largest producer in India, it is incumbent upon us to make sure that the domestic market is supplied to the best of our ability.
So taking that in mind, we are looking at the 9010 becoming 6040 over the course of the next two years. But we will obviously retain the flexibility to sell, to sell internationally or domestically, depending upon market conditions and demand.
Harsh Vasa
Okay, sir, and last question, sir. What is the roadmap for a critical mineral space? Like where do you want to position yourself? Maybe in the mining or maybe in processing or both. So what kind of strategy are you, are you thinking, sir, for the company?
Subhrakant Panda
So Anant, it’s very early days yet for us to give any concrete guidance on that. So we are evaluating opportunities and as a general practice I would say that we are open to evaluating all opportunities which come our way. And we will only pull the trigger on investments if we believe it is value accretive and we have a degree of competence. But having said that, I mean we of course both from a mining and a processing perspective have the competence. But where exactly the opportunity lies and how we can maximize shareholder value is what will guide us.
And it’s too early for us to give any specific comments on that.
operator
Thank you ladies and gentlemen. That brings us to the end of the question and answer session. I would now like to hand the conference over to Mr. Abhishek Sawant for the closing remarks.
Subhrakant Panda
Thank you. And thank you to everyone who joined us today and participated in the discussion. We appreciate your questions and continued interest in impa. As always, we remain committed to transparent communication and delivering long term value to our stakeholders. In closing, on behalf of the board of directors and management, we thank you all for your participation in this call. Infra remains focused on operation excellence and long term value creation. Should you have any further questions, please feel free to reach out to us. We look forward to engaging with you again in the near future. Thank you again and have a great evening.
Stay safe.
operator
Thank you, sir. Ladies and gentlemen, on behalf of Veritas Reputation, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.