IFGL Refractories Limited Stock Analysis

Consolidated revenue growth remained strong: Q3 FY26 revenue from operations was Rs 46,864 lakhs vs Rs 37,884 lakhs YoY (+23.7%), and 9M FY26 was Rs 1,41,128 lakhs vs Rs 1,20,450 lakhs (+17.2%). / Pre-exceptional operating profitability improved YoY in Q3: profit before exceptional item and tax was Rs 108 lakhs versus Rs -196 lakhs in Q3 FY25. / Americas segment showed robust improvement: 9M segment result rose to Rs 2,095 lakhs from Rs 879 lakhs YoY, with revenue up to Rs 24,620 lakhs from Rs 19,833 lakhs. / Balance sheet scale remains healthy versus liabilities: consolidated segment assets were Rs 1,65,679 lakhs against segment liabilities of Rs 51,664 lakhs at Dec 31, 2025. / Auditors issued an unmodified review conclusion on both standalone and consolidated results, indicating no material misstatement in reported interim numbers.

Reported earnings quality was hit in Q3 by a non-recurring exceptional expense of Rs 482 lakhs, resulting in consolidated PAT of Rs -308 lakhs (vs Rs 1,269 lakhs in Q2 FY26). / 9M profitability declined despite higher sales: consolidated PAT fell to Rs 2,042 lakhs from Rs 3,455 lakhs YoY (about 40.9% decline), indicating margin pressure. / Europe remains a drag: 9M segment result was a loss of Rs -2,299 lakhs versus Rs -1,020 lakhs YoY even as Europe revenue increased to Rs 31,889 lakhs. / Cost pressures are visible: 9M employee benefit expenses rose to Rs 24,731 lakhs from Rs 20,483 lakhs, and finance costs rose to Rs 1,206 lakhs from Rs 959 lakhs YoY. / Regulatory/accounting uncertainty persists: auditors highlighted goodwill accounting (Rs 26,699 lakhs goodwill, amortized Rs 667 lakhs/quarter) and ongoing tax litigations including Section 10AA exposure of Rs 832 lakhs and reopened depreciation claims with tax impacts of Rs 1,732 lakhs and Rs 1,312 lakhs (plus earlier Rs 984 lakhs).