Scan Steels Limited submitted an investor presentation to BSE Limited pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015. The presentation outlines the company's business operations, growth strategy, and expansion plans.

Key Quantitative Figures

  • FY26 Financials: Revenue ₹838 Crore, EBITDA ₹49 Crore (5.9% margin), PBT ₹27 Crore, PAT ₹20 Crore
  • Balance Sheet (Mar'26): Equity Capital ₹59 Crore, Reserves ₹382 Crore, Net Worth ₹441 Crore, Borrowings ₹72 Crore, Total Assets ₹601 Crore
  • Current Market Snapshot (24 May 2026): CMP ₹38.85, Market Cap ₹236 Crore, P/E 11.9X, P/B 0.52X, Book Value per share ₹75.3, Promoter holding 48.9%, ROCE 6.67%, ROE 4.30%
  • Expansion Investment: Estimated ₹850 Crores over coming years

Operational Capacity (FY26)

  • Sponge Iron (DRI): 1.5 LTPA at 84% utilization
  • MS Billets (SMS): 2.0 LTPA at 81% utilization
  • Rolled Products (TMT & Structural): 2.0 LTPA at 82% utilization (installed capacity 3.0 LTPA)
  • Captive Power: 8MW at 100% utilization
  • TMT Sales: 162,469 MT in FY26 with ~99% direct sales

Expansion Plans (Three-Phase Roadmap)

Theme 1 (By September 2026): Increase billet capacity by 1 LTPA to 3 LTPA, enabling full utilization of existing 3 LTPA TMT capacity

Theme 2 (By Q3 FY28): Set up 2 LTPA Pipe Mill + Galvanizing facility

Theme 3 (By Q3 FY31): Greenfield expansion including:

  • Pellet Plant: 12 LTPA
  • DRI Unit: 2.5 LTPA new sponge iron capacity
  • Coal Washery: 12 LTPA
  • Captive Power: 50 MW additional (total 58 MW)
  • Land: 100 acres to be allocated by Odisha IDCO

FY31 Targets (Management Estimates)

  • Revenue: ~₹4,133 Crore (4.9x FY26)
  • EBITDA: ~₹575 Crore (11.7x FY26) at ~13.9% margin
  • Finished Steel Capacity: ~7.5 LTPA (~4x FY26)
  • Sponge Iron Capacity: 4.0 LTPA (1.5 existing + 2.5 new)
  • MS Billet Capacity: 4.0 LTPA
  • Rolling Capacity: 5.5 LTPA

Company Background

  • 30-year old integrated steel producer headquartered in Odisha
  • Odisha's first private integrated secondary steel-route enterprise
  • Flagship brand: SHRISHTII TMT (sizes 8mm to 32mm)
  • BBB+/A2+ credit rated
  • Two manufacturing plants in Odisha: Ramabahal (Unit I) and Gangajal (Unit II)

Strategic Advantages

  • Location in Odisha's iron-ore belt providing logistics cost advantage
  • Brand premium of ₹1,500-2,000 per tonne over unbranded local players
  • Established distribution network across Odisha and East India
  • Direct sales model with ~99% of TMT sold direct
  • Low leverage with Net Debt to Equity at 0.16

Funding Strategy

Fresh equity to be raised in three staggered tranches at a premium to prevailing market price. OCRPS subscribed @ ₹57.12 - a 47% premium to CMP.

Governance

Board of Directors includes Mr. Rajesh Gadodia (Founder & Chairman), Mr. Praveen Kumar Patro (Executive Director), Mr. Ankur Madaan (Whole-time Executive Director), and three independent directors.

Additional Information

The presentation is available on the company's website at www.scansteels.com. The document contains forward-looking statements subject to risks and uncertainties including fiscal policy, competition, inflationary pressures, and general economic conditions.