Bihar Sponge Iron Q1 Profit Rs 2.48 Cr Despite Zero Revenue

Board Meeting Details

The Board of Directors meeting was held on 14 August 2026, commencing at 15:15 PM and concluding at 15:32 PM.

Key Board Approvals

1. Approved un-audited standalone financial results for quarter ended 30 June 2026 along with Limited Review Report from statutory auditors

2. Re-appointed M/s. M.K. Singhal & Co. (FRN 00074) as Cost Auditors for financial year 2026-27

3. Ratified re-appointment of M/s. Sarat Jain & Associates (FRN 014793C) as Internal Auditors for financial year 2026-27

4. Approved Notice & Directors Report along with annexures for the 44th Annual General Meeting

Financial Results Summary (Quarter Ended 30 June 2026)

Revenue Performance:

Sales: ₹0.00 lakhs (compared to ₹8,838.33 lakhs in Q1 FY26 and ₹1,986.52 lakhs in Q4 FY26)
GST: ₹0.00 lakhs
Net Revenue from Operations: ₹0.00 lakhs

Profitability:

Other Income: ₹639.26 lakhs (includes ₹611.09 lakhs from liabilities & assets written back/written off)
Total Income: ₹639.26 lakhs
Total Expenses: ₹391.16 lakhs
Profit before tax: ₹248.10 lakhs
Tax expense: ₹0.00 lakhs
Profit for the period: ₹248.10 lakhs
Other Comprehensive Income: ₹0.24 lakhs
Profit after Comprehensive Income: ₹248.33 lakhs

Per Share Data:

Basic EPS: ₹0.28 (not annualized)
Diluted EPS: ₹0.28 (not annualized)
Paid-up Equity Share Capital: ₹9,020.54 lakhs (face value ₹10 each)

Comparative Performance

Auditor's Qualified Review

The statutory auditors (Doogar & Associates) issued a qualified review report citing four material uncertainties:

1. SECL Penalty Matter: No provision made for ₹215.28 lakhs penalty recovered by South East Coalfields Ltd for short lifting of coal under FSA. The company's writ petition was dismissed by Chhattisgarh High Court on 27 October 2025, and the company is in process of filing an appeal. The amount is currently included in long-term loans and advances.

2. Promoter Loans Settlement: The company has approached promoters for one-time settlement of their loans, to be subsequent to and on similar lines as settlement with Government of Jharkhand for soft loans. The amount is neither quantified nor disclosed.

3. Jharkhand Government Soft Loan: The principal amount of soft loan from Government of Jharkhand under Jharkhand Industrial Rehabilitation Scheme 2003 has been fully paid as per High Court order dated 09.06.2022 (₹125 lakhs monthly payments). Interest amounting to ₹12,118.33 lakhs has been provided only to the extent of ₹2,746.19 lakhs (until 10 August 2013), subject to approval of representations for waiver of entire amount.

4. Facility User Agreement Dispute: Ongoing disputes with Vanraj Steels Private Limited group regarding Facility User Agreement terminated on 19 March 2026. Management believes legitimate claims are recoverable but auditors cannot comment on potential adjustments to carrying values.

Operational Update

The plant is currently under revamping and major maintenance
No revenue generated from operations during Q1 FY27 due to plant revamping
Company executed new Facility User Agreement with Amalgam Steel & Power Limited dated 23 March 2026
Waste Heat Recovery Plant installation decided as per Jharkhand State Pollution Board consent requirements

Legal Proceedings

Multiple ongoing court cases including:
SECL penalty matter (₹215.28 lakhs) - appeal in process
Facility User Agreement disputes with VSPL Group
Jharkhand government soft loan interest waiver representations

Financial Position Notes

Deferred Tax Assets not recognized on conservative basis
Previous period figures have been regrouped/recast/rearranged where necessary
Results reviewed by Audit Committee and approved by Board on 14.08.2026