Summary of Key Information:

Reporting Period (Quarter/Year): Quarter and Half Year ended 30 September, 2026

Nature of Filing / Announcement: Outcome of Board Meeting and Financial Results

Audit Opinion:

Qualified Review Report - Statutory auditors issued qualified conclusion regarding:

  • Note 3: Cancellation of coal block allotted to parent and adjustments for claims
  • Note 4(a): Investment in ESL Steel Limited equity shares where pledge was invoked by lenders
  • Note 4(b): Mortgage of land at Elavur plant in favor of ESL lender

Auditor's Comment: Pending finalization of these matters, required disclosures, adjustments and impacts are not ascertainable and cannot be commented upon.

Key Financial Highlights [₹ in lakhs]:

Standalone Results:

Revenue from Operations: Q2 FY27: ₹120,509.87 vs Q2 FY26: ₹119,232.20 (1.1% increase)

Total Income: Q2 FY27: ₹123,995.47 vs Q2 FY26: ₹128,327.71 (3.4% decrease)

Net Profit: Q2 FY27: ₹1,716.37 vs Q2 FY26: ₹7,599.35 (77.4% decrease)

EPS: Q2 FY27: ₹0.27 vs Q2 FY26: ₹1.23

Other Equity: ₹557,868.81

Cash and Cash Equivalents: ₹8,229.43

Debt: Short-term borrowings: ₹112,757.54; Long-term borrowings: ₹16,778.07; Total: ₹129,535.61

Consolidated Results:

Revenue from Operations: Q2 FY27: ₹151,981.91 vs Q2 FY26: ₹139,579.01 (8.9% increase)

Total Income: Q2 FY27: ₹155,824.14 vs Q2 FY26: ₹149,094.86 (4.5% increase)

Net Profit: Q2 FY27: ₹5,081.00 vs Q2 FY26: ₹7,828.70 (35.1% decrease)

EPS: Q2 FY27: ₹0.82 vs Q2 FY26: ₹1.27

Other Equity: ₹590,086.31

Cash and Cash Equivalents: ₹16,464.19

Debt: Short-term borrowings: ₹140,849.68; Long-term borrowings: ₹21,657.02; Total: ₹162,506.70

Segment-wise Performance:

The group operates mainly in one business segment viz. Pipes and fittings and all other activities revolve around the main business.

Corporate Actions:

Dividend: Final dividend of Re. 0.90 per equity share approved for FY26, resulting in aggregate outflow of ₹5,563.66 lakhs

Other Significant Information:

Acquisitions: Acquired 70% stake in Arabian Water Tech LLC (AWTL) for OMR 21,000 (₹52.28 lakhs) on September 18, 2026

Legal Contingencies:

1. Coal Block Compensation: Parbatpur coal block cancellation matter with claimed compensation of ₹154,944.48 lakhs pending finalization

2. ESL Steel Investment: Pledged investment of 17,334,999 equity shares (₹2,962.55 lakhs) subject to court proceedings

3. Elavur Land Mortgage: Land worth ₹29,493.58 lakhs mortgaged to ESL lender, matter pending before DRAT

4. West Bengal Incentives: ₹4,680.58 lakhs outstanding under WBIS 2000 scheme, challenged Revocation Act 2025

Subsidiaries Included in Consolidation:

Electrosteel Trading S.A.U Spain, Electrosteel Castings Gulf FZE, Electrosteel Doha for Trading LLC, Electrosteel Brasil Ltd., Electrosteel Bahrain Holding W.L.L, Electrosteel Bahrain Trading WLL, Electrosteel Europe S.A, Electrosteel Castings (UK) Limited, Electrosteel USA, LLC, WaterFab LLC, Electrosteel Algeria SPA, Singardo International Pte Limited, Electrosteel Vietnam Company Limited, Arabian Water Tech LLC, T.I.S. Service S.p.A and its subsidiaries

Exceptional Items: FY26 included impact of ₹3,838.26 lakhs on employee benefits due to Labour Code implementation