Financial Performance Highlights (₹ in Lakhs)

FY 2025-26 Results:

  • Revenue From Operations: ₹7,009.41 (FY25: ₹12,290.31)
  • Other Income: ₹171.71 (FY25: ₹286.45)
  • Total Income: ₹7,181.12 (FY25: ₹12,576.76)
  • Profit/(Loss) Before Tax: (₹6,435.54) (FY25: (₹2,910.07))
  • Tax Expense: (₹287.30) (FY25: ₹276.06)
  • Net Profit/(Loss) After Tax: (₹6,148.24) (FY25: (₹3,186.12))
  • Other Comprehensive Income: ₹1,507.39 (FY25: ₹930.29)
  • Total Comprehensive Income: (₹4,640.85) (FY25: (₹2,255.84))

Revenue Breakdown (FY26):

  • OCTG Products: ₹5,070.57
  • OCTG Product Services: ₹1,917.84
  • Engineering Division - Services: ₹21.00

Key Financial Ratios (Significant changes >25%):

  • Current Ratio: 3.67 (FY25: 2.08) - 43.32% variance
  • Debt-Equity Ratio: 0.13 (FY25: 0.19) - (46.15%) variance
  • Return on Equity: -0.31 (FY25: -0.14) - 54.84% variance
  • Net Profit Ratio: -0.92 (FY25: -0.24) - 73.91% variance

Share Capital Structure

As on March 31, 2026:

  • Authorized Share Capital: ₹85.00 crore (7.10 crore equity shares of ₹10 each + 1.40 crore preference shares of ₹10 each)
  • Issued, Subscribed and Paid-up Equity Capital: ₹51.99 crore (5.19 crore equity shares of ₹10 each)
  • Optionally Convertible Preference Shares (OCPS): ₹6.15 crore (61.46,154 OCPS of ₹10 each)

Shareholding Pattern:

  • 97.61% of equity shares in dematerialized form
  • Promoter holding: United Steel Allied Industries Private Limited holds 33.18% (1.72 crore shares)

40th Annual General Meeting Details

  • Date: August 12, 2026
  • Time: 11:00 AM (IST)
  • Mode: Video Conferencing/Other Audio Visual Means
  • Venue: Deemed to be at Registered Office - Kamineni, 3rd Floor, King Koti, Hyderabad - 500 001

Business to be Transacted:

Ordinary Business:

1. Adoption of audited financial statements for FY 2025-26

2. Re-appointment of Mr. Paruchuri Dheeraj Chowdary (DIN: 09341915) who retires by rotation

3. Re-appointment of Mrs. Shri Puja Kamineni (DIN: 06818438) who retires by rotation

Special Business:

4. Re-designation of Mr. Paruchuri Dheeraj Chowdary from Non-Executive Non-Independent Director to Whole-time Director and approval of remuneration

Director Appointment and Remuneration Proposal

Mr. Paruchuri Dheeraj Chowdary:

  • Re-designation: From Non-Executive Non-Independent Director to Whole-time Director
  • Tenure: 3 years from June 1, 2026 to May 31, 2029
  • Remuneration: As per terms specified in the resolution including perquisites, medical reimbursement, LTC, and privilege leave
  • Minimum Remuneration: Payable in case of inadequacy or absence of profits, subject to Schedule V limits
  • Background: Mechanical Engineer with MS in Engineering from USA, experience in business development focusing on defense sector
  • Current Remuneration: ₹3.50 lakh per month
  • Relationship: Spouse of granddaughter of Chairman & MD Mr. K. Suryanarayana

Corporate Developments

Orders and Business:

  • Secured orders worth ₹155.51 crore during FY26
  • Executed orders achieving revenues of ₹71.81 crore with EBITDA of ₹6.3 crore
  • API licenses renewed for three years up to December 2028
  • Testing laboratory certified with NABL Accreditation from 2026 to 2030
  • Engineering Division secured orders from defense PSUs
  • Procured 5 Axis CNC Machining Center for new orders execution

Strategic Initiatives:

  • Diversifying into Defense, Aerospace, Power, and Critical Engineering Machining Components
  • Recruiting experienced professionals in aerospace and defense domains
  • Evaluating strategic partnerships in defense and aerospace sectors
  • Participating in new tenders from ONGC, OIL and global tenders for FY 2026-27

Share Capital Changes:

  • Allotted 1,38,46,154 OCPS to USA Industries and Properties Limited (Promoter Group) on December 31, 2024 at ₹65 per share aggregating ₹90 crore
  • 35,50,000 OCPS converted to equity on January 29, 2025
  • 41,50,000 OCPS converted to equity on May 8, 2025
  • 61,46,154 OCPS outstanding as on date

Board and Management Changes

Director Appointments during FY26:

  • Mr. K. Suryanarayana appointed as Chairman and Managing Director from September 21, 2025 to September 20, 2028
  • Mrs. Shri Puja Kamineni and Mr. Paruchuri Dheeraj Chowdary appointed as Non-Executive Non-Independent Directors from June 11, 2025
  • Mr. Kamineni Shashidhar appointed as Non-Executive Non-Independent Director from August 7, 2025

Key Managerial Personnel Changes:

  • Mr. Sudhir Kumar resigned as Company Secretary and Compliance Officer effective May 8, 2025
  • Mr. Vaibhav Suryakant Suryawanshi appointed as Company Secretary and Compliance Officer from August 7, 2025
  • Mr. Ramamuni Reddy Jampanapalle resigned as CFO effective August 7, 2025
  • Mr. Lal Bahadur Shastry Gubba appointed as CFO from August 7, 2025, resigned April 23, 2026
  • Mr. Ramamuni Reddy Jampanapalle re-appointed as CFO from May 21, 2026

Regulatory and Compliance Matters

Auditors:

  • Statutory Auditors: M/s. CKS Associates LLP (until conclusion of 41st AGM)
  • Cost Auditors: Not required for FY26 as turnover below ₹100 crore threshold
  • Secretarial Auditor: Ms. Manjula Aleti of M/s. Manjula Aleti & Associates

Compliance Status:

  • Delay of one day in submission of Related Party Transactions disclosure under Regulation 23(9) of SEBI LODR
  • Fines of ₹5,900 each (including GST) levied by BSE and NSE, which have been paid
  • No other material non-compliances reported

Legal Proceedings:

  • Income tax dispute regarding withholding taxes on international transactions: ₹202.12 lakh for AY 2011-12 to 2014-15
  • Civil lawsuit against Mertex Group for breach of contractual obligations relating to work orders and advances

Corporate Governance

Board Composition:

  • 9 Directors total: 1 Executive, 5 Independent, 3 Non-Executive Non-Independent
  • Includes 1 Woman Director (Independent)
  • 5 Board meetings held during FY26

Committee Structure:

  • Audit Committee: 3 Independent Directors, 4 meetings held
  • Nomination and Remuneration Committee: 3 Independent Directors, 2 meetings held
  • CSR Committee: 3 Independent Directors, 1 meeting held
  • Stakeholders Relationship Committee: 3 Independent Directors, 1 meeting held

Dividend:

  • No dividend declared for FY 2025-26 due to losses

Other Material Information

AGM Logistics:

  • E-voting period: August 9, 2026 (9:00 AM) to August 11, 2026 (5:00 PM)
  • Cut-off date for voting rights: August 5, 2026
  • Scrutinizer: Ms. Manjula Aleti, Practicing Company Secretary
  • Register of Members closed from August 6, 2026 to August 12, 2026

Related Party Transactions:

  • Rent payment of ₹93.59 lakh to KSN Trust (where Chairman & MD is a trustee)
  • All transactions at arm's length and in ordinary course of business

Employee Strength:

  • 187 permanent employees as on March 31, 2026
  • 5 female employees, no transgender employees

Forward Outlook:

  • Participating in new tenders expected to open June-July 2026
  • Focusing on defense sector opportunities including rocket motor casings for DRDO
  • Strengthening aerospace team and pursuing AS-9100D certification
  • Government's 'Make in India' policy and domestic oil production target of 35 MMT by 2030 provide growth opportunities