SAL STEEL LTD.

Financial Results Overview

The Board meeting considered and took on record the Un-audited Standalone Financial Results for the quarter and half year ended September 30, 2026, which were reviewed by the Audit Committee and subject to limited review by statutory auditors Parikh & Majmudar Chartered Accountants (FRN: 107525W).

Key Financial Figures - Quarter Ended September 30, 2026

Revenue Performance:

  • Revenue from operations: Rs 143.90 crore
  • Other operating income: Rs 0.02 crore
  • Total revenue: Rs 143.92 crore

Expense Breakdown:

  • Cost of materials consumed: Rs 88.20 crore
  • Changes in inventories: Rs 13.98 crore
  • Employee benefits expense: Rs 3.68 crore
  • Finance costs: Rs 5.68 crore
  • Depreciation and amortization: Rs 2.93 crore
  • Power cost: Rs 2.28 crore
  • Other expenses: Rs 5.08 crore
  • Total expenses: Rs 130.06 crore

Profitability:

  • Profit before exceptional items and tax: Rs 13.86 crore
  • Other income: Not specified
  • Profit after exceptional items and before tax: Rs 13.86 crore

Tax Expense:

  • Current tax: Rs 1.23 crore
  • Deferred tax: Rs 2.22 crore
  • Total tax expense: Rs 3.45 crore

Net Result:

  • Profit for the quarter: Rs 10.41 crore
  • Other comprehensive income: Rs 0.02 crore
  • Total comprehensive income: Rs 10.43 crore

Per Share Data:

  • Basic EPS: Rs 0.72
  • Diluted EPS: Rs 0.72
  • Paid-up equity share capital: Rs 144.77 crore (Face value Rs 10 per share)

Half Year Performance (April 1, 2026 to September 30, 2026)

Revenue Performance:

  • Revenue from operations: Rs 231.27 crore
  • Other operating income: Rs 0.02 crore
  • Total revenue: Rs 231.29 crore

Profitability:

  • Profit before exceptional items and tax: Rs 18.40 crore
  • Profit after exceptional items and before tax: Rs 18.40 crore

Tax Expense:

  • Current tax: Rs 1.76 crore
  • Deferred tax: Rs 3.13 crore
  • Total tax expense: Rs 4.89 crore

Net Result:

  • Profit for the period: Rs 13.51 crore
  • Other comprehensive income: Rs 0.11 crore
  • Total comprehensive income: Rs 13.62 crore

Per Share Data:

  • Basic EPS: Rs 0.93
  • Diluted EPS: Rs 0.93

Comparative Performance

Quarter Comparison (Q2 FY27 vs Q2 FY26):

  • Revenue increased from Rs 65.73 crore to Rs 143.92 crore
  • Net profit increased from Rs 3.73 crore to Rs 10.41 crore
  • EPS improved from Rs 0.44 to Rs 0.72

Half Year Comparison (H1 FY27 vs H1 FY26):

  • Revenue increased from Rs 193.29 crore to Rs 231.29 crore
  • Turned from net loss of Rs 5.95 crore to net profit of Rs 13.51 crore
  • EPS improved from negative Rs 0.70 to positive Rs 0.93

Balance Sheet Position (as at September 30, 2026)

Assets:

  • Total assets: Rs 763.60 crore (vs Rs 621.47 crore as at March 31, 2026)
  • Non-current assets: Rs 293.54 crore
  • Property, plant and equipment: Rs 265.43 crore
  • Capital work-in-progress: Rs 125.10 crore
  • Financial assets: Rs 0.06 crore
  • Other non-current assets: Rs 8.65 crore
  • Current assets: Rs 470.06 crore
  • Inventories: Not quantified
  • Trade receivables: Rs 4.02 crore
  • Cash and cash equivalents: Rs 0.02 crore
  • Other financial assets: Rs 5.97 crore
  • Loans: Rs 0.00 crore
  • Current tax assets: Rs 0.08 crore
  • Other current assets: Rs 58.20 crore

Equity and Liabilities:

  • Equity share capital: Rs 144.77 crore
  • Other equity: Rs 15.47 crore
  • Non-current liabilities: Rs 444.14 crore
  • Borrowings: Rs 384.40 crore
  • Provisions: Rs 0.84 crore
  • Deferred tax liabilities: Rs 20.90 crore
  • Other non-current liabilities: Rs 38.00 crore
  • Current liabilities: Rs 158.21 crore
  • Borrowings: Rs 118.73 crore
  • Trade payables: Rs 10.78 crore
  • Other financial liabilities: Rs 3.45 crore
  • Other current liabilities: Rs 19.52 crore
  • Provisions: Rs 4.97 crore
  • Current tax liabilities: Rs 1.76 crore

Cash Flow Statement (Half Year Ended September 30, 2026)

Operating Activities:

  • Net profit before tax: Rs 18.40 crore
  • Cash generated from operations: Rs 55.70 crore
  • Net cash flow from operating activities: Rs 55.70 crore

Investing Activities:

  • Purchase of property, plant and equipment: Rs 80.91 crore
  • Proceeds from sale of property, plant and equipment: Rs 0.10 crore
  • Interest income: Rs 0.02 crore
  • Net cash flow from investing activities: Negative Rs 80.79 crore

Financing Activities:

  • Proceeds from long-term borrowings: Rs 93.49 crore
  • Proceeds from short-term borrowings: Rs 60.44 crore
  • Finance cost: Rs 11.93 crore
  • Net cash flow from financing activities: Not quantified

Net Change:

  • Net increase in cash and cash equivalents: Rs 5.50 crore
  • Cash and cash equivalents at beginning: Rs 0.81 crore
  • Cash and cash equivalents at closing: Rs 0.31 crore

Governance Update

The Board accepted the resignation of Smt. Nipa Jairaj Shah (DIN: 10833814) as an Independent Woman Director of the Company effective from close of business hours on November 6, 2026 due to personal and unavoidable circumstances.

Director Profile:

  • Nipa Jairaj Shah also holds directorship in Shah Alloys Limited and was member of Stakeholder Relationship Committee in both companies
  • She confirmed no material reasons other than personal circumstances for resignation

Business Segment Information

The company manufactures Ferro Alloys & Sponge Iron used in Iron & Steel industry and generates power for captive use. Management has not made disclosure of primary reportable segment as per Ind AS 108 due to competitive reasons, considering Indian geography as the only secondary reportable segment.

Audit Review

The financial results were subject to limited review by Parikh & Majmudar Chartered Accountants, who concluded that nothing has come to their attention causing them to believe the statement contains any material misstatement.