Financial Results Q2 FY27 (₹ in Crores)

Quarterly Performance Comparison

| Particulars | Q2FY27 | Q1FY27 | Q2FY26 | YoY% Change | QoQ% Change |

| Revenue from Operations | 52.37 | 55.21 | 36.31 | 44% | -5% |

| Total Income | 52.86 | 56.61 | 36.48 | 45% | -7% |

| Operating Expenses | 50.13 | 53.66 | 34.66 | 45% | -7% |

| EBITDA (Excluding OI & EI) | 2.24 | 1.55 | 1.64 | 36% | 44% |

| EBITDA % | 4.27% | 2.81% | 4.53% | -26 bps | +146 bps |

| Finance Cost | 0.08 | 0.26 | 0.07 | 8% | -70% |

| Depreciation & Amortization | 0.63 | 0.62 | 0.72 | -13% | 1% |

| PBT | 2.03 | 2.07 | 1.03 | 98% | -2% |

| PAT | 1.28 | 1.33 | 0.76 | 68% | -4% |

| EPS (₹) | 0.92 | 0.97 | 0.57 | 61% | -5% |

H1 FY27 Performance

  • Revenue: ₹107.6 crore (30% increase)
  • PAT: ₹2.6 crore (43% increase)

Operational Highlights Q2 FY27

Cored Wires Performance

  • Volume: 1,463 tonnes (37% YoY increase from 1,065 tonnes in Q2FY26)
  • Realization: ₹2.64 lakh per tonne (7% QoQ increase from ₹2.46 lakh/tonne in Q1FY27)
  • Sequential comparison: Q1FY27 volume was 1,532 tonnes

Welding Division Performance

  • Revenue: ₹5.6 crore (49% YoY increase)
  • Volume: 465 tonnes (38% YoY increase)
  • Realization: ₹1.20 lakh per tonne
  • Annual sales target: ₹25 crore for FY27

Aluminium Flipping Coils

  • Volume: 156 tonnes (subdued performance)
  • Constraints due to aluminum scrap availability issues and export restrictions

Management Commentary

Sanjay Shah, Executive Director, commented on Q2 FY27 performance:

Market Context: India's steel sector grew steadily in H1 FY27 with finished steel consumption up about 7.5% year-on-year, led by infrastructure, housing and manufacturing.

Business Outlook:

  • Cored wires remain the backbone of the business with healthy demand from larger steel plants
  • Several new steel capacities expected to go live by Q4 FY27, providing good growth runway
  • Ferro titanium remains an area of particular strength
  • Aluminum flipping coils facing challenges due to scrap availability constraints and elevated costs
  • Welding division emerging as key growth driver with certifications (RDSO and BIS) and dealer network spanning 10+ dealers across more than five states

Financial Discipline:

  • Lower inventories and receivables helped generate operating cash flow of ₹4.1 crore
  • Short-term borrowings reduced to ₹2.6 crore from ₹6.6 crore in March 2026
  • Priority remains strengthening core, cash-generating businesses with capital discipline

Business Updates

Welding Business

  • Flux Core Arc Welding process using consumable electrode with flux
  • India has little to none manufacturing capacity, offering import substitution opportunity (average imports ~14,500+ TPA)
  • Applications: Shipbuilding, Construction, Hardfacing, Surfacing Mechanical Industries
  • Annual production capacity: 3,600 tons of flux-cored wire
  • Manufactures 7 grades across 3 categories: carbon steel, stainless steel, and hardfacing
  • Certifications provide access to major institutional and government procurement opportunities

Biotechnology Venture

  • Evaluating opportunities in ethanol ecosystem and government's focus on biofuels
  • Measured approach due to potential overcapacity in ethanol industry
  • Invested ₹50 lakhs to date for pilot R&D facility in Nagpur
  • Focus on capital discipline and clarity before further investments
  • Using Solid-State Fermentation (SSF) method in enzyme manufacturing

Company Background

Desraj Bansal Group

  • ₹650+ crore business group with interests in Metals and Energy sector
  • 3 group entities: Sarthak Metals Ltd, Sarthak Energy Pvt Ltd, Bansal Brothers
  • 425+ committed workforce
  • 150+ customers served to date

Manufacturing Capabilities

  • Cored Wires: 10,000 TPA capacity across 4 manufacturing lines
  • Aluminium Flipping Coils: 15,000 TPA capacity across 3 manufacturing lines (expanded in FY23)
  • Flux Cored Wires: 3,600 TPA capacity across 3 lines
  • Infrastructure: 3 state-of-the-art manufacturing facilities in Bhilai, Chhattisgarh
  • Cumulative plot area: ~4,50,000 sq. ft. with land for future expansion
  • ISO 9001-2008 certified with fully-functional chemical lab

Production Trends (in tonnes)

| Year | Cored Wire | Aluminium Flipping Coil |

| FY22 | 6,705 | 1,330 |

| FY23 | 5,623 | 4,881 |

| FY24 | 4,505 | 9,925 |

| FY25 | 4,881 | 8,569 |

| FY26 | 9,925 | 7,196 |

Client Profile

  • Steel plants, fabrication units, foundries
  • 85% repeat business
  • 40% sales contribution from top 5 clients
  • 60+ clients with 10+ year relationships
  • 25+ new clients onboarded in FY26

Warehousing Capabilities

  • Cored Wires: 1,500 sq. mt. storage space, 2,000+ tonnes capacity (3 months' buffer)
  • Aluminium Flipping Coils: 2,800 sq. mt. storage space, 4,000+ tonnes capacity (4 months' buffer)
  • Flux Cored Wires: 1,000 sq. mt. storage space

Leadership & Board

Management Team

  • Anoop Kumar Bansal: Managing Director - Strategic planning, commercial ideas, execution experience
  • Sanjay Shah: Whole-Time Director - Head of Marketing, domestic business development
  • Mayur Bhatt: Whole-Time Director & CEO - Production-sales coordination, day-to-day business management

Board of Directors

  • Sunil Kumar Agarwal: Chairman & Non-Executive, Non-Independent Director (Engineering background, former Indian Railways)
  • Rama Kohli: Non-Executive, Independent Woman Director (Science and management background)
  • Sunil Dutt Bhatt: Non-Executive, Independent Director (35+ years experience in Bhilai Steel Plant, SAIL)
  • Dwadasi Venkata Giri: Non-Executive, Independent Director (Finance and banking background)

Sustainability Initiatives

Biotechnology

  • Enzymes offer sustainable alternative to traditional chemical processes
  • Growing demand for processed foods and sustainable food additives
  • Focus on reducing greenhouse gas emissions and biofuels production

Aluminum Scrap Usage

  • 75% of Aluminum Flipping Coil production uses aluminum scrap
  • Energy needed to melt aluminum from scrap is only 5% of ore reduction

Solar Power

  • 400 KW of renewable energy capacity
  • Approximately 50% reduction in electricity expenses due to captive consumption