Company Overview

Scan Steels Limited (Scrip Code: 511672) reported its audited financial results for FY25-26, demonstrating steady performance with revenue growth and strategic expansion initiatives.

Financial Performance Highlights

Standalone Results:

  • Revenue from Operations: ₹838.26 crore (FY26) vs ₹789.20 crore (FY25), representing 6.21% growth
  • Net Profit: ₹19.80 crore (FY26) vs ₹19.61 crore (FY25), marginal increase
  • Total Income: ₹839.88 crore (FY26) vs ₹793.81 crore (FY25)
  • EPS (Basic): ₹3.38 (FY26) vs ₹3.35 (FY25)
  • Net Worth: ₹441.15 crore (FY26) vs ₹417.59 crore (FY25)

Consolidated Performance:

  • Net Profit: ₹22.01 crore (FY26) vs ₹21.65 crore (FY25)
  • Share of Profit from Associates: ₹2.21 crore
  • EPS (Basic): ₹3.76 (FY26) vs ₹3.69 (FY25)

Strategic Expansion Projects

The company is executing significant capacity expansion programs:

1. MS Pipe and Structural Mill at Ramabhahal: ₹143 crore project with 2,00,000 TPA capacity, financed through ₹84 crore debt from Punjab National Bank and internal accruals

2. Melting Capacity Expansion at Budhakata: Three 20 MT Induction Furnaces and 25 MT Ladle Refining Furnace, expected commissioning December 2026

3. Revival of Scan Kai Ispat Limited: 50:50 joint venture with KAI Ispat Private Limited involving ₹221 crore investment for 300 TPD DRI capacity and 12.5 MW Captive Power Plant

Capital Structure Changes

  • Allotment of 21,44,239 equity shares on April 27, 2026, upon conversion of Optionally Convertible Redeemable Preference Shares (OCRPS)
  • Post-allotment Paid-up Capital: ₹60.75 crore comprising 6,07,46,534 equity shares
  • Received BSE listing approval on August 4, 2026 (Letter No. LOD/PREF/KS/FIP/616/2026-27)
  • Conversion of 28,31,139 Non-Convertible Preference Shares into 20,42,133 OCRPS during FY25-26

Corporate Governance & Leadership

Board Composition:

  • Mr. Rajesh Gadodia: Non-Executive Chairman
  • Mr. Ankur Madaan: Whole-Time Director
  • Mr. Praveen Kumar Patro: Executive Director
  • Independent Directors: Mr. Jitendriya Mohanty, Ms. P. Monalisha, Mrs. Sushama Anuj Yadav (all w.e.f August 8, 2025)

Key Managerial Personnel:

  • Mr. Prabir Kumar Das: Company Secretary & Compliance Officer
  • Mr. Kalyan Kiran Mishra: Chief Financial Officer

Credit Rating & Financial Position

  • CRISIL reaffirmed ratings: Long-Term Debt CRISIL BBB+/Stable, Short-Term Facilities CRISIL A2+
  • Total Assets: ₹601.45 crore (Standalone)
  • Current Ratio: 1.79, Debt Equity Ratio: 0.16
  • Debt Service Coverage Ratio: 5.75 times
  • Contingent Liabilities: ₹20.16 crore (claims not acknowledged as debts)

Annual General Meeting Details

  • Date: September 30, 2026 | Time: 10:30 AM IST
  • Mode: Video Conferencing/Other Audio-Visual Means
  • Record Date: September 23, 2026 | Book Closure: September 24-30, 2026

Agenda Items:

  • Adoption of audited financial statements for FY25-26
  • Re-appointment of Mr. Praveen Patro as Director
  • Reclassification of 1,50,00,000 OCRPS into Equity Shares
  • Ratification of Cost Auditors' remuneration

Audit & Compliance

  • Auditors: M/s. Das Pattnaik & Co., Chartered Accountants provided unqualified opinion
  • Internal financial controls found adequate and operating effectively
  • No material uncertainties about company's ability to continue as going concern
  • No fraud reported by auditors under Section 143(12)
  • Compliance with all applicable secretarial standards and regulatory requirements

Corporate Social Responsibility

  • CSR Expenditure: ₹49.09 lakh against prescribed ₹48.16 lakh
  • Focus areas: Education, Healthcare, Sports Promotion, Animal Welfare, Community Development
  • Key initiatives: Support to educational institutions, healthcare facilities, and rural infrastructure development

Shareholding & Investments

  • Promoters: 48.89% | Public: 17.96% | Corporate Bodies: 30.92%
  • Dematerialization Status: 99.63% shares in demat form
  • Significant Investments: ₹19.11 crore in Bindals Sponge Industries Ltd. (equity pending allotment)
  • Investment in Associates: ₹16.01 crore (consolidated)

Forward-looking Outlook

The company aims to achieve revenue of approximately ₹1,200 crore in FY26-27 subject to market conditions and successful commissioning of expansion projects, while managing risks related to raw material price volatility, energy costs, and regulatory changes.