Shah Alloys FY2026 Results with Auditor Report Correction

Shah Alloys Ltd.

Board Meeting Outcomes (May 30, 2026)

The Board of Directors considered and took on record the following items:

1. Annual Audited Financial Results: Approved audited Standalone and Consolidated Annual Accounts for the financial year ended March 31, 2026, with unmodified opinion.

2. Appointment of Internal Auditor: On the recommendation of the Audit Committee, the Board approved the appointment of M/s. G M C A & Co., Chartered Accountants (Firm Registration No.: 109850W) as Internal Auditor of the company for the Financial Year 2026-27. The appointment complies with Section 138 of the Companies Act, 2013 read with Rule 13 of the Companies (Account) Rules, 2014.

The Board Meeting commenced at 15:30 hrs and concluded at 17:15 hrs.

Financial Results for Quarter and Year Ended March 31, 2026

Standalone Financial Performance (₹ in Crores)

Revenue from Operations: ₹37.27 (FY2026) vs ₹266.52 (FY2025)
Other Operating Income: ₹8.86 (FY2026) vs ₹0.00 (FY2025)
Total Revenue: ₹48.29 (FY2026) vs ₹267.28 (FY2025)
Total Expenses: ₹42.46 (FY2026) vs ₹300.26 (FY2025)
Profit/(Loss) Before Exceptional Items: ₹5.83 (FY2026) vs ₹(32.98) (FY2025)
Exceptional Items: ₹91.61 (FY2026) vs ₹0.00 (FY2025)
Net Profit/(Loss) for the Period: ₹72.60 (FY2026) vs ₹(27.29) (FY2025)
Earnings Per Share (Basic & Diluted): ₹36.67 (FY2026) vs ₹(13.79) (FY2025)
Paid-up Equity Share Capital: ₹19.80 crores

Consolidated Financial Performance (₹ in Crores)

Revenue from Operations: ₹37.27 (FY2026) vs ₹266.52 (FY2025)
Other Operating Income: ₹8.86 (FY2026) vs ₹0.00 (FY2025)
Total Revenue: ₹48.29 (FY2026) vs ₹267.28 (FY2025)
Total Expenses: ₹42.46 (FY2026) vs ₹300.26 (FY2025)
Profit/(Loss) Before Exceptional Items: ₹5.83 (FY2026) vs ₹(32.98) (FY2025)
Exceptional Items: ₹91.61 (FY2026) vs ₹0.00 (FY2025)
Net Profit/(Loss) for the Period: ₹72.60 (FY2026) vs ₹(17.43) (FY2025)
Earnings Per Share (Basic & Diluted): ₹54.42 (FY2026) vs ₹(9.96) (FY2025)

Auditor's Report Key Matters

Material Uncertainty Related to Going Concern

The company declared closure of its existing Iron and Steel plant in its board meeting dated July 21, 2025, due to technology obsolescence and increasing production costs. The plant situated at Vill. Santej, Tal. Kalol, Dist. Gandhinagar, Gujarat has been shut down, with operations closed since August 2025. Auditors are unable to give an opinion on the "going concern" status, though management represents that they are exploring various options and have prepared accounts on a going concern basis without impairment provisions.

Emphasis of Matter

1. Plant Closure: Same as going concern matter above

2. Balance Confirmations: Balance confirmations from suppliers, non-moving banks, and customers are awaited

3. Sale of 16-inch Rolling Mill: Sold for ₹17.00 crores, resulting in profit of ₹16.92 crores shown as exceptional item

4. Sale of Plant and Machinery: Sold for ₹63.00 crores (including CWIP, technical know-how & technology transfer), gain of ₹53.48 crores shown as exceptional item

5. Disinvestment in SAL Steel Limited: Through share purchase agreement dated September 4, 2025, realized gain of ₹13.98 crores shown as exceptional item

6. Settlement with HDFC Bank: Settlement agreement dated January 27, 2026 for full and final settlement of ₹18.00 crores against total liability of ₹25.24 crores, resulting in waiver of ₹7.24 crores shown as exceptional item

7. Non-availing of Insurance: On fixed assets of the company (Note 43)

8. Associate Company Inventory Write-back: SAL Steel Limited wrote back consumption of by-products worth ₹16.09 crores based on physical verification

9. Discontinuation of Equity Method: Profit of ₹43.99 crores on discontinuation of equity method for SAL Steel Limited shown as exceptional item

Financial Position as at March 31, 2026

Standalone Assets and Liabilities (₹ in Crores)

Total Assets: ₹207.61 (2026) vs ₹242.66 (2025)
Property, Plant and Equipment: ₹50.50 (2026) vs ₹57.07 (2025)
Investments: ₹48.75 (2026) vs ₹52.80 (2025)
Inventories: ₹19.35 (2026) vs ₹30.10 (2025)
Borrowings (Current): ₹59.31 (2026) vs ₹75.24 (2025)
Trade Payables (Current): ₹1.27 (2026) vs ₹70.75 (2025)

Consolidated Assets and Liabilities (₹ in Crores)

Total Assets: ₹207.61 (2026) vs ₹194.67 (2025)
Property, Plant and Equipment: ₹50.50 (2026) vs ₹57.07 (2025)
Investments: ₹48.75 (2026) vs ₹4.81 (2025)
Inventories: ₹19.35 (2026) vs ₹30.10 (2025)
Borrowings (Current): ₹59.31 (2026) vs ₹75.24 (2025)
Trade Payables (Current): ₹1.27 (2026) vs ₹70.75 (2025)