Regulatory Disclosure Details

Financial Performance Highlights

Q2 FY27 Consolidated Results (₹ Crore):

  • Revenue: ~₹343.35 Crore, representing 47% year-over-year growth from ₹232.91 Crore in Q2 FY26
  • Profit After Tax (PAT): ₹17.62 Crore, showing 835% year-over-year growth from ₹2.11 Crore in Q2 FY26
  • Quarterly sequential revenue growth of ~27% QoQ

H1 FY27 Consolidated Results (₹ Crore):

  • Revenue: ₹614.06 Crore, showing 14% year-over-year growth from ₹537.86 Crore in H1 FY26
  • Profit After Tax (PAT): ₹32.65 Crore, representing 265% year-over-year growth from ₹12.34 Crore in H1 FY26

Operational Milestones

Production Records:

  • Achieved all-time high quarterly re-bar production of 69,617.42 MT in Q2 FY27
  • Record monthly production in August 2026: 24,823.51 MT
  • Record monthly production in September 2026: 25,095.04 MT

Plant Optimization:

  • Operationalization of upgraded Reheating Furnace leading to optimized rolling capacity
  • Improved plant capabilities and furnace efficiency driving production records

Financial Restructuring & Capital Management

Debt Reduction:

  • Reduced total debt by approximately ₹102 Crore since December 2025
  • Significant reduction in interest expense contributing to improved profitability

Capital Infusion:

  • Fortified equity capital base through preferential allotment
  • Conversion of warrants completed to secure growth capital
  • Funds allocated for brownfield capacity optimization and working capital requirements

Strategic Initiatives & Approvals

Credit Rating Upgrade:

  • Long-term credit rating upgraded by two notches to IVR BBB+ with Stable outlook
  • Short-term credit rating upgraded to IVR A2
  • Upgrade validates strengthened financial position and lowers cost of capital

Raw Material Security:

  • Signed long-term Memorandum of Understanding (MoU) with NMDC Limited for steady iron ore procurement
  • Provides protection against raw material price volatility and margin stability

Project Approvals & Empanelments:

  • SIMHADRI TMT brand received formal approval for construction across Amaravati Capital City development
  • 5-year renewal of empanelment with Military Engineer Services (MES), Ministry of Defence
  • Ensures non-cyclical, long-term order visibility for critical infrastructure projects

Diversification Strategy:

  • Advancing proposed diversification into value-added specialty steels under Government's Production Linked Incentive (PLI) Scheme
  • Focus on import-substitution and high-margin growth opportunities

Management Commentary

The management stated that Q2 FY27 delivered a "structural profitability breakthrough" with Net Profit (PAT) surging 9-fold to ₹18 Crore against ₹2 Crore in the prior-year period. They attributed this to operational debottlenecking and financial restructuring translating directly into bottom-line earnings. The management highlighted unprecedented multi-year demand visibility through Amaravati infrastructure approvals and defence empanelment renewal, while emphasizing the company's track for sustainable, high-return growth.

Company Background

Steel Exchange India Limited (SEIL) is part of the Vizag Profiles Group and manufactures TMT rebars under the brand 'SIMHADRI TMT'. Founded in 1999, the company operates an Integrated Steel Plant & Power Unit in Vizianagaram District near Visakhapatnam with sponge iron, billet, rolling mill, and power generation capacities. The company supplies to Armed Forces and critical infrastructure projects and is diversifying into specialty steels under the PLI scheme in line with 'Atmanirbhar Bharat' vision.