Key Financial Figures (₹ in Lakhs)

Income Statement:

  • Revenue from operations: 5,217.86 (Q1 FY27) vs. 33.48 (Q1 FY26) and 5,852.92 (FY26)
  • Other Income: 39.30 (Q1 FY27) vs. 11.12 (Q1 FY26) and 67.01 (FY26)
  • Total Revenue: 5,257.15 (Q1 FY27) vs. 44.60 (Q1 FY26) and 5,919.93 (FY26)
  • Total Expenses: 6,755.22 (Q1 FY27) vs. 508.96 (Q1 FY26) and 9,647.13 (FY26)
  • Loss Before Tax: (1,498.07) (Q1 FY27) vs. (464.36) (Q1 FY26) and (3,727.20) (FY26)
  • Net Loss for the period: (1,498.07) (Q1 FY27) vs. (464.36) (Q1 FY26) and (3,727.20) (FY26)
  • Total Comprehensive Loss: (1,498.07) (Q1 FY27) vs. (464.36) (Q1 FY26) and (3,732.58) (FY26)

Per Share Data:

  • Paid-up Equity Share Capital: 629.61 (Q1 FY27) vs. 496.60 (Q1 FY26 and FY26)
  • Weighted average number of equity shares: 53,02,181 (Q1 FY27) vs. 49,66,012 (Q1 FY26 and FY26)
  • Basic & Diluted EPS (₹): (28.25) (Q1 FY27) vs. (9.35) (Q1 FY26) and (75.05) (FY26)

Regulation 52 Ratios:

  • Debenture Redemption Reserve: ₹2.27 Crore (Q1 FY27) vs. ₹0.00 (FY26)
  • Net Worth: ₹2.33 Crore (Q1 FY27) vs. ₹2.72 Crore (FY26)
  • Debt Equity Ratio: 97.47 (Q1 FY27) vs. 83.47 (FY26)
  • Debt Service Coverage Ratio: (0.38) (Q1 FY27) vs. (1.17) (FY26)
  • Interest Service Coverage Ratio: (0.50) (Q1 FY27) vs. (1.44) (FY26)
  • Current Ratio: 6.79 (Q1 FY27) vs. 5.37 (FY26)
  • Operating Margin: -9.54% (Q1 FY27) vs. -30.42% (FY26)
  • Net Profit Margin: -28.71% (Q1 FY27) vs. -63.68% (FY26)

Rights Issue of Equity Shares

During the quarter, the company allotted 13,30,060 fully paid-up equity shares of face value ₹10 each at an issue price of ₹112 per share (including a premium of ₹102), aggregating to ₹1,489.66 Lakhs. The issue was offered in the ratio of 5 Rights Equity Shares for every 1 existing equity share held as on the Record Date of May 15, 2026. The shares were allotted on June 6, 2026, pursuant to a board resolution and listed on the stock exchange on June 8, 2026.

Operating Segment

The company operates in a single reportable segment: manufacturing steel products, including cold rolled steel, galvanised steel, and pre-painted steel.

Security Cover Certificate

An independent limited assurance report was issued on the security cover for Listed Secured Redeemable Non-Convertible Debentures (NCDs) with an aggregate face value of ₹16,000 Lakhs and a paid-up amount of ₹14,000 Lakhs (ISIN: INE629B07013).

Key Findings:

  • The security cover ratio was certified at 2.33 times as of June 30, 2026, against a stipulated minimum of 2.00 times.
  • The total value of securities provided was ₹35,170.33 Lakhs against outstanding debts (including interest) of ₹15,116.91 Lakhs.
  • An emphasis of matter was noted regarding the pending creation of an exclusive mortgage over leasehold land at Plot No.2, GIDC Estate, Palej, District Bharuch, Gujarat. The requisite approval from GIDC is awaited, though the value of the land (₹10,270.00 Lakhs as per a valuation report dated November 26, 2025) has been included in the security cover computation.

Statement of Deviation/Variation - NCD Proceeds

A reasonable assurance report was issued on the utilisation of proceeds from the NCD issue raised on January 1, 2026 (₹140 Crore).

Deviations Noted:

  • A deviation of ₹43.37 Lakhs was recorded under the object 'Any purpose as may be permitted by the Debenture Trustee/Debenture Holders' (original allocation: ₹800.00 Lakhs, utilised: ₹843.37 Lakhs).
  • This deviation was approved by the Debenture Trustee on January 16, 2026.
  • No deviations were noted for other objects: Repayment of Existing Phoenix Facilities (₹4,200.00 Lakhs allocated, ₹4,175.98 Lakhs utilised), Capital Expenditure (₹1,000.00 Lakhs allocated and utilised), and Working Capital Requirements (₹8,000.00 Lakhs allocated, ₹7,980.65 Lakhs utilised).

Statement of Deviation/Variation - Rights Issue Proceeds

A monitoring agency report from Infomerics Valuation and Rating Limited confirmed no deviations in the use of proceeds from the Rights Issue (₹14.89 Crore gross, ₹14.59 Crore net of issue expenses).

Utilisation as of June 30, 2026:

  • Working Capital Requirements: ₹11.59 Crore allocated and fully utilised.
  • General Corporate Purpose: ₹3.00 Crore allocated, ₹0.95 Crore utilised (remaining ₹2.05 Crore in bank).
  • The utilisation was verified by the statutory auditor, M/s. M Sahu & Co.

Financial Impact

Financial impact is quantified in the results and accompanying statements. The company reported a net loss for the quarter.

Capital Structure Impact

The rights issue increased the paid-up equity share capital from ₹496.60 Lakhs to ₹629.61 Lakhs.