Company Overview
Sunflag Iron and Steel Company Limited (CIN: L27100MH1984PLC034003) reported strong financial performance for FY2025-26, with significant growth in both revenue and profitability. The company operates in the special steel manufacturing sector with its primary facility located in Bhandara, Maharashtra, and is listed on both NSE and BSE.
Financial Performance Highlights
Revenue Growth: The company achieved 11.37% revenue growth to ₹3,955.75 crore (₹3,939.38 crore in consolidated terms) compared to previous year's ₹3,535.59 crore. Revenue from operations stood at ₹3,93,938 lakh, driven by domestic sales (97.2%) and exports (2.8%).
Profitability Surge: Profit before tax increased by 41.47% to ₹299.11 crore (₹29,911 lakh), while net profit attributable to equity shareholders reached ₹200.66 crore (₹20,237 lakh), representing a 25% year-over-year increase. Earnings per share improved to ₹11.13 (basic and diluted) from ₹8.98 in the previous year.
Exceptional Items: The company recognized an exceptional item of ₹870 lakh due to the impact of new labor codes (notified on November 21, 2025) on gratuity and leave liability provisions.
Corporate Actions & Dividend
Dividend Declaration: The Board recommended a final dividend of ₹1 per equity share (10%) on the face value of ₹10 per share, subject to shareholder approval at the 40th Annual General Meeting. The record date is set for September 11, 2026, with payment expected on or after September 29, 2026.
Credit Rating: CRISIL assigned enhanced ratings of AA-/Stable for long-term bank facilities of ₹1,176.35 crore and A1+ for short-term facilities of ₹673.65 crore, totaling ₹1,850 crore in rated facilities.
Corporate Governance & Compliance
Board Composition: Key management changes included the appointment of Mukund Prabhakar Chaudhari as Non-executive Independent Director for a 40-month term and the re-appointment of Ramchandra Vasant Dalvi as Director (Technical) and Key Managerial Personnel for three years.
Regulatory Compliance: The company faced penalties of ₹8,000 each to BSE and NSE (total ₹16,000) for delays in submitting the Annual Secretarial Compliance Report for FY2024-25. All necessary compliance certificates were obtained, including CEO/CFO certification and corporate governance compliance confirmation.
Shareholding Pattern: As of March 31, 2026, foreign promoters held 45.53% (8,20,61,261 shares), Indian promoters 5.62% (1,01,33,565 shares), with 62.74% of shares held in dematerialized form. The IEPF Authority held 2.42% (43,64,550 shares).
Operational & Financial Position
Production Metrics: The company reported production of 1,56,397 MT from Direct Reduction Plant, 4,97,506 MT steel melting, 4,67,540 MT rolled products, and 1,03,860 MT coal production, with power generation of 1,577.16 lakh kWh.
Financial Position: Total assets stood at ₹11,279.46 crore with equity of ₹8,865.41 crore. Borrowings included non-current liabilities of ₹56.82 crore and current borrowings of ₹413.45 crore, while cash and bank balances amounted to ₹228.27 crore.
Key Ratios: The company maintained healthy financial ratios with inventory turnover at 2.60 times, interest coverage ratio of 5.06 times, current ratio of 1.47 times, and debt equity ratio of 0.05 times. Operating profit margin was 9.01% with net profit margin of 5.09%.
Corporate Social Responsibility
CSR expenditure of ₹3.78 crore was incurred through Sunflag Foundation, focusing on rural development, healthcare, education, and environmental sustainability, against the prescribed expenditure of ₹4.63 crore (2% of average net profit).
Annual General Meeting
The 40th AGM is scheduled for September 25, 2026, at 12:00 PM IST through video conferencing, with book closure from September 12-25, 2026, and e-voting available from September 21-24, 2026.