CNGSN & ASSOCIATES LLP, Chartered Accountants, issued a review report on the standalone and consolidated unaudited financial results of Tulsyan NEC Limited for the quarter ended 30th June 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The results were reviewed by the Audit Committee and approved by the Board of Directors at a meeting held on 10th August 2026.

Standalone Financial Performance (Rs. in Lakhs)

For the quarter ended 30-Jun-26:

  • Net Sales/Income from operations: ₹13,943.46 Lakhs (compared to ₹23,295.70 Lakhs in Q1 FY26)
  • Other Income (Net): ₹6.82 Lakhs
  • Total Income: ₹13,950.28 Lakhs
  • Total Expenses: ₹17,035.24 Lakhs
  • Cost of materials consumed: ₹13,054.87 Lakhs
  • Employee benefit expenses: ₹545.88 Lakhs
  • Power & Fuel: ₹1,755.51 Lakhs
  • Finance costs: ₹1,969.87 Lakhs
  • Depreciation and amortization: ₹543.94 Lakhs
  • Other expenses: ₹725.14 Lakhs
  • Profit before tax: Loss of ₹3,084.96 Lakhs (compared to a loss of ₹1,100.35 Lakhs in Q1 FY26)
  • Net profit for the period: Loss of ₹3,084.96 Lakhs
  • Total comprehensive income for the period: Loss of ₹3,084.96 Lakhs
  • Paid-up equity share capital: ₹1,646.14 Lakhs (Face value per share: ₹1000)
  • Earnings per share (Basic & Diluted): -₹18.74 (not annualized)

Year-to-date (1st April 2026 to 30th June 2026) figures are identical to the quarterly figures as it is the first quarter.

Consolidated Financial Performance (Rs. in Lakhs)

For the quarter ended 30-Jun-26:

  • Net Sales/Income from operations: ₹14,669.58 Lakhs
  • Other Income (Net): ₹1,079.90 Lakhs
  • Total Income: ₹15,749.48 Lakhs
  • Total Expenses: ₹17,890.55 Lakhs
  • Profit before tax: Loss of ₹2,141.07 Lakhs
  • Net profit for the period: Loss of ₹2,141.07 Lakhs
  • Total comprehensive income for the period: Loss of ₹2,141.07 Lakhs
  • Paid-up equity share capital: ₹1,646.14 Lakhs (Face value per share: ₹1000)
  • Earnings per share (Basic & Diluted): -₹13.01 (not annualized)

The consolidated results include the following subsidiaries:

1. Chitrakoot Steel and Power Private Limited (Wholly-Owned Subsidiary)

2. Sapient Packing Private Limited (Subsidiary)

The auditor noted that the interim financial information of subsidiaries, reflecting total revenues of ₹742.49 lakh and total net profit of ₹943.89 lakh for the quarter, was not reviewed by their auditors and was considered not material to the Group.

Segment-Wise Reporting (Standalone)

Revenue from operations (Q1 FY27):

  • Steel Division: ₹12,576.20 Lakhs
  • Synthetic Division: ₹1,152.17 Lakhs
  • Power: ₹215.09 Lakhs

Segment Results (Profit/Loss before tax and finance cost) (Q1 FY27):

  • Steel Division: Loss of ₹327.15 Lakhs
  • Synthetic Division: Profit of ₹23.17 Lakhs
  • Power: Loss of ₹811.11 Lakhs

Key Notes and Emphasis of Matter from Auditor

1. NCD Restructuring: The terms of the Non-Convertible Debentures were revised. An agreed moratorium for coupon payments is in effect from 1st April 2026 till 31st August 2026. These deferred payments will be compensated by ramped-up coupon amounts subsequently on a monthly basis. The final redemption date has been revised to 30th September 2027. The entire principal amount, along with coupon, redemption premium (to meet an agreed Total IRR), and outstanding default/penal interest and other costs, are proposed to be paid at the final redemption date.

2. Power Plant Shutdown: The power plant was under shutdown for most of the quarter ended 30th June 2026, except for 4 days of startup power requirement.

3. New Fuel Supply Agreement: The company entered into a fuel supply agreement dated 12th May 2026 with Mahanadi Coalfields Limited (a subsidiary of Coal India Limited) for the purchase and supply of coal for power generation. The arrangement is expected to ensure a stable supply of coal in the upcoming years at a comparatively lower cost than the imported coal procured previously.

4. Business Segments: The company operates in three segments: Steel Division, Synthetic Division, and Power.

The auditor's conclusion on both the standalone and consolidated results was not modified in respect of these matters.