Company Overview
Tulsyan NEC Limited convened its 79th Annual General Meeting on September 19, 2026, to present FY26 financial results showing continued challenges but some operational improvements.
Financial Performance
The company reported a consolidated net loss of ₹643.32 crore for FY 2025-26, an improvement from the previous year's ₹725.59 crore loss. Revenue from operations declined to ₹807.55 crore from ₹868.32 crore in FY25. On a standalone basis, the net loss was ₹64.44 crore, reduced from ₹72.70 crore in the previous year. Key financial ratios showed a debt-equity ratio of 2.19 and current ratio of 0.71.
Operational Highlights
The Steel Division saw TMT sales volume decline by 4.54% to 116,767 tons due to planned capital expenditure shutdowns for plant upgrades. The Power Division achieved a 13% increase in generation following conversion from a Captive Power Plant to an Independent Power Producer model, enabling direct sales on power exchanges. The Synthetic Division expanded turnover by 18% year-over-year.
Audit Qualifications and Financial Concerns
The statutory auditors issued a qualified opinion due to the company's inability to obtain balance confirmations for trade receivables constituting 59.48% of those sought by value. The company defaulted on servicing ₹269 crore in Non-Convertible Debentures from October 2025 onward, leading to revised terms including a moratorium on coupon payments until August 2026 and extended redemption to September 2027.
Contingent Liabilities and Legal Matters
Significant contingent liabilities total ₹281.94 crore across various disputes including excise/service tax (₹123.93 lakhs), TNEB claims (₹2,312.85 lakhs), income tax (₹47.11 lakhs), VAT (₹128.52 lakhs), and duty drawback demands (₹168.18 lakhs). The company is also involved in an NCLT matter regarding payment of ₹174.01 lakhs to the IRP of Cauvery Power Generation.
Corporate Governance and AGM Agenda
The AGM agenda included adoption of financial statements, re-appointment of Director Lalit Kumar Tulsyan, and appointment of new statutory auditors M/s. SRBR and Associates LLP for a five-year term. The board also sought ratification of cost auditors' remuneration for FY26-27.
Subsidiaries and Related Parties
Wholly-owned subsidiary Chitrakoot Steel and Power registered revenue of ₹832.38 lakhs and net profit of ₹10.76 lakhs. Sapient Packing ceased to be a subsidiary effective July 2026 due to disinvestment. Significant related party transactions included sales of ₹142.18 crore to Tulsyan Smelters.
Future Outlook
The company secured a 5-year coal supply contract under the SHAKTI Scheme and will begin a long-term power supply agreement with Tamil Nadu Power Distribution Corporation in FY26-27, providing some operational stability despite ongoing financial challenges.