Financial Performance Highlights (Standalone)

FY 2025-26 Financial Results:

  • Revenue From Operations: ₹46,737.09 lakhs (Previous year: ₹41,163.59 lakhs) - growth of 13.54%
  • Other Income: ₹82.81 lakhs (Previous year: ₹237.17 lakhs)
  • Total Income: ₹46,819.90 lakhs (Previous year: ₹41,400.76 lakhs)
  • EBITDA: ₹4,094.23 lakhs (Previous year: ₹2,908.59 lakhs)
  • Profit Before Tax: ₹1,401.25 lakhs (Previous year: ₹1,316.85 lakhs)
  • Tax Expense: ₹976.90 lakhs (Previous year: ₹456.42 lakhs)
  • Profit After Tax: ₹424.35 lakhs (Previous year: ₹860.43 lakhs)
  • Earnings Per Share (Basic & Diluted): ₹1.31 (Previous year: ₹2.81)
  • Paid-up Share Capital: ₹3,294.62 lakhs (Previous year: ₹3,134.62 lakhs)

Operational Performance

Production Capacity Utilization:

  • Sponge Iron: Produced 90,659.21 MT against installed capacity of 90,000 MT (100.73% utilization)
  • Steel Billets: Produced 77,099.88 MT against expanded capacity of 150,000 MT (51.40% utilization)
  • Power Generation:
  • WHRB & AFBC: 76,667,600 units (Previous year: 70,988,200 units)
  • Solar Power: 48,268,355 units (Previous year: 8,639,409 units)

Strategic Developments

Capacity Expansion:

  • Completed billet manufacturing capacity expansion from 66,000 MT to 150,000 MT per annum in June 2025
  • Commercial production commenced after receipt of Consent to Operate from Pollution Control Department

Solar Power Projects:

  • Commissioned total solar power capacity of 66.25 MWp in Chhattisgarh
  • 16.25 MWp at Gandai - fully operational
  • 50.00 MWp at Mohbhatta (13.75 MWp + 36.25 MWp) - operational from December 2025

Technology Upgradation:

  • Installing Ladle Refining Furnace (LRF), Vacuum Degassing (VD) system, Energy Management System (EMS)
  • Two Continuous Casting Machines (CCM) and sponge iron/scrap feeder system
  • Focus on producing higher-grade and value-added steel products

Capital Structure Changes

Preferential Allotment:

  • Issued 16,00,000 equity shares of ₹10 each at premium of ₹40 per share to promoters
  • Total proceeds: ₹8,00,00,000 fully utilized for development of 36.25 MWp solar power plant

Proposed Fundraising:

  • Board approved preferential issue of 16,45,000 equity shares of ₹10 each at ₹60 per share
  • To raise ₹9,87,00,000 subject to statutory and regulatory approvals
  • Approved by members through Postal Ballot results declared on 09 July 2026

Corporate Governance

Board Composition:

  • 7 Directors total: 4 Independent, 1 Whole Time Director, 1 Executive Director, 1 Non-Executive Non-Independent
  • 14 Board meetings held during FY 2025-26

Key Committees:

  • Audit Committee: Rituraj Peswani (Chairperson), Chittaranjan Parida, Yashwant Vaswani
  • Nomination and Remuneration Committee: Chittaranjan Parida (Chairperson), Satya Narayan Gupta, Rituraj Peswani
  • Stakeholders Relationship Committee: Rituraj Peswani (Chairperson), Satya Narayan Gupta, Chittaranjan Parida

Key Managerial Personnel:

  • Yashwant Vaswani (Whole Time Director)
  • Kushal Vaswani (CFO)
  • Sakshi Agrawal (Company Secretary)

Dividend and Reserves

  • Dividend: No dividend recommended for FY 2025-26 to conserve resources
  • Transfer to Reserves: 10% of profits transferred to General Reserve

Auditor Appointments

Statutory Auditors:

  • M/s Amitabh Agrawal & Co., Chartered Accountants (Firm Regn. No. 006620C)
  • Appointed for 5 years from FY 2023-24 to FY 2027-28

Cost Auditors:

  • M/s Sanat Joshi & Associates, Cost Accountants
  • Remuneration of ₹40,000 proposed for FY 2026-27, requiring shareholder ratification

Secretarial Auditors:

  • M/s Mund Bikram & Associates, Company Secretary
  • Appointed for 5 years from FY 2025-26 to FY 2029-30

Secretarial Audit Observations

Key Observations:

1. Website disclosure deficiencies - upgrading in process

2. Independent Director appointment resolution incorrectly filed as Ordinary instead of Special Resolution

3. Delayed filings with Stock Exchanges and Registrar of Companies - penalties paid

4. Q3 financial results declared on 28 February 2026 vs due date of 14 February 2026

Management Response:

  • Website migration to new platform underway
  • Examining corrective measures for resolution classification error
  • Strengthened compliance systems to prevent recurrence
  • Delay due to SAP system maintenance and technical difficulties

Related Party Transactions

Material Transactions:

  • Transactions with Kwality Foundry Industries (related party)
  • Purchase/sale of goods and services up to ₹100 crores proposed for FY 2026-27
  • All transactions at arm's length and in ordinary course of business

Director Remuneration:

  • Yashwant Vaswani: ₹1,86,39,912
  • Pawan Kumar Jha: ₹6,58,000
  • Independent Directors: Sitting fees only (₹70,000 each except Devendra Kumar Jain: ₹30,000)

CSR Activities

  • CSR Expenditure: ₹25,00,000 against requirement of ₹24,16,122
  • Focus Areas: Education, skill development, rural upliftment, healthcare, sports promotion
  • Excess spending: ₹4,37,356 available for set-off in succeeding financial years

Legal and Regulatory Matters

Contingent Liabilities:

  • GST dispute: ₹250.54 lakhs pending with Assistant Commissioner Appeal GST, Raipur
  • Bank Guarantees: ₹797.81 lakhs
  • Letters of Credit: ₹4,358.04 lakhs

SEBI/Stock Exchange Actions:

  • Multiple fines paid for various compliance violations during FY 2023-24 and FY 2024-25
  • Total fines approximately ₹15-20 lakhs across various regulations

Energy Conservation Initiatives

  • Commissioned 66.25 MWp solar power capacity
  • Using superior-grade coal to improve efficiency
  • Regular maintenance and equipment upgrades
  • Captive consumption of solar power for plant requirements

Employee Relations

  • Total permanent employees: 335
  • No material developments in human resources/industrial relations
  • Maintained cordial relations with employees at all levels
  • No sexual harassment complaints received or pending

AGM Details

  • Date: 30 September 2026
  • Time: 3:45 PM
  • Mode: Video Conferencing/Other Audio-Visual Means
  • Business: Adoption of accounts, director reappointment, auditor remuneration ratification, related party transactions approval

Credit Rating

  • Acuité Ratings: Long-term 'ACUITE BBB', Short-term 'ACUITE A3+'
  • Assigned to company's bank loan facilities