Abha Power and Steel Limited reported a 60.5% decline in net profit to ₹246.03 lakh for the financial year ended March 31, 2026, compared to ₹622.83 lakh in the previous year. Revenue from operations fell 11.3% to ₹6,221.51 lakh from ₹7,018.01 lakh in FY25, impacting overall profitability despite a reduction in finance costs. The company’s statutory auditors, M/s N B T & Co., issued an unmodified opinion on the audited financial results.

The Board of Directors, led by Managing Director Atish Agrawal, approved the audited financial results for the half and full year ended March 31, 2026. The meeting also reviewed the utilization of proceeds from the Initial Public Offering (IPO), confirming that funds aggregating to ₹2,683.99 lakh were fully utilized in accordance with the stated objects. The company reported no deviations or variations in the use of IPO proceeds during the period.

Financial Performance

Total income for FY26 stood at ₹6,310.91 lakh, a decrease from ₹7,082.99 lakh in the prior year. The company managed to reduce its total expenses to ₹5,973.59 lakh from ₹6,233.23 lakh in FY25. However, the cost of raw materials consumed remained high at ₹3,926.88 lakh, though it was lower than the ₹4,346.72 lakh recorded in the previous year. Finance costs also decreased to ₹170.06 lakh from ₹187.19 lakh.

For the half year ended March 31, 2026, the company reported a profit of ₹42.76 lakh, a significant drop from the ₹203.27 lakh profit recorded in the half year ended September 30, 2025. Revenue for the half year stood at ₹2,764.60 lakh. Earnings per share (EPS) for the full year declined to ₹1.32 from ₹3.94 in the previous year.

Utilization of IPO Proceeds

The company successfully utilized the net IPO proceeds of ₹2,683.99 lakh across three main categories. The allocation included funding for capital expenditure, working capital requirements, and general corporate purposes. The certificate confirming the utilization was signed by CA. Neha Nuwal, Partner at M/s N B T & Co., Chartered Accountants.

Assets and Liabilities

The company’s balance sheet size expanded to ₹8,556.18 lakh as of March 31, 2026, up from ₹7,917.72 lakh in the previous year. Shareholders' funds improved to ₹5,329.85 lakh, driven by an increase in reserves and surplus to ₹3,471.07 lakh. However, cash and bank balances depleted significantly to ₹8.33 lakh from ₹1,542.12 lakh, primarily due to heavy capital expenditure. Capital work in progress surged to ₹2,265.11 lakh from ₹711.85 lakh, reflecting the ongoing modernization efforts.

abha power and steel has announced securing a new order worth ₹1.39 Crores from Central Railway. The order, disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, involves the supply of castings as per drawings and other technical requirements. The company confirmed that the order was awarded by a domestic entity and does not involve related party transactions.

Order Details

The contract stipulates standard terms of payment and is subject to inspection and quality approval. A warranty period of up to 48 months from the date of delivery is included. The execution of the order is to be completed by June 30, 2027. The specific commercial consideration for the order amounts to ₹1,39,79,318.40.

Financial Impact

With the addition of this new contract, the company's order book stands at approximately ₹21.60 Cr as of May 21, 2026. Management indicated that this figure showcases their strong presence in the railway sector and consistent efforts to enhance market share.

Company Profile

Abha Power and Steel Limited caters to diverse industries such as Indian Railways, steel, cement, heavy engineering, mining, and power. The company operates two foundries—SG iron and steel—within a 319,200 square-foot ISO 9001:2015 certified manufacturing facility at Silpahri Industrial Area, Bilaspur. The facility also includes a captive solar power plant with a capacity of 3 MW.