Asi Industries approves incorporation of subsidiary for TMT steel plant

Asi Industries Limited has received board approval to incorporate a new subsidiary, ASI Steel and Energy Limited, to establish a TMT steel plant. The decision aims to diversify the company's operations beyond its existing main business of mining and processing Kotah Stone, which the board identified as having limited expansion opportunities. The move is driven by the growth in the infrastructure industry and the rising demand for iron and steel products.

The board meeting was held on June 17, 2026, where the directors approved the proposal to subscribe to the share capital of the new entity in cash. Asi Industries will hold a 75% stake in the proposed subsidiary, while the promoters or persons belonging to the promoter group of Asi Industries will hold the remaining 25%. Consequently, upon incorporation, the new entity will be classified as a related party of the company.

The initial investment for the incorporation is capped at ₹7.5 lakh. Asi Industries will subscribe to 75,000 equity shares of ₹10 each at par, constituting its 75% shareholding. The subsidiary will operate within the iron and steel sector, specifically focusing on setting up a TMT steel plant. The company stated that no specific governmental or regulatory approvals are required beyond those of competent authorities, if necessary.

Details of the Proposed Subsidiary

Particulars	Details
Name of Entity	ASI Steel and Energy Limited
Country of Incorporation	India
Date of Incorporation	Yet to be incorporated
Industry	Iron & Steel
Line of Business	Setting up TMT steel plant
Holding Company	Asi Industries Limited
Asi Industries Shareholding	75% (75,000 equity shares of ₹10 each at par)
Promoter Group Shareholding	25%
Cost of Acquisition	₹7.5 lakh
Nature of Consideration	Subscription to share capital in cash

The disclosure regarding the incorporation is based on the board approval, but the actual formation of the subsidiary remains subject to the approval of competent authorities.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.55%	+4.21%	-2.33%	-8.59%	-24.61%	-20.96%

ASI Industries Limited announced its audited financial results for the quarter and year ended March 31, 2026, following a Board of Directors meeting held on May 18, 2026. The company reported a net profit of ₹2269.48 lakh for FY26, compared to ₹2544.92 lakh in the previous year. Revenue from operations for the year stood at ₹14941.44 lakh, lower than the ₹15476.56 lakh reported in the prior year. Total revenue for the year was ₹16894.76 lakh, against ₹17409.86 lakh in the previous year. The statutory auditors, B. L. Ajmera & Co., issued an unmodified opinion on the audited financial results.

Financial Performance

The company's profit before tax for the year was ₹3319.82 lakh, compared to ₹3722.54 lakh in the corresponding period last year. Total expenses for the year amounted to ₹13574.94 lakh, slightly down from ₹13687.32 lakh in the previous year. Earnings per share (EPS) for the year stood at ₹2.52, a decrease from ₹2.83 in the previous year. For the quarter ended March 31, 2026, net profit was ₹554.09 lakh and EPS was ₹0.62. The company operates in a single reportable segment — Mining & Processing of Natural Stone.

The table below summarises the key annual financial metrics:

Metric:	Year Ended 31.03.2026 (₹ in Lakhs)	Year Ended 31.03.2025 (₹ in Lakhs)
Revenue from Operations:	14941.44	15476.56
Other Income:	1953.32	1933.30
Total Revenue:	16894.76	17409.86
Total Expenses:	13574.94	13687.32
Profit Before Tax:	3319.82	3722.54
Net Profit:	2269.48	2544.92
Earnings Per Share (₹):	2.52	2.83

The quarterly performance for the period ended March 31, 2026 is presented below:

Metric:	Q4 FY26 (₹ in Lakhs)	Q3 FY26 (₹ in Lakhs)	Q4 FY25 (₹ in Lakhs)
Revenue from Operations:	4865.73	5070.20	4780.66
Total Revenue:	5359.98	5620.10	5408.66
Total Expenses:	4474.04	3882.34	4145.97
Profit Before Tax:	885.94	1737.76	1262.69
Net Profit:	554.09	1229.93	888.98
EPS (₹):	0.62	1.37	0.99

Balance Sheet Highlights

As at March 31, 2026, ASI Industries reported total assets of ₹42705.07 lakh, up from ₹40533.49 lakh in the previous year. Non-current assets stood at ₹28184.14 lakh, while current assets were ₹14520.93 lakh. Total equity increased to ₹36158.16 lakh from ₹35252.47 lakh. Key balance sheet figures are summarised below:

Parameter:	As at 31.03.2026 (₹ in Lakhs)	As at 31.03.2025 (₹ in Lakhs)
Total Assets:	42705.07	40533.49
Non-Current Assets:	28184.14	28349.22
Current Assets:	14520.93	12184.27
Equity Share Capital:	900.75	900.75
Other Equity:	35257.41	34351.72
Total Equity:	36158.16	35252.47
Non-Current Borrowings:	1340.11	158.32
Current Borrowings:	2795.64	2944.06

Cash Flow Summary

For FY26, ASI Industries generated net cash inflow from operating activities of ₹1572.76 lakh, a significant improvement from a net outflow of ₹336.41 lakh in the previous year. Cash generated from operations was ₹2345.51 lakh, compared to ₹678.26 lakh in FY25. Net cash outflow from investing activities was ₹1937.01 lakh, while financing activities resulted in a net inflow of ₹444.61 lakh. Cash and cash equivalents at the end of the year stood at ₹90.59 lakh, up from ₹10.23 lakh at the beginning of the year.

Dividend Declaration

The Board of Directors has recommended a dividend of Re. 0.40 (40%) per equity share of Re. 1 each for FY26, subject to approval of members at the ensuing Annual General Meeting.

Corporate Governance

During the meeting, the Board reconstituted the Audit Committee. The committee now includes Mr. Rajaram G. Agarwal as Chairman, and Mr. Padamkumar R. Poddar, Mr. Arunanshu V. Agarwal, and Mr. Tushya Jatia as members. The Board meeting commenced at 15:00 hours and concluded at 15:50 hours. The results were reviewed by the Audit Committee and approved by the Board at their respective meetings held on May 18, 2026.