Bihar Sponge Iron Limited reported a net profit of ₹1,132.28 lakh for the financial year ended March 31, 2026, representing an 8.9% increase from ₹1,039.43 lakh in the prior year. The company's revenue from operations fell 23.1% to ₹24,547.73 lakh from ₹31,941.64 lakh in FY25. Total expenses for the year stood at ₹26,162.01 lakh, down from ₹33,892.82 lakh in the previous year. The Board of Directors approved the audited financial results for the fourth quarter and the year ended March 31, 2026, at a meeting held on May 29, 2026.

Financial Performance

For the quarter ended March 31, 2026, the company recorded a net profit of ₹124.96 lakh, a decline from ₹335.79 lakh in the same period of the previous year. Revenue from operations for the quarter dropped to ₹1,691.96 lakh from ₹9,849.49 lakh in Q4 FY25. Earnings per share (EPS) for the year increased to ₹1.26 from ₹1.15 in the previous year.

Audit Qualifications

Doogar & Associates, the statutory auditors, issued a qualified opinion on the financial results. The qualification arises primarily from the non-provision of a penalty of ₹215.28 lakh recovered by South East Coalfields Ltd. regarding short lifting of coal. The company has contested this penalty, and the matter is currently under legal dispute following the dismissal of a writ petition by the Hon'ble High Court of Chhattisgarh. The amount has been included in long-term loans and advances pending final settlement.

Additionally, the auditors noted that no provision has been made for interest on a soft loan from the Government of Jharkhand amounting to ₹9,148.07 lakh. The company has approached the lender for a waiver of this interest, and the principal amount of the soft loan has been fully paid in accordance with a High Court order. The auditors also highlighted that the company has approached its promoters for a one-time settlement of loans, though the amount is neither quantified nor disclosed.

Legal and Regulatory Disclosures

The company disclosed that it received a demand notice under the Insolvency and Bankruptcy Code, 2016, from M/s Agarwal Coal Corporation Private Limited regarding an alleged unpaid operational debt. A case has been filed before the National Company Law Tribunal (NCLT), Bench at Kolkata, against Bihar Sponge Iron Limited. The company stated that the liability belongs to M/s Vanraj Steels Private Limited and that it has neither acknowledged nor admitted the claim, nor recognized any liability in this regard.

Furthermore, the company terminated a Facility User Agreement with M/s. Amalgam Steel & Power Limited dated March 23, 2026. The company noted that liabilities related to the plant operator, including dues recoverable from Vanraj Steels Private Limited, are under dispute. Management stated it does not foresee any impairment or provision against these dues, considering contractual obligations and the assessment of recoverability.

Bihar Sponge Iron Limited has announced that its board of directors will meet on Friday, May 29, 2026. The primary agenda of the meeting is to consider and approve the audited financial results for the fourth quarter and the financial year ended March 31, 2026. This intimation was made in compliance with Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Trading Window Closure

In accordance with the SEBI (Prohibition of Insider Trading) Regulations, 2015, the company has stated that the trading window for dealing in the shares of Bihar Sponge Iron Limited will remain closed. This restriction applies to all directors, promoters, key managerial personnel (KMPs), and designated persons of the company, as well as their immediate relatives. The window will stay shut until the expiry of 48 hours from the declaration of the financial results.

Meeting Details

The meeting is set to take place at the company's registered office and plant located in Umesh Nagar, Chandil, Jharkhand. The outcome of the board meeting, including the approved financial results, will be made available on the company's official website.