Bihar Sponge Iron Limited has issued a correction notice to BSE Limited regarding its earlier disclosure about the Facility User Agreement with Amalgam Steel & Power Limited. The company filed the correction on 26th March, 2026, to address a typographical error in its previous intimation dated 24th March, 2026.

Corrected Disclosure Details

The updated disclosure clarifies the sequence of events and operational changes at the company's facilities. Following the temporary suspension of operations that was communicated in earlier intimations dated 7th and 10th February, 2026, the company has now provided precise details about its new partnership arrangement.

Operational Transition

The corrected disclosure confirms that Bihar Sponge Iron Limited has terminated its earlier executed Facility User Agreement with M/s Vanraj Steels Private Limited and others, who had temporarily suspended operations at the company's plant. The company has now entered into a new comprehensive agreement with M/s Amalgam Steel & Power Limited for the operation of the company's Sponge Iron Plant and railway siding facilities.

Expected Benefits

According to the management, the new facility user agreement is expected to facilitate the resumption of operations and improved utilization of the plant facilities. This partnership arrangement represents the company's strategic move to restore production activities that had been disrupted under the previous agreement with Vanraj Steels.

Regulatory Compliance

The correction notice was filed pursuant to Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The document was digitally signed by Vimal Prasad Gupta, Company Secretary & Compliance Officer, ensuring proper authorization and compliance with regulatory requirements for listed entities on BSE Limited.

Bihar sponge iron Limited delivered impressive financial performance in Q3FY26, demonstrating strong operational recovery despite facing significant challenges. The company's net profit surged 229% year-on-year, reflecting improved market conditions and operational efficiency.

Financial Performance Highlights

The company's financial metrics showed substantial improvement across key parameters during Q3FY26:

For the nine months ended December 31, 2025, the company maintained strong momentum with net profit of Rs 1,007.31 lakhs compared to Rs 703.61 lakhs in the corresponding period last year, representing a 43% increase.

Operational Challenges and Facility Disruption

The company faces a significant operational setback as Vanraj Steels Private Limited, which held usage rights for manufacturing facilities under a written Facility User Agreement executed on December 30, 2020, suddenly ceased plant operations on February 6, 2026. The company received no official communication or prior notice regarding this closure and is currently seeking legal counsel to address the situation.

Ongoing Legal and Financial Matters

Bihar Sponge Iron Limited continues to navigate several complex legal and financial challenges:

Coal Penalty Dispute

The company faces a penalty of Rs 215.28 lakhs from South East Coalfields Ltd. for short lifting of coal quantity. The matter has been through multiple court proceedings, with the latest writ petition (WPC/24721 of 2025) being dismissed by the Chhattisgarh High Court on October 27, 2025. The company is preparing an appeal once the High Court Bench is reconstituted.

Soft Loan Settlement

Following a Jharkhand High Court order dated June 9, 2022, the company has fully paid the principal amount of the Government of Jharkhand soft loan through monthly payments of Rs 125 lakhs. However, interest amounting to Rs 11,672.65 lakhs remains outstanding, with only Rs 2,746.19 lakhs provided in books. The company has approached the lender for interest waiver.

Expense Management and Cost Structure

The company's expense management showed mixed results during Q3FY26:

Total expenses increased to Rs 8,946.14 lakhs from Rs 5,724.13 lakhs in Q3FY25, primarily driven by higher material costs and other operational expenses.

Corporate Governance and Compliance

The Board of Directors approved the unaudited financial results for Q3FY26 and nine months ended December 31, 2025, during their meeting held on February 10, 2026. The results have undergone limited review by statutory auditors Doogar & Associates, who issued a qualified conclusion highlighting the pending legal matters and loan settlement issues.

The company maintains its paid-up equity share capital at Rs 9,020.54 lakhs with a face value of Rs 10 per share, unchanged from previous periods.