Chennai Ferrous approves ₹200 crore borrowing limit hike

Chennai Ferrous Industries Limited approved a significant enhancement to its borrowing capacity during its board meeting held on August 12, 2026. The directors authorized an increase in the company's overall borrowing limits to ₹200 crore, subject to shareholder approval through a special resolution at the ensuing 16th Annual General Meeting. This decision was taken under Section 180(1)(c) of the Companies Act, 2013, allowing the company to borrow over and above its aggregate paid-up share capital and free reserves.

Alongside the borrowing limit revision, the board approved the unaudited standalone financial results for the quarter ended June 30, 2026. The results were reviewed by M/s. Aayush Bohra A & Co., the statutory auditors, who issued a limited review report confirming that the statements comply with Ind AS 34 and SEBI LODR Regulations. No material misstatements were identified in the financial data presented to the board.

The company also refreshed its internal audit framework by appointing M/s. N N Kumar & Associates, Chartered Accountants, Chennai, as its internal auditors for the financial year 2026-27. The firm holds Registration No. 0015049S.

Board Meeting Details

The board meeting commenced at 4:00 pm and concluded at 5:05 pm on August 12, 2026. Balamurugan M, Company Secretary and Compliance Officer, certified the outcomes of the meeting.

Agenda Item	Status	Details
Q1FY27 Results	Approved	Unaudited standalone results reviewed by statutory auditors
Borrowing Limits	Approved	Enhanced to ₹200 crore (subject to EGM approval)
Internal Auditors	Appointed	M/s. N N Kumar & Associates for FY27

What the Numbers Show

The approval of a ₹200 crore borrowing limit indicates the company's intent to scale its operations or manage working capital requirements more flexibly. By seeking shareholder approval for borrowing beyond paid-up capital and free reserves, Chennai Ferrous is positioning itself to leverage debt for potential growth initiatives or asset acquisitions in the coming fiscal year.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+5.24%	+2.89%	-4.81%	-14.58%	-30.75%	+375.86%

Chennai Ferrous Industries Limited reported a net profit of ₹338.22 lakh for the financial year ended March 31, 2026, a decrease from ₹401.08 lakh in the previous year. Revenue from operations for the year stood at ₹13,231.06 lakh, compared to ₹22,242.73 lakh in FY25. The board of directors approved the standalone audited financial results for the quarter and year ended March 31, 2026, at a meeting held on May 29, 2026, at the company's registered office in Gummidipoondi, Tamil Nadu.

The statutory auditors, M/s. Aayush Bohra A & Co., Chartered Accountants, issued an unmodified opinion on the standalone financial results for the year ended March 31, 2026. The results were reviewed by the audit committee and subsequently approved by the board. The company is engaged in the business of "Sponge Iron and Coal" and operates under a single reportable segment in accordance with Ind-AS 108.

Financial Performance Summary

Parameter	FY26 (₹ in Lakhs)	FY25 (₹ in Lakhs)
Income from Operations	13,231.06	22,242.73
Total Expenses	13,156.46	21,894.52
Net Profit for the Year	338.22	401.08
Earnings Per Share (EPS)	9.38	11.13

For the quarter ended March 31, 2026, the company reported a net profit of ₹197.60 lakh, with income from operations at ₹584.57 lakh. Total assets as of March 31, 2026, were recorded at ₹6,941.00 lakh, while equity share capital remained unchanged at ₹360.45 lakh. The trading window for dealing in the company's securities remained closed until 48 hours after the conclusion of the board meeting.