Deem Roll Tech Limited has entered into a Memorandum of Understanding (MoU) with Sumitomo Heavy Industries Limited to develop High Performance Steel rolls. The agreement, signed on June 02, 2026, focuses on technical evaluation and analysis to promote mutual understanding between the parties. This strategic collaboration is intended to support product improvement and operational enhancements for both entities.

The filing was made to the National Stock Exchange of India Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure references SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Jyoti Prasad Bhattacharya, Managing Director & CEO, confirmed the development in the regulatory filing.

The scope of the business operation involves collaboration on the technical evaluation of High Performance Steel rolls. The parties will share findings to support mutual understanding and product improvement. The agreement is classified as international, involving a Japan-based industrial engineering company and an Indian manufacturer serving the steel and rolling mill industry.

There is no consideration involved in the agreement, and the MoU does not contain significant terms and conditions beyond the stated scope of collaboration. The initiative is expected to facilitate technical evaluation and knowledge sharing, potentially leading to business opportunities for both Deem Roll Tech Limited and Sumitomo Heavy Industries Limited.

Deem Roll Tech reported a 25.3% decline in net profit to ₹216.51 lakh for the financial year ended March 31, 2026, compared to ₹289.94 lakh in the previous year. The company attributed the decline in profit after tax (PAT) to increased finance costs and tax adjustments, even as operating profitability improved significantly. Revenue from operations decreased 2.2% to ₹9,088.44 lakh from ₹9,290.81 lakh in FY25, while total revenue stood at ₹9,276.99 lakh. The Board of Directors approved the audited financial results for the year and half year ended March 31, 2026, at a meeting held on May 25, 2026.

Financial Performance

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 24.2% to ₹885.79 lakh from ₹713.36 lakh in the prior year. Consequently, the EBITDA margin expanded to 9.75% in FY26 from 7.68% in FY25. Profit before tax (PBT) grew 26.6% to ₹278.37 lakh. However, the basic earnings per share (EPS) fell to ₹2.60 from ₹3.40 in the previous year.

Half-Year Performance

A review of the half-year performance reveals a sharp turnaround in the second half. For H2 FY26, the company reported a PAT of ₹264.06 lakh against a loss of ₹45.23 lakh in H1 FY26. Similarly, PBT for H2 stood at ₹324.76 lakh compared to a loss of ₹46.39 lakh in the first half. EBITDA for H2 jumped to ₹655.24 lakh from ₹230.56 lakh in H1, marking an increase of 184.2%.

Auditor's Report and Disclosures

The statutory auditors, M/s SN Shah & Associates, issued an audit report with an unmodified opinion. However, the auditors drew attention to an emphasis of matter, noting that the company has not made provision for doubtful trade receivables of ₹35.44 lakh, which are outstanding for more than one year. The auditors stated that their opinion is not modified in respect of this matter.