Electrotherm (India) Limited appointed Davesh Khandelwal as Whole Time Director and Rajesh Bhalchandra Patel as Non-Executive Non-Independent Director on August 26, 2026. The Board approved both roles during its meeting held on that date. Shareholder approval is required for the final confirmation of these appointments.

The Board designated Khandelwal as an Additional Director until the next Annual General Meeting. His tenure as Whole Time Director spans three years, from August 26, 2026, to August 25, 2029. This appointment is subject to shareholder ratification.

Executive Profile

Khandelwal brings over two decades of experience across power, steel, marketing, and international trade sectors. He holds a Bachelor of Engineering in Mechanical Engineering from Bharati Vidyapeeth. His career began at Hindustan Unilever, where he developed expertise in business operations and strategy. He later served as Whole Time Director and Managing Director of Shreeyam Power and Steel Industries Limited since 2013.

Non-Executive Appointment

Rajesh Bhalchandra Patel was appointed as an Additional Director in the category of Non-Executive Non-Independent Director. He is liable to retire by rotation. Like Khandelwal, his appointment requires shareholder approval. Patel holds a Diploma in Automobile Engineering from Government Polytechnic, Ahmedabad.

Patel possesses 39 years of experience in manufacturing, business development, and operations within the electrical industries. His background includes erection, testing, design, commissioning, and maintenance of extra high voltage substations and projects up to 400 KW. He also has experience with electrical panels, switch yard projects, and power projects.

Regulatory Compliance

Both directors are not related to any other directors of the company. The company confirmed that neither individual is debarred from accessing the capital market or restrained from holding director positions in listed companies by SEBI or any other authority. The Board meeting commenced at 11:30 am and concluded at 12:40 pm.

Electrotherm (India) electrotherm reported a sharp decline in profitability for the first quarter of FY27, with standalone net profit falling to ₹6.86 crore from ₹27.67 crore in Q1FY26. While consolidated revenue from operations expanded by 9.5% year-on-year to ₹913.38 crore, the bottom line was significantly impacted by operational margins and auditor qualifications regarding loan interest provisions.

The board of directors approved the unaudited financial results on August 14, 2026. The company published these results in the Financial Express on August 15, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Alongside the financials, the company announced the allotment of 1,09,50,000 6% Non-Cumulative Redeemable Preference Shares (NCRPS) to existing shareholders, following an order from the National Company Law Tribunal (NCLT).

Financial Performance

Consolidated revenue from operations stood at ₹913.38 crore, up from ₹834.05 crore in the corresponding quarter of the previous year. Total income for the quarter was ₹914.89 crore, against total expenses of ₹906.08 crore.

Operating profitability contracted sharply. Consolidated EBITDA for the quarter was ₹225 crore, down from ₹515 crore in Q1FY26. This resulted in an EBITDA margin of 2.46%, a significant decline from 6.18% in the prior year period.

The segment-wise performance highlighted divergent trends across divisions:

The Engineering & Technologies division contributed positively with a result of ₹22.64 crore, while the Special Steel division recorded a loss of ₹8.08 crore, contrasting with a profit of ₹30.07 crore in Q1FY25. The Electric Vehicle division also posted a loss of ₹1.80 crore.

What the Numbers Show

A critical divergence exists between the reported profit and the auditor’s qualification. The independent auditor, Hitesh Prakash Shah & Co., stated that the standalone net profit is overstated by ₹40.46 crore due to the non-provision of interest on a loan classified as a non-performing asset (NPA) by Indian Overseas Bank and assigned to Rare Asset Reconstruction Limited (Rare ARC). Consequently, the actual standalone loss for the quarter would be approximately ₹33.60 crore (₹6.86 crore reported profit minus ₹40.46 crore unprovided interest). Similarly, consolidated net profit is overstated by ₹50.90 crore, implying a significant underlying loss when accounting for unprovided interest across group entities.

Corporate Actions & Litigation

The NCLT, Ahmedabad Bench, permitted the issuance of new preference shares worth ₹10.95 crore to five existing shareholders in lieu of redemption, pursuant to Section 55(3) of the Companies Act, 2013. The company will redeem shares worth ₹1.05 crore held by a non-consenting shareholder, Ahmedabad Aviation and Aeronautics Limited.

The company continues to face regulatory scrutiny. The Directorate of Enforcement (ED) has filed a complaint under the Prevention of Money Laundering Act (PMLA) against the company and its promoters, Shailesh Bhandari and Mukesh Bhandari. Additionally, the company defaulted on loan installments amounting to ₹40.00 crore plus ₹6.46 crore interest due to Invent ARC since Q3FY26. Negotiations for rescheduling are ongoing.

Going concern issues persist for subsidiaries Hans Ispat Limited and Shree Ram Electro Cast Limited, as well as joint venture Bhaskarpara Coal Company Limited, due to asset auctions and coal block de-allocation actions by respective authorities.