Essar Shipping Limited has secured board approval to avail loans of up to Rs 10 Crore from non-related parties Abhinand Ventures Private Limited and/or Niwas Residential & Commercial Properties Private Limited. The credit facility, repayable on demand, will be utilized to meet working capital requirements, repay various outstanding dues, and support other day-to-day business activities and general corporate purposes.

The Board of Directors granted the approval during a meeting held on Saturday, July 4, 2026. The company clarified that the entities providing the loan are Non-Related Parties. As of the announcement date, the company has not yet entered into the formal loan agreements with the lenders.

Essar Shipping indicated that once the agreements are executed, it will disseminate the requisite disclosures to the stock exchanges. These disclosures will be made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with specific SEBI circulars dated September 9, 2015, and January 30, 2026.

The following table outlines the key details of the approved loan facility:

Essar Shipping Limited reported a net profit of ₹552.73 crore for the financial year ended March 31, 2026, driven by exceptional income of ₹606.28 crore. The company's net worth improved by ₹553 crore during the year compared to March 2025, following steps such as generating cash flow from tug operations and obtaining comfort letters from group companies for interest deferment. Despite these measures, the company reported accumulated losses of ₹5,967.92 crore against share capital and reserves of ₹5,218.14 crore, indicating a material uncertainty related to its status as a going concern, as noted by statutory auditor Manohar Chowdhry & Associates.

The Board of Directors, based on the Audit Committee's recommendation, approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The meeting also approved the appointment of M/s. Shyam Malpani & Co, Chartered Accountants, as internal auditors for the financial year 2026-2027. The trading window for designated persons, which was closed from April 1, 2026, will reopen 48 hours after the results were made public.

Financial Performance

For the full year, total income from operations stood at ₹70 crore, a significant decrease from ₹313.29 crore in the previous year. Other income declined to ₹65.67 crore from ₹292.79 crore in FY25. Total expenses for the year were ₹56.56 crore, lower than the ₹98.22 crore reported in the prior year. Profit before exceptional items and tax was ₹13.45 crore, down from ₹215.06 crore in the previous year.

Exceptional items for the year included an income of ₹606.28 crore, primarily comprising the reversal of impairment on loans to a subsidiary of ₹493.21 crore and a foreign exchange gain of ₹113.08 crore. Exceptional expenses included ₹67 crore paid towards a subsidiary's One Time Settlement (OTS) as a guarantor. The auditor also drew attention to a notice received from the Serious Fraud Investigation Office (SFIO) seeking information and documents, which the management is addressing.

Consolidated Results

On a consolidated basis, the company reported a net loss of ₹112.06 crore for FY26, compared to a net profit of ₹660.08 crore in the previous year. Total consolidated income was ₹97.93 crore, down from ₹247.34 crore in FY25. The group's net worth remains eroded with accumulated losses of ₹4,989.77 crore against share capital and reserves of ₹2,916.62 crore. The consolidated financial results were prepared on a going concern basis, supported by management's assessment and steps taken to improve liquidity.