Essar Shipping Limited has submitted its yearly disclosure under Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 for the financial year ended March 31, 2026. The filing confirms that promoters, along with persons acting in concert, have not created any encumbrance over the shares held by them directly or indirectly during FY26. The disclosure was submitted to the BSE Limited and National Stock Exchange of India Limited on April 10, 2026, by Habib Jan, Company Secretary & Compliance Officer.

A significant change in the promoter group structure was highlighted in the letter from Imperial Consultants and Securities Limited. The entity stated that following the approval of a Resolution Plan, CITOC Ventures Private Limited acquired Imperial Consultants and Securities Limited. The National Company Law Tribunal (NCLT), Division Bench - I, Chennai, issued an order to this effect on September 16, 2025. Consequently, Imperial Consultants and Securities Limited may no longer be considered part of the promoters' group or persons acting in concert with respect to Essar Shipping Limited.

The company has requested the exchanges to place the disclosures on record. The filing includes the formal declaration from the promoters confirming the status of their shareholding and the legal notification regarding the change in promoter group composition.

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.