Inducto Steel Ltd has submitted its quarterly compliance certificate to BSE Limited, fulfilling mandatory regulatory requirements under SEBI (Depositories and Participants) Regulations, 2018. The submission, made on April 10, 2026, demonstrates the company's continued adherence to securities market regulations.

Regulatory Compliance Certificate Details

The certificate was issued by MUFG Intime India Private Limited (formerly Link Intime India Private Limited), which serves as the company's Registrar and Share Transfer Agent. The compliance confirmation covers the quarter ended March 31, 2026, as required under Regulation 74(5) of the SEBI regulations.

Certificate Confirmation Details

MUFG Intime India Private Limited confirmed several key compliance aspects in their certificate. The registrar confirmed that securities received from depository participants for dematerialisation during the quarter were properly processed within prescribed timelines. The certificate also verified that all security certificates received for dematerialisation were confirmed or rejected appropriately.

The registrar further confirmed that security certificates were mutilated and cancelled after due verification by the depository participant. Additionally, the names of the depositories were substituted in the register of members as registered owners within the mandated timeframes.

Corporate Communication

The submission was signed by Diana Palia, Company Secretary and Compliance Officer of Inducto Steel Ltd, with membership number A40554. The communication was addressed to BSE Limited's Corporate Relations Department at Dalal Street, Mumbai. The certificate from MUFG Intime India Private Limited was signed by Ashok Shetty, Sr. Vice President-Corporate Registry.

Regulatory Framework

This quarterly submission forms part of the ongoing compliance requirements under SEBI's regulatory framework for depositories and participants. The regulation ensures proper handling of securities dematerialisation processes and maintains transparency in securities market operations. Such regular compliance confirmations help maintain investor confidence and regulatory oversight in the securities market.

Inducto Steel Limited has received credit rating reaffirmation from Acuite Ratings and Research Limited, maintaining its position in the ship breaking and steel trading sector. The rating agency, through its press release dated March 19, 2026, has reaffirmed the company's credit ratings across its banking facilities.

Credit Rating Details

Acuite Ratings has maintained its assessment of Inducto Steel's creditworthiness across different facility types:

The rating reaffirmation factors the company's established presence in the ship breaking and steel trading business, supported by the promoters' extensive industry experience spanning over three decades.

Financial Performance Analysis

The company demonstrated robust revenue growth in FY2025, with significant changes in its operational metrics:

The revenue improvement was primarily driven by increased availability of vessels for breaking and a sharp surge in traded steel sales, which rose to Rs. 109.09 crore in FY2025 from Rs. 31.51 crore in FY2024. However, the company reported an EBITDA loss of Rs. 2.31 crore due to lower steel realisations and increased trading operations.

Operational Strengths and Challenges

The rating agency highlighted several key factors supporting the reaffirmation. The promoters' established presence in the ship recycling industry provides strong operational familiarity and market access at Alang, a key ship-breaking hub. The company currently has two vessels named Kosta and Bodha under dismantling, providing near-term revenue visibility.

However, the assessment also identified areas of concern. The financial risk profile remains moderate with a reduced net worth of Rs. 39.49 crore as of March 31, 2025, compared to Rs. 43.21 crore in FY2024. Working capital operations remained moderately intensive, with gross current asset days at 62 days in FY2025.

Business Operations and Market Position

Incorporated in 1988, Inducto Steel Limited operates as a BSE-listed company engaged in ship breaking and steel processing activities in the Alang-Sosiya belt of Bhavnagar, Gujarat. The company operates on a 2,385 sq. m plot with a 45-meter frontage, leased from Gujarat Maritime Board, and also trades in steel products.

The company's operations remain susceptible to ship availability and volatile steel prices, with geopolitical factors often restricting vessel inflow. Despite these challenges, the rating agency noted that liquidity remains adequate, supported by the absence of long-term debt obligations and moderate current ratio of 1.58 times as of March 31, 2025.

Rating Outlook and Sensitivities

The stable outlook reflects expectations for gradual improvement in profitability with steel price stabilisation. The rating remains sensitive to the company's ability to improve profitability, maintain cost discipline, and efficiently manage its working capital cycle amid volatile market conditions.

Potential upward rating triggers include increase in operating income and margins, along with generation of net cash accruals above Rs. 7 crore. Conversely, downward pressure could arise from absence of operational revival with net cash accruals falling below Rs. 2.50-3.00 crore or significant additional investments in group companies.

Source: None/Company/INE146H01018/316610c5-ae80-4c36-861d-474dd3beac21.pdf