Jayaswal Neco Industries Limited reported a 118% year-on-year increase in net profit for the second quarter of FY27, reaching ₹229.81 crore. The Nagpur-based steel and casting manufacturer also logged a 23% rise in revenue from operations to ₹2,194.46 crore, signaling robust demand in its core segments.

The Board of Directors approved the unaudited financial results on October 16, 2026. The company’s performance was bolstered by improved operational efficiency and reduced finance costs. Profit before tax stood at ₹307.45 crore, up significantly from ₹142.71 crore in the corresponding quarter last year. Earnings per share (basic) doubled to ₹2.37 from ₹1.08 in Q2FY26.

Segment Performance

The Steel segment remained the primary growth driver, contributing ₹2,061.28 crore to revenue, a 24% increase over the previous year. The Iron & Steel Castings segment recorded revenue of ₹141.20 crore, showing modest growth. Segment results indicate that the Steel division generated ₹370.13 crore in profit before tax, while the Castings segment contributed ₹14.80 crore.

What the Numbers Show

A closer look at the balance sheet reveals a significant reduction in debt burden alongside rising equity. Non-current borrowings dropped sharply to ₹739.53 crore as of September 30, 2026, from ₹1,311.80 crore at the end of FY26. This deleveraging is reflected in the cash flow statement, where net repayment of non-current borrowings amounted to ₹568.37 crore during the half-year. Simultaneously, other equity increased to ₹2,345.45 crore from ₹1,870.37 crore, indicating strengthened capital reserves. The combination of higher profits and lower interest obligations suggests improved financial health and reduced leverage risk.

Regulatory and Legal Updates

The statutory auditor, Chaturvedi & Shah LLP, included an emphasis of matter regarding legal proceedings. The Directorate of Enforcement had previously attached properties worth ₹3,075.80 crore. However, the PMLA Appellate Tribunal set aside these provisional attachments, and the CBI Court discharged the company and its promoters. The Supreme Court disposed of the ED’s special leave petition, directing the matter to the Delhi High Court. The next hearing is scheduled for October 28, 2026.

Additionally, the company redeemed debentures worth ₹28.08 crore during the quarter. Subsequent to the quarter-end, Jayaswal Neco allotted warrants worth ₹200 crore to Vibrant Enterprises, with ₹50 crore received during the reporting period.

Jayaswal Neco Industries Limited has allotted 2,24,39,134 warrants to Vibrant Enterprises, a partnership firm belonging to the promoter group. This preferential issue on a private placement basis aggregates to ₹200 crore, marking a significant capital infusion for the company.

The allotment was approved by the Committee of Directors during its meeting held on October 1, 2026. This action follows the Board’s earlier approval on April 24, 2026, to create and offer these subscription warrants. The transaction complies with the Companies Act, 2013, and Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Warrant Structure and Payment Terms

Each subscription warrant carries the right to subscribe to one equity share with a face value of ₹10. The investor may exercise these rights in one or more tranches within 18 months from the date of allotment. As of the allotment date, Vibrant Enterprises has paid ₹50 crore, which constitutes 25% of the total subscription amount. The remaining balance is payable at the time of exercising the warrants.

Investor Profile and Regulatory Compliance

Vibrant Enterprises is a partnership firm comprising partners Smt. Nisha Jayaswal, Smt. Rita Jayaswal, Smt. Karishma Jayaswal, Smt. Hargunn Jayaswal, Smt. Ankita Jayaswal, Jyotikant Investments Private Limited, and Vibrant Electronics Private Limited. The company confirmed that all applicable regulatory and statutory approvals were received prior to the final allotment decision.

The Committee meeting commenced at 10:30 am and concluded at 11:10 am. The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Shareholding Impact and Dilution

Vibrant Enterprises has filed disclosures under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The entity is identified as a member of the promoter group. Prior to this acquisition, the acquirer held nil shares or voting rights. Following the allotment, the holding stands at 2,24,39,134 warrants, representing 2.26% of the equity share capital on a fully diluted basis.

The total diluted share/voting capital of the company after this acquisition is 99,34,37,378 equity shares of ₹10 each. The existing equity share capital remains at 97,09,98,244 shares, amounting to ₹9,70,99,82,440.