Manaksia Steels Limited has filed an intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, disclosing a litigation order from the High Court at Calcutta concerning land located at Haldia, West Bengal. The disclosure, dated August 11, 2026, was submitted to both BSE Limited and the National Stock Exchange of India Limited by the company's Secretary, Ajay Sharma.

Background of the Dispute

The land in question was originally held by Manaksia Limited and was transferred to Manaksia Steels Limited with effect from October 01, 2013, pursuant to a Scheme of Demerger sanctioned by the Hon'ble High Court, Calcutta vide its Order dated March 24, 2014. The company noted that the fact of this transfer has not yet been updated in the records of the concerned Statutory Authority, and accordingly, the disclosure is being made based on information received from Manaksia Limited.

The underlying dispute involves a writ petition filed by Manaksia Limited — Case No. W.P.A. No. 15313 of 2008 — before the High Court at Calcutta (Constitutional Writ Jurisdiction Appellate Side), challenging orders issued by the Chief Executive Officer of the Haldia Development Authority (HDA). The HDA, through memos dated February 05, 2008, and July 04, 2008, had directed the petitioner to pay land premium at an enhanced rate of Rs. 15 lakhs per acre for 35 acres of land, as against the previously agreed rate of Rs. 5.50 lakhs per acre.

Court Order and Financial Implications

The High Court, vide its Judgment dated July 27, 2026, directed the petitioner to deposit the remaining enhanced land premium within six weeks from the date of the order. The key details of the litigation and its financial impact are presented below:

Company's Assessment

Manaksia Steels has stated that it envisages no adverse financial implications in its working due to the imposition of the demand of Rs. 3,32,50,000. The company has also indicated that the petitioner may prefer to file an appeal against the order. The total quantum of claims stands at Rs. 3,32,50,000 (Rupees Three Crores Thirty-Two Lakhs Fifty Thousand only), consistent with the amount directed by the court.

Manaksia Steels reported a sharp rise in profitability for the first quarter of FY27, with consolidated net profit jumping 249% year-on-year to ₹226.5 crore. The surge was driven by a 51% increase in revenue from operations to ₹3,274.9 crore, reflecting robust demand for its specialty steel products. Standalone net profit also climbed 253% to ₹223.8 crore, up from ₹63.5 crore in Q1FY26.

The Board of Directors approved the unaudited financial results on August 10, 2026, during a meeting that commenced at 1:30 P.M. and concluded at 7:45 P.M. In addition to the financials, the Board granted in-principle approval for an expansion of the manufacturing facility at Haldia, West Bengal. The project, estimated at ₹800 crore, aims to produce Cold-Rolled Coil and Coated Steel in two phases, funded through debt and internal accruals. The company is also seeking special incentives under the upcoming State Industrial Policy of West Bengal.

Financial Performance Highlights

Consolidated EBITDA rose 181% to ₹372.1 crore, while standalone EBITDA increased 189.7% to ₹363.3 crore. The improvement in operating leverage contributed significantly to the bottom-line growth. Other income remained stable at ₹36.7 crore (consolidated), while finance costs decreased slightly to ₹35.6 crore compared to ₹27.5 crore in the prior year period.

Expansion Plans and Corporate Actions

The approved expansion at Haldia involves setting up a Colour Coating Line - II and a Cold Rolling Mill in Phase I. Phase II will further expand capacity in specialty steel products. The company is evaluating a 10 MW captive solar power plant to support these operations. Implementation timelines depend on the outcome of the incentive request to the State Government.

The 25th Annual General Meeting is scheduled for September 23, 2026, via Video Conferencing. The cut-off date for determining voting rights is September 16, 2026. S K Agrawal And Co Chartered Accountants LLP served as the independent auditor, issuing a limited review report on the results pursuant to Regulation 33 of the SEBI Listing Regulations.

What the Numbers Show

The disproportionate rise in net profit (249%) compared to revenue growth (50.6%) indicates significant operating leverage. EBITDA margins expanded substantially, suggesting that fixed costs were absorbed more efficiently as volume increased. This margin expansion, coupled with stable other income, highlights improved operational efficiency in the current quarter.