Manaksia Steels has settled a litigation concerning land in Haldia, West Bengal, by depositing an enhanced premium of ₹3.325 crore with the Haldia Development Authority (HDA). The payment was made on August 21, 2026, in compliance with a July 27, 2026 order from the Calcutta High Court.

The company confirmed that the matter is now concluded, with no further amounts payable or liabilities outstanding regarding this specific dispute.

Litigation Background

The dispute originated from a writ petition filed by Manaksia Ltd against the State of West Bengal and others in the High Court at Calcutta (Case No. W.P.A. No. 15313 of 2008). The core issue involved the land premium rate for 35 acres of land situated in Haldia.

The HDA had previously demanded an enhanced rate of ₹15 lakh per acre, up from the initially agreed rate of ₹5.50 lakh per acre. This demand was based on orders issued by the CEO of the HDA in February and July 2008.

Court Order and Compliance

In its judgment dated July 27, 2026, the Calcutta High Court directed the petitioner to deposit the remaining enhanced land premium of ₹3.325 crore within six weeks. Manaksia Steels executed this payment on August 21, 2026, adhering to the court's timeline.

The land in question was transferred to Manaksia Steels from Manaksia Ltd effective October 1, 2013, following a Scheme of Demerger sanctioned by the Calcutta High Court on March 24, 2014. The litigation arose because the transfer had not been updated in the records of the concerned statutory authority.

Financial Implications

Manaksia Steels stated that it envisages no adverse financial implications on its working due to this demand. The total quantum of the claim was ₹3.325 crore, which has now been fully settled.

What the Numbers Show

The settlement resolves a legacy issue stemming from a 2014 demerger. By paying the enhanced premium difference (₹9.5 lakh per acre increase over 35 acres), the company has cleared a potential regulatory hurdle for its Haldia asset base without further financial exposure.

Manaksia Steels Limited posted a consolidated net profit of ₹22.64 crore for the quarter ended June 30, 2026, marking a 249% year-on-year surge from ₹6.48 crore in Q1FY26. The steel manufacturer’s consolidated revenue from operations rose 50.5% to ₹327.48 crore, up from ₹217.49 crore in the corresponding period last year, signaling robust demand recovery in its primary metals segment.

The results were reviewed by the Audit Committee and approved by the Board of Directors on August 10, 2026. The company’s statutory auditors carried out a limited review of the unaudited financials in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were published in Business Standard and Ekdin newspapers on August 12, 2026, under Regulation 47 of the same regulations.

Financial Performance

Consolidated EBITDA expanded significantly to ₹37.20 crore from ₹13.25 crore in Q1FY26, reflecting improved operational leverage. Profit before tax (PBT) stood at ₹30.48 crore, compared to ₹8.61 crore in the prior year period. Tax expenses were recorded at ₹7.84 crore.

On a standalone basis, Manaksia Steels reported a net profit of ₹22.37 crore, up from ₹6.34 crore in Q1FY26. Standalone revenue from operations increased 49.9% to ₹302.21 crore, while standalone EBITDA grew to ₹36.32 crore from ₹12.54 crore.

What the Numbers Show

The disproportionate growth in net profit relative to revenue highlights a significant margin expansion. While revenue grew by roughly 50%, EBITDA nearly tripled, indicating that cost efficiencies or favorable input prices contributed substantially to bottom-line growth. The consolidated entity includes wholly owned subsidiaries Federated Steel Mills Limited, Far East Steel Industries Limited, and Sumo Agrochem Limited, suggesting that operational synergies across these units may be driving the improved profitability profile.