Modern Steels FY26 Net Profit Falls to ₹106 Lacs
Modern Steels Limited reported a decline in net profit to ₹106 lacs for FY26 from ₹444 lacs in the previous year, with total income decreasing to ₹201 lacs. For the quarter ended March 31, 2026, net profit stood at ₹66 lacs compared to ₹453 lacs in the prior year. The company's total assets increased to ₹1,987 lacs, while cash generated from operations was ₹2 lacs.
*this image is generated using AI for illustrative purposes only.
Modern Steels Limited announced its annual audited financial results for the financial year ended March 31, 2026, following a board meeting held on May 22, 2026. The company reported a net profit of ₹106 lacs for the year, a decrease from the ₹444 lacs recorded in the previous fiscal year. Total income also saw a reduction, coming in at ₹201 lacs for FY26 compared to ₹549 lacs in FY25.
For the quarter ended March 31, 2026, the company posted a net profit of ₹66 lacs. This is a decline from the net profit of ₹453 lacs reported in the same quarter of the previous year. Total income for the fourth quarter stood at ₹93 lacs, down from ₹482 lacs in the corresponding period of the prior year. The statutory auditors issued an unmodified opinion on the financial results.
Financial Performance
The company's expenses for the full year totaled ₹95 lacs, slightly lower than the ₹105 lacs reported in FY25. Employee benefit expenses for the year were ₹40 lacs, while other expenditure amounted to ₹54 lacs. Depreciation and amortization costs were recorded at ₹1 lac for the year. The basic and diluted earnings per share (EPS) for FY26 stood at 0.77, compared to 3.23 in the previous year.
Key Financial Metrics (Amount in ₹ Lacs)
| Particulars | Year Ended 31.3.26 (Audited) | Year Ended 31.3.25 (Audited) |
|---|---|---|
| Total Income | 201 | 549 |
| Total Expenses | 95 | 105 |
| Net Profit for the period | 106 | 444 |
| Basic EPS | 0.77 | 3.23 |
Balance Sheet and Cash Flows
As of March 31, 2026, the company's total assets were valued at ₹1,987 lacs, an increase from ₹1,880 lacs in the previous year. Non-current assets primarily consisted of loans amounting to ₹1,328 lacs. Shareholders' funds stood at ₹1,889 lacs, comprising equity share capital of ₹1,440 lacs and other equity of ₹449 lacs.
The cash flow statement for the year indicates that cash generated from operations was ₹2 lacs. Cash and cash equivalents at the end of the year stood at ₹6 lacs, up from ₹5 lacs at the beginning of the year. The company noted that it does not currently have manufacturing operations, having sold its assets under a slump sale, but financial statements were prepared on a going concern basis considering future plans to start commercial activity.
Historical Stock Returns for Modern Steels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.25% | -1.36% | -2.53% | -18.35% | -17.89% | +210.69% |
What specific commercial activities or business verticals is Modern Steels Limited planning to pursue to restart manufacturing operations, and what is the expected timeline for generating meaningful revenue?
Given that non-current assets are predominantly loans (₹1,328 lacs), what is the nature and recoverability of these loans, and could potential defaults further erode profitability in FY27?
How does Modern Steels Limited plan to deploy its substantial shareholder funds of ₹1,889 lacs to improve returns, given the current minimal operational activity and near-zero cash generation?
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