Modern Steels Limited returned to profitability in the financial year ended March 31, 2026, posting a net profit of ₹106 lakh compared to a loss of ₹444 lakh in the previous year. The company’s board approved the audited financial results for the fourth quarter and the full financial year on May 22, 2026. Revenue from operations for the quarter ended March 31, 2026, stood at ₹93 lakh, while total income for the year reached ₹549 lakh.

The company, which ceased manufacturing operations after selling its assets at Mandi Gobindgarh, currently earns commission income from other activities. Despite the lack of manufacturing, the financial statements were prepared on a going concern basis due to management’s future plans to start commercial activity. Total expenses for the year decreased to ₹295 lakh from ₹66,444 lakh in the prior year, significantly contributing to the turnaround.

Financial Performance

The turnaround was driven by a substantial reduction in expenses and other income. For the quarter ended March 31, 2026, the company reported a net profit of ₹10 lakh. Basic earnings per share (EPS) for the year improved to ₹0.77 from a loss of ₹3.23 per share in the previous year. The paid-up equity share capital remained unchanged at ₹1,440 lakh.

Key Financial Metrics (Amount in ₹ Lacs)

Assets and Liabilities

The company’s total assets as of March 31, 2026, stood at ₹1,987 lakh, slightly higher than ₹1,880 lakh in the previous year. Non-current assets included loans amounting to ₹1,328 lakh. Shareholders' funds increased to ₹1,889 lakh from ₹1,783 lakh in the prior year, driven by an increase in other equity to ₹449 lakh from ₹343 lakh.

Auditor’s Report

Statutory auditor APT & Co LLP issued an unmodified opinion on the standalone financial results. The report confirms that the results give a true and fair view in conformity with Indian Accounting Standards (Ind AS). The auditor noted that the provision for deferred tax assets was not recognized due to the absence of virtual certainty regarding sufficient future taxable income. The figures for the quarter ended March 31, 2026, are derived as balancing figures between the audited annual results and the reviewed year-to-date figures up to the third quarter.

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)

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.