MSP Steel returns to profit in FY26, approves ₹500 crore expansion
MSP Steel & Power returned to profitability in FY26 with a net profit of ₹33.85 crore, reversing the previous year's loss of ₹28.71 crore, driven by reduced finance costs and deferred tax asset recognition. Revenue for the year stood at ₹2,842.96 crore. The board approved a ₹500 crore capital expenditure programme to expand its integrated steel manufacturing facilities in Raigarh, Chhattisgarh, and confirmed that ₹24.50 crore raised via convertible warrants was utilised for debt repayment without deviation.
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MSP Steel & Power returned to profitability in FY26 with a net profit of ₹33.85 crore, reversing the net loss of ₹28.71 crore reported in the previous year. The company’s board approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, at a meeting held on May 30, 2026. Revenue from operations for the year stood at ₹2,842.96 crore, slightly lower than ₹2,905.25 crore in FY25.
For the quarter ended March 31, 2026, the company reported a net profit of ₹85.31 crore, a significant turnaround from the net loss of ₹34.20 crore in the same period last year. Revenue for Q4FY26 was ₹816.32 crore. The board also approved a capital expenditure programme worth approximately ₹500 crore to expand the company’s existing integrated steel manufacturing facilities in Raigarh, Chhattisgarh. The expansion aims to enhance production capacity and improve operational efficiencies.
Financial Performance
The company’s turnaround was driven by a reduction in finance costs and the recognition of a deferred tax asset. Finance costs for the year decreased to ₹47.50 crore from ₹81.12 crore in the previous year. The board also took on record the auditors' report, which included an emphasis of matter regarding the recognition of a deferred tax asset on a deduction claimed under Section 43B of the Income-tax Act, 1961, following the conversion of Optionally Convertible Debentures into equity shares.
| Metric | FY26 (₹ in Lakhs) | FY25 (₹ in Lakhs) |
|---|---|---|
| Revenue from Operations | 2,84,296.43 | 2,90,524.78 |
| Net Profit/(Loss) | 3,385.09 | (2,870.98) |
| Total Expenses | 2,76,797.85 | 2,90,661.84 |
| Basic EPS (₹) | 0.60 | (0.62) |
Expansion and Fund Utilisation
The proposed expansion will increase the capacity of sponge iron, billet, and rolling mill products, along with an additional 22 MW power plant. The project is expected to be completed in phases, subject to statutory approvals. Additionally, the company disclosed that it had raised ₹24.50 crore through a preferential issue of convertible warrants in March 2026. The funds were utilised for unsecured debt repayment and general corporate purposes, with no deviation from the stated objects.
The statutory auditors, Singhi & Co., issued an unmodified opinion on the standalone and consolidated annual financial results. The trading window for dealing in the company's securities, which was closed since April 1, 2026, will reopen 48 hours after the declaration of the results.
Historical Stock Returns for MSP Steel & Power
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.69% | -0.93% | -4.50% | +15.32% | +45.99% | +259.64% |
How will the ₹500 crore capital expenditure programme be financed, and what impact will this have on the company's leverage ratios?
What is the expected timeline for the phased completion of the Raigarh facility expansion and the resulting increase in production capacity?
Can the reduction in finance costs be sustained in the coming years, or was it primarily driven by one-time debt restructuring activities?
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