MSP Steel & Power Limited has entered into a Power Purchase Agreement (PPA) with Elevate Solar Energy Private Limited to procure 10MWp (DC) of solar power annually for a term of 25 years. The agreement, executed on June 18, 2026, establishes a tariff rate of ₹3.17 per unit and is structured under the Group Captive Open Access Permissions mechanism. This strategic move is aimed at optimizing energy costs and increasing the company's consumption of renewable energy sources.

The solar power generation facility is being developed by Elevate Solar Energy Private Limited in the Baloda Bazar District of Chhattisgarh. The project has an installed capacity of 70MWp (DC) or 50MW (AC), with a contracted capacity of 10MWp (DC) specifically earmarked for supply to MSP Steel & Power Limited for captive consumption.

As part of the arrangement, MSP Steel & Power will acquire a 26% shareholding in Elevate Solar Energy Private Limited. This equity stake corresponds to the company's contracted energy or quantity, subject to terms and conditions agreed upon in a Shareholders’ Agreement that is scheduled to be executed on a later date.

The agreement encompasses comprehensive operational terms, including the commissioning date, conditions precedent, billing and payment procedures, and obligations of both parties. It also outlines protocols for force majeure, events of default, termination, dispute resolution, and arbitration, alongside standard representations and warranties.

The transaction does not involve related parties, as confirmed in the regulatory filing. The disclosure was submitted to the National Stock Exchange of India Limited and BSE Limited in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

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.

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.