MSTC Limited reported a standalone net profit of ₹22,168.87 lakh for the financial year ended March 31, 2026, a decrease from ₹40,298.09 lakh in the previous year. Revenue from operations for the year rose to ₹36,965.66 lakh from ₹31,095.96 lakh in FY25. The Board of Directors has recommended a final dividend of ₹8.10 per equity share, or 81% of the paid-up capital, subject to shareholder approval at the Annual General Meeting.

Financial Performance

For the quarter ended March 31, 2026, the company recorded a standalone net profit of ₹7,580.32 lakh, compared to ₹6,707.09 lakh in the corresponding period of the previous year. Total income for the quarter stood at ₹15,036.89 lakh, driven by revenue from operations of ₹11,879.72 lakh and other income of ₹3,157.17 lakh. On a consolidated basis, net profit for the year was ₹21,843.32 lakh, while quarterly profit was ₹7,722.37 lakh.

Key Highlights and Disclosures

The statutory auditors, M/s. S Guha & Associates, issued an unmodified opinion on the audited financial results. The financial statements include an impairment loss of ₹144 lakh regarding the company's investment in Mahindra MSTC Recycling Private Limited (MMRPL), bringing the cumulative impairment loss to ₹1,150 lakh. Other income includes a write-back of liabilities ageing more than five years amounting to ₹1,471.19 lakh. Additionally, employee benefit expenses increased by ₹238.17 lakh due to an enhancement in the gratuity limit.

During the previous financial year 2024-25, the company sold its wholly owned subsidiary, Ferro Scrap Nigam Limited (FSNL), to Konoike Transport Co. Ltd. for ₹32,000 lakh. The investment value was ₹1,581 lakh, and transaction costs incurred were ₹249.81 lakh. Pursuant to the Share Purchase Agreement dated October 24, 2024, MSTC transferred its entire shareholding in FSNL on January 21, 2025, after which FSNL ceased to be a subsidiary.

Board Decisions and AGM

The Board approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The Annual General Meeting is scheduled for September 24, 2026, via video conferencing. The Board also gave preliminary consent for altering the objects clause of the Memorandum of Association to include travel agency and tour operator businesses, subject to administrative ministry and shareholder approvals.

BSE has imposed a fine of Rs 5.31 lakh on MSTC Limited for non-compliance with board composition requirements for the quarter ended March 31, 2026. The penalty, levied under Regulation 17(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, relates to the composition of the company's Board during Q4FY26. The exchange communicated the decision via email on May 27, 2026.

MSTC clarified that it is a Mini Ratna Category-I PSU under the administrative control of the Ministry of Steel. The company stated that the power to appoint Directors, including Independent Directors, vests with the President of India. Consequently, all Directors are appointed by the Government of India through the Ministry of Steel, and MSTC has no role in these appointments unless nominated by the government.

The company asserted that the non-compliance was not due to any negligence or default by its management and was beyond its control. Management noted that continuous efforts are being made to follow up with the Ministry of Steel for the appointment of independent directors. However, the desired nominations have not been received to date. In light of these circumstances, MSTC has requested the stock exchanges to waive the fine.

The disclosure was signed by Ajay Kumar Rai, Company Secretary & Compliance Officer. MSTC confirmed that the imposed fine has no impact on the financial, operational, or other activities of the company.