Nova Iron & Steel Limited reported a consolidated net loss of ₹1,596.89 lakh for the financial year ended March 31, 2026, marking a sharp reversal from the net profit of ₹14,879.22 lakh recorded in the previous year. The company attributed the swing to losses incurred on the disposal of charged assets following the enforcement of charges by lenders due to its inability to repay outstanding debt.

Despite the bottom-line deterioration, gross revenue from operations grew 11.93% YoY to ₹4,666.61 crore from ₹4,169.14 crore in FY25. However, this top-line growth was overshadowed by a significant exceptional item charge of ₹1,223.25 lakh related to asset disposals and write-offs, which pushed the company into a pre-tax loss position.

Financial performance overview

The company’s operational profitability before interest, depreciation, and tax (EBITDA equivalent) stood at ₹1,247.27 lakh in FY26, marginally higher than ₹1,218.32 lakh in FY25. Finance costs increased to ₹1,227.16 lakh from ₹1,104.98 lakh, while depreciation and amortization expenses rose to ₹2,235.70 lakh from ₹1,947.25 lakh. The combined impact of higher finance costs and depreciation resulted in a loss before exceptional items and tax of ₹2,215.59 lakh.

What the numbers show

A critical divergence exists between revenue growth and balance sheet stability. While revenue expanded by nearly 12%, the company’s net worth turned negative at ₹2,706.47 lakh as of March 31, 2026, compared to negative ₹1,130.00 lakh in the previous year. Current liabilities exceeded current assets by ₹10,912.66 lakh, signaling severe liquidity stress. The auditor’s report highlighted material uncertainties regarding the company’s ability to continue as a going concern, citing pending insolvency applications and provisional attachment orders by the Directorate of Enforcement.

Strategic shift and debt resolution

To address its debt liability, Nova Iron & Steel is in the process of transferring assets to lenders in compliance with an award dated November 24, 2025. This move involves the disposal of plant and machinery, including DRI Kiln and Cooler Assembly components, to Essenn Investment Private Limited. Consequently, the company has taken these assets on rent to continue manufacturing activities, which contributed to the rise in lease liabilities to ₹11,300.71 lakh from ₹139.93 lakh in the previous year.

Furthermore, the company proposes to enter the trading business for iron, metals, and steel products. This diversification strategy aims to leverage its industry experience to generate alternative revenue streams while it works to reduce its debt burden. The change requires shareholder approval via a special resolution at the upcoming Annual General Meeting.

Regulatory and legal challenges

The company faces multiple legal hurdles, including an application under Section 7 of the Insolvency and Bankruptcy Code filed by M/s M N Corporation, which remains pending before the National Company Law Tribunal. Additionally, the Directorate of Enforcement issued three provisional attachment orders under the Prevention of Money Laundering Act, attaching land and equity shares held by certain shareholders. The management stated that these orders do not affect its title to or use of assets and are being contested based on legal advice.

Nova Iron & Steel Ltd received approval from BSE Limited to reclassify three individuals from the Promoter category to the Public shareholder category. The exchange granted this no-objection on October 1, 2026, concluding the company's application process initiated earlier in June.

The move complies with Regulation 31A(8)(c) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This decision follows a fresh application submitted on September 29, 2026, which referenced an original request dated June 22, 2026. A previous application had been closed by BSE with advice to submit a new request.

Shareholders reclassified

The approval covers three individuals who currently hold no shares in the company. The table below details the shareholders involved in the reclassification process:

Regulatory context

Under SEBI regulations, entities classified as promoters must meet specific criteria regarding shareholding and control. Individuals who cease to hold shares or control may apply for reclassification to the public category to reflect their current status accurately. The company’s digital signature on the intimation confirms the submission by Company Secretary Dheeraj Kumar. The BSE letter, available on the Corporate Compliance & Listing Centre on October 3, 2026, mandates compliance with subsequent relevant disclosures of material events related to this reclassification.