Sal Steel reported a net loss of ₹0.35 crore for the financial year ended March 31, 2026, narrowing from a loss of ₹6.43 crore in the previous year. Revenue from operations fell to ₹207.58 crore in FY26 from ₹544.99 crore in FY25, impacted by a planned shutdown for modernization which temporarily restricted production capacity. The board approved the audited standalone financial results for the year and quarter ended March 31, 2026, in a meeting held on May 29, 2026.

The statutory auditor, Parikh & Majmudar, issued an unmodified opinion on the results. However, the auditor emphasized that balance confirmations from suppliers, banks, and customers were awaited at the date of the audit. Additionally, the company wrote back consumption of by-products worth ₹16.09 crore during the year based on physical verification, recording this as an exceptional item in the profit and loss statement.

Board Decisions and Appointments

The board approved the appointment of M/s. NRPS & Associates LLP as the internal auditor for FY27, effective May 29, 2026. The firm, based in Ahmedabad, was appointed based on the Audit Committee's recommendation and in compliance with Section 138 of the Companies Act, 2013. Additionally, the board appointed M/s. Ashish Bhavsar & Associates as the cost auditor for FY27, subject to shareholder approval at the ensuing Annual General Meeting.

Financial Performance

Total expenses for FY26 decreased to ₹224.06 crore from ₹548.14 crore in the previous year. The company reported a loss before exceptional items and tax of ₹16.48 crore. For the quarter ended March 31, 2026, the company reported a net loss of ₹1.02 crore, with revenue from operations at ₹11.97 crore.

Funding and Corporate Actions

To support its operations, the board approved a proposal to borrow ₹50 crore via term loan from Axis Finance Limited. The funds, sanctioned on May 26, 2026, will be utilized for the repayment of an inter-corporate deposit (ICD) from AIA Engineering Limited. The loan is secured by mortgages on immovable and movable assets, as well as corporate and personal guarantees.

The company also initiated a robust modernization program for its manufacturing facilities. Following the planned shutdown, plant operations have resumed. The board further approved a change in the registered office within the local limits of Ahmedabad, shifting from Shreeji House on Ashram Road to Zion Z1 on Sindhubhawan Road.

SAL Steel has appointed M/s. Ashish Bhavsar & Associates as its cost auditor for the financial year 2026-27, subject to shareholder approval. The Board of Directors approved the appointment following a recommendation from the Audit Committee. The decision is in compliance with section 148 of the Companies Act, 2013 and the rules made thereunder.

The appointment was finalized on May 29, 2026. M/s. Ashish Bhavsar & Associates, a firm of practicing cost accountants based in Ahmedabad, holds a Firm Registration No. 000387 and Membership No. 22646. The firm offers a wide spectrum of services, including cost audit, certifications, setting up costing systems, and cost consultancy across diverse industries. It has also handled internal audit, stock and asset verification, and industry study assignments.

The appointment is contingent upon approval by the members of the company in the ensuing General Meeting. The disclosure was submitted to the exchanges in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. There are no relationships between the directors of the company and the cost auditor that require disclosure.

Details of Appointment