Scan Steels Limited reported a consolidated net profit of ₹130 Mn for the quarter ended June 30, 2026 (Q1FY27), marking a 29% year-on-year increase from ₹100 Mn in Q1FY26. Revenue from operations rose 11% YoY to ₹2,578 Mn, supported by higher TMT realizations and an improved value-added product mix. The company’s EBITDA expanded by 21% YoY to ₹235 Mn, with the EBITDA margin widening to 9.1% from 8.3% in the corresponding period last year. This performance underscores stronger operational efficiency and cost management within its integrated steel manufacturing facilities, directly benefiting shareholder value through enhanced profitability.

The Board of Directors approved the unaudited consolidated financial results on July 28, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Das Pattnaik & Co., the statutory auditors, issued a limited review report confirming that the financial statements disclose all required information without material misstatement. The company maintains CRISIL BBB+/Stable long-term and A2+ short-term credit ratings.

Financial Performance Highlights

Revenue declined 8% quarter-on-quarter to ₹2,578 Mn from ₹2,817 Mn in Q4FY26, primarily due to subdued volumes offsetting improved realizations. However, profit after tax surged 87% QoQ to ₹130 Mn from ₹69 Mn, reflecting robust operating leverage and disciplined cost control. Gross profit remained stable at ₹705 Mn, while gross margin contracted slightly to 27.3% from 30.1% in Q1FY26.

Diluted earnings per share (EPS) rose 22% YoY to ₹2.18 from ₹1.79. The improvement in profitability was further aided by benefits from hot charging and reduced finance costs relative to operational scale.

Operational Updates

Total production stood at 121,692 MT during Q1FY27, registering an 8% quarter-on-quarter growth. Sponge iron production increased 12% QoQ to 33,490 MT, while billets rose 3% to 39,212 MT. TMT production grew 10% QoQ to 48,990 MT. On a year-on-year basis, sponge iron and TMT production increased by 2% and 5%, respectively. TMT sales volumes recorded an 8% YoY growth to 43,692 MT, driven by healthy market demand and the strength of its SHRISHTII TMT brand. Billet production remains primarily for captive consumption.

What the Numbers Show

The divergence between the 8% sequential decline in revenue and the 87% surge in net profit highlights significant operating leverage. While top-line growth slowed QoQ due to volume adjustments, the company successfully protected margins through cost efficiencies and hot charging benefits. The expansion of EBITDA margin to 9.1%, up from 4.9% in the previous quarter, indicates that fixed costs are being spread over a more efficient operational base, enhancing resilience against short-term volume fluctuations.

Strategic Outlook

Rajesh Gadodia, Chairman, stated that the strong start to FY27 was supported by higher TMT realizations and an improved product mix. The company is progressing with its strategic capex program across three themes: expanding billets capacity, adding downstream Pipe/Galvanizing/Wire Rod facilities, and developing an integrated steel ecosystem including pellet plants and captive power. These initiatives aim to enhance value addition and support the company’s Vision 2031.

Scan Steels Ltd has scheduled a virtual one-on-one meeting with Motilal Oswal Principal Investments (MOPI) - Prop Fund on June 30, 2026. The interaction is set to begin at 11:00 AM IST. The company stated that no unpublished price sensitive information (UPSI) will be shared during this meeting.

The disclosure was made to the BSE Limited pursuant to Regulation 30 of the Securities and Exchange Board of India (LODR) Regulations, 2015. The schedule for the meeting is subject to change due to exigencies on the part of the investor, broking house, or the company.

Meeting Details

The following table outlines the schedule for the upcoming interaction:

Prabir Kumar Das, Company Secretary & Compliance Officer, signed the disclosure on behalf of scan steels . The communication was addressed to the General Manager-Listing Department of Corporate Services at BSE Limited.