Shah Alloys Limited has announced that its board of directors will meet on Saturday, May 30, 2026. The primary agenda for the meeting is to consider and approve the audited standalone and consolidated financial results of the company for the quarter and financial year ended on March 31, 2026. The board will also transact other business during the session.

Trading Window Closure

In accordance with the company's Code of Conduct framed under the SEBI (Prohibition of Insider Trading) Regulations, 2015, the trading window for dealing in the company's shares is closed. This restriction applies to persons specified under the code and has been in effect since April 1, 2026. The window will remain closed until 48 hours after the audited financial results are approved by the board and filed with the stock exchanges.

Meeting Details

The intimation regarding the board meeting was submitted to BSE Limited and the National Stock Exchange of India Ltd. The company has requested the exchanges to take the information on record and acknowledge receipt of the same.

Shah alloys Limited delivered a strong financial turnaround in the third quarter of FY26, reporting a net profit of Rs 35.22 crores compared to a loss of Rs 15.26 crores in the corresponding quarter of the previous year. The company's performance was significantly driven by exceptional gains from strategic asset disposals.

Financial Performance Overview

The company's quarterly results showed mixed operational trends with substantial one-time gains masking underlying challenges:

For the nine-month period ended December 31, 2025, the company reported a net profit of Rs 68.15 crores against a loss of Rs 7.93 crores in the corresponding period of FY25.

Major Asset Disposals Drive Exceptional Gains

The company's exceptional performance was primarily attributed to two significant transactions during the quarter:

Plant and Machinery Sale: Shah Alloys sold its plant and machinery, including capital work in progress, along with technical know-how and technology transfer for a consideration of Rs 6300.00 lakhs. This transaction generated a gain of Rs 5347.68 lakhs, which was recorded as an exceptional item.

Disinvestment in Associate: The company divested its stake in associate SAL Steel Limited through a share purchase agreement dated September 4, 2025. The realized gain from this disinvestment amounted to Rs 1398.41 lakhs, also treated as an exceptional item.

Plant Closure and Going Concern Issues

In a significant strategic decision, Shah Alloys announced the closure of its existing iron and steel plant in a board meeting dated July 21, 2025. The closure was necessitated by:

• Technology obsolescence
• Increasing higher production costs
• Persistent losses over the past couple of years
• Draining of company resources

The iron and steel plant situated at Village Santej, Taluka Kalol, District Gandhinagar, Gujarat, has been shut down since August 2025. The auditors have expressed uncertainty regarding the company's going concern status, though management is exploring various options in stakeholders' interests.

Operational Challenges and Qualified Audit Opinion

The company's financial results received a qualified audit opinion due to several accounting issues:

Revenue from operations declined dramatically to Rs 10.29 crores in Q3FY26 from Rs 51.90 crores in Q3FY25, reflecting the impact of plant closure and reduced business activities.

Earnings and Share Performance

Despite operational challenges, the company reported strong earnings per share metrics driven by exceptional gains:

• Basic EPS for Q3FY26: Rs 17.79 compared to loss of Rs 7.70 in Q3FY25
• Nine-month basic EPS: Rs 34.42 versus loss of Rs 4.00 in the previous year
• Paid-up equity share capital remained at Rs 1.98 crores

The company's total comprehensive income after adjusting for other comprehensive income stood at Rs 34.58 crores for the quarter, demonstrating the significant impact of asset monetization on overall financial performance.