Shah Alloys Limited reported a consolidated net profit of ₹107.73 crore for the financial year ended March 31, 2026, reversing from a net loss of ₹17.43 crore in the previous year. The turnaround was primarily driven by exceptional items totaling ₹135.60 crore, which included gains from the sale of plant and machinery, disinvestment in associate shares, and a waiver of liabilities from HDFC Bank. The company's standalone net profit for the year stood at ₹72.60 crore.

The Board of Directors, in its meeting held on May 30, 2026, approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The results were reviewed by the Audit Committee and are accompanied by an audit report from Parikh & Majmudar, Chartered Accountants. The auditors issued an unmodified opinion on the financial statements.

Financial Performance

The company's consolidated total revenue for FY26 declined to ₹39.43 crore from ₹267.28 crore in the previous year. However, the inclusion of exceptional items significantly boosted the bottom line. On a standalone basis, total revenue for the year was ₹48.29 crore, down from ₹267.28 crore in FY25. The exceptional items for the standalone entity were recorded at ₹91.61 crore.

The following table summarizes the key financial metrics for the standalone entity:

Exceptional Items and Disclosures

The exceptional items reported during the year included a profit of ₹16.92 crore from the sale of the 16-inch Rolling Mill Plant and a gain of ₹53.48 crore from the sale of plant and machinery along with technical know-how. Additionally, the company realized a gain of ₹13.98 crore from the disinvestment of shares in its associate, SAL Steel Limited. A settlement agreement with HDFC Bank resulted in a waiver of liability amounting to ₹7.24 crore, which was also recorded as an exceptional item.

The auditors highlighted a material uncertainty related to the company's status as a going concern. The Board had declared the closure of the existing Iron and Steel plant at Santej, Gujarat, in July 2025 due to technology obsolescence and increasing production costs. Consequently, the auditors stated they were unable to give an opinion on the "going concern" status, though the accounts have been prepared on that basis based on management representations.

Corporate Governance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board approved the appointment of M/s. G M C A & Co., Chartered Accountants, as the internal auditor for the financial year 2026-27. The firm, based in Ahmedabad, brings extensive experience in internal audit and statutory audits.

The company also submitted a revised outcome of the Board meeting to the exchanges on June 13, 2026, to correct a clerical error in the Consolidated Independent Auditor's Report. The word "Opinion" had been inadvertently printed as "Qualified Opinion" in the section heading, though there were no changes to the financial figures or results.

Shah Alloys Limited returned to profitability in the financial year ended March 31, 2026, reporting a net profit of ₹72.60 crore compared to a net loss of ₹27.29 crore in the previous year. The turnaround was driven by exceptional items totaling ₹91.61 crore, which included gains from the sale of assets and a waiver of liabilities. Revenue from operations for the year stood at ₹37.27 crore, a significant decrease from ₹266.52 crore in FY25, reflecting the closure of the company's Iron and Steel plant. The company published the audited financial results for the quarter and year ended March 31, 2026, in newspapers on June 2, 2026, in compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Board of Directors approved the audited standalone and consolidated financial results on May 30, 2026. The results were reviewed by the Audit Committee and are accompanied by an audit report from Parikh & Majmudar, Chartered Accountants. The auditors issued an unmodified opinion on the standalone financial results but noted a material uncertainty related to the company's ability to continue as a going concern due to the plant closure.

Exceptional Items Drive Profitability

The exceptional items for the year included a profit of ₹16.92 crore from the sale of the 16-inch Rolling Mill Plant and a gain of ₹53.48 crore from the sale of plant and machinery along with technical know-how. Additionally, the company realized a gain of ₹13.98 crore from the disinvestment of shares in its associate, SAL Steel Limited. A settlement agreement with HDFC Bank resulted in a waiver of liability amounting to ₹7.24 crore, which was also recorded as an exceptional item.

Operational Performance and Balance Sheet

Total expenses for the year decreased to ₹42.46 crore from ₹300.26 crore in the previous year, largely due to reduced operational activity following the plant shutdown. The company's total assets stood at ₹207.61 crore as of March 31, 2026, down from ₹242.66 crore a year earlier. Cash and cash equivalents decreased to ₹1.09 crore from ₹2.64 crore at the end of FY25.

Auditor's Emphasis on Going Concern

The auditors emphasized that the Iron and Steel plant situated in Gujarat was shut down in August 2025 due to technology obsolescence and rising production costs. While management stated it is exploring options in the best interest of stakeholders, the auditors expressed an inability to opine on the going concern status. Consequently, no provision for impairment of assets was made, and the accounts were prepared on a going concern basis.

Consolidated Results and Internal Auditor Appointment

On a consolidated basis, the company reported a net profit of ₹107.73 crore for FY26, compared to a net loss of ₹17.43 crore in the previous year. The Board also appointed M/s. G M C A & Co., Chartered Accountants, as the internal auditor for the financial year 2026-27. The Ahmedabad-based firm brings extensive experience in internal audit, internal financial control reviews, statutory audit, and direct and indirect taxation.

Financial Highlights for FY26