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 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

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.