Shankara Buildpro Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26. The report, submitted to the stock exchanges, outlines the company's adherence to the National Guidelines on Responsible Business Conduct (NGRBC) and details its environmental, social, and governance (ESG) performance. The company reported a turnover of ₹6,824.65 crore and a net worth of ₹545.46 crore for the period.

The filing confirms that the Board of Directors has delegated oversight of sustainability initiatives to the Risk Management Committee. This committee, comprising three Non-Executive Independent Directors and two Executive Directors, reviews performance against business responsibility principles on a quarterly basis. Mr. C. Ravikumar, Whole-time Director, is responsible for the implementation and oversight of these policies under the guidance of the Board.

Operational and Financial Overview

Shankara Buildpro operates on a standalone basis, with its primary business activities focused on the retail and omni-channel sales of steel and building materials. The company's operations span 10 states and one union territory, with no international presence or export activities reported. The workforce consists of 925 permanent employees, with women comprising 15% of the total employee count.

Governance and Compliance

The company reported that there were no fines, penalties, or settlement amounts paid in proceedings with regulators or law enforcement agencies during FY26. It maintains a Code of Conduct and a Whistleblower Policy to ensure ethical business operations. The report also indicates that the company has not carried out an independent assessment of its policies by an external agency.

Regarding material responsible business conduct issues, the company identified water and waste management as risks with negative financial implications, while electricity conservation and ethical business conduct were noted as opportunities with positive implications. The company has implemented measures such as rainwater harvesting and energy-efficient lighting to mitigate risks and capitalize on opportunities.

Social and Environmental Performance

The report highlights that 100% of permanent employees are covered by health and accident insurance. The company spent 1% of its total revenue on well-being measures for employees. In terms of safety, there were no reported lost time injuries or recordable work-related incidents during the year. The company also confirmed that it has not received any complaints related to sexual harassment or discrimination at the workplace.

On the environmental front, the company reported zero greenhouse gas emissions (Scope 1 and Scope 2) and zero air emissions for FY26. Waste management data indicates that no plastic, e-waste, or hazardous waste was generated during the reporting period. The company's energy intensity was recorded at 11.53 MWh per ₹ crore of turnover.

Shankara Buildpro Limited reported a 30% year-on-year increase in revenue to INR 6,826 crore for the financial year 2026, driven primarily by its steel marketplace. The company’s profit after tax (PAT) for FY26 stood at INR 128 crore, a growth of 64% compared to the previous year. For the fourth quarter of FY26, revenue reached INR 1,996 crore, a 28% increase year-on-year, with PAT at INR 42 crore. The company’s Return on Capital Employed (ROCE) for FY26 was 36%, and the working capital cycle improved to 25 days.

Financial Performance

The steel business generated revenues of INR 6,220 crore, an increase of 33% year-on-year, with volumes growing by 32% to reach 10.16 lakh tonnes. The company surpassed its 1 million tonne target for the year. Non-steel business revenues were INR 606 crore for FY26, a 2% year-on-year increase. The EBITDA for FY26 was INR 228 crore, a jump of 51%, translating to an EBITDA margin expansion of 47 basis points to 3.35%.

Operational Highlights

The finance cost was controlled at 0.63% of revenue in Q4 FY26. The e-commerce division witnessed substantial growth, recording revenues of INR 22 crore, an increase of 322% year-on-year. Management noted that the FY26 PAT includes a one-time INR 2.61 crore provisioning related to labor code amendments.

Future Guidance

Shankara Buildpro is targeting a total steel volume of 1.2 million tonnes for FY27 and 1.4 million tonnes for FY28, with plans to achieve the 2 million mark by FY31. The company aims to grow its non-steel business revenues to INR 750 crore in FY27 and INR 925 crore in FY28. Management expects EBITDA margins to improve to around 4% in the medium term, driven by product mix improvement and operating leverage. The company plans to add 7 to 10 new fulfilment centers or stores in FY27.