Steel Exchange India net profit rises 47% to ₹1,502.56 lakh in Q1FY27

Steel Exchange India reported a 46.89% year-on-year increase in net profit to ₹1,502.56 lakh for the quarter ended June 30, 2026. The company’s net worth expanded to ₹67,276.25 lakh, supported by a strategic capital influx of ₹14,089.50 lakh from the preferential allotment of convertible equity share warrants. Total income for the quarter stood at ₹27,070.92 lakh, while total expenses declined to ₹25,568.36 lakh, resulting in a net profit margin of 6.00%.

Financial Performance

The Board of Directors approved the standalone and consolidated unaudited financial results for the first quarter ended June 30, 2026. The company’s focus on cost efficiency and deleveraging drove profitability, with finance costs decreasing to ₹1,398.16 lakh from ₹1,889.06 lakh in the corresponding period of the previous year. The debt-equity ratio improved to 0.27x from 0.48x in Q1 FY26.

Particulars (₹ Lakhs)	Q1 FY27 (Unaudited)	Q4 FY26 (Audited)	Q1 FY26 (Unaudited)	YoY Growth (%)
Total Income	27,070.92	28,769.89	30,495.19	-11.23%
Total Expenses	25,568.36	26,207.45	29,472.31	-13.25%
Net Profit	1,502.56	1,237.04	1,022.88	↑ 46.89%
Net Profit Margin (%)	6.00%	4.00%	3.00%	↑ 220 bps
Basic & Diluted EPS (₹)	0.12	0.10	0.09	↑ 33.33%
Debt-Equity Ratio (Times)	0.27x	0.42x	0.48x	Deleveraged

Strategic Developments

During the quarter, the company allotted 2,82,97,870 equity shares upon the conversion of warrants, bringing in a premium amount of ₹3,989.99 lakh. The enhanced liquidity position is reflected in an improved Asset Coverage Ratio of 3.77x and a Current Ratio of 2.57x. The management attributed the performance to a structural transition towards a low-debt corporate platform and operational efficiencies.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.76%	-3.69%	-11.19%	+45.60%	+8.00%	+73.30%

Steel Exchange India Limited has repaid a total of ₹102 crore since December 2025, eliminating approximately 30% of its total long-term debt burden. The company disclosed this development in a regulatory filing on July 7, 2026, highlighting its strategy to become a completely debt-free enterprise in the near future.

The latest repayment involves an additional ₹16 crore towards outstanding Term Loan facilities. This follows the earlier redemption of ₹43.19 crore of Non-Convertible Debentures (NCDs) and previous term loan repayments. The cumulative reduction of ₹102 crore is attributed to robust operational cash flows and equity inflows.

Financial Performance for FY26

For the financial year 2026, steel exchange india reported a Total Income of ₹1067.00 Cr. The company achieved an EBITDA of ₹138.03 Cr and a Net Profit of ₹27.00 Cr during this period.

Metric	Amount
Total Income	₹1067.00 Cr
EBITDA	₹138.03 Cr
Net Profit	₹27.00 Cr

Strategic Impact

Management stated that the reduction in long-term liabilities will optimize finance costs and improve bottom-line margins. The company aims to maximize shareholder value through this capital structure optimization while scaling operations in the infrastructure sector.

Steel Exchange India Limited is an integrated steel manufacturer operating under the brand SIMHADRI TMT. The company is part of the Vizag Profiles Group and manufactures sponge iron, billets, and rolled products.