Step Two Corporation reported a net loss of ₹19.18 crore for FY26, a significant expansion from the ₹23.9 lakh loss recorded in FY25. The deterioration was primarily driven by a sharp rise in operating expenses and an exceptional write-off related to a long-pending bank fraud claim.

Despite the top-line growth, the company's profitability remained under pressure as expenses surged at a faster pace than revenue. The Board of Directors did not recommend a dividend for the year.

Financial Performance

Revenue from operations nearly doubled, rising 94% to ₹32.05 crore in FY26 compared to ₹13.03 crore in FY25. This growth was largely attributable to trading activities, with sales of shares and securities contributing ₹25.44 crore to the total income. Interest income also increased to ₹30.7 lakh from ₹17.1 lakh in the previous year.

However, total expenses climbed to ₹54.71 crore from ₹13.81 crore. The increase was driven by purchases of stock-in-trade amounting to ₹55.55 crore, which were partially offset by a decrease in inventory valuation of ₹14.18 crore. Other expenses, including legal fees and listing charges, totaled ₹88.8 lakh, up from ₹21.1 lakh in FY25.

What the Numbers Show

The financial results reveal a divergence between revenue generation and cost management. While revenue grew significantly due to increased trading volume, the company incurred a net loss on the sale of investments amounting to ₹67.65 lakh. Furthermore, the exceptional write-off of ₹25.02 lakh—representing a disputed bank balance from a fraud case dating back to 1997-98—directly impacted the bottom line. The company’s capital to risk-weighted assets ratio (CRAR) declined to 1.13 from 1.36 in the prior year, reflecting the impact of the accumulated losses on its equity base.

Balance Sheet and Capital Structure

As of March 31, 2026, the company’s net worth stood at ₹84.25 crore, an increase from ₹56.22 crore in the previous year. This rise was primarily due to a preferential allotment of equity shares that raised capital during the year. Cash and cash equivalents decreased sharply to ₹19.3 lakh from ₹11.98 crore, indicating significant deployment of funds into loans and investments.

Loans advanced to private sector entities stood at ₹50.68 crore, marking a substantial increase from nil in the previous year. Investments in government securities were reduced to ₹84.4 lakh from ₹16.74 lakh, while exposure to capital markets through equity shares stood at ₹14.18 crore.

Corporate Governance

The Board held six meetings during the fiscal year. Director Anuj Agarwal retires by rotation and has offered himself for reappointment at the upcoming Annual General Meeting scheduled for September 28, 2026. The statutory auditors, M.K. Kothari & Associates, issued an unmodified opinion on the financial statements but highlighted the bank fraud write-off as an emphasis of matter.

Step Two Corporation Ltd has scheduled its 32nd Annual General Meeting for September 28, 2026. The meeting will convene at its registered office in Kolkata at 10:00 am to transact ordinary business for the fiscal year ended March 31, 2026.

The primary agenda items include receiving, considering, and adopting the audited balance sheet and profit and loss account for FY26. Shareholders will also vote on the reappointment of Anuj Agarwal as a director, who retires by rotation but is eligible and offers himself for reappointment. Additionally, the meeting will address the reappointment of M/s. M.K.Kothari & Associates as statutory auditors until the conclusion of the 2029 AGM.

Meeting Logistics and Voting

The register of members and share transfer books will remain closed from September 22, 2026, to September 28, 2026. Members entitled to attend and vote may appoint proxies, subject to the provisions of Section 105 of the Companies Act, 2013. A single person can act as a proxy for no more than fifty members or hold no more than ten percent of the total share capital.

The company will facilitate remote e-voting through National Securities Depository Limited (NSDL). The e-voting period commences on September 25, 2026, at 9:00 am and concludes on September 27, 2026, at 5:00 pm. Only members whose names appear in the register as of the cut-off date, September 21, 2026, are eligible to vote. Mr. Navneet Jhunjhunwala, a practicing company secretary, has been appointed as the scrutinizer for the voting process.

Members who have cast their votes via remote e-voting may still attend the physical meeting but cannot vote again. Those attending in person who have not voted remotely may use ballot papers. The results, along with the scrutinizer's report, will be declared by the chairman and posted on the company website immediately after the conclusion of the voting process.

Additional E-Voting Information

The notice of the Annual General Meeting is displayed on the company website www.steptwo.in and the NSDL e-voting platform www.evoting.nsdl.com . Shareholders with queries regarding e-voting may contact Mr. Anuj Agarwal at (033) 66289111 or email admin@steptwo.in .