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 Limited has scheduled its Annual General Meeting for FY26 on September 28, 2026. The event will take place at the company's registered office in Kolkata.

The Board of Directors approved the AGM date and the accompanying notice during a meeting held on August 21, 2026. The session commenced at 12:30 pm and concluded at 1:10 pm.

Meeting Details

The AGM is set for 10:00 am at "Avani Signature", 91A/1, Park Street, Kolkata-700 016. This location serves as the registered office of the company.

Anuj Agarwal, Director, signed the communication confirming the outcome of the board meeting. The notice was issued to the BSE Ltd. Department of Corporate Services on August 21, 2026.