Welcast Steels Limited reported a net loss of ₹530.22 lakh for the financial year ended March 31, 2026, marking a significant deterioration from the net loss of ₹33.74 lakh recorded in FY25. The company permanently discontinued its manufacturing operations at its Bengaluru facility on December 15, 2025, leading management to prepare the financial statements on a non-going concern basis.

Revenue from operations fell 42% year-on-year to ₹489.74 lakh, down from ₹845.03 lakh in the previous fiscal. This decline reflects the cessation of production activities for high chrome grinding media balls, which had previously been the company's sole business segment. The company sold 4,582 metric tons of grinding media during FY26, a sharp drop from 9,650 metric tons in FY25.

Financial Performance

The company’s total income stood at ₹509.60 lakh, comprising revenue from operations and other income of ₹198.69 lakh. Total expenses amounted to ₹525.53 lakh, resulting in a loss before exceptional items and tax of ₹159.30 lakh. Exceptional expenses of ₹328.19 lakh further widened the pre-tax loss to ₹487.49 lakh. After accounting for total tax expenses of ₹42.73 lakh, the net loss for the year reached ₹530.22 lakh.

Cost of materials consumed decreased to ₹258.05 lakh from ₹510.94 lakh in FY25, while employee benefits expense fell to ₹70.69 lakh from ₹90.30 lakh. Depreciation and amortization expense was ₹6.20 lakh, down from ₹7.90 lakh in the prior year.

What the Numbers Show

The divergence between the decline in revenue (42%) and the larger decline in total expenses (39%) highlights the fixed cost burden remaining even after operational shutdown. While variable costs like material consumption dropped significantly, other expenses remained at ₹156.50 lakh, suggesting ongoing administrative or settlement costs associated with the closure. Additionally, the write-back of deferred tax assets totaling ₹68.94 lakh contributed to the tax expense line, reflecting the management’s assessment that future taxable profits are not probable.

Balance Sheet and Cash Flow

Total assets declined to ₹356.01 lakh as of March 31, 2026, from ₹476.78 lakh in the previous year. Non-current assets dropped to ₹34.50 lakh, primarily due to the revaluation of property, plant, and equipment to their fair value less costs to sell. Current assets stood at ₹321.50 lakh, with investments forming the largest component at ₹238.10 lakh.

Cash and cash equivalents decreased significantly to ₹7.70 lakh from ₹24.49 lakh in FY25. The cash flow statement shows cash generated from operating activities of ₹28.40 lakh, offset by cash used in investing activities of ₹45.15 lakh, largely due to net purchases of investments. Total equity reduced to ₹344.20 lakh from ₹397.25 lakh, reflecting the accumulated losses.

Corporate Actions

The company has no plans to restart operations in the foreseeable future. The Board of Directors did not recommend any dividend for FY26 due to the losses incurred. The 54th Annual General Meeting is scheduled for September 10, 2026, where shareholders will consider the re-appointment of Mr. Bhadresh K. Shah as a director. Statutory auditors Dagliya & Co. confirmed that the financial statements give a true and fair view on a non-going concern basis.

Welcast Steels has scheduled its 54th Annual General Meeting (AGM) for Thursday, September 10, 2026, at 11:00 A.M. The meeting will be conducted exclusively through Video Conferencing (VC) or Other Audio Visual Means (OAVM), as per the guidelines issued by the Ministry of Corporate Affairs (MCA) and the Securities and Exchange Board of India (SEBI). This virtual format ensures shareholder participation without physical presence, aligning with regulatory mandates for general meetings.

The company submitted the notice to the BSE Limited on August 7, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The AGM notice and the Annual Report for the Financial Year 2025-26 will be dispatched electronically to shareholders who have registered their email addresses with the company or their Depository Participants. Shareholders without registered email IDs will receive a letter containing a weblink and QR code to access these documents.

Key Details of the AGM

Shareholders can attend and participate in the AGM only through the VC/OAVM facility. Instructions for joining the meeting will be included in the AGM notice. Members attending via these modes will be counted towards the quorum under Section 103 of the Companies Act, 2013.

E-Voting and Document Access

The company is providing a remote e-voting facility to all members to cast votes on resolutions outlined in the AGM notice. Additionally, e-voting will be available during the meeting. The AGM notice and Annual Report for FY25-26 are also accessible on the company’s website at www.welcaststeels.com , the BSE website at www.bseindia.com , and the Central Depository Services (India) Limited (CDSL) website at www.evotingindia.com .

Shareholders holding shares in physical mode are requested to update their email IDs and mobile numbers by submitting Form ISR-1 and ISR-2, available on the company’s investor KYC page or the Registrar and Share Transfer Agent’s website. Demat account holders should update their details with their respective Depository Participants. For grievances related to e-voting, shareholders may contact Mr. Rakesh Dalvi, Sr. Manager at CDSL, via email at helpdesk.evoting@cdslindia.com or the toll-free number 1800 21 09911.