Hariaksh Industries Pledges 1.7 Crore Shares of Jai Balaji Industries to Tata Capital

Hariaksh Industries Private Limited, a significant shareholder of Jai Balaji Industries , has pledged a portion of its holdings as collateral for a third-party loan. The move, disclosed in a recent filing, highlights the intricate financial arrangements within the corporate landscape.

Key Details of the Pledge

Pledged Shares: 1,70,00,000 (1.7 crore)
Percentage of Total Share Capital: 1.86%
Pledge Recipient: Tata Capital Limited
Date of Pledge Creation: October 27, 2025
Purpose: Collateral for a loan taken by a third party

Shareholding Structure

Hariaksh Industries holds a substantial stake in Jai Balaji Industries, with its total shareholding amounting to 16 crore shares, representing 17.54% of the company's total share capital. This recent pledge affects only a fraction of their overall holding.

Promoter Group Encumbrances

The disclosure provides a comprehensive view of the current encumbrance status across the promoter group:

Promoter Entity	Total Holding (Shares)	% of Total Capital	Encumbered Shares	% Encumbered
Hariaksh Industries Private Limited	16,00,00,000	17.54%	1,70,00,000	1.86%
Jai Salasar Balaji Industries Private Limited	12,55,75,785	13.77%	6,20,00,000	6.80%
Enfield Suppliers Limited	5,61,06,165	6.15%	3,22,91,165	3.54%
Hari Management Limited	3,52,20,000	3.86%	3,52,20,000	3.86%
K.D. Jajodia Steel Industries Private Limited	1,20,51,665	1.32%	1,20,50,000	1.32%
Rajiv Jajodia	78,41,665	0.86%	73,40,000	0.80%
Sanjiv Jajodia	1,38,97,165	1.52%	50,10,000	0.55%

Implications and Context

This pledge by Hariaksh Industries is part of a broader pattern of encumbrances within the promoter group of Jai Balaji Industries. While the pledge represents a relatively small portion of Hariaksh Industries' total holding, it adds to the overall encumbered shares within the promoter group.

The use of shares as collateral for third-party loans is a common practice in corporate finance, often employed to leverage existing assets for various business purposes. However, it also introduces potential risks, as any default on the underlying loan could potentially impact the shareholding structure.

It's worth noting that several other entities within the promoter group have also pledged significant portions of their holdings, with some having encumbered their entire stake in Jai Balaji Industries.

As the steel industry navigates through various market challenges, these financial arrangements may reflect the broader strategies employed by the promoter group to manage liquidity and support business operations. Investors and market watchers will likely keep a close eye on any further developments in the company's shareholding pattern and pledge status.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.67%	-0.06%	-0.02%	-19.77%	-52.20%	+3,125.42%

Jai Balaji Industries , a prominent player in the steel industry, has reported a significant downturn in its financial performance for the first quarter. The company's latest financial results reveal a substantial decline across key metrics, raising concerns about its operational efficiency and market positioning.

Revenue and Profit Plummet

The company's revenue saw a sharp decline, dropping to ₹1,357.00 crore from ₹1,720.00 crore in the same quarter of the previous year, marking a substantial 21.01% decrease. This considerable reduction in top-line performance indicates potential challenges in market demand or pricing pressures faced by the company.

Even more concerning is the steep fall in net profit. Jai Balaji Industries reported a net profit of ₹70.55 crore for the quarter, a dramatic 66.19% decrease from ₹208.80 crore in the corresponding period last year. This significant erosion in profitability underscores the company's struggle to maintain its financial health in the face of adverse market conditions.

EBITDA and Margin Compression

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also took a hit, declining to ₹127.00 crore from ₹315.80 crore in the same quarter of the previous year, representing a 59.78% decrease. This sharp reduction in EBITDA suggests that the company is facing challenges in maintaining its operational efficiency.

Moreover, the EBITDA margin compressed significantly to 9.36% from 18.38% year-over-year, indicating a substantial deterioration in the company's ability to control costs and generate profits from its operations.

Operational Challenges

The decline in financial performance across various metrics points to potential operational challenges faced by Jai Balaji Industries. The company's operating profit decreased by 59.78% to ₹127.00 crore, down from ₹315.80 crore in the same quarter last year. This substantial drop in operating profit further emphasizes the difficulties the company is encountering in its core business operations.

Financial Overview

Here's a snapshot of Jai Balaji Industries' key financial metrics for the quarter:

Metric (in ₹ crore)	Q1 Current Year	Q1 Previous Year	YoY Change
Revenue	1,357.00	1,720.00	-21.01%
Net Profit	70.55	208.80	-66.19%
EBITDA	127.00	315.80	-59.78%
Operating Profit	127.00	315.80	-59.78%
EBITDA Margin	9.36%	18.38%	-9.02 pts

The across-the-board decline in financial metrics presents a challenging picture for Jai Balaji Industries. The company will need to address these issues promptly to regain its financial footing and restore investor confidence in the coming quarters.

As the steel industry continues to face global economic uncertainties and fluctuating demand, Jai Balaji Industries' performance in the upcoming quarters will be closely watched by investors and industry analysts alike.