Bengal Steel Industries Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showing mixed performance with quarterly profit decline but strong nine-month growth. The Board of Directors approved these results at their meeting held on January 27, 2026.

Quarterly Financial Performance

The company's Q3FY26 standalone results reflected a decline in profitability despite stable revenue generation. Key quarterly metrics demonstrated the impact of operational adjustments on bottom-line performance.

Nine-Month Performance Analysis

The nine-month results presented a contrasting picture with significant improvement in profitability and operational efficiency. The company demonstrated strong cost management capabilities during this extended period.

Expense Management and Operational Efficiency

The company achieved notable improvements in expense management across multiple categories. Employee benefits expense increased to ₹7.61 lakhs for nine months compared to ₹6.82 lakhs in the previous year. However, other expenses decreased substantially from ₹25.46 lakhs to ₹13.00 lakhs, contributing significantly to improved profitability.

Depreciation and amortisation expense remained relatively stable at ₹0.67 lakhs for the nine-month period compared to ₹0.70 lakhs in the previous year. The company maintained zero finance costs throughout both periods, indicating a debt-free operational structure.

Consolidated Results and Subsidiary Performance

The consolidated financial results included performance from subsidiary Tamil Nadu Alkaline Batteries Limited. Consolidated net profit for Q3FY26 stood at ₹8.10 lakhs compared to ₹11.20 lakhs in Q3FY25. The nine-month consolidated profit reached ₹20.21 lakhs, showing strong growth from ₹11.09 lakhs in the previous year.

Corporate Governance and Compliance

The financial results received approval from the Audit Committee and Board of Directors at meetings held on January 27, 2026. S. Ghose & Co LLP, the company's statutory auditors, completed the limited review as required under Regulation 33 of SEBI LODR Regulations 2015. The company maintained its paid-up equity share capital at ₹490.00 lakhs with face value of ₹10 per share throughout all reported periods.

Bengal Steel Industries has undergone a significant change in its ownership structure as HSM Investments Limited substantially increased its shareholding through a court-sanctioned amalgamation scheme. The transaction, involving three transferor companies, received approval from the National Company Law Tribunal (NCLT) on November 15, 2025.

Key Details of the Acquisition

Implications of the Amalgamation

The court-approved scheme has resulted in a significant change in Bengal Steel Industries' ownership structure. HSM Investments Limited now holds a substantial minority stake of 22.53%, which could potentially influence the company's strategic decisions and operations.

Regulatory Approval

The amalgamation scheme received the necessary regulatory approval from the NCLT, ensuring compliance with legal requirements for such corporate restructuring activities. This approval underscores the transaction's adherence to regulatory standards and corporate governance norms.

Market Impact

While the immediate market reaction to this development is not provided in the available information, such significant changes in shareholding patterns often attract investor attention. The increased stake by HSM Investments may lead to speculation about potential changes in Bengal Steel's business strategy or management approach.

Conclusion

This amalgamation marks a significant shift in Bengal Steel Industries' ownership landscape. As HSM Investments Limited increases its stake to 22.53%, market participants will likely monitor any subsequent changes in the company's direction or performance closely. The successful completion of this court-sanctioned scheme also demonstrates the complex nature of corporate restructuring in the Indian market.