Bihar sponge iron Limited delivered impressive financial performance in Q3FY26, demonstrating strong operational recovery despite facing significant challenges. The company's net profit surged 229% year-on-year, reflecting improved market conditions and operational efficiency.

Financial Performance Highlights

The company's financial metrics showed substantial improvement across key parameters during Q3FY26:

For the nine months ended December 31, 2025, the company maintained strong momentum with net profit of Rs 1,007.31 lakhs compared to Rs 703.61 lakhs in the corresponding period last year, representing a 43% increase.

Operational Challenges and Facility Disruption

The company faces a significant operational setback as Vanraj Steels Private Limited, which held usage rights for manufacturing facilities under a written Facility User Agreement executed on December 30, 2020, suddenly ceased plant operations on February 6, 2026. The company received no official communication or prior notice regarding this closure and is currently seeking legal counsel to address the situation.

Ongoing Legal and Financial Matters

Bihar Sponge Iron Limited continues to navigate several complex legal and financial challenges:

Coal Penalty Dispute

The company faces a penalty of Rs 215.28 lakhs from South East Coalfields Ltd. for short lifting of coal quantity. The matter has been through multiple court proceedings, with the latest writ petition (WPC/24721 of 2025) being dismissed by the Chhattisgarh High Court on October 27, 2025. The company is preparing an appeal once the High Court Bench is reconstituted.

Soft Loan Settlement

Following a Jharkhand High Court order dated June 9, 2022, the company has fully paid the principal amount of the Government of Jharkhand soft loan through monthly payments of Rs 125 lakhs. However, interest amounting to Rs 11,672.65 lakhs remains outstanding, with only Rs 2,746.19 lakhs provided in books. The company has approached the lender for interest waiver.

Expense Management and Cost Structure

The company's expense management showed mixed results during Q3FY26:

Total expenses increased to Rs 8,946.14 lakhs from Rs 5,724.13 lakhs in Q3FY25, primarily driven by higher material costs and other operational expenses.

Corporate Governance and Compliance

The Board of Directors approved the unaudited financial results for Q3FY26 and nine months ended December 31, 2025, during their meeting held on February 10, 2026. The results have undergone limited review by statutory auditors Doogar & Associates, who issued a qualified conclusion highlighting the pending legal matters and loan settlement issues.

The company maintains its paid-up equity share capital at Rs 9,020.54 lakhs with a face value of Rs 10 per share, unchanged from previous periods.

Bihar sponge iron Limited has scheduled a Board of Directors meeting on February 10, 2026, to review and approve its unaudited financial results for the third quarter and nine months ended December 31, 2025. The company formally notified BSE Limited about this meeting through a regulatory filing dated February 2, 2026.

Meeting Details and Regulatory Compliance

The board meeting has been scheduled in accordance with Regulation 29 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The primary agenda includes consideration and approval of the company's unaudited financial results for Q3FY26.

Trading Window Restrictions

In compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, Bihar Sponge Iron Limited has implemented trading window restrictions. The trading window for dealing in the company's shares will remain closed for specific categories of individuals until 48 hours after the declaration of financial results.

The restriction applies to:

• All Directors
• Promoters
• Key Managerial Personnel (KMPs)
• Designated Persons
• Immediate relatives of the above categories

Corporate Communication

The announcement was signed by Vimal Prasad Gupta, Company Secretary and Compliance Officer (FCS 6380), and communicated to BSE Limited. The company has indicated that the financial results will be made available on its official website at bsil.org.in following the board meeting.

Bihar Sponge Iron Limited, incorporated in 1982, operates from its registered office and plant located at Umesh Nagar, Chandil, in Jharkhand. The company trades on BSE under scrip code 500058.