Dhatre Udyog Limited (formerly Narayani Steels Limited) has reported a net loss of Rs. 97.27 lakhs for the quarter ended September 30, 2025, marking a significant downturn from the profit of Rs. 122.90 lakhs recorded in the same period last year. This financial performance comes amid major operational changes for the company.

Operational Transition

The company has made a strategic decision to shut down its manufacturing operations, citing aging plant infrastructure and outdated machinery as key factors. This move is part of a broader restructuring effort aimed at improving the company's financial position and exploring new business opportunities.

Asset Disposal and Future Plans

As part of its restructuring, Dhatre Udyog has been disposing of its old assets, including plant and machinery, as scrap. The company is now shifting its focus towards real estate development, particularly eyeing opportunities at its Kakinada land.

Financial Highlights

The financial results for Q2 FY26 reflect the impact of these operational changes:

Balance Sheet Overview

As of September 30, 2025, Dhatre Udyog's financial position shows:

• Total Assets: Rs. 5,984.31 lakhs
• Total Equity: Rs. 5,769.13 lakhs
• Current Liabilities: Rs. 215.19 lakhs

Auditor's Observations

The company's auditors, P.D. Rungta & Co., have expressed a qualified conclusion in their review report. They noted that balances under Trade receivables, Advances, and Trade Payables are subject to confirmations and adjustments, which could potentially impact the financial statements.

Management Commentary

While specific management comments were not provided in the available data, the company's decision to pivot towards real estate development suggests a strategic shift in response to challenges in its traditional steel manufacturing business.

Looking Ahead

Dhatre Udyog's transition from steel manufacturing to real estate development represents a significant change in its business model. The company's performance in the coming quarters will likely depend on its ability to successfully monetize its land assets and establish itself in the real estate sector.

Investors and stakeholders will be watching closely to see how this strategic shift impacts the company's financial performance and long-term prospects in the evolving business landscape.

Dhatre Udyog Limited, formerly known as Narayani Steels Limited, has reported its financial results for the first quarter, revealing a modest profit despite ongoing restructuring efforts.

Financial Performance

The company reported revenue from operations of ₹902.64 lakh for the quarter, with a net profit of ₹10.44 lakh. This performance comes amidst significant changes in the company's operations.

Manufacturing Shutdown and Asset Disposal

In a significant move, Dhatre Udyog's Board of Directors has decided to shut down its manufacturing operations. This decision comes in response to challenges posed by aging plant infrastructure, outdated machinery, and technological obsolescence, which have led to higher production costs.

The company is now in the process of disposing of its plant and machinery as scrap. Additionally, Dhatre Udyog has entered into an agreement for the sale of its factory land, although the sale will only be recognized in the company's books upon complete realization of the consideration amount.

Business Focus and Future Plans

Dhatre Udyog is currently engaged in the trading of iron and steel products. The Board is exploring options to either set up a new plant to resume manufacturing operations or diversify by monetizing factory land and other property in Kakinada. The company is considering developing these lands into small plots and using the proceeds to fund upcoming real estate projects.

Associate Company Impairment

The company has reported that its associate, Hari Equipments Private Limited, has suffered substantial losses, resulting in a complete erosion of its net worth. Consequently, Dhatre Udyog has provided a 100% impairment on its investment in the associate company.

Auditor's Observations

The statutory auditors have issued a qualified opinion on the financial results, citing two main concerns:

1. Pending confirmations for trade receivables and payables.
2. Unavailability of physical verification/valuation reports for assets held for sale worth ₹331.99 lakh.

These qualifications highlight the need for improved financial controls and transparency in the company's reporting processes.

As Dhatre Udyog navigates through this transitional phase, stakeholders will be closely watching how the company's strategic decisions impact its future performance and financial stability.