Electrotherm (India) Limited , a leading engineering and technology company, has announced its financial results for the second quarter and half-year ended September 30, 2025, revealing a mixed performance amidst ongoing financial challenges.

Revenue and Profit Analysis

The company reported a marginal increase in revenue from operations for Q2 FY2026:

Despite the slight growth in revenue, Electrotherm witnessed a significant decline in net profit after tax, which decreased by 53% year-over-year.

Segment Performance

The company's performance varied across its different business segments:

The Special Steel Division, despite being the largest revenue generator, reported a significant loss, impacting the overall profitability.

Financial Challenges and Loan Defaults

Electrotherm is grappling with several financial challenges:

1. The company defaulted on a loan repayment of ₹6.00 crores plus ₹2.45 crores in interest to Invent Assets Securitisation Reconstruction Private Limited.
2. The lender has agreed to reschedule payments, subject to an 11% annual interest rate, with full clearance required by December 31, 2025.
3. Auditors have qualified their opinion due to non-provision of interest on loan accounts classified as non-performing assets, with unprovided interest totaling ₹988.94 crores as of the reporting date.

Ongoing Financial Reconciliations

Electrotherm has settled some previous loan obligations with Rare Asset Reconstruction Limited, but reconciliation processes are still ongoing. The company is in the process of obtaining a No Dues Certificate, which will determine the final accounting treatment of these liabilities.

Looking Ahead

While Electrotherm has shown resilience in maintaining its revenue, the significant drop in profitability and ongoing loan repayment issues pose challenges for the company. The management's ability to navigate these financial hurdles and improve the performance of its loss-making segments will be crucial for the company's future outlook.

Investors and stakeholders will be closely watching how Electrotherm addresses its loan repayment schedules and improves its overall financial health in the coming quarters.

Electrotherm India Ltd , a leading player in the engineering and technologies sector, has reported its financial results for the second quarter, showing a reduction in losses despite flat revenue.

Financial Performance

The company reported a net loss of 217.00 million rupees for Q2, a significant improvement from the 463.00 million rupees loss in the same quarter of the previous year. This represents a 53% reduction in net loss year-over-year.

Revenue for the quarter remained unchanged at 8.00 billion rupees, matching the figure from the corresponding period last year.

EBITDA Shift

A notable change was observed in the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization):

This shift from a positive to negative EBITDA indicates a significant change in the company's operational performance.

Segment Performance

The company's financial results reveal varied performances across its business segments:

1. Engineering & Technologies Division: This segment reported revenue of 291.12 crore rupees for Q2, with a profit before finance cost and tax of 16.40 crore rupees.

2. Special Steel Division: The largest contributor to revenue, this segment generated 513.78 crore rupees but reported a loss of 34.99 crore rupees before finance cost and tax.

3. Electric Vehicle Division: This emerging segment contributed 14.65 crore rupees to the revenue but incurred a loss of 2.73 crore rupees.

Balance Sheet Highlights

As of the end of Q2, Electrotherm India reported:

• Total assets of 1,973.97 crore rupees
• Current liabilities of 1,775.48 crore rupees
• A negative total equity of 154.04 crore rupees

Ongoing Challenges

The company continues to face challenges related to loan repayments and legal proceedings:

• Defaulted on an installment of 8.00 crore rupees and interest of 2.45 crore rupees to Invent Assets Securitisation & Reconstruction Private Limited.
• Ongoing recovery proceedings for outstanding loans with various Asset Reconstruction Companies.
• Pending enquiries and legal proceedings before various authorities including the Debts Recovery Tribunal and tax departments.

These financial results and ongoing challenges highlight the complex operating environment Electrotherm India is navigating. While the reduction in net loss is a positive sign, the shift to negative EBITDA and continued financial obligations underscore the need for strategic management of resources and operations in the coming quarters.