Electrotherm India Reports Narrowed Q2 Loss, Revenue Remains Steady

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):

Metric	Q2 Previous Year	Q2 Current Year
EBITDA	675.00	-120.00

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:

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.
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.
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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.78%	-3.52%	-16.26%	-19.67%	-9.62%	+685.11%

Electrotherm (India) Limited , a company listed on both BSE and NSE, has disclosed a default on loan payments totaling Rs 10.45 crore as of September 30, 2025. This development comes as part of the company's ongoing financial restructuring efforts and settlement arrangements with asset reconstruction companies (ARCs).

Default Details

The company has provided a breakdown of the default amount:

Component	Amount (in Crores)
Principal	8.00
Interest	2.45
Total	10.45

The defaulted amount is owed to Invent Assets Securitisation & Reconstruction Private Limited, which acquired the debts from Allahabad Bank (now Indian Bank) and Punjab National Bank.

Settlement Agreement

Electrotherm has entered into a settlement agreement with the ARC, which includes the following terms:

Parameter	Details
Principal Amount	Rs 180 crore
Tenure	11 years
Interest Rate	11% per annum
Security	Secured

This agreement is part of the company's broader strategy to manage its financial obligations after banks assigned their loans to asset reconstruction companies.

Financial Indebtedness

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

Type of Debt	Amount (in Crores)
Outstanding borrowings from banks/institutions	1,091.66
Total financial indebtedness	1,106.16

The company notes that these figures are provisional and subject to confirmation from lenders.

Additional Information

Electrotherm has clarified that the outstanding borrowings figure does not include interest from unsettled lender Rare Asset Reconstruction Limited (assignee of Indian Overseas Bank) for loans classified as Non-Performing Assets (NPAs).

The disclosure of this default and the details of the settlement agreement demonstrate Electrotherm's efforts to address its financial challenges and provide transparency to its stakeholders. As the company continues to navigate its debt restructuring process, investors and market watchers will likely keep a close eye on its progress in meeting the terms of its settlement agreements and improving its overall financial health.