Nova Iron & Steel Limited has announced its unaudited financial results for the quarter and half year ended September 30, 2025, revealing a mixed performance with operational improvements offset by asset disposal challenges. The company's Board of Directors approved these results in a meeting held on February 26, 2026.

Financial Performance Overview

The company demonstrated revenue growth in Q2FY26 with operations generating ₹10,803.54 lakhs compared to ₹9,937.85 lakhs in the corresponding quarter of the previous year. However, this represented a sequential decline from Q1FY26's revenue of ₹11,297.09 lakhs.

Half Year Performance

For the half year ended September 30, 2025, the company showed improved profitability despite lower revenue. Revenue from operations stood at ₹22,100.63 lakhs compared to ₹22,447.39 lakhs in H1FY25, representing a decline of 1.54%. However, the company achieved a turnaround with net profit of ₹115.21 lakhs against a loss of ₹436.34 lakhs in the previous year.

Significant Asset Disposal and Lease Arrangement

A major development during the period was the disposal of charged assets to Shree Balaji Steel and Metal Private Limited on August 1, 2025. This disposal occurred due to the enforcement of charge by the lender following the company's inability to repay its debt, which resulted in an 'event of default' under the settlement agreement dated May 7, 2024. Shareholders approved this transaction in the Annual General Meeting held on September 17, 2025.

To ensure business continuity, the company entered into a lease agreement dated August 1, 2025, to obtain the same undertaking on lease for an initial period of 6 months. This arrangement was subsequently extended for an additional 60 months through a lease agreement dated January 21, 2026.

Balance Sheet Position

As of September 30, 2025, the company's total assets stood at ₹32,064.00 lakhs compared to ₹30,612.91 lakhs as of March 31, 2025. The company continues to face equity challenges with negative equity of ₹1,014.77 lakhs, though this represents an improvement from ₹1,130.00 lakhs negative equity as of March 31, 2025.

Auditor Observations

The independent auditors issued a qualified review report, highlighting concerns about the disposal of charged assets and compliance with SEBI regulations. They also noted that the company has not recognized interest on borrowings from certain lenders in the finance costs, with the impact being unascertainable due to insufficient information.

Earnings Per Share

The company reported basic and diluted earnings per share of ₹(0.29) for Q2FY26 after exceptional items, compared to ₹(2.45) in Q2FY25. For the half year, earnings per share improved to ₹0.32 from ₹(1.21) in the previous year.

Nova Iron & Steel Limited has released its unaudited financial results for the quarter and nine months ended December 31, 2025, presenting a mixed performance amid ongoing operational challenges. The Chhattisgarh-based iron and steel company demonstrated revenue resilience while grappling with profitability concerns.

Financial Performance Overview

The company's quarterly performance showed both strengths and challenges across key metrics:

For the nine-month period, the company maintained steady revenue growth with total income of ₹33,176.27 lakhs compared to ₹32,474.41 lakhs in the previous year, representing a growth of 2.16%.

Operational Expenses and Cost Structure

The company's expense management revealed significant variations across different cost categories. Cost of materials consumed for Q3 FY26 stood at ₹8,132.35 lakhs compared to ₹6,698.16 lakhs in Q3 FY25. Employee benefits expenses increased to ₹467.06 lakhs from ₹387.12 lakhs year-over-year.

Auditor's Qualified Opinion

MNRS & Associates, the company's auditors, issued a qualified review report highlighting a significant concern. The auditors noted that the company has not recognized interest on borrowings outstanding with respect to certain lenders within finance costs reported in the financial results for the quarter and nine months ended December 31, 2025. The financial impact of this non-recognition remains unascertainable due to the absence of required information.

Regulatory Compliance and Board Approval

The unaudited financial results were reviewed by the audit committee and approved by the Board of Directors in their meeting held on February 26, 2026. The results were submitted to the Bombay Stock Exchange Limited pursuant to Regulation 33 and 30 read with Schedule III of SEBI (LODR) Regulations, 2015. Company Secretary Dheeraj Kumar communicated the submission through the online portal, ensuring compliance with regulatory requirements.

Key Financial Metrics and Corporate Details

The company maintained its paid-up equity share capital at ₹3,613.95 lakhs with a face value of ₹10.00 per share. The earnings per share showed deterioration, with basic EPS (after exceptional items) declining to ₹(3.26) for Q3 FY26 from ₹(1.31) in Q3 FY25. The company confirmed that gratuity, leave encashments, and other necessary provisions have been made on an estimate basis.