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 announced a board meeting scheduled for January 21, 2026, to consider the company's unaudited financial results for the quarter and half-year ended September 30, 2025. The steel company issued the meeting notice on January 15, 2026, in compliance with regulatory requirements.

Meeting Details and Purpose

The board meeting will specifically focus on reviewing the unaudited financial results for Q2FY26 and the half-year period ending September 30, 2025. The meeting is scheduled for Wednesday, January 21, 2026, as communicated to the Bombay Stock Exchange.

Regulatory Compliance

The meeting notice was issued in strict compliance with Regulation 29 of the SEBI (Listing Obligation and Disclosures Requirements) Regulations, 2015. This regulation mandates listed companies to inform stock exchanges about board meetings where financial results will be considered.

Company Secretary Dheeraj Kumar digitally signed the official communication on January 15, 2026, at 17:38:35 IST. The notice was formally addressed to the Secretary of the Bombay Stock Exchange Limited at Phiroze Jeejeebhoy Towers, Mumbai.

Corporate Communication

The official notice carried reference number NISL/SE/2025-26 and was submitted through the company's online portal system. The communication follows standard corporate governance practices for listed entities, ensuring transparency and regulatory adherence in financial disclosure processes.