Sarthak Metals Limited , a leading manufacturer of cored wires and aluminium flipping coils, reported a 21% year-on-year decline in revenue from operations to Rs 36.31 crore in the second quarter of fiscal year 2026. The company's total income decreased by 21% to Rs 36.48 crore, while EBITDA fell 15% to Rs 1.64 crore. However, EBITDA margin improved slightly to 4.53% from 4.21% in the same period last year.

Core Business Segments Face Headwinds

The company's core wire business volumes dropped 14% year-on-year, primarily due to challenges from subpar quality products and certain unfair practices in the industry. Sanjay Shah, Executive Director of Sarthak Metals, stated, "Despite strong steel demand driven by infrastructure projects and a resilient economy, Indian steel manufacturers continue to face pressure from low-cost imports. With prices hovering near a five-year low, future industry capex remains uncertain."

The aluminium flipping coil segment remained subdued during the quarter, impacted by unethical competition in the domestic market. As a result, the company consciously reduced its participation in this segment to safeguard profitability.

Welding Division Shows Promise

Despite challenges in its core segments, Sarthak Metals' welding division demonstrated strong performance. The division achieved average monthly volumes exceeding 100 tonnes in the September quarter, supported by healthy demand from the fabrication and construction sectors. Notably, the company recently received RDSO approval from Indian Railways, further reinforcing market confidence in its product quality.

Financial Performance

Future Outlook and Initiatives

The company continues to develop its biotechnology initiative, engaging in discussions with ethanol distilleries to improve fermentation efficiency and promote cleaner ethanol production. This aligns with the government's fuel blending program and policy push for biofuels.

Sarthak Metals maintains its long-term vision of evolving from a steel consumables supplier into a diversified company with a strong presence across cored wire, welding consumables, and biotechnology sectors.

Mr. Shah concluded, "Our technological capabilities and deep industry experience have enabled us to hold our ground despite intense competition. Encouragingly, steel prices appear to have bottomed out, offering a sense of optimism for the coming quarters."

The company operates with a manufacturing capacity of 15,000 TPA for cored wires and serves major steel plants including Tata Steel. As the steel industry navigates through challenging times, Sarthak Metals remains focused on innovation and building multiple growth engines to create sustainable value and long-term resilience.

Sarthak Metals Limited (SML) has announced the resignation of its Chief Financial Officer (CFO) and Key Managerial Personnel (KMP), Anirudh Singhal. The company disclosed this information in a regulatory filing to the BSE and NSE on August 16, 2025.

Resignation Details

Anirudh Singhal will be relieved from his duties at the close of business hours on July 31, 2025. The company stated that there were no material reasons provided for his resignation.

Disclosure Process

Sarthak Metals explained that the initial disclosure delay was due to receiving only an email notification without an attached formal resignation letter. The company has since provided a PDF copy of the email as part of their regulatory filing.

Company's Statement

In its filing, Sarthak Metals expressed appreciation for Singhal's services, stating, "The Company places on record its deep sense of appreciation for the services rendered by Mr. Anirudh Singhal and for his contribution during his tenure as the CFO."

CFO's Parting Words

In his resignation email, Singhal wrote, "I am grateful for the exposure provided by SML and happy to be part of SML's incredible journey. Best of luck to the team in all future endeavors."

Regulatory Compliance

The company's disclosure adheres to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the recent SEBI circular dated November 11, 2024.

Sarthak Metals Limited will now be in the process of finding a suitable replacement for the CFO position. The company has not yet announced any plans for Singhal's successor.