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 , a player in the steel sector, has officially announced the results of its postal ballot process, with shareholders overwhelmingly approving the company's strategic diversification into biotechnology business and director re-appointment proposals with 99.99% voting support.

Official Postal Ballot Results

The company announced the postal ballot results on December 15, 2025, following the e-voting period that concluded on December 12, 2025. The scrutinizer's report was issued by CA Atul Jain of M/s. Atul Jain & Co., Chartered Accountants, confirming that both special resolutions were passed with requisite majority.

Detailed Voting Outcomes

The e-voting facility was provided by Bigshare Services Private Limited, with the voting period remaining open from November 13, 2025 at 9:00 AM to December 12, 2025 at 5:00 PM.

Strategic Business Diversification Approved

Shareholders have approved the addition to the company's main object clause to include comprehensive biotechnology business activities. The approved diversification encompasses:

New Business Scope

This expansion allows the company to carry on business in India and elsewhere, including marketing, import, export, and dealing in all kinds of biotechnological products and allied products.

Director Re-appointment Confirmed

Shareholders approved the re-appointment of Mr. Sunil Dutt Bhatt (DIN: 09263587) as an Independent Director for a second five-year term, from August 03, 2026 to August 02, 2031.

Director Profile

Mr. Bhatt brings vast experience in the metal and weighment domain, having retired from Bhilai Steel Plant in 2020. The Board of Directors, based on the Nomination Remuneration Committee's recommendation, proposed his re-appointment at their meeting held on November 12, 2025.

Regulatory Compliance and Process

The postal ballot was conducted in compliance with Regulation 30 and 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and pursuant to Sections 108 and 110 of the Companies Act, 2013. The cut-off date for determining eligible shareholders was November 07, 2025, with notices sent via email to members whose email addresses were available with the company.

Market Implications

With overwhelming shareholder approval secured at 99.99% for both resolutions, Sarthak Metals can now proceed with its strategic diversification beyond the traditional steel sector. This diversification into biotechnology could open new revenue streams and position the company in the growing biotechnology sector while maintaining its established metal business operations. The strong shareholder confidence demonstrates support for the company's strategic direction toward sustainable and biology-driven industrial systems.