Shree Precoated Steels Reports Q2FY26 Loss Amid Ongoing Going Concern Issues

Shree Precoated Steels Limited has released its unaudited financial results for the quarter and half-year ended September 30, 2025, revealing persistent financial challenges that continue to raise questions about the company's operational sustainability.

Q2FY26 Financial Performance

The company's financial results for Q2FY26, approved by the Board of Directors on November 6, 2025, show continued operational difficulties:

Particulars:	Q2FY26	Q1FY26	H1FY26	Q2FY25	H1FY25
Total Income (₹ Lakhs):	0.00	0.00	0.00	0.00	0.00
Total Expenses (₹ Lakhs):	16.00	12.00	28.00	16.00	29.00
Loss Before Tax (₹ Lakhs):	(16.00)	(12.00)	(28.00)	(16.00)	(29.00)
Net Loss (₹ Lakhs):	(16.00)	(12.00)	(28.00)	(16.00)	(29.00)
EPS (Basic):	(0.39)	(0.29)	(0.68)	(0.39)	(0.70)

The company continues to report zero revenue from operations while incurring expenses primarily from employee benefits (₹11 lakhs) and other operational costs (₹5 lakhs) during Q2FY26.

Balance Sheet Position

As of September 30, 2025, the company's financial position remains precarious:

Financial Position:	Sep 30, 2025	Mar 31, 2025
Paid-up Equity Share Capital (₹ Lakhs):	414.00	414.00
Other Equity (₹ Lakhs):	(658.00)	(630.00)
Net Worth (₹ Lakhs):	(244.00)	(216.00)
Total Assets (₹ Lakhs):	545.00	544.00

Going Concern Uncertainty Persists

The company's auditors have reiterated material uncertainty related to SPSL's ability to continue as a going concern. The auditor's limited review report specifically highlights that the company's negative net worth "indicates that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern."

Despite these concerns, the management continues to prepare financial statements on a going concern basis, citing pending litigation regarding refund of indirect taxes and potential future financing arrangements.

Cash Flow Analysis

The company's cash flow statement reveals:

Cash Flow Summary:	H1FY26	H1FY25
Operating Activities (₹ Lakhs):	(2.00)	2.00
Investing Activities (₹ Lakhs):	0.00	0.00
Financing Activities (₹ Lakhs):	0.00	0.00
Cash & Cash Equivalents (₹ Lakhs):	4.00	3.00

Regulatory Compliance

On November 11, 2025, the company resubmitted its financial results to BSE, noting that the notes to the financial results were inadvertently missed in the earlier submission dated November 6, 2025. Company Secretary Priyanka Khandelwal confirmed the resubmission under Regulations 30 and 33 of SEBI Listing Regulations.

Outlook

With continued losses, zero operational revenue, and deteriorating net worth, Shree Precoated Steels faces significant challenges in demonstrating its viability as a going concern. Stakeholders will closely monitor any strategic initiatives or capital infusion plans that could address the company's fundamental operational and financial issues in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+4.97%	-7.99%	-11.71%	-14.41%	-38.30%	+163.60%

Shree Precoated Steels Limited , a Mumbai-based company, has released its financial results for the first quarter ended June 30, 2025, revealing a continued struggle with profitability amidst operational challenges. The company's board meeting, held on July 24, 2025, also approved several key management changes.

Financial Performance

The company reported a net loss of Rs. 12.00 lakhs for the quarter, a slight improvement from the Rs. 13.00 lakhs loss in the same quarter of the previous year. However, the financial results paint a concerning picture:

Particulars (in Rs. Lakhs)	Q1 FY2025-26	Q1 FY2024-25
Revenue from Operations	0.00	0.00
Total Expenses	12.00	13.00
Net Loss	(12.00)	(13.00)
EPS (Basic & Diluted)	(0.29)	(0.31)

The company's total expenses of Rs. 12.00 lakhs primarily comprised employee benefit expenses of Rs. 8.00 lakhs and other expenses of Rs. 4.00 lakhs. The lack of revenue from operations raises questions about the company's current business activities and future prospects.

Management Changes

In a significant development, the Board has reappointed Mr. Harsh L. Mehta as Managing Director for a five-year term from May 24, 2026, to May 23, 2031, subject to shareholder approval at the upcoming Annual General Meeting. Mr. Mehta brings over 17 years of experience in project management, finance, and legal affairs to his role.

The company also announced changes in its key managerial personnel:

Ms. Krishna Agrawal has resigned as Company Secretary and Compliance Officer, effective August 13, 2025.
Ms. Priyanka Khandelwal will take over as the new Company Secretary and Compliance Officer from August 14, 2025. She is an Associate Member of the Institute of Company Secretaries of India and holds a law degree, with 3.5 years of experience in corporate law and compliance.

Going Concern Issues

The auditor's review highlighted material uncertainty regarding the company's ability to continue as a going concern. This concern stems from the company's negative net worth of Rs. 216.00 lakhs. Despite this, the accounts have been prepared on a going concern basis, with the company citing pending litigation for indirect tax refunds as a potential source of future cash flows.

Outlook

Shree Precoated Steels Limited faces significant challenges ahead. With zero revenue from operations and ongoing losses, the company's ability to turn around its financial situation remains uncertain. The management changes and potential resolution of pending tax refund litigation may provide some hope for the company's future, but investors and stakeholders will likely be watching closely for signs of operational improvement in the coming quarters.

The trading window for the company's securities will reopen 48 hours after the declaration of these financial results, as per SEBI regulations and the company's Code of Conduct for Prohibition of Insider Trading.