State Trading Corporation of India Limited has delivered a remarkable financial turnaround, reporting a profit of Rs 1,658.01 lacs for the quarter ended December 31, 2025, compared to Rs 183.16 lacs in the corresponding quarter of the previous year. For the nine months ended December 31, 2025, the company achieved a substantial profit of Rs 63,561.52 lacs, significantly higher than Rs 2,223.50 lacs recorded in the same period last year.

Financial Performance Overview

The company's financial results demonstrate a strong recovery trajectory, with total income for the nine months reaching Rs 7,062.38 lacs compared to Rs 9,728.74 lacs in the previous year. Despite lower revenue, the company's profitability improved dramatically due to exceptional items and cost management initiatives.

Exceptional Items Drive Performance

The company's exceptional performance was primarily attributed to exceptional items totaling Rs 60,621.16 lacs for the nine months. The most significant component was the write-back of liabilities amounting to Rs 60,623.77 lacs related to borrowings settled under the one-time settlement (OTS) with banks.

Debt Settlement Achievement

State Trading Corporation of India successfully completed a major debt restructuring initiative during the period. The company paid Rs 200 crore in OTS to lead banker Canara Bank after signing the Debt Settlement Agreement (DSA). A No Dues Certificate/Settlement Certificate was issued jointly by all six lender banks on July 11, 2025, completing the one-time settlement process.

Operational Structure and Compliance

The company continues to operate as a non-operating entity following decisions made in 2019 and reaffirmed in April 2021. Financial statements are prepared on a non-going concern basis from FY 2021-22 onwards. The company faced regulatory compliance challenges, with cumulative fines of Rs 83.68 lacs imposed by BSE and NSE for non-compliance with various SEBI (LODR) regulations during 2025-26.

Asset Position and Outlook

Total assets stood at Rs 2,19,604.86 lacs as of December 31, 2025, compared to Rs 2,35,708.85 lacs in the previous year. The company's asset base includes significant non-current assets held for disposal, reflecting its transition to a non-operating status. Trade receivables of Rs 1,07,145.82 lacs have been adjusted for credit impairment of Rs 62,727.62 lacs.

The financial results were approved by the Board of Directors in their meeting held on February 11, 2026, marking a significant milestone in the company's financial restructuring journey.

State Trading Corporation of India Limited has announced the appointment of Shri Asit Gopal as Government Nominee Director on its Board with immediate effect. The appointment was communicated to stock exchanges on January 20, 2026, in compliance with SEBI regulations.

Appointment Details

The Department of Commerce, Ministry of Commerce and Industry issued Order No. 11/36/2001-FT(M&O)-Vol-I(i) dated January 19, 2026, intimating the appointment. The company received this order on January 20, 2026, and promptly notified the exchanges.

Regulatory Compliance

The announcement was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, which mandates disclosure of changes in Directors and Key Managerial Personnel. The company has informed both the National Stock Exchange of India Limited and BSE Limited about this board change.

Implementation Timeline

While the appointment takes immediate effect as per the government order, State Trading Corporation of India Limited has clarified that Shri Asit Gopal's appointment will be effective after completion of requisite formalities. The company will communicate the exact date of appointment on the Board once these formalities are completed.

Corporate Governance

This appointment reflects the government's continued involvement in the governance structure of State Trading Corporation of India Limited through nominee directors. The addition of Shri Asit Gopal, who brings experience from the Ministry of Textiles and Department of Commerce, is expected to strengthen the Board's expertise in trade and commerce matters.