Vallabh steels Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing significant operational challenges in its steel manufacturing business. The company reported a net loss of ₹29.22 lakhs for the third quarter of FY26, with minimal revenue generation and substantial ongoing expenses.

Financial Performance Overview

The company's financial performance for Q3 FY26 showed deteriorating conditions compared to the previous year. Total revenue remained minimal at ₹0.01 lakhs, consisting entirely of other income, while the company recorded no revenue from operations during the quarter.

Expense Structure and Cost Management

The company's expense structure revealed significant cost components despite minimal operational activity. Employee benefits expense decreased to ₹1.76 lakhs in Q3 FY26 from ₹2.58 lakhs in Q3 FY25. Depreciation and amortization expense, the largest cost component, reduced to ₹21.87 lakhs from ₹26.47 lakhs year-over-year. Other expenditure remained relatively stable at ₹5.60 lakhs compared to ₹6.02 lakhs in the corresponding quarter of the previous year.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, Vallabh Steels reported a net loss of ₹88.50 lakhs, showing improvement from the ₹104.52 lakhs loss recorded in the same period of FY25. The company maintained minimal revenue generation at ₹0.02 lakhs, while total expenses decreased to ₹88.52 lakhs from ₹107.76 lakhs in the previous year.

Auditor Qualifications and Concerns

The company's financial results were subject to a qualified limited review report by KR Aggarwal & Associates, Chartered Accountants. The auditors raised several significant concerns including inadequate provisions for trade receivables under expected credit loss method, inability to verify inventory valuation and compliance with accounting standards, and absence of going concern assessment. Additional qualifications included missing actuarial valuation reports for employee benefits and lack of impairment assessment for property, plant and equipment.

Corporate Governance and Compliance

The Board of Directors meeting was held on February 13, 2026, commencing at 8:00 PM and concluding at 8:30 PM, where the unaudited financial results were considered and approved. The company maintains its paid-up equity share capital at ₹495.00 lakhs with a face value of ₹10 per share. Director Neelam Sharma signed the results and related declarations in compliance with SEBI listing regulations.

Vallabh Steels Limited , a manufacturer of steel products, has reported a net loss of Rs 29.55 lakh for the quarter ended September 30, 2025 (Q2 FY2026). The company's financial performance raises concerns as it recorded no revenue from operations during the period.

Financial Highlights

• Net Loss: Rs 29.55 lakh
• Revenue from Operations: Nil
• Total Expenses: Rs 29.55 lakh
• Loss per Share: Rs 0.60

The company's performance for Q2 FY2026 shows a slight improvement compared to the previous quarter (Q1 FY2026), where it reported a loss of Rs 29.73 lakh. However, the absence of operational revenue remains a critical issue.

Expense Breakdown

The total expenses of Rs 29.55 lakh for the quarter were primarily composed of:

Auditor's Observations

The limited review report by KR Aggarwal & Associates, Chartered Accountants, highlighted several concerns:

1. Inadequate provision for trade receivables as per IND AS 109.
2. Lack of appropriate stock records, affecting inventory valuation.
3. No assessment of the company's ability to continue as a going concern.
4. Non-compliance with IND AS 19 regarding employee benefits.
5. Lack of impairment assessment for property, plant & equipment.
6. Unconfirmed balances for various assets and liabilities.
7. The company's accounts have been categorized as Non-Performing Assets (NPA).

Balance Sheet Overview

As of September 30, 2025, Vallabh Steels reported:

The negative equity position indicates significant financial stress for the company.

Management Actions

The Board of Directors, in their meeting on November 14, 2025, approved an updated Related Party Transaction Policy. However, no specific measures to address the ongoing financial challenges were disclosed in the available information.

Investors and stakeholders should closely monitor Vallabh Steels' future announcements and financial reports for any strategic initiatives or turnaround plans. The company's ability to generate revenue and manage its expenses will be crucial for its financial recovery and long-term sustainability.