Vallabh Steels Reports Rs 29.55 Lakh Net Loss in Q2 FY2026 Amid Zero Revenue
Vallabh Steels Limited reported a net loss of Rs 29.55 lakh for Q2 FY2026, with no revenue from operations. Total expenses were Rs 29.55 lakh, primarily from depreciation and amortization. The company's financial position remains concerning, with negative equity of Rs 2,266.61 lakh. Auditors raised multiple issues, including inadequate provisions, lack of proper records, and non-compliance with accounting standards. The Board approved an updated Related Party Transaction Policy, but no specific measures to address financial challenges were disclosed.
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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:
| Expense Category | Amount (Rs in Lakh) |
|---|---|
| Depreciation and amortization | 21.76 |
| Employee benefits | 2.03 |
| Other expenditure | 5.76 |
Auditor's Observations
The limited review report by KR Aggarwal & Associates, Chartered Accountants, highlighted several concerns:
- Inadequate provision for trade receivables as per IND AS 109.
- Lack of appropriate stock records, affecting inventory valuation.
- No assessment of the company's ability to continue as a going concern.
- Non-compliance with IND AS 19 regarding employee benefits.
- Lack of impairment assessment for property, plant & equipment.
- Unconfirmed balances for various assets and liabilities.
- The company's accounts have been categorized as Non-Performing Assets (NPA).
Balance Sheet Overview
As of September 30, 2025, Vallabh Steels reported:
| Particulars | Amount (Rs in Lakh) |
|---|---|
| Total Assets | 2,386.83 |
| Total Equity | (2,266.61) |
| Total Liabilities | 4,653.44 |
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.
Historical Stock Returns for Vallabh Steels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.96% | -9.62% | -6.01% | -8.75% | +10.47% | -4.67% |
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