VISA Steel Reports Rs 202.22 Million Loss in Q2 FY2025, Resumes Operations After Environmental Clearance

VISA Steel Limited , a ferro alloys manufacturer, has reported a net loss of Rs 202.22 million for the quarter ended September 30, 2025, according to its recently released financial results. The company's revenue from operations stood at Rs 758.52 million for the same period.

Financial Performance

The company's financial performance for Q2 FY2025 shows:

Particulars	Q2 FY2025 (Rs Million)	Q2 FY2024 (Rs Million)
Revenue from Operations	758.52	1,506.24
Total Income	790.80	1,508.61
Total Expenses	993.02	1,625.22
Net Loss	202.22	41.57

The significant decrease in revenue compared to the same quarter last year indicates challenging market conditions for the company.

Operational Update

VISA Steel resumed operations on September 6, 2025, after receiving Consent to Operate from the Odisha State Pollution Control Board. This development follows a notice dated July 10, 2025, from the State Pollution Control Board regarding refusal to renew the Consent to Operate (CTO).

Debt Resolution and Capital Raising

The company is currently engaged in discussions with Assets Care & Reconstruction Enterprise Limited (ACRE) for restructuring its outstanding loan exposure. Notably, approximately 96% of the company's debt has been assigned to ACRE.

In a move to strengthen its financial position, VISA Steel's Board of Directors approved raising Rs 2,000 million through a preferential warrant issue to promoter group entity VISA Industries Limited on October 4, 2025. This decision was subsequently approved by shareholders in an Extraordinary General Meeting held on November 2, 2025.

Auditor's Observations

The company's auditors have raised concerns regarding the non-recognition of interest expenses on borrowings. The accumulated interest not provided as of September 30, 2025, is estimated at Rs 14,044.87 million. This non-provision of interest is not in accordance with Indian Accounting Standards.

Going Concern Issues

The auditors have also highlighted material uncertainty related to the company's ability to continue as a going concern. VISA Steel's current liabilities substantially exceed its current assets, and its net worth has been fully eroded. The company's management maintains that the overall financial health would improve after debt resolution and improvement in working capital availability.

Conclusion

While VISA Steel faces significant financial challenges, the resumption of operations and efforts towards debt restructuring and capital raising could potentially pave the way for a turnaround. However, the company's ability to continue as a going concern remains critically dependent on the successful outcome of these initiatives.

Investors and stakeholders should closely monitor the progress of the company's debt resolution process and its ability to generate cash flows in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.90%	+0.90%	-2.42%	+49.64%	+42.60%	+656.87%

VISA Steel Limited , a player in the steel industry, has completed a significant corporate action involving the conversion of warrants into equity shares, strengthening its capital structure.

Warrant Conversion Details

The company's Preferential Issue Committee approved the allotment of 1,35,00,000 equity shares to VISA Industries Limited, a promoter group entity, following the conversion of an equal number of fully convertible warrants.

Parameter:	Details
Equity Shares Allotted:	1,35,00,000 shares
Face Value:	Rs. 10.00 per share
Issue Price:	Rs. 40.00 per share
Balance Consideration:	Rs. 30.00 per warrant (75% of issue price)
Total Amount Received:	Rs. 40.50 crore
Allottee:	VISA Industries Limited

Impact on Share Capital

The conversion has resulted in a substantial increase in the company's paid-up share capital. The issued and paid-up share capital has increased from Rs. 115.79 crore to Rs. 129.29 crore.

Capital Structure:	Before Conversion	After Conversion
Paid-up Capital:	Rs. 115.79 crore	Rs. 129.29 crore
Number of Shares:	11,57,89,500	12,92,89,500
Face Value per Share:	Rs. 10.00	Rs. 10.00

Original Warrant Allotment Background

This conversion follows the original allotment of 5,00,00,000 fully convertible warrants to VISA Industries Limited on November 26, 2025, which was approved by shareholders at an Extra-Ordinary General Meeting held on November 2, 2025.

Original Allotment Details:	Specifications
Total Warrants Allotted:	5,00,00,000
Price per Warrant:	Rs. 40.00
Total Consideration:	Rs. 200.00 crore
Conversion Period:	Within 18 months
Initial Payment:	25% (Rs. 10.00 per warrant)
Balance Payment:	75% (Rs. 30.00 per warrant)

Previous Voting Results

The shareholder approval for the original warrant issuance demonstrated strong support across all categories:

Category:	Votes Polled	Votes in Favor	% in Favor
Promoter and Promoter Group:	4,43,87,167	4,43,87,167	100.00%
Public - Institutions:	1,54,47,637	1,54,47,637	100.00%
Public - Others:	2,97,35,303	2,97,34,741	99.99%
Total:	8,95,70,107	8,95,69,545	99.99%

Strategic Implications

The newly allotted equity shares rank pari-passu with existing equity shares of the company. With 3,65,00,000 warrants still remaining unconverted, VISA Industries Limited has the option to convert the balance warrants within the stipulated 18-month period, which could potentially bring in an additional Rs. 109.50 crore to the company.

This capital infusion strengthens VISA Steel's financial position and provides enhanced flexibility for future growth initiatives in the competitive steel industry. The conversion demonstrates the promoter group's continued confidence in the company's prospects and commitment to its long-term growth strategy.