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:

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.

VISA Steel Limited , a prominent player in the steel industry, recently held an Extra-Ordinary General Meeting (EOGM) that could potentially reshape its capital structure. The meeting, conducted on November 2, 2025, saw shareholders giving their nod to a significant corporate action.

Key Highlights of the EOGM

• Resolution Passed: Shareholders approved the issuance of up to 5 crore warrants convertible into equity shares.
• Recipient: VISA Industries Limited, a member of the promoter group.
• Issuance Basis: Preferential basis.
• Voting Process: Conducted through remote e-voting and electronic voting during the meeting.

Voting Details

Voting Results

The resolution was passed with an overwhelming majority, indicating strong support from all categories of shareholders. The promoter and promoter group, along with institutional investors, showed unanimous support for the warrant issuance.

Implications and Next Steps

This approval paves the way for VISA Steel to potentially strengthen its capital base and provide additional resources for future growth initiatives. The company will now proceed with the necessary regulatory filings and complete the warrant issuance process as per the terms approved by shareholders.

Investors and market watchers may be keen to observe how VISA Steel utilizes this additional capital infusion and its potential impact on the company's future strategic decisions.

The voting results and scrutinizer's report have been submitted to the stock exchanges and will be made available on the company's website, ensuring transparency and compliance with regulatory requirements.

As the steel industry continues to evolve, this move by VISA Steel could be seen as a strategic step to potentially enhance its market position and financial flexibility. Stakeholders may monitor the company's performance closely in the coming quarters to assess the impact of this corporate action.