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 player in the steel industry, has allotted 5,00,00,000 fully convertible warrants to VISA Industries Limited, a member of the promoter group, on a preferential basis.

Key Details of the Allotment

• Number of Warrants: 5,00,00,000 fully convertible warrants
• Allottee: VISA Industries Limited (promoter group member)
• Price: Rs. 40.00 per warrant
• Total Consideration: Rs. 200.00 crore
• Conversion Period: Within 18 months
• Conversion Terms: Upon payment of remaining 75% consideration

Implications and Next Steps

This allotment follows the approval granted by shareholders at an Extra-Ordinary General Meeting (EOGM) held on November 2, 2025. The warrants provide VISA Industries Limited with the option to convert them into equity shares within an 18-month period, subject to the payment of the remaining 75% of the consideration.

There is no immediate change to VISA Steel's paid-up share capital as a result of this allotment. The potential conversion of these warrants in the future could lead to an increase in the promoter group's stake in the company.

Previous Voting Results

The shareholder approval for this issuance was evidenced by the voting results from the EOGM:

Potential Impact

This Rs. 200.00 crore allotment could potentially strengthen VISA Steel's capital base. Investors and market watchers may observe how VISA Steel utilizes this potential capital infusion and its impact on the company's future strategic decisions.

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