Welcast Steels Limited , a manufacturer of alloy steel cast grinding media, has reported a substantial net loss and announced the permanent closure of its only factory, signaling a major shift in the company's operations.

Financial Performance

For the quarter ended September 30, 2025, Welcast Steels reported a net loss of Rs 625.56 crore, compared to a loss of Rs 679.00 crore in the previous quarter. The company's revenue from operations declined to Rs 2,065.01 crore from Rs 2,276.74 crore in the prior quarter.

Factory Closure and Future Plans

In a significant development, the company's Board has decided to permanently close its industrial establishment located at Plot No. 15, Phase 1, Peenya Industrial Area, Bangalore, effective December 15, 2025. This decision has led to the financial results not being prepared on a going concern basis.

The closure has resulted in exceptional expenses of Rs 209.24 crore, which include:

• Closure compensation
• Gratuity
• Leave encashment liabilities

The Board of Directors is currently in the process of deciding the future course of the company's activities.

Financial Implications

The company's financial statements for the quarter and half-year ended September 30, 2025, reflect the impact of this decision:

• Non-financial assets have been measured at the lower of carrying value and fair value less costs to sell.
• Financial assets and liabilities continue to be recognized at fair value or amortized cost, adjusted for any loss allowances.
• No adjustments have been made for contingent liabilities considered not probable.
• Deferred tax adjustments have been deferred to the end of the financial year.

Market Position

Welcast Steels operates solely in India, specializing in the manufacture of alloy steel cast grinding media. The closure of its only manufacturing facility raises questions about the company's ability to continue its core operations.

Investor Considerations

With the permanent closure of its factory and significant losses, Welcast Steels faces a challenging period. Investors and stakeholders may want to closely monitor any announcements regarding the company's future direction and potential restructuring plans.

As the situation develops, it will be important to watch for any announcements regarding asset sales, potential new business ventures, or other strategic moves that could impact the company's future and shareholder value.

Welcast Steels Limited , a manufacturer of hi-chrome grinding media used in cement, mining, and thermal power plants, has announced the permanent closure of its manufacturing facility in Bengaluru's Peenya Industrial Area. The closure, set to take effect on December 15, 2025, follows a decision made by the company's Board of Directors during a meeting held on October 15, 2025.

Reasons for Closure

The company cited several factors contributing to this significant decision:

1. Outdated technology leading to high production costs
2. Unviable operations
3. Consistent decrease in capacity utilization over recent years
4. Economic unfeasibility of modernizing the facility due to:
   • High investment requirements
   • Space constraints

Financial Impact

The closure of this facility, which has been operational since 1972, will have a substantial impact on the company's finances:

As evident from the table, the Bengaluru plant accounted for the entirety of Welcast Steels' revenue and net worth during the last financial year.

Closure Process

In compliance with Section 25-FFA of the Industrial Dispute Act, 1947, Welcast Steels will observe a 60-day notice period before the final closure. The company has officially informed the BSE Limited of this development, as required under Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) 2015.

Company Statement

In its official communication, Welcast Steels emphasized the long-standing nature of its challenges: "Since last so many years, there has been consistent decrease in capacity utilization. The running of the industrial establishment has become economically unviable."

This closure marks a significant turning point for Welcast Steels Limited, potentially requiring a strategic reassessment of its business model and future operations in the hi-chrome grinding media market.