Zenith Steel Pipes & Industries Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing a significant operational turnaround despite facing multiple challenges. The company's board meeting held on February 10, 2026, approved the quarterly results under Regulation 30 of SEBI listing requirements.

Financial Performance Highlights

The company demonstrated a remarkable recovery in profitability during Q3 FY26, marking a substantial improvement from the previous year's performance.

Nine-Month Performance

For the nine months ended December 31, 2025, the company showed sustained improvement across key financial metrics.

Key Financial Developments

The company's other income surge was primarily driven by foreign exchange gains of ₹121.90 lakhs for the quarter and ₹246.24 lakhs for nine months, compared to ₹92.89 lakhs and ₹143.71 lakhs respectively in the previous year. Additionally, the company reversed provisions worth ₹499.41 lakhs during the quarter and ₹1,754.42 lakhs for nine months, recognizing these under "Provision Written Back" in other income.

Operational Challenges and Legal Matters

Despite the financial turnaround, the company continues to navigate several significant challenges:

• SARFAESI Proceedings: A consortium of banks initiated proceedings for recovery of ₹19,319.00 lakhs outstanding as of January 31, 2014, with the next hearing scheduled for June 30, 2026
• SEBI Matter: The company remains involved in legal proceedings following a SEBI order, with the matter currently before the Supreme Court of India
• Fraud Investigation: The company identified unauthorized access to bank payment processes, with an estimated misappropriation of approximately ₹758 lakhs under investigation

Strategic Arrangements

The company has entered into a Memorandum of Understanding with Tribus Real Estate Pvt. Ltd. (TREPL) for taking over existing bank borrowings aggregating ₹15,894.92 lakhs as of December 31, 2025. Under this arrangement, TREPL is authorized to negotiate settlements with lending banks through One-Time Settlement or other mutually agreeable terms.

Going Concern Assessment

Despite negative net worth due to accumulated losses, the company continues operations on a going concern basis. Management has initiated strategic measures including engagement with key suppliers and customers, focusing on improving operational efficiency and enhancing revenue generation. The Board of Directors is actively evaluating various business options to augment operational income and ensure long-term financial sustainability.

Zenith steel pipes & industries Limited has informed stock exchanges about the resignation of its Company Secretary and Compliance Officer, marking a significant change in the company's key managerial personnel structure.

Key Personnel Change Details

The company announced that Mr. Prakhar Agarwal has tendered his resignation from the position of Company Secretary and Compliance Officer through his resignation letter dated February 06, 2026. He will be relieved from his duties with effect from the close of business hours on February 06, 2026.

Regulatory Compliance and Disclosure

The resignation was formally communicated to both BSE Limited (Scrip Code: 531845) and National Stock Exchange of India Ltd. (Scrip Name: ZENITHSTL) on February 07, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Reason for Departure

According to the official disclosure, Mr. Agarwal has decided to move on to pursue opportunities outside the company. In his resignation letter, he cited unavoidable circumstances as the reason for his departure and expressed sincere appreciation to the Board and the company.

Company Information

Zenith Steel Pipes & Industries Limited, incorporated in 1960, operates with its corporate office located at Dalamal House, Nariman Point, Mumbai. The company's registered office is situated at Industry House, Churchgate Reclamation, Mumbai. The resignation notification was signed by Minal Umesh Pote, Whole Time Director (DIN-07163539), ensuring proper authorization of the disclosure.