Kalyani Steels has successfully completed its acquisition of 1,857,223 equity shares in Clean Renewable Energy KK 1A Private Limited for ₹51.9 crore, securing an 8.64% stake in the renewable energy company. The completion was announced through a regulatory filing on December 30, 2025, updating the company's earlier intimation from December 25, 2025.

Acquisition Completion Details

The steel manufacturer finalized the transaction through share subscription, acquiring equity shares of ₹10.00 each at a premium of ₹17.94 per share. This investment represents 8.64% of Clean Renewable's paid-up equity capital and forms part of Kalyani Steels' strategy to source power through captive renewable energy sources under the group captive scheme established by the Electricity Act, 2003.

Target Company Profile

Clean Renewable Energy KK 1A Private Limited, incorporated in September 2023, operates as a special purpose vehicle of Hero Rooftop Energy Private Limited. The New Delhi-registered company is engaged in electricity generation and has not generated revenue in the financial years 2023-24 and 2024-25. The acquisition does not constitute a related party transaction, with no promoter or group company interest in the target entity.

Strategic Benefits and Compliance

The completed investment enables Kalyani Steels to establish a captive renewable energy source, potentially reducing long-term power costs while supporting sustainability objectives. This strategic move reflects the growing trend among industrial companies to secure renewable energy supplies through direct investments in power generation assets.

The company disclosed the completion information to BSE Limited and National Stock Exchange of India Limited under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring full regulatory compliance.

Kalyani Steels Limited , a prominent player in the forging and engineering quality carbon and alloy steels sector, has reported a decline in its financial performance for the second quarter of the fiscal year 2025-26. The company's results reflect the challenges faced in the current economic environment.

Revenue and Profit

For the quarter ended September 30, 2025, Kalyani Steels reported:

The company's revenue from operations decreased by 7.32% year-over-year, while net profit saw a 7.43% decline compared to the same quarter in the previous fiscal year.

EBITDA Performance

Kalyani Steels' EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q2 FY26 stood at ₹854.00, down from ₹961.00 in Q2 FY25. The EBITDA margin contracted to 18.73% from 19.53% in the corresponding quarter of the previous year.

Operational Highlights

The company's performance was impacted by various factors:

• Raw Material Costs: The cost of raw materials consumed stood at ₹2,377.58 for the quarter.
• Manufacturing Expenses: These expenses, including stores and spares consumed, job work charges, power and fuel, and repairs, amounted to ₹673.30.
• Employee Benefit Expenses: The company reported ₹220.09 in employee-related costs.

Balance Sheet Position

As of September 30, 2025, Kalyani Steels maintained a strong balance sheet:

• Total Assets: ₹28,211.70
• Equity Share Capital: ₹218.64
• Other Equity: ₹19,475.78

Cash Flow and Liquidity

The company's cash and cash equivalents at the end of the quarter stood at ₹62.06, reflecting a decrease from ₹143.00 at the beginning of the period. This change in cash position was primarily due to operating activities, investments, and financing decisions made during the quarter.

Segment Information

Kalyani Steels continues to focus on its core business of manufacturing forging and engineering quality carbon and alloy steels, which remains its single reportable segment under Ind AS 108.

The financial results indicate that Kalyani Steels is navigating through a challenging period. The decline in revenue and profitability suggests potential headwinds in the steel industry or broader economic factors affecting the company's performance. Investors and stakeholders will be watching closely to see how the company adapts to the current market conditions and works to improve its financial metrics in the coming quarters.