Kalyani Steels announced on Wednesday its planned acquisition of 1,857,223 equity shares in Clean Renewable Energy KK 1A Private Limited for ₹51.9 crore, representing an 8.64% stake in the renewable energy company. The acquisition forms part of the steel manufacturer's strategy to source power through captive renewable energy sources under the group captive scheme established by the Electricity Act, 2003.

Acquisition Details

The transaction will be executed through share subscription and shareholders agreements with Clean Renewable, a special purpose vehicle of Hero Rooftop Energy Private Limited. The investment is subject to completion of condition precedents outlined in definitive documents, with no governmental or regulatory approvals required.

Target Company Profile

Clean Renewable Energy KK 1A Private Limited was incorporated in September 2023 and is engaged in electricity generation. The company, registered in New Delhi, has not generated any 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 Rationale

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

Regulatory Compliance and Market Performance

Kalyani Steels disclosed the information to stock exchanges in compliance with SEBI listing regulations on December 25, 2025. The company will issue a separate notification once the investment is finalized. The shares of Kalyani Steels were trading at ₹742.50, up by ₹3.75 or 0.51% on the NSE at 10.35 pm.

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.