Beekay Steel Indus has received rating affirmation from India Ratings and Research (Ind-Ra), which has maintained the existing IND A/Stable rating on the company's bank loan facilities. The rating agency announced this decision on December 9, 2025, covering bank loan facilities worth ₹4,230 million with IND A/Stable/IND A1 rating and additional facilities of ₹610 million with IND A/Stable rating.

Rating Rationale and Key Strengths

The ratings reflect Beekay Steel's EBITDA stability emanating from its conversion business, adequate liquidity position, and comfortable credit metrics. India Ratings expects the company's operational performance to recover in 2H FY26 after a subdued 1H FY26, supported by the commercialisation of the Cuttack unit in 2Q FY26 and likely increase in conversion volumes.

Financial Performance Analysis

The company's financial performance in 1H FY26 showed mixed results compared to previous years. While Beekay Steel maintained a steady revenue profile, its operational EBITDA was impacted during the period due to several factors including a dip in conversion volumes in 1Q FY26 following a temporary plant shutdown by key customer Tata Steel Limited for planned maintenance.

Operational Developments and Recovery Prospects

Beekay Steel has revamped and restarted facilities in its Cuttack unit, with commercial production of sponge iron commencing in December 2024. Operations in ferroalloys, power plant, rolling mill, and steel melting shop units commenced in 2Q FY26. The Cuttack unit's strategic location provides logistical advantages, and the restart of operations is expected to increase the scale of operations in the near-to-medium term.

The company's sales volumes from the own-manufactured segment are likely to range between 1,00,000-1,20,000 MT in FY26. The ramp-up of capacity at the Cuttack plant and sustained demand from construction, automobile, railways, and infrastructure sectors are expected to drive revenue and EBITDA growth over the medium term.

Conversion Business Stability

The conversion business continues to underpin margin stability and provide steady cash flows to Beekay Steel. This segment, which caters to Tata Steel Limited, accounted for approximately 21.10% of total sales volumes in 1H FY26, compared to 17.30% in FY25 and 18.90% in FY24.

Credit Metrics and Financial Position

India Ratings expects Beekay Steel's credit profile to remain comfortable over FY26-FY27, in absence of any significant debt-funded capex. The company's subdued operational performance weighed on its credit metrics in 1H FY26, with interest coverage declining to 3.86x from 7.04x in FY25 and gross leverage increasing to 3.88x from 2.43x in FY25.

Risk Factors and Outlook

The ratings are constrained by price volatility risk and customer concentration risk. As a non-integrated player, the company's manufacturing business is susceptible to volatility in raw material and finished goods prices. Tata Steel group entities contributed approximately 23.13% to revenue in FY25, though the agency expects conversion contracts to continue being rolled over given the length of relationships and renewal of agreements with additional capacities.

Beekay Steel Industries Ltd has successfully completed its postal ballot process, with shareholders overwhelmingly approving the appointment of two key directors to strengthen the company's leadership team.

Postal Ballot Results Declared

On January 5, 2026, the company declared the results of its postal ballot conducted through remote e-voting. Both resolutions were passed with the required three-fourths majority, marking a significant milestone in the company's governance structure.

Voting Statistics

The postal ballot witnessed strong participation from shareholders, with comprehensive voting results across different categories:

Director Appointments Confirmed

Lokanath Sahu - Whole-time Director (Operation)

• Director Identification Number (DIN): 11376365
• Term: 5 years effective from November 12, 2025
• Monthly Remuneration: ₹2,94,320
• Specialization: DRI operations expertise

Binod Kumar Tulsyan - Independent Director

• Director Identification Number (DIN): 09025810
• Term: 5 years effective from November 12, 2025
• Role: Independent oversight and governance

Scrutinizer's Report

Mr. Santosh Kumar Tibrewalla, Practicing Company Secretary (Membership No. 3811), served as the scrutinizer for the postal ballot process. His report confirmed the validity of the voting process and the overwhelming support for both appointments.

Company Overview

Beekay Steel Industries Limited operates in the steel sector with a current market capitalization of ₹804.94 crores, classified as a Small Cap company. The company trades on BSE with scrip code 539018 and ISIN INE213D01015.

Strategic Implications

The successful appointment of these directors represents a strategic move to enhance both operational capabilities and corporate governance. Lokanath Sahu's expertise in DRI operations aligns with the company's operational focus, while Binod Kumar Tulsyan's role as Independent Director strengthens board oversight and governance practices.

The overwhelming shareholder support, with 100% of votes cast in favour of both resolutions, demonstrates strong confidence in the company's leadership decisions and strategic direction.