SAL Steel Limited announced its unaudited standalone financial results for the quarter and nine months ended December 31, 2025, alongside significant board restructuring decisions during its meeting held on February 14, 2026.

Financial Performance for Q3 FY26

The company reported a notable turnaround in its quarterly performance despite operational challenges. Revenue from operations declined significantly to ₹2.20 crores in Q3 FY26 compared to ₹193.56 crores in Q3 FY25, primarily due to maintenance activities carried out at manufacturing plants during the quarter.

The company's profitability was significantly boosted by exceptional items worth ₹16.09 crores, consisting of income derived from recovery of by-product materials during maintenance activities and physical verification at manufacturing plants.

Nine Months Performance FY26

For the nine months ended December 31, 2025, SAL Steel reported revenue from operations of ₹195.48 crores compared to ₹427.74 crores in the corresponding period of FY25. The company achieved a net profit of ₹0.68 crores against a loss of ₹0.46 crores in the previous year period.

Major Board Restructuring

The Board approved comprehensive leadership changes effective from the meeting date, subject to shareholder approval through postal ballot:

Leadership Designation Changes

New Appointments

The company appointed two new directors to strengthen its leadership team:

• Anil Kumar Singh (DIN: 11535361) as Additional Director designated as Whole Time Director for three consecutive years
• Rajesh Mangal (DIN: 10562605) as Additional Director designated as Non-Executive Non-Independent Director

Key Personnel Changes

Significant changes were made to key managerial positions:

Warrant Conversion Transaction

The Board approved the conversion of 3,57,50,000 warrants into equity shares by Sree Metaliks Limited, a promoter entity. The conversion details include:

Post-conversion, the company's paid-up equity share capital increased to ₹144,76,67,000 consisting of 14,47,66,700 fully paid-up equity shares of ₹10 face value each. Sree Metaliks Limited's shareholding increased from 43.58% to 57.51% following this conversion.

Postal Ballot Approval

The Board approved the Notice of Postal Ballot with February 13, 2026 as the cut-off date for determining voting rights. The postal ballot will seek shareholder approval for the various board appointments and designation changes announced during the meeting.

SAL Steel has received a disclosure from Shah Alloys Limited regarding the substantial disposal of shares under Regulation 29 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The transaction represents a significant reduction in the promoter group's shareholding in the steel company.

Transaction Details

Shah Alloys Limited, which belongs to the promoter group of SAL Steel Limited, executed an off-market transfer of shares pursuant to a Share Purchase Agreement dated September 4, 2025. The actual disposal took place on December 12, 2025.

Shareholding Pattern Changes

The disposal has resulted in a significant change in Shah Alloys Limited's shareholding pattern in SAL Steel Limited. Before the transaction, the promoter entity held a total of 3,02,56,989 shares representing 29.03% of the company's voting capital.

Company Capital Structure

SAL Steel Limited's equity share capital remains unchanged following this transaction. The company maintains its capital structure with no impact on the total number of outstanding shares.

SAL Steel Limited's shares are listed on both BSE Limited and National Stock Exchange of India Limited. The disclosure was signed by Narayanlal F. Shah, Company Secretary & Compliance Officer of Shah Alloys Limited, ensuring compliance with regulatory requirements for substantial shareholding changes.

As a result of this transaction, Shah Alloys Limited has reduced its total holding in SAL Steel Limited to 18.71%, down from the previous 29.03%. This significant reduction in stake through an off-market transfer marks a notable change in the ownership structure of SAL Steel Limited.