The Management Discussion and Analysis Report (MDAR) provides an overview of the business environment, industry developments, opportunities, risks, operational performance, financial performance, internal control systems, and future outlook of the Company for the financial year ended March 31, 2026.
This report should be read in conjunction with the Companys Financial Statements, Notes to Accounts and other sections of this Annual Report. The financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS), the Companies Act, 2013 and the applicable SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The global economy during FY 2025-26 remained resilient despite continued geopolitical tensions, persistent inflationary pressures and supply chain disruptions across several regions. While major central banks gradually shifted towards a more accommodative monetary stance, global industrial activity continued to experience uneven growth. The steel industry, in particular, faced challenges arising from subdued demand in certain developed economies and excess production capacities in some steel-producing countries.
China continued to witness weakness in its real estate sector, resulting in lower domestic steel consumption and a significant increase in steel exports to international markets. Chinese steel exports increased substantially during calendar year 2024 and remained elevated, leading to increased competitive pressure on steel-producing countries, including India. Consequently, global steel prices remained under pressure during much of the year. According to ICRA, Chinese Hot Rolled Coil (HRC) export prices are expected to remain subdued during FY 2026, while continued diversion of global steel trade towards high-growth markets such as India may keep import pressure elevated.
On the raw material front, steel manufacturers benefited from moderation in coking coal prices compared to the previous year, partially offsetting the impact of softer steel prices. Nevertheless, global economic uncertainty, geopolitical developments and changing trade policies continued to influence demand patterns and profitability across the global steel industry.
India continued to remain one of the fastest-growing major economies during FY 2025-26, supported by robust domestic demand, sustained public capital expenditure and favourable policy initiatives. Continued investments in roads, railways, ports, airports, urban infrastructure, housing and renewable energy created strong demand for steel and allied products.
Government initiatives such as PM GatiShakti, Make in India, Production Linked Incentive (PLI) Schemes and continued emphasis on manufacturing competitiveness strengthened industrial growth and infrastructure development across the country. These initiatives are expected to continue driving steel consumption over the medium to long term.
The continued focus on logistics improvement, manufacturing expansion and infrastructure development has reinforced Indias position as one of the most attractive steel markets globally. Increasing urbanisation, rising investments in public infrastructure and growth in manufacturing are expected to support sustained domestic steel demand in the coming years.
India retained its position as the worlds second-largest producer of crude steel during calendar year 2025, reflecting the continued strength of the domestic steel industry. The sector remains one of the key contributors to Indias industrial development, supporting infrastructure, construction, automobiles, engineering, capital goods, railways and renewable energy sectors.
In FY 2025, crude steel production reached 124.551 million tonnes, while finished steel production stood at 118.699 million tonnes, registering a growth of approximately 10.5% over the corresponding period of the previous year. Domestic finished steel consumption increased to 119.574 million tonnes, reflecting healthy demand from infrastructure and construction activities. During the same period, finished steel exports increased by 33.3% to 4.799 million tonnes, while imports declined by 37.4% to 4.649 million tonnes, making India a net exporter of finished steel during the period.
The Ministry of Steel continued to implement several policy initiatives aimed at strengthening domestic manufacturing and improving industry competitiveness. These included continued implementation of the Production Linked Incentive (PLI) Scheme for Specialty Steel, expansion of the PM GatiShakti National Master Plan, simplification of import procedures for non-Quality Control Order (QCO) steel grades and calibrated reforms relating to Quality Control Orders. These initiatives are expected to enhance domestic manufacturing capability, promote investment in specialty steel production, improve logistics efficiency and encourage technology upgradation across the steel value chain.
The PLI Scheme has continued to attract significant investments towards specialty steel manufacturing. As reported by the Ministry of Steel, the scheme has attracted committed investments of approximately ? 43,874 crore, with more than ? 22,000 crore already invested under the initial phases, generating substantial employment and strengthening Indias long-term manufacturing capabilities.
Indias crude steel capacity also continued to expand, increasing from 200.333 million tonnes in FY 2024-25 to approximately 218.296 million tonnes during April-December FY 2025-26 (provisional), reflecting continued investment in capacity expansion by domestic steel producers.
The long-term outlook for the Indian steel industry remains positive, supported by favourable macroeconomic fundamentals, continued Government investment in infrastructure and sustained growth in manufacturing activities. Rising steel consumption from housing, transportation, engineering, renewable energy and capital goods sectors is expected to support healthy demand over the medium term.
However, the industry continues to face challenges arising from increased imports, global pricing pressures and geopolitical uncertainties. According to ICRA, domestic finished steel demand is expected to grow by 7-8% during FY 2026, supported by ongoing infrastructure development and domestic economic growth. At the same time, profitability of steel manufacturers may remain under pressure due to elevated imports and subdued international steel prices unless suitable trade protection measures are implemented. The report also expects industry capacity utilisation to improve beyond 80% as producers defer capacity additions in response to softer earnings.
The Ministry of Steel continues to promote long-term sectoral growth through policy support, technological advancement, quality enhancement and infrastructure development. Continued implementation of initiatives such as the National Steel Policy, PLI Scheme for Specialty Steel and PM GatiShakti is expected to strengthen Indias competitiveness and support sustainable growth of the domestic steel industry over the coming years.
India continues to maintain its position as the worlds second-largest producer of crude steel and remains one of the fastest-growing steel consuming nations. The Indian steel industry plays a strategic role in the countrys economic development by supporting infrastructure, construction, engineering, automobiles, railways, renewable energy, defence and capital goods industries.
During FY 2025-26, the Indian steel industry demonstrated resilience despite global macroeconomic uncertainties. Growth in domestic demand remained supported by sustained Government capital expenditure, expansion in infrastructure projects, increasing urbanisation and strong activity in housing and manufacturing sectors.
As per the Ministry of Steel, domestic crude steel capacity expanded to over 218 Million Tonnes per annum, while crude steel production during April-December 2025 reached approximately 124.55 Million Tonnes. Finished steel production grew by about 10.5% whereas domestic consumption increased by around 7%, reflecting continued strength in domestic demand. India also witnessed significant improvement in finished steel exports during the period.
The Government continued to support the sector through initiatives such as:
National Steel Policy, 2017
PM Gati Shakti National Master Plan
Production Linked Incentive (PLI) Scheme for Specialty Steel
Rationalisation of Quality Control Orders
Ease of import procedures for non-QCO steel grades
Continued emphasis on domestic manufacturing under Make in India.
According to ICRA, domestic steel demand is expected to remain healthy in FY 2026, although profitability of steel producers may remain under pressure due to elevated imports and subdued global steel prices unless supported by appropriate trade protection measures.
The company is engaged in manufacturing of: Mild steel Structural Re-bars, angles, channels, MS Round and other sectional products as per order. Products are broadly categorized as the Re-bars in the Steel Industry. The main application of the products currently being manufactured are used in the Infrastructure and Construction Industry. Existing manufacturing unit is ISO 9001:2008 certified from BSCIC Quality Management Systems.
Company manufactures following products portfolio are as follows:
Mild steel angles are L-shaped structural sections used for providing support in load-bearing frameworks and various structural applications. These angles are manufactured through a hot re-rolling process, wherein mild steel billets are heated to high temperatures and passed through rolling mills to achieve the required L-shaped cross-section. Our mild steel angles are available in a wide range of sizes (35 × 35 mm and 75 × 75 mm) and thicknesses to meet different load and design requirements.
Applications of Mild Steel Angles
Mild Steel Channels are C-shaped structural steel sections widely used for providing strength, stability, and support in load-bearing frameworks and various structural applications. These channels are manufactured through a hot re-rolling process, wherein mild steel billets are heated to high temperatures and passed through rolling mills to achieve the required C-shaped cross-section with uniform dimensions. Our mild steel channels are available in a wide range of sizes (75 × 40 mm, 75 × 50 mm, 100 × 50 mm) and thicknesses to meet diverse load-bearing and design requirements.
Applications of Mild Steel Channels
Mild Steel Squares are solid square section structural re-bars offered by our Company for use in fabrication, engineering, and construction applications. These squares are manufactured to achieve uniform square cross-sections with consistent dimensional properties. Our mild steel squares are available in a wide range of sizes (10 mm, 12 mm and 16 mm) and can also be supplied in various lengths to meet different load and design requirements.
Applications of Mild Steel Squares
Our mild steel flats are versatile rectangular sections widely used in fabrication and structural applications. These flats are produced in various widths and thicknesses, offering consistent strength, smooth finish, and workability. They are ideal for applications requiring precision and adaptability, making them a preferred choice across multiple industries.
End Use Applications:
Our Company offers high-quality Mild Steel Structural Round Bars that are produced using premium-grade mild steel, ensuring precise dimensions, uniform mechanical properties, and a smooth surface finish. Available in a wide range of diameters and lengths, our round bars are known for their high weldability, toughness, and reliability in load-bearing and general engineering applications. We ensure that all our products comply with relevant industry standards, making them suitable for diverse industrial requirements.
End Use Applications:
Manufacturing of bolts, nuts, and fasteners
Automotive and machinery components
Agricultural tools and implements
General-purpose fabrication and repair works
The Company continues to focus on operational efficiency, product quality, customer satisfaction and prudent financial management while strengthening its market presence.
The Indian steel industry continues to offer significant long-term growth opportunities driven by:
The industry continues to face several challenges including:
India is expected to remain one of the fastest-growing steel markets globally over the medium and long term. Strong Government focus on infrastructure development, manufacturing expansion, housing and urbanisation is expected to sustain steel demand.
However, profitability of steel producers may continue to be influenced by global steel prices, import trends, raw material costs and geopolitical developments. Companies focusing on operational efficiency, value-added products, cost optimisation and prudent capital allocation are expected to remain better positioned.
The Company remains focused on strengthening operational efficiencies, enhancing customer relationships, improving product quality and pursuing sustainable growth while maintaining financial discipline.
The Company operates in a dynamic and competitive business environment and is exposed to various business risks including:
Fluctuations in prices and availability of iron ore, coal, scrap and other inputs may impact profitability.
Mitigation
Demand fluctuations due to changes in economic conditions, infrastructure spending and industrial production.
Mitigation
Changes in Government policies, environmental regulations and taxation laws may impact operations.
Mitigation
Interest rate movements, liquidity management and credit risks remain important considerations.
Mitigation
Equipment failures, power shortages, logistics disruptions and workforce availability may affect operations.
Mitigation
The Company has established an adequate system of internal financial controls commensurate with the size and nature of its business. These controls are designed to safeguard assets, ensure reliability of financial reporting, promote operational efficiency and ensure compliance with applicable laws and internal policies.
The internal audit function independently evaluates the adequacy and effectiveness of internal controls. Significant observations along with corrective actions are periodically reviewed by the Audit Committee and the Board of Directors.
The management believes that the existing internal control systems are adequate and operating effectively.
The Company had prepared its financial statements based on Indian Accounting Standard (Ind AS). The financial statements were prepared under the historical cost convention on an accrual basis. Figures of the previous years were reclassified/ regrouped to confirm the presentation requirements under Ind AS and the requirements laid down under Schedule III of the Companies Act, 2013.
The Companys revenue in FY 2025-26 was Rs. 10,128.69 lakhs compare to Rs. 15,130.13 lakhs in the previous financial year. EBITDA stood at Rs. 336.76 lakhs in FY 2025-26 compared to Rs. (469.51) lakhs in the previous financial year. The Company reported a post-tax Profit of Rs. 202.08 lakhs in FY 2025-2026 compared to a post-tax loss of Rs. (1,340.23) lakhs in the previous financial year.
The Company firmly believes that its employees are its most valuable asset. It continues to focus on attracting, retaining and developing talent through continuous learning, performance management, employee engagement and welfare initiatives.
Industrial relations remained cordial throughout the year.
Number of employees as on 31 March 2026: 66
DETAILS OF SIGNIFICANT CHANGES:
| Analytical Ratios | 31 st March 2026 | 31 st March 2025 | % Of Change |
| 1 Current Ratio | 0.92 | 0.92 | NIL |
| (Current Assets/Current Liabilities) | |||
| 2 Debt equity Ratio | 0.21 | 0.00 | 100.0% |
| (Total Debt/Shareholder \u2019 s Equity) | |||
| 3 Inventory Turnover Ratio | 9.90 | 14.30 | 30.74% |
| (Cost of Goods sold or Sales/Average inventory) | |||
| Average inventory is (Opening + Closing balance/2) | |||
| 4 Operating Margin (%) | 0.23 | -11.95 | -101.94% |
| (Earnings before interest and Taxes less other | |||
| income/Net Sales) | |||
| 5 Net Profit Margin (%) | 2.05 | -8.87 | 123.07 |
| (Net Profit/ Net Sales) | |||
| 6 Trade Receivables Turnover ratio | 12.55 | 4.87 | -157.94 |
| (Net Credit Purchase/ Average Trade Payables) | |||
| Average trade payable=(opening + Closing balance | |||
| /2) | |||
| 7 Interest Coverage Ratio | NIL | NIL | NIL |
| (Earnings Before Interest and Taxes (EBIT) / Interest Expense) |
CAUTIONARY STATEMENT
Statements made in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, expectations or predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various risks and uncertainties including changes in economic conditions, Government policies, demand-supply dynamics, raw material prices, global market conditions, technological developments and other factors beyond the Companys control.
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