CONDITION AND RESULTS OF OPERATIONS
Unless otherwise stated, references in this section to the "we", "our" or "us", "Company" or "our Company" means "Ardee Industries Limited".
To obtain a complete understanding of our Company and our business, prospective investors should read this section in conjunction with "Risk Factors", "Industry Overview", "Financial Information" and "Our Business" on pages 28, 146, 279 and 211, respectively, as well as financial and other information contained in this Red
Herring Prospectus as a whole. Additionally, please refer to "Definitions and Abbreviations" on page 5 for certain terms used in this section.
Unless otherwise indicated, industry and market data used in this section have been derived from the report titled
"Industry Report on Lead and Lead Alloy Recycling" dated July 17, 2026 prepared by Frost & Sullivan ("F&S Report"), which has been exclusively commissioned and paid for by our Company, for the purpose of understanding the industry in which we operate, in connection with the Offer. A copy of the F&S Report shall be available on the website of our Company at https://www.ardeeindustries.com/investors/ from the date of this Red Herring Prospectus till the Bid/ Issue Closing Date. Unless otherwise indicated, financial, operational, industry and other related information derived from the F&S Report and included herein with respect to any particular year refers to such information for the relevant financial / calendar year. For further details, see "Certain
Conventions, Use of Financial Information and Market Data and Currency of Presentation Industry and Market Data" and "Risk Factors The industry related disclosure in this Red Herring Prospectus has been derived from the F&S Report which we have commissioned and purchased and any reliance on such information for making an investment decision in the Offer is subject to inherent risks." on pages 22 and 62, respectively.
Overview
Ardee Industries Limited is one of Indias leading players in circular economy, specializing in the environmentally responsible recovery and recycling of end-of-life energy storage products and non-ferrous scrap, while reclaiming critical resources from waste streams (Source: F&S Report). For further details see, "Industry Overview" on page 191. Our product portfolio comprises pure lead and lead alloys such as lead calcium alloys, lead antimony alloys, lead tin alloys, lead silver alloys and lead cadmium alloys which find applications in critical industries including energy storage, e-mobility, automotive, chemical, among others. Our products are customisable to the requirements of our customers, with respect to the level of purity and/or composition with other metal and non-metal elements with purity levels ranging from 99.97% to 99.985% that conform to international standards. As per F&S Report, we are one of the fastest growing companies in terms of revenue amongst its peers with a Revenue CAGR of 58.81% in the last three Fiscals. For further details see, "Industry Overview" on page 192.
By closing the loop across collection, recycling, and production, we not only reduce Indias dependence on imported critical metals but also strengthen domestic resource security while lowering the environmental footprint of industrial growth. With an installed recycling capacity of 156,950 MTPA and a track record of producing quality-compliant alloys, we are closely aligned with Indias sustainability agenda and the global transition towards a circular, resource-efficient economy.
Pure lead is standardized with purity levels ranging from 99.97% to 99.98% while lead alloys are customized to the requirements of our customers, with respect to the level of purity and/or composition with other metal and non-metal elements. Revenue is primarily derived from the sale of these recycled and refined non-ferrous metal products in domestic and international markets.
Order procurement begins with customer outreach through market research, enquiries and industry events, followed by a detailed vendor onboarding process involving technical evaluation, quality and capability audits. Orders are placed only after successful vendor approval and ongoing compliance with customer specifications and industry standards, supported by periodic audits of our Manufacturing Facility. As per our revenue model, revenue from our sales are booked upon change of control of products to our customers, as per the terms of our contracts or purchase orders.
Lead is among the most extensively recycled metals, capable of being re-melted numerous times while retaining its characteristics (Source: F&S Report). For further details see, "Industry Overview" on page 156. Over 80% of
Indias lead demand is met through secondary (recycled) lead primarily derived from used lead-acid batteries (ULABs). Indias lead recycling ecosystem comprises of both organized and unorganized sector. Indias recycled lead production in FY 2026 stood at ~1.51 million tonnes. Indias Recycled Lead Ingot market was valued at
~INR 30,933 crores in FY 2026 mainly driven by the applications of lead acid battery in the automotive sector, Inverter and UPS, Telecom, data centres, energy storage applications in renewable energy sector such as solar power backups and other segments such as Cable Sheathing, PVC Stabilizers, pigments etc. (Source: F&S Report) For further details see, "Industry Overview" on page 158.
We have our brand ‘Ardee listed on the MCX platform which provides customers and commodity traders a platform to purchase and trade in our product, pure lead. Listing on MCX establishes our Companys credibility and competitiveness, facilitates establishing transparent benchmark price for our products, pure lead, enables hedging against price risks and improved market visibility. Further, our brand ‘ARDEE LEAD 9997 is also listed on the London Metal Exchange (LME) which further establishes our Companys credibility and competitiveness in the international markets, provide global price benchmarking of our products.
In the year 2022, we were recognized as ‘One Star Export House by the Directorate General of Foreign Trade,
Ministry of Commerce & Industry, Government of India. In recognition of our consistently growing export operations, our Company was accorded with the status of ‘Three Star Export House.
The details of revenue from sale of products for the Fiscals 2026, 2025 and 2024 are set out below:
( in million, except for percentages)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||
| Amount | % of revenue from operations | Amount | % of revenue from operations | Amount | % of revenue from operations | |
| Pure Lead | 6,594.22 | 56.47 | 3,145.02 | 42.34 | 2,454.28 | 53.01 |
| Lead Alloys | 3,212.08 | 27.51 | 3,195.35 | 43.02 | 1,580.81 | 34.15 |
| Scrap Sale | 400.91 | 3.43 | 258.51 | 3.48 | 152.54 | 3.29 |
| Others | 7.27 | 0.06 | 76.24 | 1.03 | 2.37 | 0.05 |
Revenue from |
10,214.48 | 87.48 | 6,675.12 | 89.87 | 4,190.00 | 90.50 |
sale of products |
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We own and operate a Manufacturing Facility spread across approximately 7.61 acres in the Tirupati district of Andhra Pradesh with an installed capacity of 156,950 MTPA. The facility is equipped with advanced machinery for efficient and environmentally responsible lead recycling, including rotary furnaces, refining kettles, casting machines, and pollution control systems. Our Manufacturing Facility has received ISO 9001:2015 (conformity to quality management system standard), ISO 14001:2015 (conformity to environmental management system standard), and ISO 45001:2018 (conformity to occupational health and safety management system standard) accreditations. Our NABL accredited in-house testing laboratory ensures strict quality control, aligning output with customer specifications and industry standards. For further details, please see "History and Certain Corporate Matters Major events and milestones" on page 249.
Our Manufacturing Facility is strategically located in Tirupati, Andhra Pradesh, on account of the presence of large battery manufacturers such as Amara Raja Energy & Mobility and other notable lead acid battery manufacturers in our proximity. (Source: F&S Report) Owing to our strategic presence, we are able to deliver our products to such customers in a short turnaround time, saving on logistical costs, thereby making our products cost competitive as compared to our competitors. Such strategic location has made well-known lead acid battery manufacturers, such as, Amara Raja Energy & Mobility, a key customer of our Company. Additionally, our Manufacturing Facility has been strategically set up near the port to cater to both domestic and international markets in recycled lead (Source: F&S Report). For further details see, "Industry Overview" on page 167. Chennai port is 150 Kms away from the plant location of our Company while Kattupalli port is 130 Kms and Ennore port is also 130 Kms away from our Manufacturing Facility, enabling ease of shipment in relation to the export and import operations of our Company.
As of March 31, 2025, we exported our products to customers based in eight (8) countries including Singapore, Hong Kong, South Korea, Switzerland, United Arab Emirates, Japan, Saudi Arabia and United States of America. Additionally, our Company has a presence across India, with our products being sold in twelve (12) states as of March 31, 2026. Our revenue from exports have grown at a CAGR of 138.69% from Fiscal 2024 to Fiscal 2026. The details of our sale or products (domestic and exports) for the Fiscals 2026, 2025 and 2024 are set out below:
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||
| Amount | % of revenue from operations | Amount | % of revenue from operations | Amount | % of revenue from operations | |
| Domestic | 6,477.22 | 55.47 | 4,444.50 | 59.84 | 3,745.22 | 80.90 |
| Exports | 4,650.54 | 39.83 | 2,750.63 | 37.03 | 816.30 | 17.63 |
The details of country-wise exports for the Fiscals 2026, 2025 and 2024 are set out below:
( in million, except for percentages)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||
| Amount | % of revenue from exports | Amount | % of revenue from exports | Amount | % of revenue from exports | |
| Singapore | 1,975.57 | 42.48 | 1,233.15 | 44.83 | 641.97 | 78.64 |
| Switzerland | 1,883.16 | 40.49 | 323.07 | 11.75 | - | - |
| South Korea | 412.98 | 8.88 | 569.80 | 20.72 | 89.25 | 10.93 |
| Japan | 194.67 | 4.19 | 3.58 | 0.13 | - | - |
| Hong Kong | 146.23 | 3.14 | 604.41 | 21.97 | - | - |
| United Arab Emirates | 32.93 | 0.71 | 16.63 | 0.60 | 49.76 | 6.10 |
| Saudi Arabia | 4.99 | 0.11 | - | - | - | - |
| United States of America | - | - | - | - | 35.32 | 4.33 |
Total revenue from exports |
4,650.54 | 100.00 | 2,750.63 | 100.00 | 816.30 | 100.00 |
Principal Factors Affecting our Financial Condition and Results of Operations
Availability and cost of raw materials
The key raw materials that we require for our manufacturing operations include recyclable scrap such as battery scrap, remelted lead ingots, remelted lead blocks, lead scrap (radio / relay / ropes) and lead master metal. Our cost of raw material consumed is the largest component of our cost structure. During the Fiscals 2026, 2025 and 2024, our cost of materials consumed was 9,342.23 million, 5,749.44 million and 3,669.70 million, which was
80.01%, 77.41% and 79.27% of our revenue from operations, respectively.
We source raw materials from domestic and international scrap and metal trading firms, dealers and through auctions on various platforms. Details of our raw materials procurement from domestic and international suppliers for the Fiscals 2026, 2025 and 2024 are set out below:
( in million, except for percentages)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||
| Amount | % of total purchases | Amount | % of total purchases | Amount | % of total purchases | |
| Domestic purchases | 1,210.54 | 13.06 | 2,000.89 | 35.27 | 1,424.84 | 38.66 |
| Import purchases | 8,059.78 | 86.94 | 3,672.92 | 64.73 | 2,260.34 | 61.34 |
Total |
9,270.32 | 100.00 | 5,673.81 | 100.00 | 3,685.18 | 100.00 |
As we source a significant portion of our raw materials from international markets, we are also expose to foreign exchange rate fluctuations, especially as our revenues in foreign currencies grow. Volatility in the Indian rupee against the U.S. dollar or other currencies may materially affect our business performance, financial condition, and cash flows.
Further, any restrictions imposed by the Government of India on the import of such raw materials or any embargoes on the jurisdictions where our suppliers are located, or any increases in import duties on these raw materials, may adversely affect our business, results of operations and prospects.
Dependence on demand from battery and metal industries
We undertake manufacturing of pure lead and lead alloys by using recyclable lead-containing scrap. Our products are suppliers to our customers in battery and metal industries.
The details of end user industry-wise revenue from operations for the Fiscals 2026, 2025 and 2024 are set out below:
( in million, except for percentages)
| Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | ||||
| End use Industry | Amount | % of Revenue from Operations | Amount | % of Revenue from Operations | Amount | % of Revenue from Operations |
| Battery | 4,059.88 | 34.77 | 3,287.65 | 44.26 | 3,056.69 | 66.03 |
| Metal | 5,840.33 | 50.02 | 3,191.46 | 42.97 | 1,046.87 | 22.61 |
| Others* | 314.27 | 2.69 | 196.01 | 2.64 | 86.44 | 1.87 |
*Others include scrap sales
The demand for the end products manufactured by our customers in battery and metal industries is affected by a number of factors including, but not limited to (a) our customers failure to successfully market their products or to compete effectively, (b) loss of market share, which may lead our customers to reduce or discontinue the purchase of our products, (c) economic conditions of the markets in which our customers operates, (d) slowdown in battery and metal industries and (e) global macroeconomic conditions. Further, decrease in demand from customers operating in the battery and metal industries may result in increase in inventories which in turn will lead to increase in holding cost thereby impacting our results of operations and financial condition.
Lead acid batteries market in India was valued at INR 49,140 Crores in FY 2026 and is projected to reach to INR 64,895 crores in FY 2030 with a CAGR of 7.2% driven by the growing demand of lead acid batteries from the automotive sector (both OEM and replacement segments) followed by non-auto sector such as Telecom, Renewable Energy, Inverter and UPS, data centres and other segments such as cable Sheathing, PVC Stabilizers, pigments etc. (Source: F&S Report). For further details, see "Industry Overview" on page 177. While we believe that this augurs well for the sector in which we operate, there can be no assurance a slowdown or downturn in the battery and metal industries driven by economic factors, alternative technologies (e.g., lithium-ion replacing lead-acid batteries), and any change in the consumer behaviour may result in reduced demand for our products.
These factors, individually or collectively, could materially and adversely affect our business operations, profitability, cash flows, and overall financial condition.
Strategic location of our Manufacturing Facility
We own and operate a Manufacturing Facility at APIICs Industrial Park, Naidupet, Tirupati District, Andhra
Pradesh. The facility spans 7.61 acres of land and is situated in one of the industrial hubs of South India. Further, APIICs Industrial Park Naidupet itself hosts several large manufacturing units in sectors like metals and batteries. The strategic location of our Manufacturing Facility offers cost and logistical advantages to us, as it is situated in close proximity to the manufacturing units of our customers on a just-in-time basis at the point of end-use.
Naidupet, located in Tirupati district, in the State of Andhra Pradesh, holds strategic importance for industrial and manufacturing operations due to its connectivity and developed infrastructure. It lies along National Highway 16, part of the Golden Quadrilateral network, providing direct road access to major cities such as Chennai, Vijayawada, and Kolkata. The town is also situated on the Chennai Vijayawada Howrah railway line, facilitating efficient freight movement. Additionally, its proximity to seaports including Chennai, Kattupalli and Ennore enables smooth import of raw materials and export of finished products.
Foreign exchange fluctuations
Our financial information is presented in Indian Rupees. We generate a significant portion of our sales internationally through export and sales outside of India. The details of our sale or products (domestic and exports) for the Fiscals 2026, 2025 and 2024 are set out below:
( in million, except for percentages)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||
| Amount | % of Revenue from Operations | Amount | % of Revenue from Operations | Amount | % of Revenue from Operations | |
| Domestic | 6,477.22 | 55.47 | 4,444.50 | 59.84 | 3,745.22 | 80.90 |
| Exports | 4,650.54 | 39.83 | 2,750.63 | 37.03 | 816.30 | 17.63 |
Further, we source raw materials from domestic and international scrap and metal trading firms and dealers. The details of our raw materials procurement from domestic and international suppliers for the Fiscals 2026, 2025 and 2024 are set out below:
( in million, except for percentages)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||
| Amount | % of total purchases | Amount | % of total purchases | Amount | % of total purchases | |
| Domestic purchases | 1,210.54 | 13.06 | 2,000.89 | 35.27 | 1,424.84 | 38.66 |
| Import purchases | 8,059.78 | 86.94 | 3,672.92 | 64.73 | 2,260.34 | 61.34 |
Total |
9,270.32 | 100.00 | 5,673.81 | 100.00 | 3,685.18 | 100.00 |
Volatility in the Indian rupee against the U.S. dollar or other currencies may materially affect our business performance, financial condition, and cash flows. While we mitigate some of this risk by using hedging strategies through futures contracts in the metals market, we may not be able to fully offset rising input costs. There can be no guarantee that foreign exchange fluctuations will not affect our financial performance in the future as we continue to expand our international operations.
Volatility in prices of lead products and/or raw materials
One of the major challenges facing the lead recycling industry is the fluctuation in prices of lead prices. The price of lead, can vary significantly, based on a number of factors, such as, the availability and cost of raw material, global mining and smelting output, recycling efficiency, fluctuations in domestic and international demand and supply of lead products, transportation costs, demand from the manufacturing industry, protective trade measures and various social and political factors. Further, the prices of lead products are also directly impacted by fluctuations in the prices of lead traded on the London Metal Exchange (LME). Further, the prices and supply of raw materials we require, are also affected by, among others, general economic conditions, competition, and levels, the occurrence of pandemic, transportation costs, indirect taxes and import duties, tariffs and currency exchange rate.
To mitigate the impact of price volatility in lead, we adopt a comprehensive risk management approach that includes back-to-back pricing and strategic hedging. For further details, see "Our Business Application of Hedging Mechanism for Commodity Price Risk Related Protection" on page 216.
Further, in case of occurrence of downturns in the battery and metal industries, we may experience decreased demand, which may, in turn, have a material adverse effect on our business, results of operations, financial condition and prospects.
Unexpected loss, shutdown or slowdown of operations at any of our Manufacturing Facility
Our Manufacturing Facility is subject to operating risks, such as the breakdown or failure of equipment, power supply interruptions, facility obsolescence or disrepair, labour disputes, natural disasters and industrial accidents. While we undertake precautions to minimize the risk of any significant operational problems at Manufacturing Facility, there can be no assurance that our business, financial position and operations will not be adversely affected by disruption caused by operational problems at our Manufacturing Facility. Any unscheduled, unplanned or prolonged disruption of our manufacturing operations, including, power failure, fire and unexpected mechanical failure of equipment, performance below expected levels of output or efficiency, obsolescence, labour disputes, strikes, lock-outs, earthquakes and other natural disasters, industrial accidents, any significant social, political or economic disturbances or infectious disease outbreaks, which could lead to delayed or lost deliveries and adversely affect sales and revenues from operations in such period. The occurrence of any of these risks/events could affect our manufacturing operations by causing our Manufacturing Facility to shut down or slowdown.
Competition
We specialize in the manufacturing of pure lead and lead alloys by using recyclable scrap such as battery scrap, remelted lead ingots, remelted lead blocks, lead scrap (radio / relay / ropes) and lead master metal. Our product range includes pure lead and lead alloys such as lead calcium alloys, lead antimony alloys, lead tin alloys, lead silver alloys and lead cadmium alloys, which are customized with respect to the level of purity and/or composition with other metal and non-metal elements, to meet specific customer requirements. Our primary competitors include Gravita India Limited, Pondy Oxides and Chemicals Limited and Jain Resource Recycling Limited
(Source: F&S Report). For further details, see "Industry Overview" on page 198.
We face competition from other companies having lead recycling capabilities on the basis of price, delivery and credit terms. Further, we also face competition from companies manufacturing lithium-ion batteries. Additionally, we face pricing pressures from domestic and international companies that are able to refine, recycle and manufacture non-ferrous metal products at competitive costs and consequently, may supply their products at cheaper prices. If we are unable to respond adequately to the competition we expect to face, particularly in terms of pricing and product quality, we may lose market share to our competitors, which could lead to a decline in our sales and profitability. Furthermore, the entry of new competitors and consolidation of existing ones could intensify the competitive landscape, making it more challenging for us to sustain our growth and profitability. For further details, see "Risk Factors - We face competition from domestic lead and metal recycling companies (from both organized and unorganized players) and primary lead suppliers and our inability to compete effectively may have a material adverse impact on our business, results of operations and financial condition." on page 55.
Changes in Government Policies and Duties
The lead recycling industry in India is significantly influenced by government policies and regulatory frameworks, particularly those related to import and export duties, LME prices, anti-dumping measures, and infrastructure development. Changes in these policies can have a direct and material impact on our input costs, pricing strategies, and overall competitiveness. For example, revisions in import duty structures or the imposition of anti-dumping duties on lead products can alter the cost dynamics of raw material procurement, especially when raw material is generally sourced from international markets. Similarly, reductions in export incentives or the imposition of export duties on lead products may affect our margins and international competitiveness. Any sudden or adverse policy changes, whether at the central or state level, may therefore lead to volatility in our operational and financial performance.
Our business, results of operations and financial condition are affected by a number of factors, including:
Significant Accounting Policies
The significant accounting policies adopted in the preparation of our Financial Statements are set forth below. These policies have been consistently applied to all the years presented, unless otherwise stated.
1. Corporate information
The Company was incorporated on September 16, 1993 with the objects to carry on the business of manufacturing, Non-ferrous metal and batteries along with process, refine, mix, re-cycling of lead, lead oxide, red lead. The Registered Office of the Company is situated at Khasra No. 340, 1st Floor and 3rd Floor, Village Sultanpur, Mehrauli, Gadaipur, New Delhi, India, 110030.
The company has been converted from Private company to Public Company.
The Restated financial information comprises of financial information of Ardee Industries Limited (the Company) for the for the years ended March 31, 2026, March 31, 2025 and March 31, 2024.
2. Basis of Preparation
2.1 These Restated statements are prepared and presented in INR million which is the functional currency of the company. These Restated Financial Statements have been prepared in accordance with Ind AS prescribed in under section 133 of Companies act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and other relevant provisions of the Act.
These "Restated Financial Information" are approved for issue by the Board of Directors at their meeting held on July 9, 2026.
The Restated Financial Information, have been prepared in accordance with the requirements of: a) Section 26 of Part I of Chapter III of the Companies Act, 2013 (the "Act"); b) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (ICDR Regulations); and c) The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India ("ICAI") as amended from time to time, (the "Guidance Note").
The Restated Financial Information has been compiled by the Company from the audited financial statement for the year ended March 31, 2025 prepared in accordance with Indian Accounting Standards notified under Section 133 of the Companies Act 2013, read with Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and other accounting principles generally accepted in India (referred to as "Ind AS") which have been approved by the Board of Directors at their meeting held on May 28, 2025 and for the years ended March 31, 2024 and March 31, 2023 from the Audited Financial Statements of the Company prepared in accordance with Accounting Standards notified under Section 133 of the Companies Act 2013, read with Companies (Accounts) Rules, 2014 as amended from time to time and other accounting principles generally accepted in India, and have been approved by the Board of Directors at their meetings held on September 23, 2024 and September 27, 2023 respectively and have been compiled based on ICDR regulation.
The Restated Financial Information have been extracted by the Management from the Audited Financial Statements and: a) there were no audit qualifications on these financial statements; b) there were no changes in accounting policies during the years of these financial statements except due to transition of Accounting Standards as mentioned in (d) below; c) material amounts relating to adjustments for previous years in arriving at profit/loss of the years to which they relate, have been appropriately adjusted; d) adjustments have been made for reclassification of the corresponding items of income, expenses, assets and liabilities, in order to bring them in line with the groupings as per the audited financial statements of the Company as at and for the year ended March 31, 2025, prepared under Ind AS and for the years ended March 31, 2024 and March 31, 2023 prepared in accordance with accounting principles generally accepted in India (Accounting Standards) and the requirements of the SEBI Regulation; and e) the resultant tax impact, if any, on above adjustments has been appropriately adjusted in deferred taxes in the respective years to which they relate.
Historical cost convention
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
Significant accounting judgments, estimates and assumptions
The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses and the accompanying disclosures. Uncertainty about the assumptions and estimates could result in outcomes that require in material adjustment to the carrying value of assets or liabilities affected in future periods.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
Going Concern
The Company has prepared the financial statements on the basis that it will continue to operate as a going concern.
2.2. Summary of Material accounting policies
a. Current and non-current classification
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:
- Expected to be realised or intended to be sold or consumed in normal operating cycle.
- Held primarily for the purpose of trading.
- Expected to be realised within twelve months after the reporting period, or
- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
Liability is current when:
- It is expected to be settled in normal operating cycle.
- Held primarily for the purpose of trading.
- It is due to be settled within twelve months after the reporting period, or
- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities. b. foreign currencies
The Companys financial information is presented in INR Million, which is also the Companys functional currency.
Transactions and balances
Transactions in foreign currencies are initially recorded by the Company at functional currency spot rates at the date the transaction first qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date.
Exchange differences arising on settlement or translation of monetary items are recognised in profit or loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).
c. Fair value presentation
The Company measures financial instruments at fair value at each balance sheet date except to certain instruments which are measured at Amortised cost/historic cost. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:-
In the principal market for the asset or liability, or
In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participants ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial information are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
- Level 1 Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
- Level 2 Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
- Level 3 Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the financial information on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
d. Revenue Recognition
To determine whether to recognise revenue, the Company follows a 5-step process:
1. Identifying the contract with a customer
2. Identifying the performance obligations
3. Determining the transaction price
4. Allocating the transaction price to the performance obligations 5. Recognising revenue when/as performance obligation(s) are satisfied
Sale of products (including scrap sales and service income):
Sales (including scrap sales) are recognised when control of products is transferred to the buyer as per the terms of the contract and are accounted for net of returns and rebates. Control of goods refers to the ability to direct the use of and obtain substantially all of the remaining benefits from goods. Generally, control is transferred upon shipment of goods to the customer or when the goods are made available to the customer, provided transfer of title to the customer occurs and the Company has not retained any significant risks of ownership or future obligations with respect to the goods shipped.
Income in respect of service contracts are recognised in Statement of Profit and Loss on completion of performance obligation. Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services.
The Company considers the terms of the contract and its customary business practices to determine the transaction price. The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, indirect taxes). The consideration promised in a contract with a customer may include fixed consideration, variable consideration (if reversal is less likely in future), or both. No element of financing is deemed present as the sales are largely made on advance payment terms or with credit term of not more than one year. Sales, as disclosed, are exclusive of goods and services tax.
The transaction price is allocated by the Company to each performance obligation (or distinct good or service) in an amount that depicts the amount of consideration to which it expects to be entitled in exchange for transferring the promised goods or services to the customer.
For each performance obligation identified, the Company determines at contract inception whether it satisfies the performance obligation over time or satisfies the performance obligation at a point in time.
The Company recognises contract liabilities for consideration received in respect of unsatisfied performance obligations and reports these amounts as other liabilities in the statement of financial position. Similarly, if the Company satisfies a performance obligation before it receives the consideration, the Company recognises either a contract asset or a receivable in its statement of financial position, depending on whether something other than the passage of time is required before the consideration is due. A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration when that right is conditional on Companys future performance. A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract. The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.
Interest income:
Interest income from a financial asset is recognised when it is probable that the economic benefit will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective rate applicable, which is the rate that discounts estimated future cash receipts through the expected life of the financial assets to that assets net carrying amount on initial recognition.
Job Work Income
Revenue from job work services is recognised based on the services rendered in accordance with the terms of contracts.
Foreign Exchange Fluctuation (Net)
The Companys operations involve purchases and sale of metal/ commodity, the rates of which are denominated in foreign currencies. Any resulting foreign exchange fluctuation gain or loss is recognised as part of operating results and presented under Other operating revenue. Similarly, gains or losses arising on derivative contracts and other hedging instruments entered into for managing foreign currency or commodity price risks on such metal purchases and sale are recognised in the Statement of Profit and Loss as part of other operating revenue.
Export Incentive
Income from export incentives such as duty drawback, Remission of Duties and Taxes on Export Products (RoDTEP) are recognized on accrual basis when no significant uncertainties as to the amount of consideration that would be derived and as to its ultimate collection exist.
e. Taxes
Tax expense represents Current tax and Deferred tax.
Current tax:
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities.
Current tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity).
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Deferred tax
Deferred tax is provided using the balance sheet approach on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognised for all taxable temporary differences.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits (including MAT credit) and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.
The carrying amount of deferred tax assets (including MAT credit available) is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Def erred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity).
Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
f. Property, plant and equipment (including Capital work in progress)
Property, Plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use. Capital work in progress is stated at cost.
When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred.
The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met.
Depreciation is recognised so as to write off the cost less their residual values over their useful lives, using the written down value method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
Depreciation on PPE is provided as per Schedule II of Companies Act, 2013 on Written Down Value over its economic useful life of PPE as follows:
Assets |
Useful life |
| Plant & Machinery | 3 -15 Years |
| Vehicle | 8 Years |
| Office Equipments | 5 - 6 Years |
| Computer | 3 Years |
| Furniture & Fixtures | 10 Years |
| Building | 5 -30 Years |
g. Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses, if any. Intangible assets are amortised on a straight line basis over the estimated useful economic life and are assessed for impairment whenever there is an indication that the intangible asset may be impaired.
Assets |
Useful life |
| Computer Software | 3 Years |
h. Leases
The Company assesses that the contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (1) The contract involves the use of an identified asset, (2) The Company has substantially all of the economic benefits from use of the identified asset, and (3) The Company has the right to direct the use of the identified asset.
Company as a lessee
The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use asset is depreciated from the commencement date over the shorter of the lease term and useful life of the underlying asset. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.
The Company measures the lease liability at the present value of the lease payments over the lease term. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate. For leases with reasonably similar characteristics, the Company adopts the incremental borrowing rate for the entire portfolio of leases as a whole. The lease payments shall include fixed payments, variable lease payments, exercise price of a purchase option and payments of penalties for terminating the lease. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments.
The Company recognises the amount of the remeasurement of lease liability as an adjustment to the right-of-use asset. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining amount of the re-measurement in statement of profit and loss.
The Company has elected not to apply the requirements of Ind AS 116 to leases for which the underlying asset is of low value. The lease payments associated with these low value leases are recognised as an expense on a straight-line basis over the lease term.
Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset is classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the right-of-use asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.
Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Companys net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease. i. Inventory
Inventories are valued at the lower of cost and net realisable value.
Costs incurred in bringing each product to its present location and condition are accounted for as follows:
-Raw materials: Cost of raw material comprises of cost of purchase and other cost incurred in bringing the inventory to their present condition and location. Trade discounts, rebates and other similar items are deducted in determining the cost of purchase. Cost is determined on a moving weighted average basis.
-Finished goods and work in progress: The cost of finished goods, intermediate products and work-in-progress includes cost of direct materials and labour and a proportion of variable based on the actual use of production facilities and apportionable fixed overhead expenditure based on the normal operating capacity. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale Obsolete, slow moving and defective inventories are identified at the time of physical verification of inventories and where necessary, the same are written off or provision is made for such inventories based on managements best estimates of net realisable value. j. Provisions
General
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources would be required to settle the obligation, the provision is reversed.
Contingent Assets/ Liabilities
Contingent assets are not recognised. However, when realisation of income is virtually certain, the related asset is no longer a contingent asset, and is recognised as an asset.
Contingent liabilities are disclosed in notes to accounts when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future event not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
Retirement and other employee benefits
Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognises contribution payable to the provident fund scheme as an expense, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognised as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognised as an asset to the extent that the pre-payment will lead to, for example, a reduction in future payment.
The Companys gratuity scheme and accumulated compensated absences scheme are an unfunded defined benefit plans. The present value of the obligation under the plans are determined based on independent actuarial valuation using Projected Unit Credit method. The gratuity liability and liability for accumulated compensated absences are measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plan is based on the market yields on government securities as at the balance sheet date.
Remeasurements, comprising of actuarial gains and losses, excluding amounts included in net interest on the net defined benefit liability, are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.
Past service costs are recognised in profit or loss on the earlier of:
The date of the plan amendment or curtailment, and
The date that the Company recognises related restructuring costs
Net interest is calculated by applying the discount rate to the net defined benefit liability. The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:
Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; and
Net interest expense or income
Short-term and other long-term employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.
Liabilities recognised in respect of short term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service. Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.
k. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
(1) Initial recognition
All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, that are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date.
(2) Subsequent measurement a Non-derivative financial instruments i Financial assets carried at amortised cost
A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. ii Financial assets at fair value through other comprehensive income
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Company has made an irrevocable election for its investments which are classified as equity instruments to present the subsequent changes in fair value in other comprehensive income based on its business model. Further, in cases where the Company has made an irrevocable election based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognized in other comprehensive income.
iii Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.
iv Financial liabilities
Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration recognized in a business combination which is subsequently measured at fair value through profit and loss. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
(3) Derecognition of financial instruments
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Companys balance sheet when the obligation specified in the contract is discharged or cancelled or expires.
(4) Fair value of financial instruments
In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may never actually be realized.
Impairment
Financial assets
The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognized as an impairment gain or loss in profit or loss.
b. Derivative financial instruments and hedge accounting
The Company enters into derivative financial instruments, such as foreign exchange forward contracts, to mitigate risks arising from fluctuations in exchange rates on foreign currency exposures, with banks generally acting as counterparties. Further, Risks associated with fluctuation in the price of the product (lead) is minimized by undertaking appropriate derivative instruments on the London Metal Exchange. The instruments are employed either as hedges of transactions included in the financial statements or for highly probable forecast transactions/firm contractual commitments. The Company does not hold derivative financial instruments for speculative purposes.
Initial recognition and subsequent measurement
Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to the statement of profit and loss, except for the effective portion of cash flow hedges, which is recognised in OCI and later reclassified to the statement of profit and loss when the hedge item affects profit or loss. The Company adopts hedge accounting for forward foreign exchange and commodity contracts wherever possible. At the inception of each hedge, there is a formal, documented designation of the hedging relationship. This documentation includes, inter alia, items such as identification of the hedged item and transaction and nature of the risk being hedged. Hedges that meet the strict criteria for hedge accounting are accounted for, as described below:
i) Fair value hedges
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in the statement of profit and loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain or loss recognised in the statement of profit and loss. Hedge accounting is discontinued when the Company revokes the hedge relationship, the hedging instrument or hedged item expires or is sold, terminated or exercised or no longer meets the criteria for hedge accounting.
ii) Cash flow hedges
The effective portion of the gain or loss on the hedging instrument is recognised in OCI in the cash flow hedge reserve, while any ineffective portion is recognised immediately in the statement of profit and loss. Amounts recognised in OCI are transferred to the statement of profit and loss when the hedged transaction affects profit or loss, such as when the hedged financial income or financial expense is recognised or when a forecast sale occurs.
l. cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
m. Cash Flow Statement
Cash flows are reported using the indirect method, where by profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
n. earning per share (EPS)
Basic EPS is calculated by dividing the profit for the year attributable to ordinary equity shareholders of the Company by the weighted average number of Equity shares outstanding during the year. The weighted average number of Equity shares outstanding is adjusted for the effects of stock splits and bonus issues, as these change the number of Equity shares outstanding without a corresponding change in resources. Diluted EPS is calculated by dividing the profit attributable to ordinary equity shareholders of the Company by the weighted average number of Equity shares outstanding during the year, adjusted for the effects of stock splits and bonus issues, plus the weighted average number of Equity shares that would be issued on conversion of all dilutive potential Equity shares into Equity shares.
o. Corporate Social Responsibility (CSR) expenditure
CSR Expenditure as per provisions of section 135 of the Act read with rules issued thereunder, is charged to the statement of profit and loss as an expense. p. Government Grants
Income includes export and other recurring and non-recurring incentives from Government (referred as
"incentives). Government grants are assistance by government in the form of transfers of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity. The Company is entitled to subsidies from government in respect of manufacturing units located in specified regions. Government grants are recognised when there is a reasonable assurance that the Company will comply with the relevant conditions and the grant will be received. These are recognised in the Statement of Profit and Loss, either on a systematic basis when the Company recognises, as expenses, the related costs that the grants are intended to compensate or, immediately if the costs have already been incurred. Government grants related to assets are deferred and amortised over the useful life of the asset. Government grants related to income are presented as an offset against the related expenditure, and government grants that are awarded as incentives with no ongoing performance obligations to the Company are recognised as income in the period in which the grant is received.
q. borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is necessary to complete and prepare the asset for its intended use. Borrowing costs consist of interest calculated using the effective interest method that an entity incurs in connection with the borrowing of funds. All other borrowing costs are charged to the Statement of Profit and Loss as & when incurred.
r. Amendment issued but not effective
The Ministry of Corporate Affairs (MCA) amended the Companies (Indian Accounting Standards) Rules, 2015, through a notification dated May 7, 2025, introducing changes to Ind AS 21 The Effects of Changes in Foreign Exchange Rates, effective from April 1, 2025. These amendments provide guidance on assessing whether a currency is exchangeable into another currency and on estimating the spot exchange rate when a currency is not exchangeable.
The Company has considered these amendments and believe that there is no material impact on the restated financial information
Principal Components of Statement of Profit and Loss
The following descriptions set forth information with respect to the key components of our statement of profit and loss.
Total Income
Our income comprises revenue from operations and other income. We generate majority of our revenue from the sale of product.
Revenue from operations
Our Revenue from Operations primarily includes revenue from sale of products, sale of services and other operating revenue.
Other income
Our other income primarily includes interest income from bank and others, interest on income tax refund, profit on sale of investments and balance written back.
Expenses
Our expenses include the below mentioned expenses:
Cost of materials consumed
Our cost of materials consumed comprises the opening stock of raw materials, purchases of raw materials, and carriage inward and clearing charges incurred by the Company, adjusted for the closing stock of raw materials and goods-in-transit.
Changes in inventories of finished goods, stock-in-transit and work-in-progress
Our changes in inventories of finished goods, stock-in-transit and work-in-progress represents increase/decrease in inventories of finished goods, stock-in-transit and work-in-progress between opening and closing dates of a reporting period.
Employee benefit expenses
Our employee benefits expenses primarily includes (i) salaries, wages and allowances; (ii) contribution to provident and other employee funds; (iii) gratuity expense; and (iv) staff welfare expenses.
Depreciation and Amortisation expenses
Our depreciation and amortisation expenses primarily includes (i) depreciation on property, plant and equipment; (ii) amortisation on intangible assets; and (iii) depreciation on right of use assets.
Finance costs
Our finance costs primarily includes (i) interest on bank loan; (ii) other interest; (iii) bank charges; (iv) interest on lease liability; and (v) foreign exchange fluctuation on borrowings.
Other Expenses
Our other expenses primarily includes (i) job work charges; (ii) contract labour charges (iii) power & fuel; (iv) water & electricity expenses; (v) travelling conveyance; (vi) communication expenses; (vii) rent; (viii) rates & taxes; (ix) security charges; (x) repairs & maintenance - plant & others; (xi) vehicle running & maintenance; (xii) legal & professional charges; (xiii) insurance charges (xiv) fuel & gas; (xv) stores & spares consumed; (xvi) audit fees; (xvii) CSR expenses; (xviii) software usage charges; (xix) cartage outward; (xx) loss on sale of fixed assets; (xxi) bad debts written off; (xxii) packing & selling; (xxiii) certification charges; and (xxiv) miscellaneous expenses.
Tax expense
Tax expense primarily includes (i) current tax; (ii) deferred tax charge /(credit); and (iii) tax in respect of earlier years.
Results of Operations Based on our Restated Financial Information
The following table sets forth select financial data from our statement of profit and loss for the Fiscals 2026, 2025 and 2024, the components of which are also expressed as a percentage of total income for such periods.
( in million unless otherwise stated)
| Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | ||||
| Particulars | Amount | % of total income | Amount | % of total income | Amount | % of total income |
Income |
||||||
| Revenue from Operations | 11,676.53 | 99.89 | 7,427.35 | 99.89 | 4,629.59 | 99.91 |
| Other income | 12.30 | 0.11 | 7.91 | 0.11 | 4.33 | 0.09 |
Total Income |
11,688.83 | 100.00 | 7,435.26 | 100.00 | 4,633.92 | 100.00 |
Expenses |
||||||
| Cost of materials consumed | 9,342.23 | 79.92 | 5,749.44 | 77.33 | 3,669.70 | 79.19 |
| (Increase)/ decrease in inventories of finished | (340.94) | (2.92) | 97.40 | 1.31 | 0.25 | 0.01 |
| Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | ||||
| Particulars | Amount | % of total income | Amount | % of total income | Amount | % of total income |
| goods, stock-in-transit, and work-in-progress | ||||||
| Employee benefit expenses | 323.24 | 2.77 | 219.01 | 2.95 | 208.74 | 4.50 |
| Depreciation and amortization expenses | 113.66 | 0.97 | 86.67 | 1.17 | 63.60 | 1.37 |
| Finance costs | 240.02 | 2.05 | 134.12 | 1.80 | 103.45 | 2.23 |
| Other expenses | 881.18 | 7.54 | 702.16 | 9.44 | 470.32 | 10.15 |
Total Expenses |
10,559.39 | 90.34 | 6,988.80 | 94.00 | 4,516.06 | 97.46 |
Profit before tax |
1,129.44 | 9.66 | 446.46 | 6.00 | 117.86 | 2.54 |
Tax expense |
||||||
| Current tax | 293.45 | 2.51 | 116.71 | 1.57 | 34.83 | 0.75 |
| Deferred tax charge/ (credit) | (12.55) | (0.11) | (3.16) | (0.04) | (3.49) | (0.08) |
| Tax in respect of earlier years | 1.73 | 0.01 | 0.20 | 0.00 | (3.02) | (0.07) |
Profit for the year |
846.81 | 7.24 | 332.71 | 4.47 | 89.54 | 1.93 |
Other comprehensive income/(expenses) |
||||||
Items that will not to be reclassified to profit or loss in subsequent periods |
||||||
| Remeasurements of the defined benefit plans | 1.31 | 0.01 | 1.08 | 0.01 | 1.04 | 0.02 |
| Income tax effect | (0.33) | 0.00 | (0.27) | 0.00 | (0.26) | (0.01) |
Total other comprehensive |
847.79 | 7.25 | 0.81 | 0.01 | 0.78 | 0.02 |
Income for the year (net of tax) |
||||||
Fiscal 2025 compared to Fiscal 2026
Total Income
Our total income increased by 57.21% to 11,688.83 million for Fiscal 2026 from 7,435.26 million for Fiscal
2025, on account of the factors discussed below:
Revenue from operations
Our Revenue from Operation increased by 57.21% to 11,676.53 million for Fiscal 2026 from 7,427.35 million for Fiscal 2025, primarily due to increase in sales of products by 3,539.36 million, sale of service by 393.27 million and other operating revenue by 316.55 million. Further, the increase in our revenue due to a combination of strategic and operational factors such as capacity enhancement and increase in our sales in domestic & international markets and addition of new customers.
Other income
Our other income increased by 55.50% to 12.30 million for Fiscal 2026 from 7.91 million for Fiscal 2025, primarily due to increase in interest income by 3.00 million, balances written back by 1.35 million and profit on sale of investments by 0.04 million.
Expenses
Our expenses increased by 51.09% to 10.559.39 million for Fiscal 2026 from 6,988.80 million for Fiscal 2025, on account of the factors discussed below:
Cost of materials consumed
Our cost of materials consumed increased by 62.49% to 9,342.23 million for Fiscal 2026 from 5,749.44 million for Fiscal 2025, primarily due to increase in purchases by 3,596.51 million and carriage inward & clearing charges by 185.75 million. This increase was in line with the overall growth in business operations of the Company.
Changes in inventories of finished goods, stock-in-transit and work-in-progress
Our changes in inventories of finished goods, stock-in-transit and work-in-progress decreased by 450.07% to
(340.94) million for Fiscal 2026 from 97.40 million for Fiscal 2025.
Employee benefits expenses
Our employee benefits expenses increased by 47.60% to 323.24 million for Fiscal 2026 million from 219.01 million for Fiscal 2025, primarily due to increase in salaries, wages and allowances by 86.93 million, staff welfare expenses by 10.79 million, gratuity expense by 3.87 million and contribution to provident & other employee funds by 2.64 million.
Depreciation and Amortisation expenses
Our depreciation and amortisation expenses increased by 31.14% to 113.66 million for Fiscal 2026 from 86.67 million for Fiscal 2025, primarily due to increase in depreciation on property, plant and equipment by 25.52 million and depreciation on right of use assets by 1.49 million. This increase was set off by decrease in amortisation on intangible assets by 0.01 million. Property, plant and equipments increased by 5.97% to 705.82 million for Fiscal 2026 from 666.07 million for Fiscal 2025.
Finance costs
Our finance costs primarily increased by 78.96% to 240.02 million for Fiscal 2026 from 134.12 million for Fiscal 2025, primarily due to increase in foreign exchange fluctuation on borrowings by 45.09 million, interest on bank loan by 36.37 million, bank charges by 30.70 million and interest on lease liability by 1.01 million. This increase was set off by decrease in other interest by 7.27 million. Total borrowing increased by 10.24% to
1,827.48 million for Fiscal 2026 from 1,657.66 million for Fiscal 2025, primarily due increase in current borrowing by 251.70 million to 1,678.42 million for Fiscal 2026 from 1,426.72 million for Fiscal 2025 driven by higher working capital requirement arising from increase in business operations.
Other Expenses
( in million unless otherwise stated)
| Particulars | Fiscal 2026 | Fiscal 2025 | Change (%) |
| Fuel & Gas | 236.35 | 222.25 | 6.34 |
| Stores & spares consumed | 134.68 | 127.99 | 5.23 |
| Contract Labour Charges | 127.57 | 57.48 | 121.94 |
| Cartage outward | 80.96 | 78.36 | 3.32 |
| Job work charges | 53.15 | 24.42 | 117.65 |
| Water & Electricity Expenses | 51.11 | 48.43 | 5.53 |
| Rent | 33.67 | 23.92 | 40.76 |
| Packing and selling | 20.82 | 7.76 | 168.30 |
| Repair & Maintenance plant | 20.54 | 12.55 | 63.67 |
| Legal & professional charges | 17.55 | 9.31 | 88.51 |
| Traveling & conveyance | 16.54 | 14.23 | 16.23 |
| Rates & taxes | 13.48 | 7.81 | 72.60 |
| Certification charges | 10.40 | - | 100.00 |
| Repair & Maintenance - others | 9.37 | 27.14 | (65.48) |
| Miscellaneous expenses (includes expenses below 1%) | 54.99 | 40.52 | 35.71 |
Total Other Expenses |
881.18 | 702.16 | 25.50 |
Our other expenses primarily increased by 25.50% to 881.18 million for Fiscal 2026 from 702.16 million for Fiscal 2025, primarily due to increase in fuel and gas by 14.10 million, stores & spares consumed by 6.69 million, cartage outward by 2.60 million, contract labour charges by 70.09 million, job work charges by 28.73 million, water & electricity Expenses by 2.68 million, rates and taxes by 5.67 million, rent by 9.75 million, traveling & conveyance by 2.31 million, legal & professional charges by 8.24 million, repair & maintenance - plant by 7.99 million, packing and selling by 13.06 million and miscellaneous expenses (includes expenses below 1%) by 14.47 million. This increase was set off by decrease in repair and maintenance - others by 17.77 million.
Profit for the year
As a result of the foregoing factors, our profit after tax for the period increased by 154.52% to 846.81 million for Fiscal 2026 from 332.71 million for Fiscal 2025. The increase in profits was primarily on account of increase in our business revenue, shift in product mix towards value added products and increase in export revenue, enhancement in operational efficiency and cost optimization measures taken during year. The Company has strategically diversified its product portfolio to include value-added products such as Lead Alloys. Revenue from
Lead Alloys increased from 3,195.35 million in Fiscal 2025 (constituting 43.02% of revenue from operations) to 3,212.08 million in Fiscal 2026 (constituting 27.51% of revenue from operations). This shift in product mix towards high-margin products has contributed to the improvement in overall profitability. Further, the Companys export revenue increased from 2,750.63 million in Fiscal 2025 (constituting 37.03% of revenue from operations)
(constituting 17.63% of revenue from operations) to 4,650.54 million in Fiscal 2026 (constituting 39.83% of revenue from operations). The higher export sales, particularly in markets offering better realizations, have positively impacted the Companys margins and overall profitability.
Net Worth
Our net worth increased from 626.01 million in Fiscal 2025 to 1,473.80 million in Fiscal 2026, primarily due to a increase in profit after tax from 332.71 million to 846.81 million during the period. The higher profitability resulted in accretion to reserves and surplus, thereby strengthening the Companys net worth.
Earnings per share
Our earnings per share increased from 1.31 in Fiscal 2025 to 3.32 in Fiscal 2026, primarily due to a increase in profit after tax driven by higher revenues. The equity share capital remained same during the period, which resulted in a corresponding increase in earnings per share.
Fiscal 2025 compared to Fiscal 2024
Total Income
Our total income increased by 60.45% to 7,435.26 million for Fiscal 2025 from 4,633.92 million for Fiscal
2024, on account of the factors discussed below:
Revenue from operations
Our Revenue from Operation increased by 60.43% to 7,427.35 million for Fiscal 2025 from 4,629.59 million for Fiscal 2024, primarily due to increase in sales of products by 2,485.12 million, sale of service by 148.49 million and other operating revenue by 164.15 million. The increase in Revenue from Operations is due to increase in overall business operations of our Company driven by increase in installed capacity from 54,750 MTPA in Fiscal 2024 to 104,025 MTPA in Fiscal 2025. The overall production of our Company increased from 32,567 MTPA in Fiscal 2024 to 46,980 MTPA in Fiscal 2025, representing a growth of 44.26%. Further, the increase in our revenue due to a combination of strategic and operational factors such as capacity enhancement and increase in our sales in domestic & international markets by addition of new customers.
Other income
Our other income increased by 82.61% to 7.91 million for Fiscal 2025 from 4.33 million for Fiscal 2024, primarily due to increase in interest income by 3.58 million.
Expenses
Our expenses increased by 54.75% to 6,988.80 million for Fiscal 2025 from 4,516.06 million for Fiscal 2024, on account of the factors discussed below:
Cost of materials consumed
Our cost of materials consumed increased by 56.67% to 5,749.44 million for Fiscal 2025 from 3,669.70 million for Fiscal 2024, primarily due to increase in purchases by 1,988.63 million and carriage inward & clearing charges by 91.11 million. This increase reflects the overall growth in revenue from operation.
Changes in inventories of finished goods, stock-in-transit and work-in-progress
Our changes in inventories of finished goods, stock-in-transit and work-in-progress increased by 39,130.42% to
97.40 million for Fiscal 2025 from 0.25 million for Fiscal 2024.
Employee benefits expenses
Our employee benefits expenses increased by 4.92% to 219.01 million for Fiscal 2025 from 208.74 million for Fiscal 2024, primarily due to increase in salaries, wages and allowances by 9.14 million, staff welfare expenses by 1.80 million and gratuity expense by 0.82 million. This increase is set off by decrease in contribution to provident & other employee funds by 1.48 million.
Depreciation and Amortisation expenses
Our depreciation and amortisation expenses increased by 36.27% to 86.67 million for Fiscal 2025 from 63.60 million for Fiscal 2024, primarily due to increase depreciation on Property, Plant and Equipment by 23.04 million and depreciation on Right of use assets by 0.07 million. This increase is set off by decrease in amortisation on intangible assets by 0.04 million. Property, plant and equipments increased by 47.00% to 666.07 million for Fiscal 2025 from 453.10 million for Fiscal 2024.
Finance costs
Our finance costs primarily increased by 29.65% to 134.12 million for Fiscal 2025 from 103.45 million for Fiscal 2024, primarily due to increase in interest on bank loan by 24.65 million, bank charges by 3.44 million and foreign exchange fluctuation on borrowings by 1.67 million. This increase is off set by decrease in interest on lease liability by 0.07 million. Total borrowing increased by 16.44% to 1,657.66 million for Fiscal 2025 from 1,423.60 million for Fiscal 2024, primarily due increase in current borrowing by 228.62 million to 1,426.72 million for Fiscal 2025 from 1,198.10 million for Fiscal 2024 driven by higher working capital requirement arising from increase in business operation.
Other Expenses
( in million unless otherwise stated)
Particulars |
Fiscal 2025 | Fiscal 2024 | Change (%) |
| Fuel & Gas | 222.25 | 165.53 | 34.26 |
| Stores & spares consumed | 127.99 | 72.73 | 75.98 |
| Cartage outward | 78.36 | 64.85 | 20.82 |
| Contract Labour Charges | 57.48 | 6.85 | 739.33 |
| Water & Electricity Expenses | 48.43 | 24.54 | 97.35 |
| Repair & Maintenance others | 27.14 | 15.88 | 70.98 |
| Job work charges | 24.42 | 30.73 | (20.54) |
| Rent | 23.92 | 21.30 | 12.30 |
| Traveling & conveyance | 14.23 | 10.74 | 32.42 |
| Repair & Maintenance plant | 12.55 | 11.45 | 9.59 |
| Legal & professional charges | 9.31 | 6.29 | 48.02 |
| Rates & taxes | 7.81 | 3.68 | 112.28 |
| Packing and selling | 7.76 | 6.23 | 24.51 |
| Miscellaneous expenses | 40.52 | 29.51 | 37.30 |
Total Other Expenses |
702.16 | 470.32 | 49.29 |
Our other expenses primarily increased by 49.29% to 702.16 million for Fiscal 2025 from 470.32 million for Fiscal 2024, primarily due to increase in fuel and gas by 56.72 million, stores & spares consumed by 55.26 million, cartage outward by 13.50 million, contract labour charges by 50.63 million, water & electricity Expenses by 23.89 million, repair and maintenance - others by 11.27 million, rates and taxes by 4.13 million, rent by 2.62 million, traveling & conveyance by 3.48 million, legal & professional charges by 3.02 million, repair & maintenance plant by 1.10 million, packing and selling by 1.53 million and miscellaneous expenses (includes expenses below 1%) by 11.01 million. This increase is set off by decrease in job work charges by
6.31 million.
Profit for the year
As a result of the foregoing factors, our profit after tax for the period increased by 271.56% to 332.71 million for Fiscal 2025 from 89.54 million for Fiscal 2024. The increase in profits was primarily on account of increase in our business revenue, shift in product mix towards value added products and increase in export revenue, enhancement in operational efficiency and cost optimization measures taken during year. The Company has strategically diversified its product portfolio to include value-added products such as Lead Alloys. Revenue from
Lead Alloys increased from 1,580.81 million in Fiscal 2024 (constituting 34.15% of revenue from operations) to 3,195.35 million in Fiscal 2025 (constituting 43.02% of revenue from operations). This shift in product mix towards high-margin products has contributed significantly to the improvement in overall profitability. Further, the Companys export revenue increased from 816.30 million in Fiscal 2024 (constituting 17.63% of revenue from operations) to 2,750.63 million in Fiscal 2025 (constituting 37.03% of revenue from operations). The higher export sales, particularly in markets offering better realizations, have positively impacted the Companys margins and overall profitability.
Net Worth
Our net worth increased from 292.49 million in Fiscal 2024 to 626.01 million in Fiscal 2025, primarily due to a increase in profit after tax from 89.54 million to 332.71 million during the period. The higher profitability resulted in accretion to reserves and surplus, thereby strengthening the Companys net worth.
Earnings per share
Our earnings per share increased from 0.35 in Fiscal 2024 to 1.31 in Fiscal 2025, primarily due to a increase in profit after tax driven by higher revenues. The equity share capital remained same during the period, which resulted in a corresponding increase in earnings per share.
Key Performance Indicators
The following table sets forth certain key financial and operational performance indicators for the periods indicated below:
| Particulars | Units | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| Revenue from operations(1) | in million | 11,676.53 | 7,427.35 | 4,629.59 |
| Revenue CAGR(2) | % | 58.81 | ||
| EBITDA(3) | in million | 1,470.82 | 659.34 | 280.57 |
| EBITDA Margin(4) | % | 12.60 | 8.88 | 6.06 |
| EBITDA CAGR(2) | % | 128.96 | ||
| PAT(5) | in million | 846.81 | 332.71 | 89.54 |
| PAT Margin(6) | % | 7.25 | 4.48 | 1.93 |
| PAT CAGR(2) | % | 207.52 | ||
| Total Borrowings(7) | in million | 1,827.48 | 1,657.66 | 1,423.60 |
| Net worth(8) | in million | 1,473.80 | 626.01 | 292.49 |
| Return on Net Worth (RONW)(9) | % | 57.46 | 53.15 | 30.61 |
| Return on Capital Employed (ROCE)(10) | % | 44.26 | 25.17 | 12.83 |
| Fixed Assets Turnover Ratio(11) | Time | 16.54 | 11.15 | 10.22 |
| Export Revenue(12) | % | 39.83 | 37.03 | 17.63 |
| Gross Margin per Ton(13) | 38,297.06 | 33,642.16 | 29,466.73 | |
| Production Capacity(14) | MTPA | 104,025 | 104,025 | 54,750 |
As certified by our Statutory Auditors, Nangia & Co LLP, Chartered Accountants (FRN: 002391C / N500069), pursuant to their certificate dated July 27, 2026. Notes:
1) Revenue from operations is calculated as revenue from operating activities;
2) CAGR = Compounded Annual Growth Rate (Fiscal 2024 to Fiscal 2026);
3) EBITDA means Earnings before interest, taxes, depreciation and amortisation expense, which has been arrived at by obtaining the profit before tax/ (loss) for the year and adding back finance costs, depreciation and amortisation and impairment expense and reducing other income;
4) EBITDA Margin is calculated as EBITDA as a percentage of revenue from operations;
5) PAT represents net profit after tax for the year;
6) PAT Margin is calculated as PAT divided by revenue from operations;
7) Total Borrowings include current and non-current borrowings;
8) Net worth has been defined under Regulation 2(1)(hh) of the SEBI ICDR Regulations as the aggregate value of the paid -up share capital and all reserves created out of the profits and securities premium account and debit or credit balance of profit and loss account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation. Net worth is calculated as sum of equity share capital and other equity. Other equity comprises of security premium, capital redemption reserve, retained earnings and other comprehensive income;
9) Return on Net Worth is calculated as Net profit after tax divided by Net worth as at the end of the year;
10) Return on Capital Employed is calculated as EBIT divided by capital employed where (i) EBIT means EBITDA minus depreciation and amortisation expense and (ii) Capital employed means Net worth as defined in (8) above + total current & non-current borrowings cash and cash equivalents and other bank balances; 11) Fixed Assets Turnover Ratio is calculated as revenue from operations divided by the sum of net block of property, plant and equipment as at the end of the year; 12) Export Revenue (%) is calculated as Export revenue divided by revenue from operations; 13) Gross Margin per Ton is calculated as gross margin divided by Total Volume of Goods Sold (in Tons) where gross margin means revenue from operation minus cost of material consumed and change in inventories; 14) Production capacity (MTPA) is the total installed production capacity for the year.
Cash Flows based on Financial Statements
The table below summarizes the statement of cash flows, as per our cash flow statements, for the periods indicated:
(Rs. in million)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| Net cash from/ (used in) operating activities | 298.25 | 78.40 | (252.62) |
| Net cash used in investing activities | (197.74) | (228.66) | (272.02) |
| Net cash from financing activities | 38.36 | 133.43 | 543.52 |
| Net increase/ (decrease) in cash and cash equivalents | 138.87 | (16.83) | 18.88 |
| Cash and cash equivalents as at opening of the year | 2.06 | 18.89 | 0.01 |
| Cash and cash equivalents as at opening of the year | 140.93 | 2.06 | 18.89 |
Cash flow from operating activities
March 31, 2026
Our net cash generated from operating activities was 298.25 million in Fiscal 2026. Our operating profit before working capital changes was 1,365.32 million. The movements in working capital primarily consisted of (i) increase in inventories of 711.71 million; (ii) decrease in trade receivables of 352.67 million; (iii) decrease in other financial assets (current) of 17.29 million; (iv) increase in other current assets of 414.53 million; (v) decrease in trade payable of 89.38 million; (vi) increase in other financial liabilities (current) of 16.54 million; (vii) increase in other current liabilities of 19.92 million; (viii) increase in current provisions of 6.42 million; (ix) increase in non-current provisions of 6.48 million; and (x) increase in other non-current financial liabilities of 0.86 million.
Fiscal 2025
Our net cash inflow from operating activities was 78.40 million in Fiscal 2025. Our operating profit before working capital changes was 626.57 million. The movements in working capital primarily consisted of (i) increase in inventories of 30.95 million; (ii) increase in trade receivables of 202.81 million; (iii) increase in other financial assets of 34.34 million; (iv) increase in other current assets of 255.63 million; (v) increase in trade payable of 133.13 million; (vi) decrease in other financial liabilities of 48.91 million; (vii) decrease in other current liabilities of 34.40 million; (viii) increase in current provisions of 3.04 million; (ix) increase in non-current provisions of 2.30 million; and (x) increase in other non-current financial liabilities of 1.08 million.
Fiscal 2024
Our net cash outflow from operating activities was 252.62 million in Fiscal 2024. Our operating profit before working capital changes was 252.59 million. The movements in working capital primarily consisted of (i) increase in inventories of 175.52 million; (ii) increase in trade receivables of 177.41 million; (iii) increase in other financial assets of 3.63 million; (iv) increase in other current assets of 291.28 million; (v) increase in trade payable of 57.52 million; (vi) increase in other financial liabilities of 59.09 million; (vii) increase in other current liabilities of 42.59 million; (viii) increase in current provisions of 1.41 million; (ix) increase in non-current provisions of 1.53 million; and (x) increase in other non-current financial liabilities of 1.91 million.
Cash flow from investing activities
March 31, 2026
Our net cash used in investing activities was 197.74 million in Fiscal 2026. This was primary due to purchase of property, plant and equipment of 124.42 million, increase in bank balances other than cash of 87.12 million, increase in other non-current assets of 54.08 million, decrease in other non-current financial assets of 55.81 million, sale of investment of 20.04 million, purchase of investment of 20.00 million and interest received of
10.20 million.
Fiscal 2025
Our net cash used in investing activities was 228.66 million in Fiscal 2025. This was primary due to purchase of property, plant and equipment of 252.98 million, sale of property, plant and equipment of 0.60 million, bank balances other than cash of 0.62 million, decrease in other non-current assets of 31.52 million, increase in other non-current financial assets of 14.64 million and interest received of 7.46 million.
Fiscal 2024
Our net cash used in investing activities was 272.02 million in Fiscal 2024. This was primary due to purchase of property, plant and equipment of 205.36 million, bank balances other than cash of 6.06 million, increase in other non-current assets of 22.12 million, increase in other non-current financial assets of 42.47 million and interest received of 3.99 million.
Cash flow from Financing Activities
Fiscal 2026
Our net cash generated from financing activities was 38.36 million in Fiscal 2026. This was primarily due to proceeds from borrowings short term (Net) 251.70 million, proceeds from borrowings long term 81.88 million, repayment of lease liability 1.62 million and interest paid 129.84 million.
Fiscal 2025
Our net cash generated from financing activities was 133.43 million in Fiscal 2025. This was primarily due to proceeds from borrowings short term (Net) 228.62 million, proceeds from borrowings long term 5.45 million, repayment of lease liability 0.91 million and interest paid 99.73 million.
Fiscal 2024
Our net cash generated from financing activities was 543.52 million in Fiscal 2024. This was primarily due to proceeds from borrowings short term (Net) 572.57 million, proceeds from borrowings long term 41.95 million, proceeds from lease liability 0.91 million and interest paid 71.91 million.
Financial Indebtedness
As at June 30, 2026 the total outstanding borrowings of our Company were 1,820.65 million. For further details, refer chapter titled "Financial Indebtedness" on page 375 of this Red Herring Prospectus.
As per Restated Financial Information:
Particulars |
Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| Non-current borrowings | 149.06 | 230.94 | 225.50 |
| Current borrowings | 1,678.42 | 1,426.72 | 1,198.10 |
Total borrowings |
1,827.48 | 1,657.66 | 1,423.60 |
Contingent Liabilities
The following table sets forth the principal components of our contingent liabilities for the Fiscals 2026, 2025 and 2024 as per the Restated Financial Information:
(Rs. in million)
Particulars |
Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| Outstanding bank guarantees with | |||
| - Others* | 125.00 | 72.50 | 72.50 |
| Disputed income tax demand ** | 2.61 | 6.13 | - |
*The Company has given a Bank Guarantee amounting to 125 million for year ended 31st March 2026, 72.50 million for March 31, 2025, 72.50 million for March 31, 2024 in favour of its customer towards performance/security deposit against the job work arrangements.
**Pertains to the disputed income tax demand in relation to AY 2024-25 amounting to 2.61 million (Previous year: 6.13 million pertaining to AY 2023-24 and AY 2024-25). The Company is contesting the demand and the management, including its tax advisors, believes that its position is likely to be upheld in the appellate proceedings. Accordingly, no provision has been considered necessary in the financial statements. Further, the disputed income tax demand relating to AY 2023-24 amounting to 3.52 million has been allowed by the Income Tax Appellate Tribunal (ITAT) vide order dated 08 May 2026 and accordingly the same is no longer contingent in nature.
For further details, please see "Restated Financial Information Note - 33 - Contingent Liabilities (to the extent not provided for)" on page 323.
Off-Balance Sheet Arrangements
Except as described in this Red Herring Prospectus, there are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that we believe are material to investors.
Related Party Transactions
We enter into various transactions with related parties. For further information see "Restated Financial Information Note 38 Disclosures in respect of related parties pursuant to Ind AS 24" on page 332.
Quantitative and Qualitative Disclosures about Market Risk
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Our exposure to the risk of changes in market interest rates relates primarily to our borrowing with floating interest rates. We constantly monitor the credit markets and rebalance our financing strategies to achieve an optimal maturity profile and financing cost. We had floating rate borrowings of 1,827.48 million, 1,615.60 million and 1,296.65 million as at March 31, 2026, March 31, 2025 and March 31, 2024, respectively. The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected, with all other variables held constant, our Companys profit before tax is affected through the impact on floating rate borrowings, as follows:
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| (Increase)/decrease in loss ( in million) | |||
| Increase in interest rate by 1% | 18.27 | 16.16 | 12.97 |
| Decrease in interest rate by 1% | (18.27) | (16.16) | (12.97) |
Foreign currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Our Company has foreign currency trade receivables and is therefore exposed to foreign exchange risk. Our Company mitigates the foreign exchange risk by setting appropriate exposure limits, periodic monitoring of the exposures etc. The exchange rates have been volatile in the recent years and may continue to be volatile in the future. Hence the operating results and financials of our Company may be impacted due to volatility of the rupee against foreign currencies. Exposure to currency risk (Our Company has exposure only in USD converted to functional currency i.e. INR)
The currency profile of financial assets and financial liabilities for the Fiscals 2026, 2025 and 2024 are as below:
(Rs. in million)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| Trade Payable (USD) | 0.03 | 1.90 | 0.07 |
| Trade Payable (INR) | 3.11 | 162.24 | 5.92 |
| Trade Receivable (USD) | 1.88 | 2.85 | 1.62 |
| Trade Receivable (INR) | 178.36 | 244.18 | 135.40 |
| Working Capital Loan (Buyers credit)-USD | 4.90 | 5.85 | 5.00 |
| Working Capital Loan (Buyers Credit)-(INR) | 464.26 | 499.77 | 417.22 |
| Other Receivables-USD | 5.55 | 2.50 | 1.62 |
| Other Receivables-(INR)* | 524.90 | 214.25 | 134.74 |
| Advance to Suppliers-USD | 3.06 | 2.08 | 2.76 |
| Advance to Suppliers-(INR) | 289.31 | 177.44 | 230.47 |
| Cash and Cash equivalents -USD | 1.47 | - | - |
| Cash and Cash equivalents -INR ** | 139.44 | - | - |
*Other receivables represent margin money placed with the LME broker and profit receivables on open/settled LME contracts.
** Cash and cash equivalents represent balance held in EEFC account.
Derivative financial instruments (designated as derivative instruments)
Our Company holds derivative financial instruments, such as foreign exchange forward contracts, which are entered to mitigate risks arising from fluctuations in exchange rates on foreign currency exposures, with banks generally acting as counterparties. Risks associated with fluctuation in the price of the product (lead) is minimized by undertaking appropriate derivative instruments on the London Metal Exchange. These derivative financial instruments are valued based on inputs that is directly or indirectly observable in the marketplace.
Forward contract outstanding for purpose of hedging for the Fiscals 2026, 2025 and 2024 are as below:
(Rs. in million)
Particulars |
Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| USD | 9.95 | 16.41 | 15.63 |
| INR | 935.71 | 1,404.22 | 1,302.72 |
Note: Forward contracts includes contract entered in relation to Buyers credit, export & metal price fluctuation at LME.
Sensitivity Analysis
(Rs. in million)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
Trade Payable |
|||
| 1% Increase in (in Functional currency) | 0.03 | 1.62 | 0.06 |
| 1% decrease in (in Functional currency) | (0.03) | (1.62) | (0.06) |
Trade Receivable |
|||
| 1% Increase in (in Functional currency) | (1.78) | (2.44) | (1.35) |
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| 1% decrease in (in Functional currency) | 1.78 | 2.44 | 1.35 |
Working Capital Loan (Buyers credit )-USD |
|||
| 1% Increase in (in Functional currency) | 4.64 | 5.00 | 4.17 |
| 1% decrease in (in Functional currency) | (4.64) | (5.00) | (4.17) |
Other Receivables-USD |
|||
| 1% Increase in (in Functional currency) | 5.25 | 2.14 | - |
| 1% decrease in (in Functional currency) | (5.25) | (2.14) | - |
Advance to Suppliers-USD |
|||
| 1% Increase in (in Functional currency) | (2.89) | (1.77) | (2.30) |
| 1% decrease in (in Functional currency) | 2.89 | 1.77 | 2.30 |
Cash and Cash equivalents -USD |
|||
| 1% Increase in (in Functional currency) | (1.39) | - | - |
| 1% decrease in (in Functional currency) | 1.39 | - | - |
Credit Risk
Credit risk is the risk that counterparty will not meet its obligation under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits and creditworthiness of a customer on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentration of credit risk principally consist of trade receivables, cash and cash equivalents, bank deposits and other financial assets. None of the financial instrument of our Company result in material concentration of credit risk.
Liquidity Risk
Liquidity risk is defined as the risk that we will not be able to settle or meet our repayment obligations on time or at a reasonable price. Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of our Companys short-term, medium-term and long-term funding and liquidity management requirements. We manage liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market conditions. Market risk mainly comprises of interest rate risk, currency risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, Trade and other Receivables and derivative financial instruments. Our Companys activities expose it primarily to the financial risks of changes in foreign currency exchange rates, interest rates and other price risk. There has been no change to our Companys exposure to market risks or the manner in which these risks are being managed and measured.
Capital Expenditures
The following table sets forth the capital expenditures incurred our Company during the periods indicated:
(Rs. in million)
Particulars |
Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| Capital expenditure | 124.42 | 252.98 | 205.36 |
Change in accounting policies
There have been no changes in our accounting policies during the Fiscals 2026, 2025 and 2024.
Unusual or Infrequent Events of Transactions
Except as described in this Red Herring Prospectus, there have been no other events or transactions that, to our knowledge, may be described as "unusual" or "infrequent".
Segment Reporting
We have evaluated our operating segments in accordance with Indian Accounting Standard (Ind AS) 108 Operating Segments. Based on the internal organizational structure, the nature of products and services, and the risks and returns associated with them, the management has determined that we operate in a single business segment. Accordingly, there are no reportable segments for the purpose of segment reporting.
Significant Economic Changes
Other than as described above under the heading titled "Principal Factors Affecting Our Financial Condition and Results of Operations," above to the knowledge of our management, there are no other significant economic changes that materially affect or are likely to affect income from continuing operations.
Known Trends or Uncertainties
Our business has been affected and we expect will continue to be affected by the trends identified above in the heading titled "Principal Factors Affecting Our Financial Condition and Results of Operations" above and the uncertainties described in the section titled "Risk Factors" beginning on page 28. To our knowledge, except as described or anticipated in this Red Herring Prospectus, there are no known factors which we expect will have a material adverse impact on our revenues or income from continuing operations.
Future Relationship Between Cost and Income
Other than as described in this Red Herring Prospectus, to the knowledge of our management, there are no known factors that might affect the future relationship between costs and revenues.
New products, Services or Business Segments
Other than as described in "Our Business" on page 211, and products that we announce in the ordinary course of business, we have not announced and do not expect to announce in the near future any new products or business segments.
Seasonality of Business
Given the nature of our business operations, we generally do not believe that our business is seasonal.
Customer Concentration
We have historically derived, and may continue to derive, a significant portion of our revenue from our top customers. The details of contribution by our top customer, top 5 customers and top 10 customers for the Fiscals 2026, 2025 and 2024, is set out below:
( in million except for percentages)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 | |||
| Amount | % of revenue from operation | Amount | % of revenue from operations | Amount | % of revenue from operations | |
| Top customer | 4,745.56 | 40.64 | 3,804.08 | 51.22 | 3,352.94 | 72.42 |
| Top 5 customers | 9,571.90 | 81.98 | 6,124.52 | 82.46 | 4,191.94 | 90.54 |
| Top 10 customers*# | 10,696.70 | 91.61 | 6,798.44 | 91.53 | 4,405.45 | 95.15 |
For further details see "Risk Factors Internal Risks We served 52, 54 and 54 customers for the Fiscals 2026,
2025 and 2024. The revenue from our top customer was 4,745.56 million, 3,804.08 million and 3,352.94 million and contributed to 40.64%, 51.22% and 72.42% of revenue from operations during the respective years. The loss of any of these customers could have a material adverse effect on our business, financial condition, results of operations and cash flows." on page 29.
Competitive Conditions
We expect to continue to compete with existing and potential competitors. For details, please refer to the discussions of our competition in "Risk Factors" and "Our Business" on pages 28 and 211, respectively.
Reservations, Qualifications and Adverse Remarks included by Statutory Auditors
There are no qualifications included by the Statutory Auditors in their audit reports and hence no effect is required to be given in the Restated Financial Information.
Significant Developments after March 31, 2026
No circumstances have arisen since the date of the Restated Financial Information which materially and adversely affect or are likely to affect our trading, operations or profitability, or the value of our assets or our ability to pay our liabilities within the next 12 months.
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