Garg Furnace Ltd

Garg Furnace Ltd trading window to close from 1 October 2026 till the end of 48 hours after unaudited Standalone and Consolidated Financial Results for the quarter and half year ended 30 September 2026 are communicated

Business overview

• Established steel maker expanding into mid-premium alloy steel via Vaneera.

Operational highlights

• Vaneera Industries commissioned Aug 2026; 51% controlling stake acquired.
• Phase 1 capacity 104,000 MT pa; commercial production started 2026.
• Phase 2 204,000 MT pa by Dec 2027; rolling mill integration planned.
• Captive solar: 13 MW for Vaneera, 5 MW for Garg Furnace.
• 100% recycled-scrap route supports value-added product focus.

Financial performance

• FY23-24 revenue 258 Cr; EBITDA 5 Cr; PAT 6 Cr.
• FY24-25 revenue 262 Cr; EBITDA 8 Cr; PAT 11 Cr.
• FY25-26 revenue 289 Cr; EBITDA 13 Cr; PAT 11 Cr.

Capital structure & liquidity

• 51% controlling stake in Vaneera Industries Ltd acquired.
• Combined capacity targets: 276,000 MT by FY2029-30.
• Forward integration to rolling and downstream reduces reliance on billets.

Strategic priorities & outlook

• Building a new mid-premium alloy steel category between commodity and EF steel.
• Pursuing defence-grade certification for aerospace-grade alloy steel.
• Stainless steel production as a second vertical.
• Cross-border consolidation via partnerships and acquisitions.

Risks & mitigation

• Scrap price volatility mitigated by back-to-back pricing and diversified sourcing.
• Import competition mitigated by rolling mill and downstream value-add.
• Power costs mitigated by captive solar deployment.
• Regulatory/green-steel norms addressed through compliance efforts.
• Customer concentration mitigated by diversifying across auto, engineering, rail, defence.
• Phase 2 execution risk mitigated by phased capex and internal accruals.

Governance & leadership

• Prominent Garg leadership with independent directors on board.
• 51% stake in Vaneera aligns governance with strategic direction.

AGM Details

• AGM held on 29-08-2026, 1:00 PM to 1:30 PM at registered office.
• Mode: physical attendance at the registered office.
• Record date: 22-08-2026; shareholders on record: 3,165.

Key Resolutions

• Receive, consider and adopt the financial statements and reports of Board and Auditors.
• Ordinary resolution for rotation/re-appointment of a director under the Companies Act.
• Ordinary resolution for re-appointment of Cost Auditors for the financial year.
• Special resolution for issue of warrants convertible into equity shares on preferential basis.
• Ordinary resolution approving material related party transactions of the company.

Voting Results

• Resolution 1: Adopt financial statements—passed.
• Resolution 2: Director rotation/re-appointment—passed.
• Resolution 3: Re-appointment of Cost Auditors—passed.
• Resolution 4: Warrants issue on preferential basis—passed.
• Resolution 5: Related party transactions—passed.
• Overall votes polled: 57.19% of outstanding shares.
• All resolutions passed with unanimous in-favour among votes polled.

Dividend

• Dividend: No dividend proposed or declared.

Director Changes

• Director changes: No new appointments; rotation/re-appointment approved.

Auditor Appointments

• Cost Auditor re-appointed for the financial year.

Material Related Party Transactions

• Material related party transactions approved.

Price movement clarification

• Disclosures have been timely; no material information has been withheld.
• Share price movement is market-driven, due to general market conditions and investor perception.

AGM Details

• AGM held on 29 September 2026 at 01:00 PM at the registered office, Ludhiana.
• Mode: physical meeting with remote e-voting facility; ballot voting at the venue.
• Remote e-voting window ran 26–28 August 2026; results to be submitted after Scrutinizer's report.
• Quorum present; meeting concluded at 01:30 PM.

Ordinary Resolutions

• Adopt financial statements and reports of the Board and Auditors (Ordinary).
• Re-appoint director retiring by rotation (Ordinary).
• Re-appoint Cost Auditors (Ordinary).
• Approve material related party transactions (Ordinary).

Special Resolutions

• Issue warrants convertible into equity on a preferential basis (Special).

Voting & Results

• Consolidated voting results to be submitted after Scrutinizer's report.
• No outcome disclosed in the chunk.

Press release details

• Press Release issued by Garg Furnace Limited for dissemination to investors and public.
• Dated 25 August 2026.

Key AGM terms

• AGM date/time/mode: August 29, 2026, 1:00 PM, physical at registered office.
• Special business: issue up to 13.98 lakh warrants convertible into equity on a preferential basis.
• Counterparties: promoter group and non-promoter category.
• Fundraise amount: up to ₹17.68 crore via warrants.
• Utilisation: capital expenditure ₹41.25 lakh; working capital ₹14.83 crore; general corporate ₹2.44 crore.
• Pricing: floor price ₹126.15; issue price ₹126.50 per warrant; ICDR framework applied.
• Valuation: independent valuer Manish Manwani; certificate available for inspection.
• Conversion: 100% conversion within the stipulated time.
• Corrigendum scope: updates to explanatory statement items (c) and (e); other terms unchanged.
• Material related party transaction: warrants allotted to promoter group and non-promoter category valued at ₹17.68 crore.

Financial results and audit statements

• Board approved unaudited standalone and consolidated results for the quarter ended 30 June 2026.
• Limited review reports for both standalone and consolidated results were issued by Ashwani & Associates.
• Consolidated results include the parent and its subsidiary M/s Vaneera Industries Limited.
• Board meeting held on 14 August 2026 from 04:00 to 05:00 PM.