Inducto Steel Ltd

Key financials

• Standalone total income for quarter ended Jun 30, 2026: 7,975.76.
• Standalone revenue from operations: 7,938.24.
• Standalone PBT: 172.30.
• Standalone PAT: 128.67.
• Standalone EPS (Basic/Diluted): 3.20.
• Consolidated total income: 7,975.76.
• Consolidated PAT: 128.67.
• Consolidated EPS: 3.20.
• Mumbai segment revenue: 1,965.97; Bhavnagar revenue: 6,025.93.
• Inter-segment revenue: (16.13).
• Segment profit before finance costs: 596.23.
• Profit before tax: 172.30.
• Paid-up equity capital: 401.73.
• Reserves excluding revaluation reserve: 3,602.44.
• Mumbai segment assets: 8,616.38; Bhavnagar segment assets: 6,231.08.
• Mumbai segment liabilities: 1,427.33; Bhavnagar segment liabilities: 9,287.31.
• Board approved unaudited Standalone and Consolidated results on Aug 12, 2026.

Meeting Details

• Board meeting scheduled for August 12, 2026.

Key Agenda Items

• Approval of unaudited standalone and consolidated financial results for quarter ended June 30, 2026, with Limited Review Report.

Dematerialisation/rematerialisation status

• Dematerialisation requests processed and confirmed to depositories.
• Securities dematerialised have been listed on the stock exchanges.
• Physical certificates for dematerialisation mutilated and cancelled after verification.
• Depository's name substituted as registered owner within prescribed timelines.

Cost auditor appointment

• M/s. Kewlani & Associates appointed as Cost Auditor for FY 2026-27.
• Appointment approved on May 29, 2026; term runs from April 1, 2026 to March 31, 2027.
• Firm is an Ahmedabad-based cost and management accountancy practice.
• It provides management, export, costing, and pricing consultancy services since 2012.

Internal auditor appointment

• Mr. Satish Diwate appointed as Internal Auditor for FY 2026-27.
• Appointment approved on May 29, 2026; term runs from April 1, 2026 to March 31, 2027.
• He is a Mumbai University B.A. graduate with over 26 years' accounts and finance experience.
• His experience includes accounting, financial management, banking, taxation, budgeting, audit coordination, and compliance.

Financial results approved

• Approved audited standalone and consolidated results for quarter and year ended March 31, 2026.
• Approved statement of assets and liabilities and cash flow for year ended March 31, 2026.
• Standalone profit after tax was ₹138.61 lakh for the year ended March 31, 2026.
• Consolidated profit after tax was ₹53.64 lakh for the year ended March 31, 2026.

Audit opinion

• Statutory auditor issued unmodified opinion on audited standalone and consolidated results.
• Auditor highlighted recoverability risk on partnership firm capital and advances.
• Auditor noted partnership investments of ₹20.94 crore, 14.76% of total assets.

Appointments approved

• Approved appointment of Kewlani & Associates as cost auditor for FY2026-27.
• Appointment effective May 29, 2026, for the period April 1, 2026 to March 31, 2027.
• Approved appointment of Mr. Satish Diwate as internal auditor for FY2026-27.

Credit Rating Action

• Acuité Ratings reaffirmed long-term rating at ACUITE BB+ with Stable outlook
• Short-term rating reaffirmed at ACUITE A4+ for Rs. 80 crore facilities

Instruments/Facilities Rated

• Long-term bank facilities of Rs. 20 crore rated ACUITE BB+ (Stable)
• Short-term bank facilities of Rs. 80 crore rated ACUITE A4+

Rating Agency

• Ratings assigned and reaffirmed by Acuité Ratings & Research Limited

Rationale

• Established presence in ship breaking and steel trading with experienced promoters
• Operating revenues improved significantly in FY2025, profitability moderated
• Moderate financial risk profile with comfortable capital structure but weakened coverage
• Working capital moderately intensive due to higher inventory and receivables
• Liquidity adequate with no long-term debt
• Operations exposed to ship availability and volatile steel prices

Financial Highlights

• FY25 operating income Rs. 158.57 crore, up from Rs. 104.05 crore in FY24
• PAT loss of Rs. 3.72 crore in FY25 versus profit of Rs. 0.16 crore in FY24
• Gearing increased to 0.42 times in FY25 from 0.08 times in FY24
• Coverage ratio (PBDIT/Interest) negative at -1.01 times in FY25

Rating Sensitivities

• Upgrade triggers: increase in operating income and margins, net cash accruals above Rs. 7 crore
• Downgrade triggers: net cash accruals below Rs. 2.5-3 crore, significant investments in group companies

Material Changes Since Last Rating

• Ratings downgraded from ACUITE BBB- (Negative) to ACUITE BB+ (Stable) for long-term facilities
• Short-term rating downgraded from ACUITE A3 to ACUITE A4+

🗓️ Meeting Details

• Board meeting scheduled for February 13, 2026.

📊 Financial Performance

• Consider and approve unaudited standalone and consolidated financial results for quarter ended December 31, 2025.
• Limited review report on the financial results will be considered.