Chaman Metallics: all divisions lift first-half profit

Chaman Metallics Limited reported total segment profit of Rs 36.64 crore for the half year ended September 30, 2026, compared with Rs 8.85 crore a year earlier, as its steel, ferro and power divisions each recorded higher operating results. Steel contributed Rs 17.34 crore, ferro Rs 12.69 crore and power Rs 6.60 crore.

How did Chaman Metallics’ first-half segment profit change?

Chaman Metallics increased total segment result to Rs 36.64 crore in the half year ended September 30, 2026, from Rs 8.85 crore in the half year ended September 30, 2025. The company defines segment result as profit or loss before tax, interest and foreign-exchange fluctuation gain or loss. The year-on-year increase of Rs 27.79 crore was shared by all three operating segments.

Steel remained the largest contributor to segment profit at Rs 17.34 crore, compared with Rs 6.52 crore a year earlier. Ferro reported Rs 12.69 crore, up from Rs 1.23 crore, while power recorded Rs 6.60 crore against Rs 1.09 crore. The disclosure therefore shows that the improvement was not limited to steel, although steel remained the largest individual profit contributor.

Ferro delivered the largest absolute increase in segment result, rising by Rs 11.46 crore from the corresponding prior-year period. Steel increased by Rs 10.82 crore and power by Rs 5.51 crore. These changes added up to the Rs 27.79 crore rise in total segment result between the two half-year periods.

Which Chaman Metallics division generated the most revenue?

Chaman Metallics’ steel division generated the most revenue, reporting Rs 401.11 crore in the half year ended September 30, 2026. Steel revenue was Rs 165.52 crore in the corresponding 2025 half year, while ferro revenue rose to Rs 76.28 crore from Rs 30.60 crore and power revenue reached Rs 33.40 crore from Rs 7.43 crore.

Total segment revenue was Rs 510.79 crore for the September 2026 half year, compared with Rs 203.55 crore a year earlier. Inter-segment revenue, which is eliminated in calculating external sales, increased to Rs 134.21 crore from Rs 7.03 crore. After this elimination, net sales and income from operations were Rs 376.58 crore, up from Rs 196.52 crore.

Steel accounted for the largest part of the Rs 307.24 crore increase in total segment revenue, adding Rs 235.59 crore year on year. Ferro added Rs 45.68 crore and power added Rs 25.97 crore. The increase in inter-segment revenue means the rise in net sales, at Rs 180.06 crore, was smaller than the rise in gross segment revenue.

How did Chaman Metallics perform against the preceding half year?

Chaman Metallics’ total segment result of Rs 36.64 crore in the half year ended September 30, 2026 was above Rs 16.79 crore in the half year ended March 31, 2026. Steel increased to Rs 17.34 crore from Rs 5.32 crore, and ferro rose to Rs 12.69 crore from Rs 3.72 crore over those two half-year periods.

Power was the exception in the sequential comparison, with segment result declining to Rs 6.60 crore from Rs 7.76 crore in the half year ended March 31, 2026. Power revenue also declined to Rs 33.40 crore from Rs 36.25 crore. Despite that sequential movement, power’s September 2026 half-year result remained above its Rs 1.09 crore result a year earlier.

Steel revenue rose sequentially from Rs 340.66 crore in the March 2026 half year to Rs 401.11 crore in the September 2026 half year. Ferro revenue rose from Rs 67.36 crore to Rs 76.28 crore over the same periods. The combined sequential revenue trend in steel and ferro offset the Rs 2.85 crore decline in power revenue.

The comparative figures also show a higher level of inter-segment revenue in the September 2026 half year. Inter-segment revenue was Rs 134.21 crore, compared with Rs 99.52 crore in the March 2026 half year. Net sales and income from operations were Rs 376.58 crore in the September 2026 half, above Rs 344.75 crore in the preceding half.

How did segment gains translate into Chaman Metallics’ profit before tax?

Chaman Metallics reported profit before tax of Rs 15.92 crore for the half year ended September 30, 2026, compared with a loss before tax of Rs 3.18 crore in the corresponding prior-year period. The return to profit followed the increase in total segment result to Rs 36.64 crore from Rs 8.85 crore.

Interest and other gain or loss was Rs 20.88 crore in the September 2026 half year, compared with Rs 10.79 crore a year earlier. This item reduced the segment result before arriving at profit before tax. The increase in total segment result, at Rs 27.79 crore, was greater than the Rs 10.09 crore increase in interest and other gain or loss.

Unallocable expenditure net of unallocable income was Rs 0.16 crore in the half year ended September 30, 2026. In the comparable 2025 half year, the filing recorded unallocable expenditure net of unallocable income as a gain of Rs 1.24 crore. No exceptional item was reported for either half year ended September 30, 2026 or September 30, 2025 in the segment schedule.

The company’s cash-flow statement separately reported profit before tax of Rs 15.92 crore for the period ended September 30, 2026. Depreciation was Rs 10.93 crore and finance cost was Rs 20.88 crore in that statement. These figures correspond with the interest and other gain or loss amount presented in the segment disclosure.

What do Chaman Metallics’ segment assets and liabilities show?

Chaman Metallics reported total segment assets of Rs 675.85 crore at September 30, 2026, compared with Rs 644.23 crore at March 31, 2026. Steel assets were Rs 323.16 crore, power assets were Rs 196.33 crore and ferro assets were Rs 72.26 crore, with Rs 84.10 crore classified as unallocated assets.

Steel assets increased by Rs 11.89 crore from Rs 311.27 crore at March 31, 2026. Ferro assets increased by Rs 1.26 crore from Rs 71.00 crore and power assets rose by Rs 1.16 crore from Rs 195.17 crore. Unallocated assets increased by Rs 17.31 crore from Rs 66.79 crore, accounting for the largest part of the total asset increase.

Total segment liabilities were Rs 568.69 crore at September 30, 2026, compared with Rs 548.99 crore at March 31, 2026. Unallocated liabilities represented Rs 498.29 crore of the September total, while steel liabilities were Rs 26.17 crore, ferro liabilities Rs 32.35 crore and power liabilities Rs 11.88 crore.

The balance-sheet statement reported total assets of Rs 675.85 crore at September 30, 2026, matching the total in the segment disclosure. Inventories were Rs 125.25 crore, compared with Rs 97.03 crore at March 31, 2026, while short-term borrowings increased to Rs 109.61 crore from Rs 92.01 crore. These changes occurred alongside the Rs 31.62 crore increase in total segment assets.

Conclusion

Chaman Metallics’ first-half 2026 segment disclosure indicates a broad-based year-on-year improvement in operating results. Steel remained the largest revenue and profit division, but ferro produced the largest absolute increase in segment result, while power also improved from the corresponding prior-year half despite a sequential decline in its revenue and profit.

The filing discloses no forward target, expansion plan or scheduled future event. A disclosed matter to watch is the level of inter-segment revenue, which reached Rs 134.21 crore in the September 2026 half year, alongside the sequential decline in power segment result to Rs 6.60 crore from Rs 7.76 crore.