Chaman Metallics’ top supplier supplied Rs 215.9022 crore

Chaman Metallics reported purchases of Rs 215.9022 crore from Lloyds Metals and Energy Limited in Fiscal 2026, its largest disclosed supplier, while its 10 largest suppliers together accounted for Rs 324.9004 crore, or 62.38%, of total purchases. The company says it generally does not use long-term supplier contracts.

How concentrated were Chaman Metallics’ suppliers in Fiscal 2026?

Chaman Metallics’ 10 largest suppliers accounted for 62.38% of total purchases in Fiscal 2026, compared with 93.98% in Fiscal 2025. Purchases from those suppliers rose to Rs 324.9004 crore in Fiscal 2026 from Rs 144.2198 crore in Fiscal 2025, even as their share of total purchases fell by 31.60 percentage points.

The reported fall in the top-10 share means purchases were less concentrated among the 10 largest vendors in Fiscal 2026 than in Fiscal 2025. However, Chaman Metallics says it relies on a few vendors for iron ore, sponge iron, pellets, coal and other inputs, which are needed for its manufacturing operations.

The higher rupee value of purchases from the top 10 accompanied a substantial increase in material consumption. Chaman Metallics reported cost of materials consumed of Rs 415.1661 crore in Fiscal 2026, against Rs 131.7497 crore in Fiscal 2025, primarily because production rose after its expansion project was commissioned.

Which supplier provided the most materials to Chaman Metallics?

Lloyds Metals and Energy Limited was Chaman Metallics’ largest supplier in Fiscal 2026, with purchases of Rs 215.9022 crore, up from Rs 80.2400 crore in Fiscal 2025. The Fiscal 2026 amount was substantially higher than purchases of Rs 25.6353 crore from Ornate Mercantile Private Limited, the second-ranked supplier that year.

Other major Fiscal 2026 suppliers were G.R. Integrated Steel Private Limited at Rs 21.9893 crore, Swastik Energy and Mineral Beneficiation Private Limited at Rs 18.2303 crore, and G.R. Sponge and Power Limited (Ferro Division) at Rs 11.8541 crore. The disclosed top-10 table also listed Evonith Metallics Limited at Rs 7.4183 crore and PRCS Trading Company at Rs 5.1541 crore.

Three suppliers in the Fiscal 2026 top-10 table were identified as promoter or promoter-group related parties: G.R. Integrated Steel Private Limited, G.R. Sponge and Power Limited (Ferro Division), and G.R. Sponge and Power Limited (Unit-II). Their disclosed purchases totalled Rs 40.7502 crore, comprising Rs 21.9893 crore, Rs 11.8541 crore and Rs 6.9084 crore, respectively.

Does Chaman Metallics have long-term supplier contracts?

No, Chaman Metallics says it typically places purchase orders and has not entered into long-term contracts or arrangements with vendors for iron ore, sponge iron, pellets, coal and other inputs. It also says it has no formal long-term arrangements with suppliers or customers that oblige them to continue doing business with the company.

Chaman Metallics says it strategically partners with certain suppliers as part of its cost strategy and to maintain consistency in supply quality and quantity. The company cautions that replacing key vendors could increase costs, affect quality or cause delays in services and schedules; it reported no such supplier-failure instances in the three preceding Fiscals.

The disclosure identifies operational risks beyond contract duration. Capacity limitations, breakdowns, machine failures and security issues at suppliers could prevent materials from arriving on time or meeting specifications, while supply shortages or higher supplier costs could affect Chaman Metallics’ cash flows and financial condition.

What raw materials create supply and price risks for Chaman Metallics?

Chaman Metallics identifies iron ore, sponge iron, pellets and coal as principal raw materials in its manufacturing operations. Its cost of materials consumed rose by Rs 283.4164 crore to Rs 415.1661 crore in Fiscal 2026, a change the company attributes primarily to higher production following the commissioning of its expansion project.

The company says input prices and availability are affected by domestic and international demand-supply conditions, mining output, mineral policies, royalties, levies, freight constraints, logistics and foreign-exchange movements. Chaman Metallics says it may not be able to pass higher raw-material costs fully or promptly to customers because of competitive conditions, prevailing steel realisations and other commercial considerations.

Iron ore and coal supply also depends on mine allocations and auctions, environmental and forest clearances, transport infrastructure and government policies, according to the filing. A reduction in availability or deterioration in input quality could affect production and product quality at Chaman Metallics’ Tadali, Chandrapur, Maharashtra manufacturing facility.

How did Fiscal 2026 market conditions affect Chaman Metallics?

Chaman Metallics recorded a net loss after tax of Rs 4.1743 crore in Fiscal 2026, compared with a net profit after tax of Rs 9.7761 crore in Fiscal 2025. The Rs 13.9504 crore decline in profitability was attributed primarily to lower sponge iron realisations and higher finance costs and depreciation following the commissioning of the expansion project.

Average sponge iron realisation fell to Rs 25,740 per metric tonne in Fiscal 2026 from Rs 29,072 per metric tonne in Fiscal 2025. Finance costs increased to Rs 29.4628 crore from Rs 1.6082 crore, while depreciation and amortisation increased to Rs 14.3207 crore from Rs 2.3283 crore.

Chaman Metallics also changed its product mix in Fiscal 2026, when sponge iron accounted for 53.07% of revenue from operations. MS billets and silico manganese, both commenced in Fiscal 2026, accounted for 22.41% and 17.68%, respectively, whereas sponge iron accounted for 97.85% of revenue from operations in Fiscal 2025.

Conclusion

Chaman Metallics’ top-10 supplier concentration declined from 93.98% in Fiscal 2025 to 62.38% in Fiscal 2026, but purchases from those vendors increased to Rs 324.9004 crore. Lloyds Metals and Energy Limited supplied Rs 215.9022 crore during the year, while the company’s higher production also lifted material consumption to Rs 415.1661 crore.

The disclosed unresolved matter is Chaman Metallics’ lack of formal long-term supplier arrangements, despite its reliance on selected vendors for key inputs. The company’s next reported periods will show whether it retains suppliers on commercially favourable terms and how the Fiscal 2026 expansion, including MS billet and silico manganese production, affects material costs and cash flows.