Chrome Silicon Limited plant shutdown enters second year

Chrome Silicon’s ferro-alloy manufacturing operations remained suspended through the half year ended 30 September 2026, extending a shutdown begun on 30 May 2025, while its loss narrowed to Rs 4.08 crore from Rs 5.15 crore a year earlier. Management gave no date for restarting the plant.

Why is Chrome Silicon’s ferro-alloy plant still shut?

Chrome Silicon said its ferro-alloy manufacturing activities have been suspended since 30 May 2025 because of significant fluctuations in the market. The 12 November 2026 filing confirms that the suspension was still in effect at the end of the September 2026 half year, with no production restart date disclosed.

Management said it would closely monitor market conditions and take appropriate steps to resume operations at a suitable time. That statement sets a condition for reopening rather than a timetable, and the filing does not specify a price, demand level or other market threshold that would lead to a restart.

Chrome Silicon reported a single line of product, meaning segment reporting under Indian Accounting Standard 108, or Ind AS 108, was not applicable. The filing also showed no power and fuel expense in the September 2026 quarter, June 2026 quarter or September 2025 quarter, consistent with the disclosed manufacturing suspension.

How did Chrome Silicon’s half-year financial performance change?

Chrome Silicon reported a loss of Rs 4.08 crore for the half year ended 30 September 2026, compared with a loss of Rs 5.15 crore for the corresponding period of 2025. Loss before tax was also Rs 4.08 crore because the statement showed no tax expense for either half-year period.

Total income rose to Rs 6.05 crore from Rs 4.78 crore, while total expenses increased to Rs 10.13 crore from Rs 9.93 crore. The income increase exceeded the additional expenses, reducing the reported loss by Rs 1.07 crore year on year despite the continued shutdown.

Other income was Rs 4.07 crore in the latest half year and comprised interest income and sales of surplus stores and spares, according to the notes. Sales or income from operations was Rs 1.99 crore, up from Rs 52.70 lakh a year earlier, but the filing does not separately identify the source of this operating income during the ferro-alloy suspension.

Depreciation and amortisation rose to Rs 3.48 crore from Rs 3.39 crore, while other expenses fell to Rs 4.34 crore from Rs 5.32 crore. Changes in inventories of finished goods and work in progress were Rs 1.98 crore, compared with Rs 64.75 lakh in the prior-year half, contributing to the movement in total expenses.

What do Chrome Silicon’s September-quarter results show?

Chrome Silicon recorded a Rs 1.88 crore loss in the quarter ended 30 September 2026, narrower than the Rs 2.20 crore loss in the preceding June 2026 quarter and the Rs 3.00 crore loss in the September 2025 quarter. Basic and diluted loss per share was Rs 1.14, against Rs 1.34 in June 2026 and Rs 1.83 a year earlier.

Total income declined sequentially to Rs 44.32 lakh from Rs 5.61 crore in the June 2026 quarter. Other income declined to Rs 19.82 lakh from Rs 3.87 crore, while sales or income from operations was Rs 24.50 lakh, compared with Rs 1.74 crore in the preceding quarter.

Total expenses also declined to Rs 2.32 crore from Rs 7.81 crore in June 2026. Other expenses fell to Rs 24.88 lakh from Rs 4.09 crore and inventory changes dropped to Rs 18.10 lakh from Rs 1.80 crore, while depreciation was unchanged at Rs 1.74 crore in both quarters.

What changed in Chrome Silicon’s assets, inventory and borrowings?

Chrome Silicon’s total assets were Rs 231.15 crore at 30 September 2026, compared with Rs 229.95 crore at 31 March 2026. Property, plant and equipment declined to Rs 112.13 crore from Rs 115.62 crore, alongside the Rs 3.48 crore depreciation and amortisation charge recorded in the first half.

Inventories fell to Rs 33.75 crore at 30 September from Rs 39.57 crore at the March 2026 year-end. The cash-flow statement recorded a Rs 5.82 crore decrease in inventories, while trade and other receivables and prepayments increased by Rs 5.08 crore during the same six-month period.

The company generated Rs 1.01 crore of net cash from operating activities in the half year despite an operating loss before working-capital changes of Rs 58.71 lakh. Non-current borrowings rose to Rs 35.20 crore from Rs 30.06 crore, while current borrowings fell to Rs 3.44 crore from Rs 4.36 crore.

Chrome Silicon reported Rs 4.42 crore of proceeds from borrowings and Rs 76,000 of interest paid in the half-year cash-flow statement. Cash and cash equivalents ended at Rs 11.26 lakh, marginally above Rs 11.07 lakh at 31 March 2026, after Rs 5.42 crore of investing cash outflow for land advances.

What reporting qualifications did Chrome Silicon disclose?

Chrome Silicon’s standalone financial results for the half year ended 30 September 2026 were unaudited and were approved by its board on 12 November 2026 after Audit Committee recommendations. The company said the results were subject to an independent auditors’ report under Regulation 33 of the Securities and Exchange Board of India listing regulations.

The filing states that auditors had issued qualifications in their report for the period ended 30 June 2026, with management replies attached to that audit report. Chrome Silicon also said it had complied with applicable Indian Accounting Standards except for Ind AS 16, Ind AS 19 and Ind AS 109, without quantifying the effect of those exceptions in the notes.

The statement on the impact of audit qualifications showed the same Rs 6.05 crore total income, Rs 10.13 crore expenditure and Rs 4.08 crore loss after tax before and after adjustment for qualifications. It listed net worth of Rs 11.11 crore and total liabilities of Rs 220.04 crore as at 30 September 2026.

Conclusion

Chrome Silicon’s September 2026 filing shows that a manufacturing suspension dating from 30 May 2025 continued while the company reported a Rs 4.08 crore half-year loss. The year-on-year reduction from Rs 5.15 crore reflected higher total income and lower other expenses, but other income of Rs 4.07 crore remained larger than Rs 1.99 crore of sales or income from operations.

The next disclosed operational point to watch is management’s assessment of market conditions and any decision to resume ferro-alloy manufacturing, as it has set no restart date. The company’s future filings can also show whether the inventory reduction of Rs 5.82 crore and the Rs 4.42 crore borrowing proceeds continue to affect cash flow while production remains suspended.