German Green Steel Q2 profit falls 22% as revenue drops

German Green Steel and Power Limited reported consolidated profit after tax of Rs 16.86 crore for the quarter ended September 30, 2026, down 22% from Rs 21.64 crore in the preceding quarter as revenue from operations fell 21% to Rs 365.09 crore. Profit was higher than the Rs 13.77 crore reported in the corresponding 2025 quarter.

Why did German Green Steel’s Q2 profit fall from the previous quarter?

German Green Steel’s profit after tax fell by Rs 4.77 crore from the quarter ended June 30, 2026, when it reported Rs 21.64 crore. Profit before tax declined more sharply, by Rs 12.83 crore to Rs 18.93 crore, while total tax expense fell to Rs 2.07 crore from Rs 10.12 crore. The lower tax expense reduced the effect of the pre-tax decline on reported profit.

Revenue from operations decreased by Rs 97.97 crore sequentially, from Rs 463.06 crore in the June 2026 quarter to Rs 365.09 crore in the September 2026 quarter. Total income fell to Rs 363.24 crore from Rs 467.61 crore because other income declined to Rs 13.24 lakh from Rs 4.55 crore. Basic and diluted earnings per share, which were not annualised, fell to Rs 3.06 from Rs 4.02.

How did costs move during German Green Steel’s September quarter?

German Green Steel’s raw-material consumption declined to Rs 290.64 crore in the September quarter from Rs 309.66 crore in the June quarter, a reduction of Rs 19.02 crore that was much smaller than the Rs 97.97 crore revenue decline. Purchases of stock-in-trade, however, increased to Rs 43.32 crore from Rs 25.12 crore over the same comparison.

Changes in inventories of finished goods, stock-in-trade and work in progress shifted from an expense of Rs 15.89 crore in June to a credit of Rs 62.63 crore in September. Employee benefits expense was Rs 12.10 crore against Rs 12.00 crore, finance costs rose to Rs 12.56 crore from Rs 11.44 crore, and depreciation and amortisation increased to Rs 5.98 crore from Rs 5.85 crore.

German Green Steel manufactures iron and steel products, mainly thermo-mechanically treated, or TMT, bars, mild-steel billets and sponge iron. The group reports these activities as one operating segment because its chief operating decision maker monitors the group’s results as a whole, so the filing does not split quarterly revenue or profit among those products.

How did German Green Steel perform compared with a year earlier?

German Green Steel’s September-quarter profit after tax was Rs 16.86 crore, compared with Rs 13.77 crore for the quarter ended September 30, 2025. Revenue from operations increased by Rs 4.34 crore from Rs 360.75 crore a year earlier, while profit before tax declined to Rs 18.93 crore from Rs 21.18 crore.

The difference between the pre-tax and post-tax comparisons reflected tax movements. Total tax expense was Rs 2.07 crore in the latest quarter, compared with Rs 7.41 crore a year earlier, including a deferred-tax credit of Rs 82.48 lakh in September 2026 versus a deferred-tax charge of Rs 45.62 lakh in the prior-year quarter. Total comprehensive income was Rs 16.80 crore, compared with Rs 13.81 crore.

Profit attributable to owners of the parent was Rs 16.73 crore in the September 2026 quarter, while profit attributable to non-controlling interests was Rs 12.91 lakh. German Green Steel held 97.41% of German TMT Private Limited at September 30, 2026, with the remaining 2.59% accounted for as a non-controlling interest in the consolidated results.

What do German Green Steel’s first-half results show?

German Green Steel recorded revenue from operations of Rs 828.57 crore and profit after tax of Rs 38.10 crore for the six months ended September 30, 2026. In the corresponding six months of 2025, revenue was Rs 820.03 crore and profit after tax was Rs 36.54 crore, meaning revenue increased by Rs 8.54 crore and profit after tax by Rs 1.56 crore.

Profit before tax for the first half fell to Rs 50.68 crore from Rs 52.65 crore, while tax expense declined to Rs 12.19 crore from Rs 16.12 crore. This tax reduction accompanied the higher half-year profit after tax despite lower pre-tax profit. First-half basic and diluted earnings per share were Rs 7.01, compared with Rs 6.71, and were not annualised.

The consolidated results include German TMT for every period shown. German Green Steel acquired control of the subsidiary on May 21, 2024, and the filing says comparative figures have been regrouped or reclassified where necessary to make them comparable.

What changed in German Green Steel’s assets, cash and IPO position?

German Green Steel reported total assets of Rs 1,573.08 crore at September 30, 2026, compared with Rs 1,220.24 crore at March 31, 2026. Capital work in progress rose to Rs 183.62 crore from Rs 160.65 crore, while inventories increased to Rs 323.74 crore from Rs 195.09 crore. Total equity was Rs 752.20 crore at the September reporting date.

Cash and cash equivalents stood at Rs 96.02 crore, compared with Rs 1.54 crore at March 31, 2026. The group generated Rs 52.27 crore of net operating cash flow in the six months ended September 30, compared with Rs 65.69 crore a year earlier, and used Rs 60.64 crore in investing activities, including Rs 60.14 crore for property, plant and equipment, capital work in progress and capital advances.

German Green Steel completed its initial public offering, or IPO, comprising 218.63 lakh equity shares at an issue price of Rs 139 each. The offer included a fresh issue of Rs 290.00 crore and an offer for sale of Rs 13.90 crore, and the shares were listed on the National Stock Exchange of India Limited and BSE Limited on October 5, 2026. Of the fresh-issue proceeds, Rs 95.07 crore had been received by September 30 and Rs 194.93 crore was receivable at that date; the company said the outstanding balance was received by October 3, 2026.

Conclusion

German Green Steel’s September-quarter result shows lower sequential revenue, profit before tax and profit after tax, with revenue declining to Rs 365.09 crore and profit after tax to Rs 16.86 crore. For the first half, revenue and profit after tax were above the prior-year period, although first-half profit before tax was lower and tax expense declined.

The next reporting periods will show the effect of the Rs 290.00 crore fresh IPO issue, whose balance of Rs 194.93 crore was received after September 30. The filing also leaves investors to watch whether the rise in capital work in progress to Rs 183.62 crore and inventories to Rs 323.74 crore is reflected in subsequent operating activity and cash flow.