A-One Steels met 83.2% of FY26 needs from green power

A-One Steels India Limited, referred to as A-One Steels, met 83.20% of its Fiscal 2026 electricity requirement from solar and wind purchase arrangements, non-captive power plants and in-house waste heat recovery boiler generation. These sources supplied 5,007.53 lakh units out of 6,018.33 lakh units consumed, versus an 89.46% green-electricity share in Fiscal 2025.

How did A-One Steels meet 83.2% of Fiscal 2026 electricity needs from green power?

A-One Steels met 83.20% of Fiscal 2026 electricity needs from sources it classifies as green, while government-grid and other sources supplied the remaining 16.80%. The company’s aggregate green electricity definition includes solar and wind power-purchase arrangements, non-captive power plants and in-house waste heat recovery boiler, or WHRB, generation. A WHRB generates power by using waste heat from industrial processes.

The 57.19% solar-and-wind component was A-One Steels’ largest individual source category in Fiscal 2026. The company describes the non-captive category as power procured from a private grid combined with in-house WHRB output, without separately quantifying the two components within the 26.01% share. The 83.20% measure is therefore an aggregate company classification rather than a separate measure for each generating technology.

Power and electricity are significant costs in induction-furnace steel manufacturing, apart from cost of goods sold, according to A-One Steels. Total power cost based on units consumed was Rs 257.68 crore in Fiscal 2026, compared with Rs 212.84 crore in Fiscal 2025 and Rs 184.59 crore in Fiscal 2024. The higher Fiscal 2026 green-electricity volume did not coincide with lower reported total power cost.

What arrangements support A-One Steels’ green electricity sourcing?

A-One Steels supports its green electricity sourcing through 16 long-term renewable power-purchase agreements, or PPAs, covering 230 megawatts, or MW, of solar and wind capacity. The company has entered into 10 solar PPAs and six wind PPAs with contractual terms ranging from 15 years to 25 years. It states that these contracts provide power at fixed cost and are intended to support supply continuity and power-cost management.

A-One Steels also has generation assets at its manufacturing facilities. Bellary Facility I has a 14 MW thermal captive power plant and a 6 MW WHRB power plant, while the Chikkantapur Facility has a 12 MW WHRB power plant. Captive generation is electricity produced principally for the consumer’s own use, while the company’s solar and wind arrangements also include group-captive structures.

Under the disclosed group-captive arrangements, consumers must collectively consume at least 51.00% of electricity generated by the relevant plant, while all consumers’ combined equity holding cannot exceed 26.00%. A-One Steels holds equity interests in the power-generating entities to meet applicable requirements but does not manage their daily operations. Subject to compliance with ownership and consumption conditions, group-captive arrangements qualify for exemption from cross-subsidy surcharge under the Electricity Act, 2003 and applicable rules.

A-One Steels says its captive and WHRB arrangements provided savings of approximately Rs 2 per unit on weighted-average electricity cost during the last three fiscals. This outcome depends on contracted tariffs, operating output from captive and WHRB facilities, and compliance with group-captive conditions. The company also says PPAs reduce the capital expenditure that would otherwise be required to establish equivalent power-generation capacity.

How did A-One Steels’ electricity mix change over three fiscals?

A-One Steels used more aggregate green electricity in absolute units in Fiscal 2026, but its green share of total electricity was lower than in Fiscal 2025 and Fiscal 2024. Aggregate green electricity rose to 5,007.53 lakh units in Fiscal 2026 from 4,811.70 lakh units in Fiscal 2025 and 4,164.32 lakh units in Fiscal 2024. Total electricity sourcing increased to 6,018.33 lakh units from 5,378.80 lakh units and 4,686.22 lakh units, respectively.

Solar and wind purchases increased both in units and as a share of total electricity, rising from 53.04% in Fiscal 2024 to 57.19% in Fiscal 2026. In contrast, the non-captive power plants and WHRB category declined to 1,565.38 lakh units, or 26.01%, in Fiscal 2026 from 1,838.19 lakh units, or 34.17%, in Fiscal 2025. Other sources rose from 567.10 lakh units in Fiscal 2025 to 1,010.80 lakh units in Fiscal 2026, reducing the aggregate green share by 6.26 percentage points year on year.

The Fiscal 2026 mix thus combined higher green-electricity volume with increased electricity from other sources. A higher green share would require green supply growth to keep pace with total consumption, or a reduction in government-grid and other electricity as a proportion of the total mix.

What do product certificates and CBAM work add to A-One Steels’ plan?

A-One Steels has product certifications and emissions-reporting preparations in addition to its electricity arrangements. The Confederation of Indian Industry’s Green Products and Services Council has certified specified TMT bars manufactured at Gauribidanur and Hindupur, as well as HR coil and HR mild-steel pipes manufactured at Bellary Facility I, under the GreenPro Ecolabel framework. The certifications apply to specified product grades, sizes and facilities rather than the entire product portfolio.

The National Institute of Secondary Steel Technology issued A-One Steels a Green Steel Certificate dated August 27, 2026, covering 1,80,351 tonnes of TMT bars produced in Fiscal 2026. The certificate records average emission intensity of 0.67 CO2e/ts, assigns the TMT bars a five-star rating and states 69.55% greenness under the Government of India notification dated December 23, 2024.

A-One Steels has also begun first-phase Carbon Border Adjustment Mechanism, or CBAM, compliance work for exports to the European Union. At Gauribidanur, the consultant’s scope includes direct and indirect emissions calculations, Annex IV reports and audit support for all four quarters of calendar year 2026. Bellary Facility I has initiated combined CBAM and CCTS compliance support, including CBAM audit support for 2026 and CCTS support for 2027.

Conclusion

A-One Steels’ Fiscal 2026 electricity profile combined 5,007.53 lakh units of defined green electricity with 1,010.80 lakh units from other sources. Long-term solar and wind arrangements supplied 3,442.15 lakh units, but the 83.20% green share was below Fiscal 2025’s 89.46% as electricity from other sources increased faster than aggregate green supply.

The next disclosed operating milestone is the 10 MW captive WHRB plant at the Koppal Facility, intended to use waste heat from existing kilns. Of the planned capacity, 6 MW was partially operational as of the red herring prospectus date, and full commissioning is expected in Fiscal 2027. Its effect on A-One Steels’ electricity mix will depend on completion, usable generation output, total demand and continued group-captive compliance.