Scan Steels Limited Q2 profit hits Rs 14.53 crore on other income

Scan Steels Limited reported standalone net profit of Rs 14.53 crore for the quarter ended September 30, 2026, against a Rs 24.73 lakh loss a year earlier, but Rs 11.95 crore of other income accounted for most of its Rs 19.40 crore profit before tax.

How did Scan Steels perform in the September 2026 quarter?

Scan Steels returned to profitability in the September 2026 quarter, reporting Rs 14.53 crore of net profit after tax compared with a Rs 24.73 lakh net loss in the September 2025 quarter. Profit before tax was Rs 19.40 crore, compared with a Rs 35.97 lakh loss a year earlier, while total comprehensive income was Rs 14.52 crore against a Rs 36.11 lakh loss.

Revenue from operations increased to Rs 170.44 crore from Rs 132.96 crore in the corresponding prior-year quarter. Total expenses rose to Rs 162.99 crore from Rs 133.38 crore, while total income reached Rs 182.39 crore from Rs 133.02 crore. The difference between total income and total expenses was therefore Rs 19.40 crore, reversing the prior-year deficit of Rs 35.97 lakh.

The September-quarter result was also different from the preceding June 2026 quarter. Revenue from operations declined by Rs 87.35 crore from Rs 257.79 crore in June, but profit before tax increased from Rs 17.31 crore. Total expenses fell by Rs 77.75 crore from Rs 240.74 crore, while other income rose from Rs 26.20 lakh to Rs 11.95 crore.

Why did other income matter to Scan Steels' quarterly profit?

Other income was central to Scan Steels' reported September-quarter earnings because the Rs 11.95 crore recorded in that line represented about 62% of the Rs 19.40 crore profit before tax. Mechanically excluding other income from total income would leave Rs 7.45 crore before tax, based on reported revenue from operations of Rs 170.44 crore and total expenses of Rs 162.99 crore; this is a calculation, not a separately disclosed operating-profit measure.

Other income increased from Rs 6.29 lakh in the September 2025 quarter to Rs 11.95 crore in the September 2026 quarter. The quarterly profit-and-loss statement does not provide a detailed break-up of this line. For the half year ended September 30, 2026, however, the cash-flow statement recorded Rs 11.96 crore of interest income, alongside Rs 12.21 crore of reported other income in the profit-and-loss statement.

The September-quarter other-income figure made up nearly all of the Rs 12.21 crore reported for the first half of 2026-27. In the corresponding six months of 2025, other income was Rs 11.44 lakh. That comparison shows that the change in the half-year income mix was concentrated in the September quarter rather than spread evenly across the two reported quarters.

What were Scan Steels' costs and tax charges in Q2?

Scan Steels reported material costs of Rs 112.87 crore in the September 2026 quarter, compared with Rs 108.92 crore a year earlier, while purchases of stock in trade rose to Rs 16.03 crore from Rs 9.15 crore. Employee-benefit expense was Rs 9.94 crore, against Rs 9.00 crore, and other expenditure was Rs 35.73 crore, compared with Rs 34.14 crore.

Changes in inventories reduced reported expenses by Rs 17.93 crore in the September quarter, compared with a Rs 33.93 crore reduction a year earlier. Finance cost increased to Rs 2.42 crore from Rs 2.17 crore, while depreciation and amortisation rose to Rs 3.92 crore from Rs 3.03 crore. Scan Steels reported only one business segment, steel manufacturing, and therefore did not disclose a separate product or business-line profitability split.

Tax expense was Rs 4.87 crore in the September 2026 quarter, comprising Rs 5.16 crore of current tax, partly offset by a Rs 26.19 lakh deferred-tax credit and a Rs 2.09 lakh credit relating to earlier years. In the prior-year quarter, total tax was a credit of Rs 11.24 lakh. Basic and diluted earnings per share were Rs 2.39, compared with a loss per share of Rs 0.04 a year earlier.

What do the first-half result and balance sheet show?

Scan Steels reported first-half standalone net profit of Rs 27.48 crore for the half year ended September 30, 2026, up from Rs 9.79 crore in the corresponding 2025 period. First-half revenue from operations increased to Rs 428.23 crore from Rs 364.96 crore, while profit before tax rose to Rs 36.71 crore from Rs 13.07 crore.

First-half expenses increased to Rs 403.73 crore from Rs 352.00 crore, and tax expense rose to Rs 9.23 crore from Rs 3.28 crore. Basic earnings per share for the six months were Rs 4.52, compared with Rs 1.67 in the prior-year half. The board approved the unaudited standalone results on November 5, 2026, and the statutory auditors carried out a limited review.

At September 30, 2026, total assets were Rs 665.22 crore, compared with Rs 601.45 crore at March 31, 2026. Cash and bank balances rose to Rs 23.89 crore from Rs 4.51 crore, trade receivables increased to Rs 32.39 crore from Rs 21.10 crore, and inventories rose to Rs 173.02 crore from Rs 168.12 crore. Total equity increased to Rs 468.63 crore from Rs 441.15 crore.

Borrowings were Rs 99.52 crore at September 30, comprising Rs 20.83 crore of non-current borrowings and Rs 78.68 crore of current borrowings. At March 31, 2026, Scan Steels reported Rs 71.69 crore of current borrowings and no non-current borrowings. The half-year cash-flow statement showed Rs 4.32 crore of net operating cash inflow, compared with a Rs 21.56 crore outflow in the prior-year half, while purchases of property, plant and equipment were Rs 19.25 crore.

Conclusion

Scan Steels' September-quarter results show a return from a Rs 24.73 lakh loss to Rs 14.53 crore of standalone profit, alongside year-on-year growth in revenue from operations. The composition of earnings remains important: Rs 11.95 crore of other income supplied most of the Rs 19.40 crore profit before tax, and Scan Steels identifies steel manufacturing as its sole reportable segment.

The next results will show whether revenue from operations recovers from the Rs 170.44 crore September-quarter level and how other income develops after its Rs 11.95 crore contribution. Separately, the board approved direct listing of existing equity shares on the National Stock Exchange of India, subject to statutory and regulatory approvals and compliance requirements; the filing did not provide a completion timetable.