Scan Steels Q2 profit reaches Rs. 14.5 crore as EBITDA rises 143%

Scan Steels Limited reported consolidated profit after tax of Rs. 14.5 crore for Q2FY27, reversing a Rs. 20 lakh loss in Q2FY26, as EBITDA rose 143% year on year to Rs. 13.8 crore and margin reached 8.1% from 4.3% for the quarter ended September 30, 2026.

What did Scan Steels report for Q2FY27 profitability?

Scan Steels reported consolidated profit after tax, or PAT, of Rs. 14.5 crore in Q2FY27, compared with a Rs. 20 lakh loss in Q2FY26. Profit before tax was Rs. 19.4 crore, against a Rs. 40 lakh loss a year earlier, while PAT margin moved to 8.5% from negative 0.2%. Scan Steels announced the September-quarter results on November 5, 2026.

Reported PAT was also 12% above Rs. 13 crore in Q1FY27, despite lower quarterly revenue and EBITDA. Scan Steels separately reported adjusted PAT, excluding other income, of Rs. 2.6 crore in Q2FY27, down 80% from Rs. 12.7 crore in Q1FY27 and compared with an adjusted loss of Rs. 30 lakh in Q2FY26. The release does not disclose the amount of other income.

How did Scan Steels revenue and margins change in Q2FY27?

Scan Steels generated revenue of Rs. 170.4 crore in Q2FY27, up 28% from Rs. 133 crore in Q2FY26 but down 34% from Rs. 257.8 crore in Q1FY27. Cost of goods sold increased 32% year on year to Rs. 111 crore, while gross profit rose 22% to Rs. 59.5 crore. Gross margin was 34.9% in Q2FY27, compared with 27.3% in Q1FY27.

EBITDA, or earnings before interest, tax, depreciation and amortisation, increased from Rs. 5.7 crore in Q2FY26 to Rs. 13.8 crore in Q2FY27. Its 8.1% margin was 3.8 percentage points above 4.3% a year earlier, though below the 9.1% reported in Q1FY27. Management attributed the year-on-year profitability improvement to demand across product segments, operating leverage, operating efficiencies and cost management.

The sequential comparison showed EBITDA falling 41% from Rs. 23.5 crore as revenue declined 34% from Q1FY27. Gross profit fell 16% from Rs. 70.5 crore quarter on quarter, a smaller decline than revenue, while gross margin rose by 7.6 percentage points. Scan Steels said Q2 revenue moderated sequentially against a strong Q1FY27 base.

What happened to Scan Steels production and sales volumes?

Scan Steels produced 38,615 metric tonnes, or MT, of TMT steel in Q2FY27, up 16% from 33,225 MT in Q2FY26 but down 21% from 48,990 MT in Q1FY27. TMT sales rose 8% year on year to 29,912 MT from 27,621 MT, but declined 32% from 43,692 MT in the preceding quarter. Scan Steels identifies SHRISHTII TMT as its flagship product.

Billet production was 39,258 MT, 6% above 36,871 MT a year earlier and broadly unchanged from 39,212 MT in Q1FY27. Billet sales were 3,655 MT, versus 793 MT in Q2FY26; Scan Steels classified Q1FY27 billet output as captive consumption rather than reporting billet sales. Sponge iron production was 33,190 MT, 1% above the prior-year quarter's 32,820 MT and 1% below 33,490 MT in Q1FY27.

The volume pattern was mixed across the two comparisons. Year on year, TMT output and sales increased alongside billet production and sales, whereas quarter on quarter TMT production and sales declined while billet production was flat. Scan Steels said it remains focused on capacity utilisation and its value-added product portfolio, but did not disclose quarterly utilisation rates or installed capacity figures.

How did Scan Steels perform in H1FY27 and what happened to cash flow?

Scan Steels reported H1FY27 revenue of Rs. 428.2 crore, up 17% from Rs. 365 crore in H1FY26, while EBITDA rose 49% to Rs. 37.2 crore from Rs. 25 crore. EBITDA margin improved to 8.7% from 6.9%, and PAT increased 181% to Rs. 27.5 crore from Rs. 9.8 crore. H1FY27 PAT margin was 6.4%, compared with 2.7% in the previous-year half.

Adjusted PAT for the six months was Rs. 15.3 crore, up 58% from Rs. 9.7 crore in H1FY26. TMT production increased 10% to 87,605 MT and TMT sales rose 8% to 73,604 MT during H1FY27. Billet production declined 8% to 78,470 MT from 84,840 MT, while billet sales increased 41% to 3,655 MT from 2,593 MT.

Cash flow from operations changed to an inflow of Rs. 5 crore in H1FY27 from an outflow of Rs. 20.6 crore in H1FY26. Management linked the movement to stronger operational cash generation and working-capital management. Chairman Rajesh Gadodia said the half-year result reflected operational efficiencies and disciplined cost management.

What expansion plans has Scan Steels disclosed?

Scan Steels said its capital-expenditure programme covers three themes: expanding billet capacity, adding downstream pipe, galvanising and wire-rod facilities, and developing an integrated steel ecosystem. The company said these initiatives are intended to increase value addition, strengthen operational capabilities and build a future-ready manufacturing platform.

Management said the programme was progressing across all three themes as of the November 5, 2026 announcement. Rajesh Gadodia said capacity expansion, value addition and operational efficiencies would be important to Scan Steels' Vision 2031. The release does not disclose project costs, capacity additions, commissioning dates or financing arrangements for the planned investments.

Conclusion

Scan Steels' Q2FY27 result marked a return to reported profitability, with PAT of Rs. 14.5 crore against a Rs. 20 lakh loss in Q2FY26, alongside 143% EBITDA growth and a 3.8-percentage-point increase in EBITDA margin. The year-on-year improvement contrasted with a sequential revenue decline of 34%, lower EBITDA and an 80% fall in adjusted PAT from Q1FY27.

The next disclosures to watch are progress on the billet, pipe, galvanising and wire-rod projects under Scan Steels' three-part capital-expenditure programme. Management has linked these plans to Vision 2031, while future results can show whether TMT volumes, operating cash flow and the H1FY27 EBITDA margin of 8.7% are maintained as expansion advances.