Shyam Century Ferrous exits manufacturing, reports Rs 2.06 crore profit

Shyam Century Ferrous Limited reported a Rs 2.06 crore profit before tax from discontinued operations for the half year ended 30 September 2026 after ending its sole ferro-silicon manufacturing business, compared with a Rs 3.34 crore loss a year earlier. Management says investment income and liquid assets will support the company while it seeks a new business.

Why did Shyam Century Ferrous stop manufacturing?

Shyam Century Ferrous stopped production at its EPIP, Rajabagan, Byrnihat facility in Meghalaya on 7 May 2025, following a strategic decision to discontinue manufacturing. The facility was the company’s sole operating segment, which had manufactured and sold ferro silicon, so Shyam Century Ferrous no longer has an active manufacturing segment after that date.

Shareholders approved the disposal of the manufacturing business on 9 February 2026. From that date, Shyam Century Ferrous classified the associated manufacturing assets as non-current assets held for sale under Indian Accounting Standard 105, or Ind AS 105, covering non-current assets held for sale and discontinued operations.

Revenue from operations now consists only of raw-material sales and is presented within discontinued operations. Revenue was Rs 69.50 lakh for the half year ended 30 September 2026, down from Rs 21.42 crore in the corresponding half of 2025, reflecting the end of production at the sole manufacturing operation.

How is Shyam Century Ferrous selling its former plant assets?

Shyam Century Ferrous is selling assets held for sale in phases, according to the independent auditor’s review report dated 5 November 2026. Assets held for sale stood at Rs 9.79 crore on 30 September 2026, compared with Rs 12.18 crore on 31 March 2026, a decline of Rs 2.39 crore during the six-month period.

The half-year cash-flow statement recorded Rs 4.37 crore from the sale of property, plant and equipment, alongside a Rs 2.18 crore profit on such sales. Property, plant and equipment remaining on the balance sheet was Rs 5.94 crore at 30 September 2026, down from Rs 6.64 crore at 31 March 2026.

Inventory fell to Rs 3.11 crore at 30 September 2026 from Rs 6.47 crore six months earlier. Depreciation and amortisation expense also declined to Rs 75.19 lakh in the half year ended September 2026 from Rs 2.44 crore in the comparable prior-year period, although the filing does not separately quantify the causes of that reduction.

What did Shyam Century Ferrous report for September 2026?

Shyam Century Ferrous reported total income of Rs 7.25 crore for the half year ended 30 September 2026, compared with Rs 26.36 crore in the previous corresponding half. Other income rose to Rs 6.55 crore from Rs 4.94 crore, while revenue from operations declined by Rs 20.73 crore as manufacturing production had ceased.

Total expenses fell to Rs 5.18 crore from Rs 29.70 crore a year earlier. The result was a Rs 2.06 crore profit before tax from discontinued operations, reversing a Rs 3.34 crore pre-tax loss, while a Rs 1.33 crore deferred-tax charge left net profit at Rs 73.20 lakh against a Rs 3.23 crore loss in the prior-year half.

For the quarter ended 30 September 2026, Shyam Century Ferrous recorded other income of Rs 4.09 crore and revenue from operations of Rs 36.62 lakh. It reported a Rs 2.41 crore profit before tax and Rs 1.54 crore net profit, compared with a Rs 34.89 lakh pre-tax loss in the quarter ended 30 June 2026.

The September-quarter total comprehensive result was a Rs 4.11 crore loss despite the Rs 1.54 crore net profit. Other comprehensive income was negative Rs 5.65 crore, principally reflecting fair-value changes in equity investments carried at fair value through other comprehensive income, as shown in the results statement.

How will Shyam Century Ferrous fund itself after production ended?

Shyam Century Ferrous says it will earn interest income from its substantial investment portfolio, with this income classified as other income in the statement of profit and loss. Interest income in the half-year cash-flow statement was Rs 3.45 crore, while other income in the income statement was Rs 6.55 crore for the half year ended 30 September 2026.

Non-current investments were Rs 109.67 crore at 30 September 2026, compared with Rs 109.56 crore at 31 March 2026. Current investments were Rs 6.02 crore, while other non-current financial assets were Rs 13.60 crore, other current financial assets were Rs 10.53 crore, and cash and cash equivalents were Rs 66.42 lakh.

Management states that Shyam Century Ferrous has a positive net worth and sufficient liquid investment assets to meet liabilities as they fall due. Total equity was Rs 160.59 crore at 30 September 2026, versus Rs 163.75 crore at 31 March 2026, while total liabilities were Rs 5.51 crore, including Rs 1.68 crore of non-current liabilities and Rs 3.83 crore of current liabilities.

What remains unresolved for Shyam Century Ferrous?

Shyam Century Ferrous has not disclosed a replacement business, acquisition target, industry or investment amount. Management says it is looking for new business opportunities and does not intend to liquidate the entity, but the 5 November 2026 filing gives no timetable for identifying or starting a new venture.

Management assessed Shyam Century Ferrous’s ability to continue as a going concern for at least 12 months from the date of the financial results approved on 5 November 2026. It concluded that no material uncertainty exists, and the auditor did not modify its review conclusion while noting the phased disposal of assets held for sale.

Net cash used in discontinued operating activities was Rs 5.24 crore in the half year ended 30 September 2026, compared with Rs 5.90 crore generated in the prior-year half. Investing activities generated Rs 5.85 crore, including the Rs 4.37 crore cash flow from property, plant and equipment sales, while cash and cash equivalents increased by Rs 54.02 lakh.

Conclusion

Shyam Century Ferrous has moved from a single-product ferro-silicon manufacturer to an entity disposing of legacy assets and relying on income from investments. The half-year result changed to a Rs 2.06 crore pre-tax profit from a Rs 3.34 crore loss as expenses declined and other income increased, while operating revenue fell to Rs 69.50 lakh after production ceased.

The next disclosed matters to watch are the continuing phased sale of the Rs 9.79 crore of assets held for sale at 30 September 2026 and management’s search for a new business opportunity. The filing confirms that Shyam Century Ferrous has no intention to liquidate, but does not specify a target, sector, investment size or implementation date.