Steel Exchange India September profit before tax rises eightfold

Steel Exchange India Limited reported standalone profit before tax of Rs 17.62 crore for the quarter ended September 30, 2026, compared with Rs 2.11 crore a year earlier, as revenue from operations increased to Rs 343.16 crore from Rs 231.76 crore and finance costs fell to Rs 14.11 crore.

How did Steel Exchange India’s September-quarter profit change?

Steel Exchange India’s standalone profit before tax rose to Rs 17.62 crore in the quarter ended September 30, 2026, from Rs 2.11 crore in the quarter ended September 30, 2025, an increase of more than eight times. As no tax expense was recorded in either quarterly period, net profit was also Rs 17.62 crore, compared with Rs 2.11 crore a year earlier.

Total income reached Rs 343.35 crore in the latest quarter, compared with Rs 232.91 crore in the prior-year period. Other income declined to Rs 19.38 lakh from Rs 1.15 crore, so the increase in revenue from operations accounted for the main part of the income expansion.

Basic earnings per share rose to Rs 0.14 from Rs 0.02 on equity shares with a face value of Rs 1 each. The quarterly earnings-per-share figures were not annualised, and Steel Exchange India’s board approved the unaudited results on November 4, 2026.

What drove Steel Exchange India’s revenue growth and costs?

Steel Exchange India’s revenue from operations increased by Rs 111.40 crore year on year to Rs 343.16 crore in the September 2026 quarter. Gross sales and income from operations matched reported revenue in both periods, at Rs 343.16 crore in the latest quarter and Rs 231.76 crore a year earlier.

Raw-material consumption rose to Rs 281.99 crore from Rs 192.05 crore as revenue expanded. Purchases of finished, semi-finished steel and other products declined to Rs 3.14 crore from Rs 7.28 crore, while employee-benefit expense increased to Rs 13.22 crore from Rs 10.99 crore.

Changes in inventories of finished goods, work in progress and stock in trade were a credit of Rs 23.62 crore in the September 2026 quarter, compared with a credit of Rs 26.76 crore in the prior-year quarter. Other expenses rose to Rs 30.18 crore from Rs 20.02 crore, while depreciation and amortisation declined to Rs 6.47 crore from Rs 7.23 crore.

Total expenses increased to Rs 325.73 crore from Rs 230.80 crore, but the Rs 111.40 crore rise in revenue exceeded the Rs 94.93 crore increase in total expenses. This lifted combined segment results before finance cost, exceptional items and tax to Rs 31.74 crore from Rs 21.39 crore.

Which Steel Exchange India segments contributed to the result?

Steel Exchange India’s steel segment generated Rs 338.68 crore of revenue before inter-segment eliminations in the September 2026 quarter, compared with Rs 226.84 crore a year earlier. Its segment result before finance cost, exceptional items and tax increased to Rs 30.56 crore from Rs 21.77 crore.

The power segment’s revenue increased to Rs 28.89 crore from Rs 23.91 crore, while its loss narrowed to Rs 34.40 lakh from Rs 87.20 lakh. Steel Exchange India identifies the segment as thermal-based power generation and marketing operations.

Logistics revenue rose to Rs 1.58 crore from Rs 51.83 lakh, and its segment result rose to Rs 1.52 crore from Rs 49.26 lakh. Steel Exchange India defines logistics as bulk-cargo handling through railway rakes and transportation, while the steel business includes sponge iron, billets and rebars, also called thermomechanically treated, or TMT, bars.

Inter-segment revenue was Rs 25.99 crore in the latest quarter, compared with Rs 19.51 crore in the prior-year quarter. After this elimination, the segment total reconciled to revenue from operations of Rs 343.16 crore for the quarter ended September 30, 2026.

How did lower finance costs affect Steel Exchange India’s profit?

Steel Exchange India’s finance costs fell to Rs 14.11 crore in the September 2026 quarter from Rs 19.28 crore in the September 2025 quarter. The Rs 5.16 crore reduction, alongside a Rs 10.35 crore increase in combined segment results, resulted in profit before tax of Rs 17.62 crore.

For the half year ended September 30, 2026, finance costs were Rs 28.10 crore, compared with Rs 38.17 crore in the corresponding prior-year period. Half-year profit before tax rose to Rs 32.65 crore from Rs 12.34 crore, while revenue from operations increased to Rs 612.87 crore from Rs 531.76 crore.

Steel Exchange India availed a working-capital term loan of Rs 11.19 crore under the Emergency Credit Line Guarantee Scheme, or ECLGS, from Kotak Mahindra Bank during the quarter. The loan was sanctioned on July 20, 2026, and the secured-borrowings schedule records a 9% rate for this facility.

Steel Exchange India also reported that 3,828 listed, rated, secured non-convertible debentures held by Kotak Credit Opportunities Fund had a reduced face value of Rs 3.87 lakh each at September 30, 2026 after stipulated mandatory payments during the quarter. Its debt-equity ratio was 0.27 times at September 30, 2026, compared with 0.46 times a year earlier.

What changed in Steel Exchange India’s capital and operating position?

Steel Exchange India reported total segment assets of Rs 1,515.06 crore at September 30, 2026, compared with Rs 1,354.07 crore a year earlier. Steel segment assets were Rs 1,262.23 crore, up from Rs 1,049.94 crore at September 30, 2025.

Debtors turnover was 67 days in the September 2026 quarter, compared with 105 days a year earlier, while inventory turnover was 142 days against 153 days. The current ratio was 2.57 times at September 30, 2026, compared with 1.85 times a year earlier, under Steel Exchange India’s stated current-assets-to-current-liabilities calculation.

On November 4, 2026, Steel Exchange India’s board approved conversion of 8.04 crore warrants into equity shares at Rs 9.45 per share, including a premium of Rs 8.45 per share. Following the allotment, paid-up share capital increased to Rs 135.59 crore from Rs 127.55 crore, comprising 135.59 crore equity shares with a face value of Rs 1 each.

Conclusion

Steel Exchange India’s September-quarter result combined higher revenue, led by the steel segment, with a lower finance-cost charge. Revenue from operations increased to Rs 343.16 crore and profit before tax reached Rs 17.62 crore, while the power segment’s loss narrowed and the logistics segment reported higher revenue and profit.

The next disclosures to watch include conversion of the remaining 23.70 crore warrants following the November 4 allotment and the use of the Rs 11.19 crore ECLGS working-capital loan. Steel Exchange India also said its wholly owned subsidiary, SEIL Infra Logistics Limited, had not commenced commercial operations as of September 30, 2026, despite a further investment of Rs 5 lakh during the quarter.