Tulsyan NEC Limited first-half loss widens to Rs 38.35 crore

Tulsyan NEC Limited reported a consolidated net loss of Rs 38.35 crore for the half year ended 30 September 2026, compared with a Rs 16.34 crore loss a year earlier, as finance costs of Rs 43.08 crore outweighed Rs 4.73 crore of combined segment profit before finance costs. Revenue from operations declined 20.95% to Rs 384.58 crore.

How much did Tulsyan NEC’s first-half loss increase?

Tulsyan NEC’s consolidated loss widened by Rs 22.01 crore year on year to Rs 38.35 crore in the half year ended 30 September 2026. There was no reported tax expense or exceptional item in either half-year comparison, meaning the loss before tax and net loss were both Rs 38.35 crore in the latest period.

The second-quarter loss was Rs 16.94 crore, narrower than the Rs 21.41 crore loss in the June 2026 quarter but wider than the Rs 6.09 crore loss in the September 2025 quarter. Basic and diluted loss per share, which were not annualised, rose to Rs 23.30 for the six-month period from Rs 9.93 a year earlier, on paid-up share capital of Rs 16.46 crore with a face value of Rs 10 per share.

What happened to Tulsyan NEC’s revenue and expenses?

Tulsyan NEC’s revenue from operations fell by Rs 101.91 crore to Rs 384.58 crore during the half year ended 30 September 2026, while total income declined by Rs 106.60 crore to Rs 395.40 crore. Other income was Rs 10.82 crore, down from Rs 15.51 crore, alongside the reduction in operating revenue.

Materials consumed declined by Rs 72.78 crore to Rs 311.90 crore and power and fuel expense fell by Rs 2.30 crore to Rs 36.49 crore. However, purchases of traded goods increased to Rs 12.57 crore from Rs 10.72 crore, while other expenses fell by Rs 8.60 crore to Rs 18.78 crore. Total expenses reduced by Rs 84.59 crore to Rs 433.75 crore, but the expense reduction was smaller than the income decline.

The half-year expense result also reflects a Rs 11.75 crore decrease in stock-in-trade, compared with a Rs 1.38 crore decrease in the prior-year period. Employee benefit expense was broadly stable at Rs 11.49 crore versus Rs 11.39 crore, while depreciation and amortisation decreased to Rs 11.20 crore from Rs 11.54 crore.

Which Tulsyan NEC segments changed most?

Tulsyan NEC’s Steel Division remained the largest revenue source at Rs 306.67 crore for the half year ended 30 September 2026, but its revenue was Rs 55.58 crore lower than a year earlier. The Power segment recorded the largest absolute reduction, with revenue falling by Rs 58.57 crore to Rs 54.97 crore, whereas Synthetic Division revenue more than doubled to Rs 22.94 crore from Rs 10.69 crore.

Segment results before finance cost totalled Rs 4.73 crore, down from Rs 18.88 crore in the previous corresponding half year. Steel Division’s result improved to a profit of Rs 8.83 crore from Rs 4.97 crore, but Synthetic Division moved to a Rs 0.46 crore loss from a Rs 11.55 crore profit. Power recorded a Rs 3.64 crore loss, compared with a Rs 2.36 crore profit.

Why did Tulsyan NEC’s finance costs matter?

Tulsyan NEC’s finance costs increased by Rs 7.86 crore to Rs 43.08 crore in the half year ended 30 September 2026. That charge was more than nine times the Rs 4.73 crore aggregate profit reported by the Steel, Synthetic and Power segments before finance cost, producing the Rs 38.35 crore pre-tax loss.

Tulsyan NEC disclosed revised terms for its non-convertible debentures, or NCDs. Coupon payments had an agreed moratorium from 1 April 2026 through 31 August 2026, followed by ramped-up monthly coupon amounts, while the final redemption date was revised to 30 September 2027. Tulsyan NEC said the principal, coupon, redemption premium needed to meet the agreed total internal rate of return, default or penal interest, and other applicable costs are proposed to be paid at final redemption.

At 30 September 2026, non-current borrowings stood at Rs 340.29 crore, up from Rs 316.40 crore at 31 March 2026, while current borrowings fell to Rs 85.89 crore from Rs 89.79 crore. Trade receivables rose to Rs 165.77 crore from Rs 97.20 crore and inventories increased to Rs 91.16 crore from Rs 59.60 crore; trade payables rose to Rs 215.88 crore from Rs 135.57 crore.

What do Tulsyan NEC’s cash flow and audit findings show?

Tulsyan NEC generated Rs 11.77 crore of net cash from operating activities in the half year ended 30 September 2026. The half-year operating cash figure included a Rs 92.50 crore increase in trade payables, partly offset by Rs 68.57 crore higher trade receivables and Rs 31.57 crore higher inventories.

Net cash used in financing activities was Rs 23.09 crore, including Rs 43.08 crore of finance costs, while net cash from investing activities was Rs 10.97 crore. Cash and cash equivalents ended the half year at Rs 1.03 crore, down from Rs 1.38 crore at the start of the financial year. Long-term borrowings generated Rs 23.89 crore of net proceeds, while short-term borrowings decreased by Rs 3.90 crore.

The auditor issued a qualified conclusion because it lacked direct confirmations and sufficient alternative audit evidence on recoverability of trade receivables from earlier periods. It said it could not determine whether additional provisions, write-offs or writebacks were needed. The auditor’s 11 November 2026 report also noted that Sapient Packaging Private Limited ceased to be a subsidiary during the reporting period after Tulsyan NEC divested its shareholding.

Conclusion

Tulsyan NEC’s first-half result shows that lower revenue and a reversal in the Synthetic and Power segment outcomes reduced profitability before finance costs, while finance costs rose to Rs 43.08 crore and exceeded the Rs 4.73 crore segment profit. The result was a Rs 38.35 crore consolidated loss, more than double the Rs 16.34 crore loss recorded in the prior-year half.

The next disclosed milestones are the ramped-up NCD coupon payments after the 31 August 2026 moratorium and the revised 30 September 2027 final redemption date. Tulsyan NEC also said its 12 May 2026 fuel-supply agreement with Mahanadi Coalfields Limited is expected to provide stable coal supply for power generation at a comparatively lower cost than imported coal used in earlier years. The unresolved auditor matter remains the recoverability of earlier-period trade receivables.