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Sunflag Iron & Steel Q3 Net Profit Rises 17% YoY to ₹59.10 Cr; Revenue at ₹942.47 Cr
Sunflag Iron and Steel reported a steady performance for Q3 FY26, with standalone revenue growing 5.6% YoY to ₹942.47 crore. Net profit for the quarter increased by 17.2% YoY to ₹59.10 crore, despite an exceptional charge of ₹8.70 crore related to new labour code liabilities. The company's bottom line was supported by lower tax expenses during the quarter compared to the previous year. Notably, total comprehensive income saw a massive swing due to mark-to-market gains on its investment in Lloyds Metal & Energy Limited.
Key Highlights
Standalone Revenue from operations grew 5.6% YoY to ₹942.47 crore from ₹892.00 crore.
Net Profit after tax increased to ₹59.10 crore, up from ₹50.44 crore in the same quarter last year.
The company recorded an exceptional loss of ₹8.70 crore due to increased gratuity and leave liabilities from new Labour Codes.
Earnings Per Share (EPS) improved to ₹3.28 for the quarter, compared to ₹2.80 in Q3 FY25.
Re-appointed PwC Services LLP as Internal Auditors for the upcoming financial year 2026-27.
💼 Action for Investors
The company shows resilient operational performance with YoY growth in both top and bottom lines. Investors should monitor the volatility in Other Comprehensive Income caused by the LMEL investment, as it significantly impacts the total comprehensive income.
Sunflag Iron Q3 Net Profit Rises 17% YoY to ₹59.10 Cr; Massive MTM Gains on LMEL Stake
Sunflag Iron and Steel reported a standalone net profit of ₹59.10 crore for the quarter ended December 31, 2025, representing a 17% growth over the same period last year. Revenue from operations increased to ₹942.47 crore, up from ₹892.00 crore YoY, despite a slight sequential dip. The company recognized an exceptional loss of ₹8.70 crore due to increased liabilities from new Labour Codes. Notably, total comprehensive income reached ₹551.73 crore, largely driven by a significant mark-to-market gain of ₹576.41 crore on its equity investment in Lloyds Metal & Energy Limited.
Key Highlights
Revenue from operations grew 5.6% YoY to ₹94,247 lakhs (₹942.47 crore).
Net Profit after tax increased to ₹5,910 lakhs (₹59.10 crore) from ₹5,044 lakhs YoY.
Exceptional item of ₹870 lakhs recorded for gratuity and leave liability following new Labour Code assessments.
Other Comprehensive Income (OCI) surged to ₹57,641 lakhs due to MTM gains on shares of Lloyds Metal & Energy Limited.
PricewaterhouseCoopers Services LLP re-appointed as Internal Auditors for the Financial Year 2026-27.
💼 Action for Investors
Investors should monitor the core steel business margins which remain steady, while recognizing that the company's book value is significantly bolstered by its investment in Lloyds Metal & Energy. The stock remains a play on both the secondary steel sector and the valuation of its strategic equity holdings.