Scan Steels Ltd (511672)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Scan Steels' revenue was ₹258 Cr (+11.2% year on year, -8.4% on the previous quarter), and net profit ₹13.0 Cr (+23.8% year on year); the operating margin was 8.9%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹258 | +11.2% | -8.4% |
| Operating profit | ₹23.0 | +19.0% | +68.1% |
| Net profit | ₹13.0 | +23.8% | +65.6% |
| EPS (₹) | 2.18 | +21.8% | +62.7% |
| Operating margin | 8.9% | — | — |
📢 Recent Corporate Announcements
Scan Steels Ltd has scheduled a Board of Directors meeting on Tuesday, September 1, 2026. The board will consider and approve the draft notice and annual reports for the 33rd Annual General Meeting (AGM) for FY 2025-26. Additionally, the board will review the proposed alteration of the company's Authorised Share Capital and Clause V of the Memorandum of Association, subject to shareholder approval. The meeting will also fix AGM dates, book closure, and e-voting schedules.
- Board meeting scheduled for September 1, 2026, at 4:00 P.M. in Bhubaneswar, Odisha
- Approval of draft Notice, Directors' Report, and Annual Report for the 33rd AGM (FY 2025-26)
- Proposed alteration of Authorised Share Capital and Clause V of Memorandum of Association to be placed before members
- Secretarial and Cost Audit reports for FY 2025-26 to be considered
Scan Steels Limited has scheduled a meeting of its Board of Directors on September 1, 2026. Key agenda items include approving the draft Notice, Directors' Report, and Annual Report for the 33rd Annual General Meeting (FY2025-26). The Board will also consider a proposal to alter the Authorised Share Capital and amend Clause V of the Memorandum of Association, subject to shareholder approval.
- Board meeting scheduled for Tuesday, September 1, 2026 at 4:00 P.M. in Bhubaneswar, Odisha
- To approve draft Notice and Annual Report for the 33rd AGM (FY 2025-26)
- To consider alteration of Authorised Share Capital and consequential amendment of Clause V of MoA
- To determine record date, book closure dates, cut-off date, and remote e-voting schedule for the AGM
Scan Steels Ltd has received listing approval from BSE for 21,44,239 new equity shares. These shares were issued at ₹58 each (including a ₹48 premium) following the conversion of Optionally Convertible Redeemable Preference Shares (OCRPS). The conversion involves both promoters and non-promoters, representing a total value of approximately ₹12.44 crore. This amount is equivalent to roughly 3.35% of the company's current market capitalization of ₹371 crore.
- Listing approval granted for 21,44,239 equity shares of ₹10 face value each
- Shares issued at a total price of ₹58 per share, including a ₹48 premium
- Total conversion value amounts to approximately ₹12.44 crore
- Allotment made to both Promoters and Non-Promoters on a preferential basis
- BSE approval letter received on August 4, 2026, with trading approval pending depository credit
Scan Steels reported a strong start to FY27 with Net Profit (PAT) rising 29% YoY to ₹13.0 cr. Revenue grew 11% YoY to ₹257.8 cr, driven by an 8% increase in TMT sales volumes and better realizations. Notably, EBITDA margins expanded to 9.1% from 8.3% YoY, despite a sequential revenue dip, reflecting improved operational efficiency from hot charging and a shift toward value-added products. The company is currently executing a strategic capex program to add downstream pipe and galvanizing facilities.
- Net Profit (PAT) increased 29% YoY to ₹13.0 cr in Q1 FY27 compared to ₹10.0 cr in Q1 FY26.
- EBITDA margin expanded to 9.1%, up from 8.3% YoY and significantly higher than 4.9% in Q4 FY26.
- TMT sales volumes grew 8% YoY to 43,692 MT, supported by the SHRISHTII TMT brand network.
- Total production volume reached 121,692 MT, registering an 8% sequential (QoQ) growth.
- Revenue of ₹257.8 cr for the quarter represents approximately 31% of the total TTM revenue of ₹838 cr.
Scan Steels reported a strong start to FY27 with a 29.1% YoY increase in net profit to ₹12.96 Cr for the quarter ended June 30, 2026. Revenue from operations grew 11.1% YoY to ₹257.79 Cr, although it saw a sequential decline of 8.5% from the March 2026 quarter. Profitability improved significantly on a sequential basis, with PAT nearly doubling from ₹6.91 Cr in Q4 FY26. The board also confirmed the re-appointment of internal and cost auditors for the 2026-27 fiscal year.
- Net Profit increased 29.1% YoY to ₹12.96 Cr compared to ₹10.04 Cr in June 2025
- Revenue from operations grew 11.1% YoY to ₹257.79 Cr from ₹232.00 Cr
- Basic EPS rose to ₹2.13 for the quarter, up from ₹1.71 in the year-ago period
- Profit Before Tax (PBT) margin improved to 6.7% compared to 5.8% in Q1 FY26
- Cost of materials consumed stood at ₹172.14 Cr, representing 66.8% of revenue
Scan Steels reported a strong 29.1% YoY increase in net profit to ₹12.96 Cr for the quarter ended June 30, 2026. Revenue from operations grew 11.1% YoY to ₹257.79 Cr, although it saw a sequential decline from ₹281.66 Cr in the March 2026 quarter. Profitability was bolstered by improved operational performance, with Profit Before Tax (PBT) rising to ₹17.31 Cr from ₹13.43 Cr in the year-ago period. The company also confirmed the re-appointment of its internal and cost auditors for FY 2026-27.
- Net Profit after tax increased by 29.1% YoY to ₹12.96 Cr from ₹10.04 Cr.
- Revenue from operations rose 11.1% YoY to ₹257.79 Cr compared to ₹232.00 Cr in June 2025.
- Basic and Diluted EPS improved to ₹2.13 from ₹1.71 in the corresponding quarter last year.
- Profit Before Tax (PBT) stood at ₹17.31 Cr, representing a 28.9% growth over the previous year's ₹13.43 Cr.
- Cost of materials consumed stood at ₹172.14 Cr, accounting for 66.8% of revenue from operations.
Scan Steels Ltd reported a strong start to FY27 with a 29.1% YoY increase in Net Profit to ₹12.96 Cr, up from ₹10.04 Cr in the same quarter last year. Revenue from operations grew 11.1% YoY to ₹257.79 Cr, accounting for approximately 31% of the company's TTM revenue. Notably, sequential profitability improved significantly, with PAT rising 87.6% compared to the ₹6.91 Cr reported in Q4 FY26. The company also confirmed the re-appointment of its internal and cost auditors for the 2026-27 fiscal year.
- Net Profit grew 29.1% YoY to ₹12.96 Cr for the quarter ended June 30, 2026
- Revenue from operations increased 11.1% YoY to ₹257.79 Cr from ₹232.00 Cr
- Sequential PAT surged 87.6% from ₹6.91 Cr in the March 2026 quarter
- Paid-up equity share capital increased to ₹60.75 Cr from ₹58.60 Cr in the previous quarter
- Cost of materials consumed stood at ₹172.14 Cr, representing 66.8% of revenue
Scan Steels reported a strong start to FY27 with a 29.1% YoY increase in net profit to ₹12.96 Cr, despite a sequential revenue decline of 8.5% to ₹257.79 Cr. The company demonstrated significant operational improvement, with EBITDA margins expanding to approximately 9.1% from a TTM average of 5.9%. The board also confirmed the re-appointment of internal and cost auditors for the 2026-27 fiscal year.
- Net Profit grew 29.1% YoY to ₹12.96 Cr from ₹10.04 Cr in the year-ago period
- Revenue from operations increased 11.1% YoY to ₹257.79 Cr
- EBITDA margin improved to 9.1% compared to the TTM average of 5.9%
- Quarterly EPS rose to ₹2.13 from ₹1.79 in Q1 FY26
- Finance costs increased to ₹2.45 Cr from ₹2.01 Cr YoY
Scan Steels Ltd has scheduled a board meeting for July 28, 2026, to consider and approve the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The board will also discuss the re-appointment of M/s. P.A. & Associates as Internal Auditors and M/s. Ray Nayak and Associates as Cost Auditors for the 2026-2027 financial year. The trading window for designated persons has been closed since June 24, 2026, and will remain so until 48 hours after the results are declared. This is a routine regulatory requirement for listed companies.
- Board meeting scheduled for July 28, 2026, at 4:00 P.M. in Bhubaneswar
- Review of unaudited financial results for the quarter ended June 30, 2026
- Re-appointment of Internal Auditor for the Financial Year 2026-2027
- Re-appointment of Cost Auditor for the Financial Year 2026-2027
- Trading window closure in effect since June 24, 2026
Scan Steels Limited has formally responded to a BSE query regarding the Escrow Payment Mechanism. The company clarified that this mechanism is not applicable as it does not have any instruments or arrangements requiring it under SEBI Regulations. This follows a specific inquiry from the exchange received on July 1, 2026. The filing is a routine regulatory clarification and has no impact on the company's financial performance or operational status.
- Clarification issued on July 10, 2026, regarding SEBI compliance
- Response to a specific BSE query dated July 1, 2026
- Confirmation of zero applicable instruments or arrangements for escrow
Financial Performance
Revenue Growth by Segment
Total Revenue from operations for FY 2024-25 was INR 789.20 Cr, representing a decline of 18.25% YoY from INR 965.41 Cr. TMT Rebars revenue decreased by 8.36% to INR 697.74 Cr, while MS Ingot/MS Billet revenue grew by 17.71% to INR 41.35 Cr.
Geographic Revenue Split
Operations are concentrated in Odisha (Rajgangpur) and Karnataka (Ballari). Odisha serves as the primary market where the company is a recognized local brand, though specific percentage splits per state are not disclosed.
Profitability Margins
Operating margins have been volatile, ranging between 4.5% and 5.8% over the last three fiscals due to input price fluctuations. Standalone Profit After Tax (PAT) grew 10.57% to INR 19.61 Cr, while Consolidated PAT grew 2.84% to INR 21.65 Cr.
EBITDA Margin
The interest coverage ratio has increased substantially due to higher EBITDA margins and lower interest on debt, driven by operational efficiency in finished product production.
Capital Expenditure
The company is funding projects through a mix of internal accruals and bank borrowings. It is currently expanding capacity through brownfield and greenfield projects, including a new MS pipe mill facility.
Credit Rating & Borrowing
Crisil Ratings reaffirmed 'Crisil BBB+/Stable' for long-term and 'Crisil A2+' for short-term facilities on July 15, 2025. Bank limit utilization averaged 61% for the 12 months ended May 2025.
Operational Drivers
Raw Materials
Key raw materials include iron ore, coal, sponge iron, and mild steel (MS) scrap. These materials are critical as fluctuations in their prices directly cause the 1.3% variance seen in operating margins (4.5%-5.8%).
Import Sources
Sourced primarily from domestic markets near plant locations in Odisha and Karnataka to ensure raw material security and cost competitiveness.
Key Suppliers
Not specifically named in the documents, but the company maintains long-term relationships with suppliers established over two decades.
Capacity Expansion
The company operates an integrated steel plant in Rajgangpur, Odisha, and a sponge iron facility in Ballari, Karnataka. It is planning to add a manufacturing facility for an MS pipe mill (square and round shapes) in the near future.
Raw Material Costs
Raw material costs are a significant contributor to input costs. Volatility in iron ore and coal prices is a primary weakness, impacting the cost of production and causing operating margins to fluctuate between 4.5% and 5.8%.
Manufacturing Efficiency
Operational efficiency in finished products led to a substantial increase in net profit margins. MS Ingot/Billet production quantity increased by 32.13% to 10,750 MT in FY 2024-25.
Logistics & Distribution
The company is optimizing its logistics network and improving operational capacity at loading/unloading points to manage distribution costs and supply chain disruptions.
Strategic Growth
Expected Growth Rate
13%
Growth Strategy
Growth will be achieved through capacity expansion (greenfield and brownfield), diversifying into MS pipe manufacturing, and increasing the sales mix of value-added branded products like SHRISHTII TMT and SHRISHTII ROOFING.
Products & Services
TMT Rebars, MS Ingots, MS Billets, Sponge Iron, and Roofing sheets used for warehousing and parking sheds.
Brand Portfolio
SHRISHTII TMT, SHRISHTII ROOFING.
New Products/Services
New MS pipe mill facility for square and round pipes is expected to contribute to future revenue streams and product diversification.
Market Expansion
Targeting iconic national infrastructure projects and expanding the dealer network in rural and urban areas to capture India's infrastructure-led growth phase.
Market Share & Ranking
The company is a leading local brand in Odisha; however, the secondary steel industry remains highly fragmented, constraining overall pricing power.
External Factors
Industry Trends
The Indian steel sector grew 13% in FY24. The industry is shifting toward low-carbon 'green steel' and value-added products to meet infrastructure modernization needs.
Competitive Landscape
Faces intense competition from other secondary steel producers and substitute materials, which limits scalability and pricing flexibility.
Competitive Moat
Moat is built on 20+ years of promoter experience, integrated operations (captive power + SMS + rolling mills), and strong brand equity in the Odisha region.
Macro Economic Sensitivity
Highly sensitive to India's GDP growth (steel demand elasticity of 1.8) and urbanization (elasticity of 3.0). Government infrastructure spending is a key driver.
Consumer Behavior
Shifting customer preferences toward higher-strength steel and sustainable materials are driving the company to adopt newer grades and advanced materials.
Geopolitical Risks
Geopolitical tensions and the economic slowdown in China disrupt global steel trade volumes, impacting domestic pricing and increasing raw material costs.
Regulatory & Governance
Industry Regulations
Subject to stringent labor laws and environmental pollution norms. Compliance is managed through a corporate governance policy and regular internal audits.
Environmental Compliance
The company is evaluating investments in cleaner production technologies and renewable energy integration to align with national decarbonization goals.
Taxation Policy Impact
Direct tax collections in India grew 18.5% and GST 11.7%, providing fiscal space for government infrastructure spending which benefits the company.
Legal Contingencies
The company maintains a compliance management system and legal consultations for timely clearances, though specific pending court case values are not disclosed.
Risk Analysis
Key Uncertainties
Volatility in raw material prices (iron ore/coal) and cyclicality in the steel sector are the primary uncertainties that could impact margins by over 1%.
Geographic Concentration Risk
High concentration in Odisha exposes the company to regional policy changes and local economic slowdowns in infrastructure projects.
Third Party Dependencies
Dependence on outsourced partners for logistics and potential disruptions at raw material suppliers due to political instability.
Technology Obsolescence Risk
Risk of fast-paced technological changes requiring the adoption of newer steel grades; mitigated by investing in emerging technologies and digitalization.
Credit & Counterparty Risk
Liquidity is adequate with INR 26 Cr in liquid investments and expected cash accruals of INR 30-33 Cr against nil repayment obligations.
