Newmalayalam Steel Limited (NMSTEEL)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, Newmalayalam Steel's revenue was ₹158 Cr (+5.3% year on year, -2.5% on the previous half-year), and net profit ₹3.0 Cr (against a loss a year earlier); the operating margin was 3.8%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹158 | +5.3% | -2.5% |
| Operating profit | ₹6.0 | +500.0% | +0.0% |
| Net profit | ₹3.0 | from loss | -25.0% |
| EPS (₹) | 1.65 | from loss | -32.4% |
| Operating margin | 3.8% | — | — |
NMSTEEL delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 100.0% of the NMSTEEL shares traded on NSE were taken to delivery, against the stock's own 20-session average of 87.53%. That is close to its usual level. Turnover was only ₹1 lakh, so a handful of trades can move this figure.
Delivery in the last 5 sessions: 100.0% · 87.5% · 75.0% · 100.0% · 100.0%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Newmalayalam Steel Limited has executed a loan agreement on October 14, 2026, to provide an inter-corporate working capital loan of up to ₹25 crore to its 91.76% owned subsidiary, Prime NMS Private Limited. The loan is unsecured with no specific collateral provided, intended to support the principal business activities of the subsidiary. This facility represents a significant financial commitment, amounting to approximately 29.4% of the parent company's net worth of ₹85 crore.
- Loan agreement executed on October 14, 2026, for an aggregate amount of up to ₹25,00,00,000
- Borrower Prime NMS Private Limited is a 91.76% owned subsidiary of NMSTEEL
- Loan is extended as an unsecured working capital loan with nil security provided
- Total facility of ₹25 crore represents ~29.4% of NMSTEEL's net worth of ₹85 crore
Newmalayalam Steel Limited reported the voting results of its 9th Annual General Meeting held on September 30, 2026. All 7 resolutions were approved with requisite majorities, including the adoption of FY26 financials and the re-appointment of director Mrs. Molly Varghese. Key special business items approved include material related party transactions with Jaihind Metal Corporation, Jaihind Steel, and Demac Industries, as well as authorization under Section 185 to grant loans, guarantees, or securities to its subsidiary company.
- All 7 resolutions passed at the 9th AGM held on September 30, 2026
- Adoption of FY26 audited accounts approved with 99.95% votes in favor (1,37,01,000 votes)
- Related party transactions approved for Jaihind Metal Corporation, Jaihind Steel, and Demac Industries
- Special resolution passed to extend loans, guarantees, or security to subsidiary under Section 185
Newmalayalam Steel Limited has appointed Ms. Darsana D Prabhu (Membership No. A80636) as its Company Secretary and Compliance Officer, effective September 16, 2026. The appointment was approved by the Board based on the recommendation of the Nomination and Remuneration Committee. Ms. Prabhu is an Associate Member of the ICSI and holds a B.Com degree. This filing fulfills mandatory statutory compliance under SEBI LODR Regulations.
- Appointment of Ms. Darsana D Prabhu as CS and Compliance Officer effective September 16, 2026
- Designated as Key Managerial Personnel (KMP) under SEBI Listing Regulations
- Professional credentials include ICSI Associate Membership (ACS - 80636) and a B.Com degree
Newmalayalam Steel Limited has appointed Ms. Darsana D Prabhu (ACS - 80636) as its Company Secretary and Compliance Officer, effective September 16, 2026. The appointment was approved by the Board of Directors upon recommendation from the Nomination and Remuneration Committee. Ms. Prabhu is an Associate Member of the ICSI and holds a B.Com degree. This is a routine secretarial appointment designated under Key Managerial Personnel to fulfill statutory compliance requirements.
- Appointment of Ms. Darsana D Prabhu as Company Secretary & Compliance Officer effective September 16, 2026
- Appointee is an Associate Member of the ICSI holding membership number ACS - 80636
- Designated as Key Managerial Personnel (KMP) under SEBI Listing Regulations
- Company reported revenue of ₹158.0 Cr and net profit of ₹3.0 Cr in the quarter ended March 2026
Newmalayalam Steel Limited announced the resignation of its Whole-Time Company Secretary and Compliance Officer (KMP), Mr. Shravan Kannan Dev, effective from the close of business hours on September 15, 2026. The Board approved the appointment of Ms. Darsana D Prabhu as the new Company Secretary and Compliance Officer effective September 16, 2026. Ms. Prabhu is an Associate Member of the Institute of Company Secretaries of India holding a B.Com degree. The meeting took place on September 16, 2026, commencing at 04:30 P.M. and concluding at 05:50 P.M.
- Resignation of Mr. Shravan Kannan Dev effective closure of business on September 15, 2026
- Appointment of Ms. Darsana D Prabhu as Company Secretary & Compliance Officer effective September 16, 2026
- Board meeting commenced at 04:30 P.M. and concluded at 05:50 P.M. on September 16, 2026
Newmalayalam Steel Limited has announced the resignation of Mr. Shravan Kannan Dev from the role of Whole-Time Company Secretary and Compliance Officer (Key Managerial Personnel). The resignation took effect from the close of business hours on September 15, 2026. The departure was cited as being due to personal reasons and for professional growth, with no other material reasons disclosed. The company will be required to appoint a successor within statutory timelines to maintain compliance.
- Resignation of CS & Compliance Officer effective close of business September 15, 2026
- Departure confirmed under Regulation 30 of SEBI LODR Regulations
- Outgoing officer Membership Number cited as A63168
- No material reasons cited other than personal reasons and professional growth
Newmalayalam Steel Limited has announced the successful commencement of commercial operations at its 60%-owned subsidiary, Prime NMS Private Limited, effective September 10, 2026. The new operational facility is situated at Hejmady in the Udupi district of Karnataka. This launch marks the company's planned entry into value-added prefabricated steel structures and pre-engineered buildings (PEB). However, the filing lacks specific quantitative disclosures regarding installed capacity or capital expenditure for this unit.
- Commercial operations commenced effective September 10, 2026
- Operations launched via 60%-owned subsidiary Prime NMS Private Limited
- Facility located at Aspeen South Gate, N.H.-66, Hejmady, Udupi district, Karnataka-574103
- Specific capex and production capacity numbers were not disclosed in the announcement
Newmalayalam Steel Limited has issued the notice convening its 9th Annual General Meeting on September 30, 2026, via video conferencing. Key resolutions include approval for material related party transactions with Jaihind Metal Corporation Private Limited for up to Rs 150 crore in FY27. Additionally, the company is seeking shareholder approval to provide loans, guarantees, or securities up to Rs 100 crore to its 91.76% subsidiary, Prime NMS Private Limited. Other standard items include the adoption of FY26 financial statements and director re-appointments.
- 9th Annual General Meeting scheduled for September 30, 2026, at 3:30 PM IST via VC/OAVM.
- Proposed approval for material Related Party Transactions with Jaihind Metal Corporation Pvt Ltd up to Rs 150 crore in FY27.
- Enabling limit of Rs 100 crore under Section 185 to grant loans or provide guarantees/securities to subsidiary Prime NMS Pvt Ltd (91.76% stake).
- Disclosed inter-corporate loan terms carrying a 9% interest rate with a 1-year unsecured tenure.
Newmalayalam Steel Limited announced that its Board of Directors approved the re-appointment of its statutory non-financial auditors for FY 2026-27. Mr. Shanu Bhagwandas Mata was re-appointed as the Secretarial Auditor, Mr. Rosh Joy was re-appointed as the Cost Auditor, and Mr. Suresh Babu R was re-appointed as the Internal Auditor. The decisions were approved at the Board meeting held on September 02, 2026, following Audit Committee recommendations.
- Re-appointment of Mr. Shanu Bhagwandas Mata (Membership No. F12161) as Secretarial Auditor for FY 2026-27
- Re-appointment of Mr. Rosh Joy (Membership No. 48377) as Cost Auditor for FY 2026-27
- Re-appointment of Mr. Suresh Babu R (22 years of experience) as Internal Auditor for FY 2026-27
- Board meeting commenced at 5:30 P.M. and concluded at 7:20 P.M. on September 02, 2026
Newmalayalam Steel's Board has approved an uncollateralized working capital loan/guarantee of up to Rs 100 Cr to its 91.76% subsidiary, Prime NMS Private Limited. This credit facility is substantial relative to the company's standalone net worth of Rs 85 Cr. Additionally, the Board recommended material related-party transactions with Jaihind Tubes, Jaihind Steel, and Demac Industries for shareholder approval at the upcoming 9th AGM. The re-appointments of the secretarial, cost, and internal auditors for FY 2026-27 were also approved.
- Approved working capital loan/guarantee of up to Rs 100 Cr to subsidiary Prime NMS Private Limited
- Company holds a 91.76% stake in subsidiary Prime NMS Private Limited
- Loan facility is unsecured (Security: NIL) and aimed at supporting subsidiary operations
- Recommended material related-party transactions with 3 entities for shareholder approval at the 9th AGM
Financial Performance
Revenue Growth by Segment
Total revenue for H1 FY26 reached INR 162.24 Cr, representing a 5.21% YoY growth compared to INR 154.21 Cr in H1 FY25. On a half-yearly basis (HoH), revenue grew 8.20% from INR 149.95 Cr in H2 FY25. Segment-specific percentage growth is not explicitly broken down, but the company is expanding into prefabricated steel structures via its 60% stake in Prime NMS Private Limited.
Geographic Revenue Split
The company's operations are largely confined to Kerala, which represents the vast majority of revenue. This geographic concentration is identified as a key risk, as performance is tied to the regional economy of a single state.
Profitability Margins
Net Profit (PAT) Margin for H1 FY26 stood at 2.60%, a significant recovery from -0.52% in H2 FY25 (up 312 bps) but a slight decline from 3.37% in H1 FY25 (down 77 bps). The Operating Profit ratio for FY25 was 2.41%, down from 2.68% in FY24 due to raw material costs rising faster than sales prices.
EBITDA Margin
EBITDA Margin for H1 FY26 was 3.76%, showing a recovery of 316 bps from 0.60% in H2 FY25, though it remains lower than the 5.54% recorded in H1 FY25. EBITDA for H1 FY26 was INR 6.10 Cr, a 583.17% increase HoH from INR 0.89 Cr.
Capital Expenditure
Tangible fixed assets increased to INR 27.27 Cr in Sept 2025 from INR 19.56 Cr in March 2025. Capital Work in Progress (CWIP) stood at INR 1.76 Cr in Sept 2025, down from INR 8.30 Cr in March 2025, indicating the capitalization of recent expansion projects.
Credit Rating & Borrowing
The company maintains a 'Stable' outlook from CARE Ratings. Interest coverage ratio improved to 5.02x in H1 FY25 from 2.98x in FY24. Total finance costs for H1 FY26 were INR 0.99 Cr, down from INR 1.81 Cr in H1 FY25, reflecting reduced debt levels post-IPO.
Operational Drivers
Raw Materials
The primary raw materials are steel coils and sheets used for manufacturing galvanized pipes and tubes. Cost of Materials Consumed in H1 FY26 was INR 152.88 Cr, representing approximately 94.2% of total revenue.
Import Sources
Not specifically disclosed, though the company operates an established supplier base within Kerala and is exposed to global steel price volatility.
Key Suppliers
Not disclosed in available documents, but the company is noted for having a well-established network of suppliers in the Kerala region.
Capacity Expansion
Current annual installed capacity is 90,000 MT at the Mala, Thrissur unit. The company is expanding into prefabricated steel structures and PEB through its new subsidiary, Prime NMS Private Limited, incorporated in November 2025.
Raw Material Costs
Raw material costs accounted for INR 152.88 Cr in H1 FY26. The company faces margin pressure when steel prices rise faster than finished goods prices, as seen in the FY25 operating profit ratio decline of 10.5% compared to FY24.
Manufacturing Efficiency
Inventory turnover ratio improved to 8.31 in FY25 from 7.42 in FY24, indicating more efficient conversion of inventory into sales and better working capital management.
Logistics & Distribution
Not disclosed as a specific percentage of revenue, but the company utilizes a well-established network of dealers across Kerala for distribution.
Strategic Growth
Expected Growth Rate
5-7.3%
Growth Strategy
Growth will be driven by the acquisition of a 60% stake in Prime NMS Private Limited to enter the high-growth Pre-Engineered Building (PEB) and prefabricated structures market. The company is also leveraging its IPO proceeds (INR 37.38 Cr net worth increase) to fund working capital and reduce debt-to-equity to 0.23, providing the financial flexibility to scale volumes and diversify geographically beyond Kerala.
Products & Services
ISI Marked Galvanized Steel Pipes, Steel Tubes, Galvanized Steel Sheets, and newly added prefabricated steel structures, PEB, mezzanine floors, and sandwich panels.
Brand Portfolio
DEMAC
New Products/Services
New products include prefabricated steel structures, sandwich panels for roofs/walls, cold room panels, and rain water gutters through the Prime NMS subsidiary.
Market Expansion
The company aims to diversify its geographical presence beyond Kerala to mitigate regional concentration risk, as suggested by CARE Ratings' positive rating sensitivity factors.
Strategic Alliances
Acquired a 60% stake (6,000 shares) in Prime NMS Private Limited to expand product offerings into the industrial warehouse and PEB sectors.
External Factors
Industry Trends
The steel sector is shifting toward modernization and energy efficiency. Demand is cyclical and sensitive to interest rates and seasonal changes in construction activity. The company is positioning itself for this by moving into value-added PEB structures.
Competitive Landscape
Operates in a fragmented industry with high competition from both organized and unorganized players in the steel pipe and tube segment.
Competitive Moat
The company's moat is built on the 'DEMAC' brand and a decade of promoter experience in the Kerala market. However, this is a 'thin margin' commodity business, making cost leadership and efficient supply chain management the primary sustainable advantages.
Macro Economic Sensitivity
Highly sensitive to the Indian economy and construction cycles; industry growth is projected at 5% to 7.3% annually.
Consumer Behavior
Demand is driven by industrial and infrastructure growth, with a rising trend toward pre-engineered and prefabricated steel buildings for warehouses.
Geopolitical Risks
Exposed to global steel trade dynamics and price fluctuations, though specific trade barrier impacts are not quantified.
Regulatory & Governance
Industry Regulations
Operations must comply with ISI marking standards for galvanized steel products. The company is subject to standard manufacturing and environmental norms for the steel industry.
Taxation Policy Impact
The effective tax rate for H1 FY26 was approximately 26.8% (INR 1.55 Cr tax on INR 5.77 Cr PBT).
Risk Analysis
Key Uncertainties
Raw material price volatility is the primary uncertainty, as materials constitute over 90% of costs. A 5% increase in steel prices without a corresponding increase in sales price could wipe out the current 3.76% EBITDA margin.
Geographic Concentration Risk
High risk with nearly 100% of manufacturing and a majority of sales concentrated in Kerala.
Third Party Dependencies
Dependent on a network of regional dealers for sales and steel suppliers for raw materials; however, no single supplier is named as a critical dependency.
Technology Obsolescence Risk
Low risk for core steel products, but the company is proactively adopting PEB technology to stay relevant in industrial construction.
Credit & Counterparty Risk
Trade receivables were INR 15.13 Cr as of Sept 2025. The current ratio of 3.11 indicates a strong ability to cover short-term obligations.
