SHYAMCENT - Shyam Century
📢 Recent Corporate Announcements
Shareholders of Shyam Century Ferrous Limited have approved a special resolution to sell, lease, or dispose of the company's substantial assets. The resolution was passed via postal ballot with an overwhelming 99.98% of total votes in favor. A total of 15.20 crore votes were cast in favor, while only 38,140 votes were against. This approval grants the management the authority to proceed with significant corporate restructuring or asset monetization.
- Special resolution passed to sell, lease, or dispose of whole or substantially whole assets under Section 180(1)(a).
- Total of 15.20 crore votes polled, representing approximately 71.69% of the total outstanding shares.
- 99.98% of the total votes (15.20 crore) were in favor of the resolution.
- Public non-institutional shareholders cast 4.71 crore votes in favor, showing strong support.
- The resolution was passed with the requisite majority as per SEBI and Companies Act regulations.
Shyam Century Ferrous reported a dismal performance for Q3 FY26, with revenue from operations plummeting to ₹83.69 Lakhs from ₹3,267.07 Lakhs in the previous year. The company posted a net loss of ₹613.83 Lakhs, a sharp decline from the marginal profit of ₹6.33 Lakhs in Q3 FY25. This collapse is due to the Meghalaya plant remaining non-operational since May 2025 because of unviable power tariffs. Crucially, the Board has approved the in-principle sale or disposal of the company's entire manufacturing assets, signaling a potential exit from its core business.
- Revenue from operations fell 97.4% YoY to ₹83.69 Lakhs in Q3 FY26.
- Net loss for the quarter stood at ₹613.83 Lakhs compared to a profit of ₹6.33 Lakhs in Q3 FY25.
- Operations at the Meghalaya plant have been suspended since May 7, 2025, due to high power costs.
- Board has approved the sale, lease, or disposal of the company's plant, machinery, and manufacturing rights.
- Nine-month total loss widened to ₹937.05 Lakhs against a loss of ₹493.30 Lakhs in the previous year.
Shyam Century Ferrous reported a severe decline in performance for Q3 FY26, with revenue plummeting 97.4% YoY to ₹83.69 Lakhs from ₹3,267.07 Lakhs. The company recorded a net loss of ₹613.83 Lakhs for the quarter, compared to a marginal profit of ₹6.33 Lakhs in the previous year. Operations at the primary Meghalaya plant have been halted since May 2025 due to unviable power tariffs. The Board has now approved the in-principle sale or disposal of substantially all company assets, pending shareholder approval.
- Revenue from operations fell sharply to ₹83.69 Lakhs in Q3 FY26 from ₹3,267.07 Lakhs in Q3 FY25.
- Net loss for the quarter stood at ₹613.83 Lakhs versus a net profit of ₹6.33 Lakhs YoY.
- Operations at the Meghalaya plant remain suspended since May 7, 2025, due to high power costs.
- Board approved the sale, lease, or disposal of plant, machinery, and manufacturing rights subject to shareholder consent.
- Nine-month revenue for FY26 dropped to ₹2,225.78 Lakhs from ₹9,097.57 Lakhs in the prior year period.
Shyam Century Ferrous Limited has announced the withdrawal of its credit ratings by ICRA Limited for facilities totaling Rs 34 crore. This move follows the company's decision to stop availing credit facilities from banks or financial institutions, supported by a No Objection Certificate from HDFC Bank. Specifically, ICRA withdrew the [ICRA]BBB (Negative) rating for the Rs 24 crore cash credit facility and the [ICRA]A2 rating for the Rs 10 crore non-fund based facility. The withdrawal is a procedural step as the company currently has no outstanding external debt requiring these ratings.
- ICRA withdrew ratings for total facilities worth Rs 34.00 crore.
- Long-term fund-based cash credit of Rs 24.00 crore had a rating of [ICRA]BBB (Negative) prior to withdrawal.
- Short-term non-fund based facility of Rs 10.00 crore had a rating of [ICRA]A2 prior to withdrawal.
- The company confirmed it is not currently availing any credit facilities from banks or financial institutions.
- Withdrawal was supported by a No Objection Certificate (NOC) from HDFC Bank Ltd.
Shyam Century Ferrous Limited has issued a postal ballot notice seeking shareholder approval to sell, lease, or dispose of the company's entire or substantial assets. The proposal covers plant and machinery, fixtures, and manufacturing rights, which may be divested via slump sale or other contractual arrangements. The e-voting period is set for January 11 to February 9, 2026, with results expected by February 11, 2026. This move indicates a potential major strategic shift or a total exit from current manufacturing operations.
- Proposal to divest 'whole or substantially the whole' of company assets under Section 180(1)(a).
- Assets include Plant & Machinery, Tools, Equipment, and all Manufacturing Rights/Approvals.
- Remote e-voting period scheduled from January 11, 2026, to February 9, 2026.
- Cut-off date for determining shareholder voting eligibility was January 2, 2026.
- Final results of the postal ballot will be declared on or before February 11, 2026.
The Board of Shyam Century Ferrous has granted in-principle approval to sell or dispose of the company's entire assets, including plant, machinery, and manufacturing rights. This undertaking accounts for 100% of the company's revenue, which was Rs. 11,314.61 Lacs in FY25. The company's net worth stood at Rs. 10,621.27 Lacs as of March 31, 2025. The transaction is subject to shareholder approval via postal ballot, and a buyer is yet to be identified.
- Board approved the in-principle sale of 100% of the company's assets and manufacturing rights
- The undertaking contributed Rs. 11,314.61 Lacs in revenue during the last financial year
- Company net worth as of March 31, 2025, was reported at Rs. 10,621.27 Lacs
- Shareholder approval will be sought via Postal Ballot under Regulation 37A of SEBI LODR
- The company is currently in the process of identifying a buyer for the proposed transaction
The Board of Shyam Century Ferrous has granted in-principle approval to sell, lease, or dispose of substantially all of its assets, including plant, machinery, and manufacturing rights. These assets accounted for 100% of the company's revenue, totaling Rs. 113.15 crore, and a net worth of Rs. 106.21 crore as of March 31, 2025. The company is currently in the process of identifying buyers and will seek shareholder approval through a postal ballot. This move indicates a potential complete exit from its current manufacturing operations.
- Board approved disposal of assets contributing 100% of the company's total revenue.
- Turnover involved in the proposed disposal is Rs. 11,314.61 Lacs as of FY 2024-25.
- The net worth of the company as of March 31, 2025, stands at Rs. 10,621.27 Lacs.
- The transaction is subject to shareholder approval via postal ballot under Regulation 37A.
- The company is currently in the process of identifying potential buyers for the assets.
Shyam Century Ferrous Limited has filed a compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by Maheshwari Datamatics Pvt. Ltd., confirms that share certificates received for dematerialization during the quarter ended December 31, 2025, have been processed. The RTA confirmed that physical certificates were mutilated or cancelled and the name of the depositories was updated in the company's records. This is a standard quarterly regulatory filing required for all listed companies.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Issued by Registrar and Transfer Agent (RTA) Maheshwari Datamatics Pvt. Ltd.
- Confirms destruction and cancellation of physical share certificates post-dematerialization.
- Ensures depository names are correctly substituted in the register of members.
Shyam Century Ferrous Limited has announced the closure of its trading window effective from January 1, 2026, in compliance with SEBI Insider Trading regulations. This routine measure is taken ahead of the board's consideration of un-audited financial results for the third quarter and nine months ending December 31, 2025. The trading window will remain closed for all designated persons and their immediate relatives until 48 hours after the results are officially filed. The specific date for the board meeting to approve these results will be announced at a later time.
- Trading window closure begins on January 1, 2026, for all designated persons.
- Closure pertains to the upcoming Q3 and nine-month financial results ending December 31, 2025.
- Window will reopen 48 hours after the financial results are filed with stock exchanges.
- The board meeting date for result approval is yet to be determined and communicated.
Shyam Century Ferrous Limited addressed concerns from the National Stock Exchange of India Limited and BSE regarding recent price movement in its shares. The company stated that there are no undisclosed significant events or price-sensitive information affecting the stock's price. They confirmed that market forces are determining the price and they will comply with listing regulations if any relevant developments occur. This announcement is a routine clarification to exchanges.
- Company clarified price movement in response to NSE email dated 5th December, 2025
- Company clarified price movement in response to BSE email dated 5th December, 2025
- Company confirms no undisclosed information affecting price as of 6th December, 2025
- Company Secretary is Ritu Agarwal, M.No-A39155
Shyam Century Ferrous Limited responded to NSE and BSE inquiries regarding recent price movement in its shares. The company stated that there is no significant incident, news, or development that would affect the price. They confirmed no undisclosed price-sensitive information exists. The company will comply with listing regulations if any relevant developments occur.
- Response to NSE Email NSE/CM/Surveillance/16143 dated 5th December, 2025
- Response to BSE Email L/SURV/ONL/PV/AJ/ 2025-2026 / 3185 dated 5th December, 2025
- Company Secretary M.No-A39155
Financial Performance
Revenue Growth by Segment
Revenue from operations decreased 18.06% YoY to INR 11,314.61 Lakhs in FY25 from INR 13,809.30 Lakhs in FY24. Segmental split between Ferro Alloys and Power generation is not explicitly detailed in the P&L statement.
Profitability Margins
The company reported a net loss of approximately INR 930.84 Lakhs in FY25, a significant decline from a profit of INR 131.54 Lakhs in FY24. Net margin is approximately -8.2% for FY25. Operating margin (Operating Profit before Working Capital changes) was -9.5% (INR -1,075.25 Lakhs) compared to -2.3% in FY24.
EBITDA Margin
EBITDA margin (Operating Profit before Working Capital changes) is -9.5% for FY25, down from -2.3% in FY24. Core profitability has been severely impacted by high power and fuel costs, which represent 48.2% of revenue.
Capital Expenditure
Property, plant and equipment increased by INR 2.95 Cr, reaching INR 22.97 Cr as of March 31, 2025, compared to INR 20.02 Cr in the previous year.
Credit Rating & Borrowing
The company is rated based on standalone financials. Borrowing costs are relatively low with finance costs of INR 28.15 Lakhs on current borrowings of INR 3.51 Cr, implying an effective interest rate of approximately 8%.
Operational Drivers
Raw Materials
Raw materials for Ferro Alloy production (specific names not listed) accounted for INR 39.02 Cr, representing 34.5% of total revenue in FY25.
Capacity Expansion
Current installed capacity for Ferro Alloys and Power generation is not specified in MT/MW. No specific expansion timeline is provided in the documents.
Raw Material Costs
Raw material costs were INR 39.02 Cr in FY25, a decrease of 18.6% YoY from INR 47.93 Cr, tracking the overall revenue decline.
Manufacturing Efficiency
Capacity utilization metrics are not disclosed; however, the company incurred a cash loss in FY25, indicating low operational efficiency relative to fixed costs.
Logistics & Distribution
Distribution and logistics costs are included within other expenses of INR 17.97 Cr (15.9% of revenue) but are not separately itemized.
Strategic Growth
Expected Growth Rate
5.34%
Growth Strategy
The company is focusing on maintaining a debt-free status and improving working capital cycles, as evidenced by the reduction in debtor days to 27.1. Growth is tied to the manufacturing of Ferro Alloys and captive/external power generation, though recent performance shows a contraction in sales.
Products & Services
Ferro Alloys (used in steel manufacturing) and Power generation.
Brand Portfolio
Shyam Century Ferrous.
External Factors
Industry Trends
The Ferro Alloys industry is currently facing margin pressure due to high input costs and volatile demand, leading to the company's shift from profit to a loss of INR 9.70 Cr (PBT) in FY25.
Competitive Moat
The company lacks a strong brand moat, evidenced by its trading at 0.77 times book value (INR 7.99 BV vs INR 6.18 price). Its primary advantage is being 'almost debt free', providing some financial cushion during loss-making periods.
Macro Economic Sensitivity
Highly sensitive to industrial power tariffs and steel industry demand, which dictates Ferro Alloy pricing.
Consumer Behavior
Not applicable as the company serves industrial B2B markets (Steel manufacturers).
Regulatory & Governance
Industry Regulations
The company is subject to regulatory and tax assessments; management has identified pending litigations as a key audit matter due to the subjective nature of potential cash outflows.
Taxation Policy Impact
The company received a deferred tax credit of INR 39.19 Lakhs in FY25 due to reported losses.
Legal Contingencies
Pending legal, regulatory, and tax cases are disclosed under Note 42. Management considers the probability of loss remote and has not made provisions, though these could result in significant liabilities if outcomes are adverse.
Risk Analysis
Key Uncertainties
Sustained period of loss-making operations (INR 9.31 Cr net loss in FY25) could lead to a credit rating downgrade and liquidity strain.
Geographic Concentration Risk
The company is headquartered in Kolkata, West Bengal, but specific revenue concentration by region is not disclosed.
Technology Obsolescence Risk
The company has implemented audit trail features in its accounting software to comply with latest regulatory standards.
Credit & Counterparty Risk
The company made a provision for bad and doubtful debts of INR 48.00 Lakhs in FY25, indicating some deterioration in receivable quality.