SUPREMEENG - Supreme Engg.
📢 Recent Corporate Announcements
Supreme Engineering Limited reported a weak performance for the quarter ended September 30, 2022, with revenue from operations falling sharply to ₹6.37 crore from ₹16.19 crore in the same period last year. The company posted a net loss of ₹5.69 crore, a significant reversal from the ₹0.82 crore profit recorded in Q2 FY22. High finance costs and a substantial reduction in operational scale have severely impacted margins. The company also underwent a management change with the appointment of a new Company Secretary following a resignation.
- Revenue from operations declined by 60.6% YoY to ₹637.12 lakhs in Q2 FY23.
- Company swung to a net loss of ₹569.41 lakhs for the quarter compared to a profit of ₹81.82 lakhs YoY.
- Total borrowings as of September 30, 2022, stood at approximately ₹100.63 crore.
- Finance costs for the half-year ended September 2022 reached ₹128.82 lakhs.
- Management announced the appointment of Mr. Hemant Agarwal as Company Secretary effective November 14, 2022.
Supreme Engineering reported a marginal net profit of ₹2 Lakhs for the quarter ended December 31, 2025, compared to a loss of ₹22 Lakhs in the preceding quarter. Despite this small profit, the company's financial health remains critical with a negative net worth and loan accounts classified as NPA since August 2021. Total revenue for the nine-month period stood at ₹241 Lakhs with a cumulative net loss of ₹23 Lakhs. The auditor has raised a 'Going Concern' warning due to persistent losses, unpaid statutory dues, and significant regulatory non-compliances.
- Reported a marginal net profit of ₹2 Lakhs in Q3 FY26 against a loss of ₹22 Lakhs in Q2 FY26.
- Total revenue for the nine-month period ended December 31, 2025, was ₹241 Lakhs.
- Company net worth is negative as current liabilities exceed total assets, with loans in NPA status since 2021.
- Significant regulatory lapses noted, including the absence of a Company Secretary and unfiled tax returns for FY20 and FY21.
- Management has applied for a One Time Settlement (OTS) with banks and deposited a 10% preliminary amount.
Supreme Engineering Limited has submitted its compliance report under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended December 31, 2025. The company's Registrar and Share Transfer Agent, Bigshare Services Private Limited, confirmed that the regulation is not applicable for this period. This is due to the fact that 100% of the company's shares are already held in dematerialized form. No requests for dematerialization or rematerialization were received during the quarter.
- Regulation 74(5) of SEBI Regulations is non-applicable for the quarter and nine months ended December 31, 2025.
- The entire shareholding of Supreme Engineering Limited is currently held in demat form.
- Zero requests for dematerialization or rematerialization were received during the quarter.
- Confirmation was issued by the Registrar and Share Transfer Agent, Bigshare Services Private Limited.
Supreme Engineering Limited reported a net loss of ₹164.90 lakhs for the quarter ended September 30, 2025, reversing a small profit of ₹7.32 lakhs in the previous quarter. Revenue from operations declined significantly by 38.8% quarter-on-quarter to ₹513.63 lakhs. The company continues to operate with a negative net worth, and its secured loan accounts have remained NPAs since August 2021. Furthermore, the auditor's report highlights severe regulatory non-compliances, including unfiled tax returns and the absence of a Company Secretary.
- Net loss of ₹164.90 lakhs in Q2 FY26 compared to a profit of ₹7.32 lakhs in Q1 FY26.
- Revenue from operations fell to ₹513.63 lakhs from ₹839.01 lakhs in the preceding quarter.
- Company's net worth is deeply negative, with total liabilities of ₹12,066.61 lakhs far exceeding total assets of ₹3,119.43 lakhs.
- Secured loan accounts are classified as NPAs since August 2021, with no interest or principal servicing since that date.
- Auditors flagged multiple non-compliances, including failure to file income tax returns for FY 2019-20 and FY 2020-21.
Supreme Engineering Limited has announced the closure of its trading window for all designated persons starting January 1, 2026. This is a standard regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations for the upcoming financial results for the quarter and nine months ending December 31, 2025. The window will remain closed until 48 hours after the results are officially declared to the exchanges. The specific date for the Board Meeting to approve these results will be communicated at a later time.
- Trading window closure commences on January 1, 2026.
- Closure pertains to the Unaudited Financial Results for the period ending December 31, 2025.
- Restriction applies to Promoters, Directors, connected persons, and their immediate relatives.
- Window will reopen 48 hours after the financial results are declared.
Supreme Engineering reported a revenue of ₹839.91 Lakhs for Q1 FY26, a significant jump from ₹382.25 Lakhs in the same quarter last year. However, net profit fell sharply to ₹7.32 Lakhs compared to ₹53.18 Lakhs in Q1 FY25. The auditors have issued a stern 'Emphasis of Matter' regarding the company's negative net worth and its status as a Non-Performing Asset (NPA) since August 2021. Additionally, the company is facing severe regulatory lapses, including the absence of a Company Secretary and unfiled tax returns for previous years.
- Revenue from operations increased by 120% YoY to ₹839.91 Lakhs in Q1 FY26.
- Net profit for the quarter declined to ₹7.32 Lakhs from ₹53.18 Lakhs in the previous year's corresponding quarter.
- Auditors flagged material uncertainty over 'Going Concern' as current liabilities exceed total assets and net worth is negative.
- Loan accounts have been classified as NPA since August 19, 2021, with no interest or principal being serviced.
- Multiple regulatory non-compliances noted, including missing Company Secretary, no Internal Audit, and unfiled Income Tax returns for FY 2019-20 and 2020-21.
Financial Performance
Revenue Growth by Segment
The company operates in a single reportable segment (Engineering). Total income grew by 16.54% YoY, reaching INR 17.42 Cr in FY25 compared to INR 14.95 Cr in FY24.
Geographic Revenue Split
Not specifically disclosed in available documents, though the company is headquartered in Navi Mumbai, Maharashtra, and maintains a registered office in the MIDC Complex.
Profitability Margins
The company reported a Net Loss of INR 11.81 Cr for FY25, resulting in a negative Net Margin of -67.78%. This is a slight deepening of losses compared to the INR 11.63 Cr loss in FY24.
EBITDA Margin
EBITDA is negative due to an operating loss before tax of INR 9.50 Cr. After adding back depreciation of INR 1.77 Cr and finance costs of INR 1.17 Cr, the EBITDA loss stands at approximately INR 6.56 Cr.
Capital Expenditure
Historical Capex for FY25 was minimal at INR 0.73 Lakhs for property, plant, and equipment, reflecting a 93.36% decrease from the INR 11.00 Lakhs spent in FY24 due to severe liquidity constraints.
Credit Rating & Borrowing
The company's secured loan accounts were classified as Non-Performing Assets (NPA) on August 19, 2021. Borrowings stand at INR 76.66 Cr, with the company having stopped repayment of principal and interest since the NPA classification.
Operational Drivers
Raw Materials
Steel and various alloys (implied by the company's focus on special steels and heat treatment). Specific percentage of total cost is not disclosed, but inventory value was diminished by INR 4.25 Cr during the year.
Capacity Expansion
Current Property, Plant, and Equipment is valued at INR 16.22 Cr. No planned expansion is mentioned as the company is currently in a 'revival process' and 'debt-ridden'.
Raw Material Costs
Cost of materials consumed was INR 1.64 Cr in FY25, representing 9.41% of total revenue. Inventory levels decreased by INR 2.39 Cr during the period.
Manufacturing Efficiency
Capacity utilization is not disclosed, but the company incurred continuous losses, suggesting low efficiency or underutilization of its asset base of INR 29.67 Cr.
Strategic Growth
Expected Growth Rate
0%
Growth Strategy
The company is focused on a 'Revival Process' rather than expansion. This includes a revival strategy to settle with bankers, restructuring existing debt, and attempting to raise new equity capital to address the negative net worth of INR -88.90 Cr.
Products & Services
Special steel products, heat-treated steel components, and engineering alloys sold under the Supreme Engineering brand.
Brand Portfolio
Supreme Engineering, Supreme Steels.
New Products/Services
No new product launches disclosed; focus is on maintaining existing operations under a going concern uncertainty.
Market Expansion
No expansion plans disclosed; the company is currently struggling to meet existing statutory and financial obligations.
External Factors
Industry Trends
The special steel industry is evolving toward high-performance alloys, but the company's positioning is weakened by its inability to invest in new technology or maintain statutory compliance.
Competitive Landscape
The company faces competition from other special steel manufacturers, but its competitive position is severely compromised by its negative net worth and NPA status.
Competitive Moat
The company's moat in heat treatment and special steels is currently non-sustainable due to the 'material uncertainty' regarding its ability to continue as a going concern.
Macro Economic Sensitivity
Highly sensitive to interest rates and credit availability due to its INR 76.66 Cr NPA status and the need for debt restructuring.
Geopolitical Risks
Trade barriers could impact the export of special steel products, though specific geographic exposure is not detailed.
Regulatory & Governance
Industry Regulations
The company is in violation of Section 203 of the Companies Act 2013 for failing to appoint a Company Secretary and Section 134(1) for financials not being signed by all required Key Managerial Personnel.
Taxation Policy Impact
The company has not filed Income Tax Audit reports for FY 2019-20 and FY 2021-22, leading to potential penalties under Section 271B of the Income Tax Act.
Legal Contingencies
Pending statutory dues include unpaid TDS, PF, and Professional Tax. The company has created an Expected Credit Loss (ECL) provision of INR 1.08 Cr for outstanding receivables.
Risk Analysis
Key Uncertainties
The primary risk is the 'Going Concern' status, as current liabilities (INR 99.75 Cr) exceed total assets (INR 29.67 Cr) by over 300%.
Geographic Concentration Risk
Operations are concentrated in Navi Mumbai, Maharashtra, making it sensitive to local industrial regulations and utility costs.
Third Party Dependencies
High dependency on bankers for the 'Revival Process' and on parties for ledger confirmations to verify trade payables and receivables.
Technology Obsolescence Risk
Risk is high as the company has had near-zero capital expenditure (INR 0.73 Lakhs) to upgrade its engineering facilities.
Credit & Counterparty Risk
High risk; the company has long-outstanding receivables and has provided INR 1.08 Cr in additional ECL during FY25 to cover potential defaults.