Supreme Engineering Limited (SUPREMEENG)
₹5.11 +2.00% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Supreme Engineering's revenue was ₹4.1 Cr (-51.6% year on year, -6.7% on the previous quarter), and net profit ₹1.5 Cr; the operating margin was -1.1%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹4.1 | -51.6% | -6.7% |
| Operating profit | ₹-0.0 | to loss | to loss |
| Net profit | ₹1.5 | — | from loss |
| EPS (₹) | 0.06 | — | from loss |
| Operating margin | -1.1% | — | — |
📢 Recent Corporate Announcements
Supreme Engineering has issued a clarification to shareholders regarding its proposed preferential issue following an observation raised by NSE on October 14, 2026. The company stated that an independent Registered Valuer report was commissioned under SEBI ICDR Regulation 166A because the allotment to individual allottees or PACs will exceed 5% of the post-issue fully diluted share capital. The 39th AGM was held on October 1, 2026, where preferential issue resolutions were put to vote. Supreme Engineering faces financial distress with a negative net worth of Rs -89 Cr and debt of Rs 92 Cr, making successful equity issuance critical for ongoing revival efforts.
- NSE queried the company on October 14, 2026, regarding non-disclosure of the reason for the valuation report in the AGM notice.
- Proposed preferential issue involves allotment exceeding 5% of post-issue fully diluted share capital to a single allottee or PACs.
- Independent Registered Valuer report obtained pursuant to SEBI ICDR Regulation 166A for determining issue pricing.
- AGM was conducted on October 1, 2026, following an earlier corrigendum dated September 25, 2026.
Supreme Engineering Limited has submitted voting results and the Scrutinizer's Report for its 39th AGM held on October 01, 2026, where all 7 resolutions were approved by shareholders with 100% majority of valid votes cast. Key special resolutions passed include the approval to issue and allot equity shares and convertible warrants on a preferential basis, alongside an increase in authorized share capital. A total of 11,47,36,746 valid votes were polled across 25 participating members, with 11,47,31,740 votes cast in favor.
- All 7 resolutions passed with 100% of valid votes (11,47,31,740 shares in favor vs 5,006 against)
- Shareholders approved the issuance and allotment of equity shares on a preferential basis
- Shareholders approved the issuance and allotment of convertible warrants on a preferential basis
- Approved increase in authorized share capital and consequent alteration to the MOA
- Total valid votes counted stood at 11,47,36,746 from 25 members who cast remote e-votes
Supreme Engineering Limited has secured a domestic supply order worth Rs 2.84 crore from the Ministry of Defence. The contract entails supplying specialty alloy steel bars for defence applications, to be executed within six months. The order represents roughly 14% of the company's TTM revenue of Rs 20 crore, marking a sizeable win relative to recent quarterly revenue levels. However, execution will be critical given the company's distressed balance sheet, with debt at Rs 92 crore and a negative net worth of Rs -89 crore.
- Received domestic supply order worth Rs 2,83,55,145.12 from the Ministry of Defence
- Order scope covers specialty alloy steel bars for defence application
- Execution timeline stipulated is six months
- Contract value represents approximately 14% of TTM revenue (Rs 20 Cr)
Supreme Engineering concluded its 39th Annual General Meeting on October 01, 2026, with 38 members present. Key resolutions put to vote included increasing authorized share capital and approving the issuance of equity shares and convertible warrants on a preferential basis. The specific quantum, pricing, and allottees of the preferential issue were not disclosed in this summary of proceedings. Final voting results and scrutinizer reports are expected within two working days.
- 39th AGM convened on October 01, 2026, from 10:00 AM to 10:30 AM IST with 38 members present
- Special resolutions proposed for preferential issuance of equity shares and convertible warrants
- Ordinary resolution proposed to alter Memorandum of Association and increase authorized share capital
- Voting results and Scrutinizer's Report to be submitted within 2 working days
Supreme Engineering Limited has secured a domestic purchase order amounting to ₹5.29 crore for the supply of Superalloy. The order is awarded by an entity managed by the Ministry of Heavy Industries and Public Enterprises, with an execution timeline of six months. Relative to Supreme Engineering's TTM revenue of ₹20 crore, this single order represents approximately 26.4% of annual revenue, making it a sizable development for the financially stressed company. The contract is not a related-party transaction.
- Received domestic purchase order valued at ₹5,28,86,700.84
- Customer is a company managed by the Ministry of Heavy Industries and Public Enterprises
- Scope entails supply of Superalloy products to be executed within six months
- Contract represents approximately 26.4% of Supreme Engineering's TTM revenue of ₹20 Cr
Supreme Engineering issued a corrigendum to its AGM notice following observations from NSE regarding its proposed preferential issue. Due to SEBI ICDR disqualifications, 5.075 crore shares were reallocated from ineligible investors to new investors, including 3.20 crore shares to Ashish Kacholia. The company is raising up to Rs 73.05 crore via 28.10 crore equity shares at Rs 2.60 each, with total proceeds reaching Rs 110.75 crore including warrants. This fundraise is significant compared to its TTM revenue of Rs 20 crore and is primarily earmarked for debt settlement under OTS (Rs 34 crore) and working capital (Rs 39.75 crore).
- Replaced 5,07,50,000 ineligible shares under SEBI ICDR regulations with new allottees, including Ashish Kacholia (3,20,00,000 shares)
- Proposed preferential allotment of 28,09,70,000 equity shares at Rs 2.60 per share, raising Rs 73,05,22,000
- Total issue proceeds across shares and warrants targeted at Rs 110.7522 crore, vs TTM revenue of Rs 20 crore
- Key utilization includes Rs 34.00 crore for OTS bank dues and Rs 39.7522 crore for working capital
Supreme Engineering's Board approved the preferential issue of up to 28,09,70,000 equity shares at Rs 2.60 each, amounting to approximately Rs 73.05 Cr. This follows the disqualification under SEBI ICDR regulations of 9 proposed allottees holding 5.075 Cr shares, which have now been reallocated to 16 new investors including marquee investor Ashish Kacholia (3.20 Cr shares for Rs 8.32 Cr). The fundraise is critical for the financially distressed company, which carries negative net worth of Rs -89 Cr and debt of Rs 92 Cr.
- Approved preferential issue of up to 28,09,70,000 equity shares of face value Rs 1 at Rs 2.60 each
- Total issue value stands at approximately Rs 73.05 Cr, representing ~22.8% of current market cap
- 5,07,50,000 shares reallocated after disqualification of 9 entities under SEBI ICDR Regulations 159 and 167
- Ashish Kacholia allocated 3,20,00,000 shares for a consideration of Rs 8.32 Cr
- Promoter group including Sanjay Chowdhri to subscribe to 7,00,00,000 shares (Rs 18.2 Cr total consideration)
Supreme Engineering reported Q1 FY27 revenue from operations of ₹4.07 Cr (₹406.95 lakh), marking a sharp decline of 51.6% YoY from ₹8.40 Cr in Q1 FY26. The company posted a net profit of ₹0.99 Cr (₹98.98 lakh), primarily driven by an exceptional gain of ₹25.70 Cr (₹2570 lakh) from resolving joint development disputes and sale of flats. Crucially, the auditor reiterated a material uncertainty on going concern due to negative net worth and unpaid dues, while noting that an OTS proposal was sanctioned on August 13, 2026, with a 10% advance deposit paid.
- Revenue from operations fell 51.6% YoY to ₹4.07 Cr (₹406.95 lakh) compared to ₹8.40 Cr (₹840.91 lakh) in Q1 FY26
- Net profit stood at ₹0.99 Cr (₹98.98 lakh) versus ₹0.07 Cr (₹7.33 lakh) in Q1 FY26, boosted by ₹25.70 Cr exceptional income
- Bank approved One-Time Settlement (OTS) proposal on August 13, 2026; company deposited a 10% preliminary settlement amount
- Auditor flagged significant statutory non-compliances, including unfiled income tax returns for FY21, unconducted cost audits since FY21, and unpaid MSME interest
Supreme Engineering Limited has appointed Finportal Investments Private Limited as its Investor Relations (IR) agency with effect from September 16, 2026. The company also announced a designated email ID (IR@indofarm.in) for all investor-related queries and communications. The move comes as the micro-cap company (market cap Rs 42 Cr) works through debt restructuring and ongoing financial distress, having posted FY26 net losses of Rs 0.60 Cr and carrying negative net worth of Rs -89 Cr.
- Appointed Finportal Investments Private Limited as IR advisory agency effective September 16, 2026
- Designated specific email ID IR@indofarm.in for all investor queries
- Company operates at a small scale with FY26 revenue of Rs 24.78 Cr and total debt of Rs 92 Cr
Supreme Engineering Limited has issued notice for its 39th AGM on October 01, 2026, seeking shareholder approval for a massive fundraise. The company plans to issue up to 28,09,70,000 equity shares at ₹2.60 per share, raising up to ₹73.05 crore from promoters and non-promoters. Relative to its current market cap of ~₹39 crore, the proposed issue represents ~187% of equity value. Additionally, the company proposes increasing its authorized share capital to ₹67.70 crore from ₹25.10 crore to support the capital expansion and revival process.
- Proposed preferential issue of up to 28,09,70,000 equity shares aggregating up to ₹73,05,22,000
- Issue price fixed at ₹2.60 per share (including a premium of ₹1.60 per share)
- Proposed increase in authorized share capital from ₹25.10 crore to ₹67.697 crore
- Promoter Sanjay Chowdhri and relatives are participating, with Sanjay Chowdhri proposed to be allotted 5,50,00,000 shares (₹14.30 crore)
- AGM scheduled for October 01, 2026, with remote e-voting from September 28 to September 30, 2026
Supreme Engineering Limited has appointed Ms. Shweta Gupta as its Company Secretary and Compliance Officer (Key Managerial Personnel) effective September 08, 2026. The appointment was approved in a board meeting held between 04:15 P.M. and 04:45 P.M. on the same date. This represents a routine statutory compliance appointment for the financially stressed company, which has an eroded net worth of INR -89 Cr and debt of INR 92 Cr.
- Appointment of Ms. Shweta Gupta (ACS No. A63665) as Company Secretary & Compliance Officer
- Appointment effective date is September 08, 2026
- Board meeting commenced at 04:15 P.M. and concluded at 04:45 P.M.
Supreme Engineering Limited announced the appointment of Ms. Shweta Gupta (ACS No. A63665) as its Company Secretary and Compliance Officer (Key Managerial Personnel), effective September 08, 2026. The board approved the decision during a 30-minute meeting held on the same day. This fills a mandatory statutory role under SEBI regulations. Financially, the company remains distressed with negative net worth of ₹-89 crore and debt of ₹92 crore against TTM revenue of ₹25 crore.
- Appointment of Ms. Shweta Gupta (ACS No. A63665) as CS and Compliance Officer
- Effective date of appointment is September 08, 2026
- Board meeting commenced at 04:15 P.M. and concluded at 04:45 P.M. on September 08, 2026
Supreme Engineering Limited has submitted its certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended June 30, 2026. The Registrar and Share Transfer Agent, Bigshare Services Private Limited, confirmed that the regulation is non-applicable as 100% of the company's shares are already held in demat form. Additionally, no requests for dematerialisation or rematerialisation were received during the quarter. This is a standard procedural compliance filing with no operational or financial impact.
- Regulation 74(5) compliance confirmed for the quarter ended June 30, 2026
- 100% of the company's shareholding is maintained in dematerialized form
- Zero dematerialisation or rematerialisation requests received during the quarter
- Certificate issued by RTA Bigshare Services Private Limited on September 05, 2026
Supreme Engineering Limited has received approval from the Registrar of Companies (ROC), Mumbai, for a 3-month extension to conduct its Annual General Meeting (AGM) for the financial year ended March 31, 2026. The AGM, originally due by September 30, 2026, can now be held on or before December 31, 2026. The approval follows the company's application dated September 2, 2026, under Section 96(1) of the Companies Act, 2013. The exact date of the AGM will be announced once finalized by the Board.
- ROC Mumbai granted a 3-month extension to hold the AGM for FY ended March 31, 2026
- AGM deadline extended from September 30, 2026, to December 31, 2026
- Application filed on September 2, 2026, under SRN AC5798281 and approved on September 7, 2026
Supreme Engineering submitted its audited FY26 financial results along with exchange clarifications. Full-year revenue grew 47.4% YoY to ₹24.78 Cr (₹2,478.33 lakhs) from ₹16.82 Cr in FY25, while net loss narrowed significantly to ₹0.60 Cr (₹60.03 lakhs) compared to a loss of ₹11.81 Cr in FY25. For Q4 FY26, revenue stood at ₹4.36 Cr with a net loss of ₹5.30 lakhs. Crucially, the company disclosed that subsequent to year-end, lenders approved its One-Time Settlement (OTS) proposal for outstanding secured borrowings, though the company continues to face severe negative net worth of ₹-89.43 Cr and numerous regulatory/audit non-compliances.
- FY26 total revenue from operations increased to ₹24.78 Cr compared to ₹16.82 Cr in FY25.
- FY26 net loss narrowed substantially to ₹0.60 Cr from ₹11.81 Cr in the previous year.
- Lender approved the company's One-Time Settlement (OTS) proposal for NPA secured borrowings post balance sheet date.
- Total equity stands at negative ₹89.43 Cr (-₹8,943.45 lakhs) against total borrowings of ₹90.39 Cr.
- Multiple compliance lapses noted, including absence of a Company Secretary, pending income tax returns (FY20), and pending cost/internal audits.
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.
