Un-audited Financial Results for the 2nd quarter and half year ended 30-09-2025 alongwith limited review report.
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Bihar Sponge Iron posted Q2 FY26 net revenue of Rs. 6,375.58 lakhs, nearly flat compared to Rs. 6,376.50 lakhs in Q2 FY25. For the half year, net revenue fell about 16% YoY to Rs. 14,125.56 lakhs from Rs. 16,761.98 lakhs. Profit after tax for Q2 rose to Rs. 174.77 lakhs (vs Rs. 145.94 lakhs) but H1 PAT dropped roughly 25% to Rs. 386.48 lakhs. The statutory auditor issued a qualified conclusion flagging three issues: an unresolved Rs. 215.28 lakh penalty from South East Coalfields, undisclosed one-time settlement terms on promoter company loans, and a Rs. 11,446.11 lakh interest waiver request on a Jharkhand government soft loan (only Rs. 2,746.19 lakh provided in books). Shareholder funds remain negative at Rs. (4,148.71) lakhs and H1 operating cash flow was negative at Rs. (321.92) lakhs. The board also approved setting up a Rs. 118.90 crore Waste Heat Recovery Plant, with funding being sought from the Jharkhand government.
The qualified audit opinion, persistent negative net worth, large unprovided interest liability, and negative operating cash flow point to serious balance sheet stress and an elevated going-concern risk, which is negative for shareholders despite the small Q2 profit. The proposed Rs. 118.90 crore capex, if funded by debt or government support, could be a longer-term positive but adds execution and dilution risk in the near term.