Un-Audited Financial Results for the 2nd quarter and half year ended 30th September, 2025 and outcome of Board Meeting held on 12th November, 2025
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Bihar Sponge Iron Limited reported its Q2 FY26 results, showing net revenue from operations of Rs. 6,375.58 lakhs (essentially flat versus Rs. 6,376.50 lakhs in Q2 FY25), while H1 FY26 net revenue fell about 15.7% to Rs. 14,125.56 lakhs from Rs. 16,761.98 lakhs a year ago. Profit before tax for Q2 was Rs. 174.77 lakhs (up from Rs. 145.94 lakhs), but H1 PBT dropped to Rs. 386.48 lakhs from Rs. 514.67 lakhs, with EPS at Rs. 0.43 versus Rs. 0.57. The statutory auditor Doogar & Associates issued a qualified review report, flagging three issues: an unpaid SECL coal penalty of Rs. 215.28 lakhs where the company's writ has been dismissed, undisclosed promoter loan settlements, and an unprovided interest liability of around Rs. 8,700 lakhs on a Jharkhand government soft loan (only Rs. 2,746 lakhs provisioned). The board also approved a Rs. 118.90 crore Waste Heat Recovery Plant, with the company approaching the Jharkhand government for financing.
Several red flags for shareholders: shareholder equity is deeply negative at Rs. -4,148.71 lakhs, H1 operating cash flow turned negative at Rs. -321.92 lakhs (from positive Rs. 503.74 lakhs last year), and the auditor has qualified the review. The large capex plan adds execution risk, especially since funding from the government is not yet secured. Existing shareholders face dilution or restructuring risk if promoter loan settlements and interest waiver requests do not go in the company's favour.