Issuance of Corporate Guarantee
ISGEC · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
ISGEC Heavy Engineering reported strong FY2026 standalone results with net profit up 18% to Rs.34,675 lakhs on revenue of Rs.522,863 lakhs. The Board recommended a dividend of Rs.6 per share. A Rs.25 crore capacity expansion was approved for the Steel Castings division at Muzaffarnagar. The company issued a corporate guarantee of up to Rs.6,550 lakhs for its subsidiary Isgec Titan Metal Fabricators to secure additional working capital. However, auditors flagged going concern issues at two subsidiaries: Isgec Investment Pte. Ltd (Singapore) with capital deficiency of Rs.3,176 lakhs, and Bioeq Energy Holdings Corp with capital deficiency of Rs.44,278 lakhs. The company also recognized Rs.6,361 lakhs as expected credit loss on loans to its Singapore subsidiary.
Positive signals from strong standalone profitability and dividend, but investors should note subsidiary-level financial stress and substantial expected credit loss provisions that could impact future earnings.