unaudited financial results along with cash flow statement, statement of assets and liabilites and the limited review report for the quarter and half year ending 30/09/2025.
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Nova Iron & Steel Ltd reported H1 FY26 revenue of ₹22,100.63 lakhs, down sharply from ₹41,438.38 lakhs in H1 FY25, though it swung to a small profit before tax of ₹115.21 lakhs from a loss of ₹436.33 lakhs a year ago, aided by an exceptional gain of ₹797.94 lakhs from disposal of charged assets. The auditor (MNRS & Associates) issued a qualified review report, flagging two issues: the company had to hand over plant, property and equipment to its lender Shree Balaji Steel and Metal Pvt Ltd on 1 August 2025 after defaulting on a settlement agreement, and shareholder approval for this was obtained in a manner not fully compliant with SEBI (LODR) rules; the company also did not recognize interest on certain borrowings, making the true finance cost unascertainable. Operating cash flow turned negative at ₹(278.45) lakhs versus ₹2,622.76 lakhs in H1 FY25, and total borrowings remain very large relative to equity of just ₹3,613.95 lakhs, leaving the balance sheet under severe debt stress. The company has taken the affected land and plant on lease from the lessor to continue operations.
Existing shareholders face a deeply stressed company: a key asset has been lost to the lender, a qualified audit opinion and unrecorded interest costs raise serious questions about reported numbers, and continued dependence on lease-based operations signals survival mode rather than growth, making this a high-risk stock.