Unaudited Financial Results of the Company for the quarter and half-year ended 30.09.2025
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Panchmahal Steel, a Gujarat-based stainless steel long products maker, reported weaker Q2 FY26 results with revenue from operations falling about 6.5% year-on-year to Rs 9,263 lakh and profit after tax dropping around 69% to Rs 55 lakh. For the first half (H1 FY26), revenue declined roughly 8.6% to Rs 18,017 lakh and the company swung to a loss of Rs 137 lakh versus a Rs 369 lakh profit in H1 FY25, driven by higher employee costs and weaker realisations. Operating margins compressed meaningfully — operating profit before depreciation/finance fell from about 6% of revenue in H1 FY25 to under 3% in H1 FY26. The auditor (CNK & Associates LLP) issued a clean, unqualified review report. Despite a positive operating cash flow of Rs 1,026 lakh, the closing cash balance shrank to just Rs 1.55 lakh after a Rs 572 lakh dividend payout and net debt repayment.
Weak top line and a first-half loss highlight ongoing pricing and margin pressure in stainless steel, which is likely to weigh on near-term investor sentiment. However, a clean audit, positive operating cash generation, and a comfortable debt-to-equity ratio (~0.31) limit downside risk for existing shareholders.