Sagardeep Alloys Limited has submitted to the Exchange, the financial results for the period ended March 31, 2026.
SAGARDEEP · price
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Sagardeep Alloys Limited reported strong revenue growth with standalone revenue of Rs. 16,534 Lakhs (up 60% from Rs. 10,317 Lakhs in FY25) and consolidated revenue of Rs. 17,857 Lakhs (up 42%). Net profit grew 44% to Rs. 264 Lakhs standalone and 40% to Rs. 269 Lakhs consolidated. However, the company reported negative operating cash flows of Rs. -492 Lakhs standalone and Rs. -204 Lakhs consolidated, a significant deterioration from Rs. +381 Lakhs and Rs. +391 Lakhs respectively in FY25, primarily due to a sharp rise in inventories (from Rs. 167 to Rs. 576 Lakhs standalone) and trade receivables. The statutory auditor issued an unmodified (clean) opinion. The company also disclosed a change in secretarial auditor, with M/s SJV & Associates resigning due to preoccupation and M/s Siddhi Shah & Associates being appointed in their place.
Despite healthy revenue and profit growth, the negative operating cash flows despite positive profits is a red flag indicating potential working capital stress. Short-term borrowings tripled to Rs. 930 Lakhs to fund operations, which could increase financial risk for shareholders.