Press Release / Media Release regarding Q1 & FY26 Financial & Operational Performance.
SCANSTL · price
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Scan Steels Ltd announced its Q1 FY26 results, reporting revenue of Rs. 232 crore, down 1% year-on-year and 4% quarter-on-quarter. However, profitability showed strong sequential recovery with EBITDA at Rs. 19.3 crore (up 114% QoQ) and PAT at Rs. 10.5 crore (up 119% QoQ). EBITDA margin improved to 8.3% from 3.7% in Q4 FY25, and diluted EPS rose to Rs. 1.79. The company achieved 27% volume growth YoY, with Billets/Ingot sales jumping 80% YoY, though TMT sales declined 7% YoY. Management highlighted ongoing capacity expansion including three 20 TPH induction furnaces, a captive oxygen plant, a 30 MW captive power plant, and a 72,000 TPA pipe mill involving Rs. 337 crore investment, expected to commission in FY26-FY27.
Despite lower revenue and YoY profit decline, the strong sequential recovery in margins and operational volume growth signal improving efficiency. The Rs. 337 crore capex pipeline and expected 25-30% power cost reduction could boost long-term profitability, though near-term pressure on TMT sales and realizations remains a concern for shareholders.