SRU Steels Q1 FY27 results: net loss of ₹0.07 crore vs ₹1.35 crore profit

How did SRU Steels perform in Q1 FY27?

SRU Steels reported ₹0 crore of revenue in Q1 FY27, compared with ₹23.16 crore in the year-ago quarter and ₹2.75 crore in the previous quarter. EBITDA moved from a profit of ₹1.67 crore in Q1 FY26 to a loss of ₹0.06 crore, while the EBITDA margin was 7.2% in the year-ago quarter. The reported EBITDA margin for Q1 FY27 and Q4 FY26 was not available.

The company reported a net loss of ₹0.07 crore in Q1 FY27, against a net profit of ₹1.35 crore in Q1 FY26 and a net loss of ₹1.84 crore in Q4 FY26. Basic EPS was ₹0.01 in loss, compared with ₹0.22 in Q1 FY26 and ₹0.42 in loss in Q4 FY26. These are standalone figures; the filing also referred to audited consolidated financial statements for the year ended 31 March 2026, without providing consolidated Q1 FY27 figures here.

What changed in SRU Steels' costs and profit?

Total expenses fell to ₹0.07 crore in Q1 FY27 from ₹21.52 crore in Q1 FY26, a decline of ₹21.45 crore, or 99.7%. Other expenses were ₹0.05 crore, down ₹0.09 crore or 64.3%, while depreciation was ₹0.01 crore, down ₹0.01 crore or 50.0%. Cost of materials and employee cost were ₹0 crore, and finance costs were ₹0 crore.

Other income was ₹0 crore in Q1 FY27, down ₹0.05 crore from Q1 FY26 and ₹0.16 crore from Q4 FY26. There was no exceptional item in either comparison quarter. Tax was ₹0 crore in Q1 FY27, compared with ₹0.35 crore in Q1 FY26 and ₹0.28 crore of tax credit in Q4 FY26; the filing did not state reasons for the changes.

How has SRU Steels done over the last 8 quarters?

Revenue reached ₹23.16 crore in Q1 FY26, before falling to ₹3.3 crore in Q2 FY26, ₹1.18 crore in Q3 FY26 and ₹2.75 crore in Q4 FY26. It was ₹0 crore in Q1 FY27. Profit peaked at ₹1.35 crore in Q1 FY26 and bottomed at ₹1.84 crore of loss in Q4 FY26; Q1 FY27 recorded a ₹0.07 crore loss.

The EBITDA margin reached 7.2% in Q1 FY26 and fell to -82.6% in Q4 FY26. The margin for Q1 FY27 was not available, while the company reported an EBITDA loss of ₹0.06 crore. The available figures show revenue and profit remaining below their Q1 FY26 levels, while the net loss narrowed from Q4 FY26.

Which businesses drove the quarter?

Construction Machinery reported revenue of ₹0 crore and EBIT of ₹0 crore, compared with revenue of ₹0.92 crore and EBIT of ₹0.01 crore in the year-ago quarter. Footwear reported revenue of ₹0 crore and EBIT of ₹0 crore; the comparable figures were ₹0 crore for both measures. A year-ago revenue growth rate was not available for these segments.

Steel reported revenue of ₹0 crore and EBIT of -₹0.06 crore, compared with revenue of ₹2.82 crore and EBIT of ₹0.03 crore in the year-ago quarter. Agri-Commodity reported revenue of ₹0 crore and EBIT of ₹0 crore, against ₹19.42 crore of revenue and ₹1.69 crore of EBIT. Commodities and Other Unallocable Segment also reported revenue of ₹0 crore and EBIT of ₹0 crore.

What else did the company announce?

SRU Steels filed an annual report for FY2025-26 on 8 September 2026 and said its 31st AGM would be held on 30 September 2026 at 4:00 P.M. through video conferencing or other audio-visual mode. The register of members and share transfer books were closed from 24 September 2026 to 30 September 2026, and the cut-off date for remote e-voting and voting was fixed at 23 September 2026.

The board approved the audited standalone results and financial statements for the year ended 31 March 2026, along with the Board’s Report, corporate governance report, management discussion and analysis report and secretarial audit report. The company also proposed the appointment of Bihari Shah & Co. as statutory auditors for five consecutive years and appointed Vishakha Agrawal of Vishakha Agrawal & Associates as the e-voting scrutiniser. The same-day filings did not mention a dividend or fund raise.

What did the auditors point out?

Bihari Shah & Co. issued a qualified opinion on the standalone financial statements for the year ended 31 March 2026. The auditor said it could not obtain sufficient appropriate evidence regarding the existence, condition and valuation of inventory because management had not provided confirmations, representations or physical verification records, and could not determine whether adjustments were necessary.

The auditor also cited departures from Ind AS 109: the company had not provided for interest on unsecured loans from various entities and individuals, and had not recognised interest income on loans and advances to various entities and individuals. The emphasis-of-matter section noted indirect non-compliance with Section 186 of the Companies Act, 2013, use of rights issue proceeds for advance payments, investments and general business purposes, and balances awaiting confirmation and reconciliation.

How did SRU Steels shares react?

After the filing, SRU Steels was down 1.3% at 5 minutes, unchanged at 15 and 30 minutes, and up 0.7% on the reaction day from its pre-results close of ₹1.49. By the next day’s close it was down 1.3% from that close, and by five sessions it was down 4.0%.

On the reaction day, the industry median was unchanged, so SRU Steels’ move was 0.7 percentage points above the industry median. By the next day, the stock’s excess move was -0.5 percentage points, and by five sessions it was -2.0 percentage points. Earlier results-day moves were 1.8% on 21 February 2026, 0.0% on 13 November 2025, -0.2% on 12 August 2025, 4.6% on 28 May 2025, -4.9% on 13 August 2024 and -5.9% on 29 May 2024.

How did other Trading & Distributors companies do?

Among 107 Trading & Distributors companies compared for the quarter, the median revenue growth was -2.1%, and 73 of 150 companies reported higher profit. The data also recorded the number of peers growing slower than the company and the number growing faster than the company, but those counts were not supplied in the input.