Zenith Steel Pipes & Industries Q1 FY26 results: net profit ₹0.96 crore vs ₹1.92 crore loss

How did Zenith Steel Pipes & Industries perform in Q1 FY26?

Zenith Steel Pipes & Industries reported consolidated revenue of ₹18.92 crore for Q1 FY26, the April–June 2025 quarter, down 33.6% from ₹28.50 crore in Q1 FY25 and 23.8% from ₹24.82 crore in Q4 FY25. Total income was ₹25.45 crore, against ₹30.35 crore a year earlier and ₹30.94 crore in the previous quarter. The quarter ended with a net profit of ₹0.96 crore, a turnaround from a net loss of ₹1.92 crore in Q1 FY25, but lower than ₹2.78 crore in Q4 FY25.

The consolidated EBITDA for the quarter was a loss of ₹4.45 crore, against a loss of ₹2.65 crore in Q1 FY25 and a loss of ₹2.04 crore in Q4 FY25. The EBITDA margin stood at -23.5%, down 14.2 percentage points from -9.3% a year earlier and 15.3 percentage points from -8.2% in the previous quarter. Profit before tax was ₹0.98 crore, against a loss of ₹1.90 crore in Q1 FY25 and ₹2.97 crore in Q4 FY25, and basic EPS was ₹0.07, against a loss of ₹0.13 per share and ₹0.20 respectively.

On the standalone basis, revenue was ₹18.92 crore, down 33.6% from the year-ago quarter, and net profit was ₹0.96 crore against a loss of ₹1.92 crore in the year-ago quarter, with profit before tax of ₹0.98 crore. The board approved the unaudited standalone and consolidated financial results for the quarter ended 30 June 2025 on 13 August 2025, along with the limited review report.

What changed in Zenith Steel Pipes & Industries' costs and profit?

Other income was the largest reported contributor to the year-on-year improvement in profit, rising by ₹4.68 crore to ₹6.53 crore from ₹1.85 crore in Q1 FY25. Total expenses fell by ₹7.78 crore, or 24.1%, to ₹24.47 crore from ₹32.25 crore, while total income fell by ₹4.90 crore to ₹25.45 crore from ₹30.35 crore. There was no exceptional item in either quarter, and tax was unchanged at ₹0 crore.

Cost of materials was higher by ₹5.87 crore, or 102.4%, at ₹11.60 crore against ₹5.73 crore in Q1 FY25, and it was also higher than ₹3.27 crore in Q4 FY25. Employee cost fell by ₹0.16 crore to ₹1.15 crore from ₹1.31 crore a year earlier, and other expenses fell by ₹5.32 crore, or 31.8%, to ₹11.39 crore from ₹16.71 crore. Finance costs edged up by ₹0.01 crore to ₹0.62 crore from ₹0.61 crore, and depreciation was ₹0.49 crore against ₹0.48 crore.

Against the previous quarter, other income rose by ₹0.41 crore to ₹6.53 crore from ₹6.12 crore, while total expenses fell by ₹3.50 crore to ₹24.47 crore from ₹27.97 crore. Cost of materials rose by ₹8.33 crore from ₹3.27 crore to ₹11.60 crore, other expenses fell by ₹4.38 crore from ₹15.77 crore to ₹11.39 crore, and employee cost fell by ₹0.10 crore from ₹1.25 crore to ₹1.15 crore. Finance costs and depreciation were unchanged at ₹0.62 crore and ₹0.49 crore, and there was no exceptional item.

How has Zenith Steel Pipes & Industries done over the last 8 quarters?

Revenue reached its highest point in the reported series at ₹45.84 crore in Q3 FY24 and its lowest at ₹18.92 crore in Q1 FY26, the latest quarter. Profit peaked at ₹9.89 crore in Q4 FY24 and was at its lowest at a loss of ₹7.54 crore in Q2 FY24, while the most recent result was a net profit of ₹0.96 crore after net losses in each of the three quarters before Q4 FY25.

The EBITDA margin has moved around the break-even level over the past year, with 0.0% in Q3 FY25 and -8.2% in Q4 FY25 before falling to -23.5% in Q1 FY26. The margin was also -23.5% in Q2 FY24, the earliest quarter shown, and -9.3% in Q1 FY25, the same quarter a year earlier.

What did the auditors point out?

The statutory auditors issued an unqualified conclusion on the limited review of the quarter ended 30 June 2025, in which they stated they had not performed an audit and did not express an audit opinion. They set out a qualified conclusion covering the company's non-compliance with Section 74 of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014 on non-repayment of public deposits and interest, non-maintenance of prescribed liquid assets, and non-compliance with Company Law Board orders. They said this constitutes a material non-compliance that may result in regulatory implications.

The reviewers drew attention to Note No. 12, which states the company had incurred significant accumulated losses exceeding its share capital and reserves and that its net worth had been fully eroded as at 30 June 2025. They said this indicates the existence of a material uncertainty that may cast significant doubt on the company's ability to continue as a going concern, that the statement was prepared on a going concern basis based on the reasons stated by management, and that the use of the going concern basis of accounting is not adequately supported.

The auditors also drew attention to Note No. 10, which states the company valued its inventories at Rs.938.16 lakhs as at 30 June 2025 using the weighted average cost method, and said they were not provided with adequate information and necessary supporting documentation to verify the basis of valuation, including evidence supporting quantities, condition and cost allocation of inventories. They said they were therefore unable to determine whether adjustments were necessary to the carrying amount of these balances and their related impact on the statement. In an emphasis of matter, they referred to Note No. 9, which describes a memorandum of understanding with Tribus Real Estate Pvt. Ltd. for taking over the company's secured bank loans amounting to Rs. 16,884.92 lakhs as on 30 June 2025, a pending arrangement subject to further negotiations and fulfilment of agreed conditions.

How did Zenith Steel Pipes & Industries shares react?

The results were filed after market hours on 13 August 2025. From the price when the filing appeared, the stock was up 3.6% after 5 minutes and 15 minutes, and up 2.4% after 30 minutes. On the reaction day, the stock closed 1.1% above its previous close of ₹7.93, and by the next day's close it was 1.3% above that pre-results close. By the fifth session, it was 1.5% above the pre-results close.

Earlier reaction-day moves were negative in five of the six recorded results, including -0.4% on 15 July 2025, -1.7% on 29 May 2025, -0.7% on 22 January 2025, -1.1% on 16 October 2024 and -2.0% on 13 August 2024. The one positive move was 3.9% on 28 May 2024.

How did other Iron & Steel Products companies do?

Among the Iron & Steel Products companies, 91 peers were compared for revenue growth, with a median revenue growth of 2.0%. Of these, 11 peers grew slower than Zenith Steel Pipes & Industries and 80 grew faster. Zenith Steel Pipes & Industries was the only one of the three categories in the comparison set with a decline in revenue for the quarter.

For profit, 106 peers were compared and 51 of them reported higher profit. The peer figures are stated as of 5 November 2026, against a company result for the April–June 2025 quarter.