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Zenith Steel Pipes & Industries Q2 FY26 results: net profit ₹0.72 crore vs ₹0.44 crore loss
Zenith Steel Pipes & Industries Limited reported consolidated revenue of ₹14.04 crore in Q2 FY26, down 53.3% from ₹30.07 crore in the year-ago quarter. Net profit was ₹0.72 crore against a net loss of ₹0.44 crore a year earlier, while EBITDA remained negative at ₹5.44 crore and basic EPS was ₹0.05.
Key points
- Consolidated revenue was ₹14.04 crore in Q2 FY26, down 53.3% from ₹30.07 crore in Q2 FY25 and 25.8% from ₹18.92 crore in Q1 FY26.
- EBITDA was a loss of ₹5.44 crore in Q2 FY26, with an EBITDA margin of -38.8%, compared with a loss of ₹0.58 crore and a margin of -1.9% in Q2 FY25.
- Net profit was ₹0.72 crore against a net loss of ₹0.44 crore in Q2 FY25; basic EPS was ₹0.05 compared with a loss of ₹0.03.
- H1 FY26 revenue was ₹32.96 crore, down 43.7% from ₹58.58 crore in H1 FY25, while PAT turned to ₹1.67 crore from a loss of ₹2.36 crore.
- Borrowings were ₹215.31 crore at 30 September 2025, while cash was ₹0.99 crore and total equity was negative ₹251.54 crore.
How did Zenith Steel Pipes & Industries perform in Q2 FY26?
Consolidated revenue for Q2 FY26 was ₹14.04 crore, down 53.3% from ₹30.07 crore in Q2 FY25 and 25.8% from ₹18.92 crore in Q1 FY26. Total income was ₹21.31 crore, down 32.0% year on year and 16.3% quarter on quarter. The company reported a net profit of ₹0.72 crore in Q2 FY26, compared with a net loss of ₹0.44 crore in Q2 FY25; basic EPS was ₹0.05 compared with a loss of ₹0.03.
EBITDA was a loss of ₹5.44 crore in Q2 FY26, compared with a loss of ₹0.58 crore in Q2 FY25 and ₹4.45 crore in Q1 FY26. The EBITDA margin was -38.8%, compared with -1.9% a year earlier and -23.5% in the previous quarter. Profit before tax was ₹0.73 crore, against a loss of ₹0.42 crore in Q2 FY25 and ₹0.98 crore in Q1 FY26. On the standalone basis, revenue was ₹13.76 crore and PAT was ₹0.57 crore.
| ₹ crore | Q2 FY26 | Q1 FY26 | Q2 FY25 | YoY | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 14.04 | 18.92 | 30.07 | −53.3% | −25.8% |
| Other income | 7.27 | 6.53 | 1.26 | +477.0% | +11.3% |
| Total expenses | 20.58 | 24.47 | 31.76 | −35.2% | −15.9% |
| EBITDA | −5.44 | −4.45 | −0.58 | ||
| EBITDA margin | -38.8% | -23.5% | -1.9% | −36.9 pp | −15.3 pp |
| Profit before tax | 0.73 | 0.98 | −0.42 | turned to profit | −25.5% |
| Tax | 0 | 0 | 0 | ||
| Net profit | 0.72 | 0.96 | −0.44 | turned to profit | −25.0% |
| EPS (₹) | 0.05 | 0.07 | −0.03 | turned to profit | −28.6% |
EBITDA here is revenue from operations less operating costs (total expenses excluding finance costs and depreciation): before other income and exceptional items. Growth is shown only when both figures are positive. Source: Company's results filing (XBRL).
What changed in Zenith Steel Pipes & Industries' costs and profit?
Other income increased 477.0% year on year to ₹7.27 crore from ₹1.26 crore, while other expenses fell 45.3% to ₹9.39 crore from ₹17.18 crore. Total expenses declined 35.2% to ₹20.58 crore from ₹31.76 crore. The cost of materials rose 5.0% to ₹7.62 crore from ₹7.26 crore, employee costs fell 3.0% to ₹1.28 crore, finance costs were ₹0.63 crore against ₹0.62 crore, and depreciation fell 4.1% to ₹0.47 crore from ₹0.49 crore.
There was no exceptional item in Q2 FY26, and tax remained unchanged at ₹0 crore. The filing did not state a reason for the increase in other income or the reduction in other expenses. Against Q1 FY26, other income was higher by ₹0.74 crore, other expenses were lower by ₹2 crore, and total expenses were lower by ₹3.89 crore; employee costs were higher by ₹0.13 crore and finance costs were higher by ₹0.01 crore.
| ₹ crore | Q2 FY26 | Q2 FY25 | Change | Change % |
|---|---|---|---|---|
| Cost of materials | 7.62 | 7.26 | +0.36 | +5.0% |
| Employee cost | 1.28 | 1.32 | −0.04 | −3.0% |
| Finance costs | 0.63 | 0.62 | +0.01 | +1.6% |
| Depreciation | 0.47 | 0.49 | −0.02 | −4.1% |
| Other expenses | 9.39 | 17.18 | −7.79 | −45.3% |
| Total expenses | 20.58 | 31.76 | −11.18 | −35.2% |
| Other income | 7.27 | 1.26 | +6.01 | +477.0% |
| Tax | 0 | 0 | 0 |
Source: Company's results filing (XBRL).
How did the first half of FY26 go?
In the first half of FY26, consolidated revenue was ₹32.96 crore, down 43.7% from ₹58.58 crore in H1 FY25. Total income was ₹46.76 crore, down 24.2% from ₹61.69 crore, while PBT moved to a profit of ₹1.71 crore from a loss of ₹2.32 crore. PAT was ₹1.67 crore, compared with a net loss of ₹2.36 crore in the year-earlier period, and EPS was ₹0.12 against a loss of ₹0.18.
The half-year result was reported on both consolidated and standalone bases in the filing. The consolidated figures above include the company’s consolidated operations for the period ended 30 September 2025, while the filing also presents standalone revenue of ₹13.76 crore and PAT of ₹0.57 crore for the quarter.
| ₹ crore | H1 FY26 | H1 FY25 | Change |
|---|---|---|---|
| Revenue from operations | 32.96 | 58.58 | −43.7% |
| Profit before tax | 1.71 | −2.32 | turned to profit |
| Net profit | 1.67 | −2.36 | turned to profit |
| EPS (₹) | 0.12 | −0.18 |
Source: Company's results filing (XBRL).
What do the balance sheet and cash flow show?
At 30 September 2025, total assets were ₹154.74 crore, compared with ₹158.64 crore at 31 March 2025. Total equity was negative ₹251.54 crore against negative ₹256.75 crore, while borrowings were ₹215.31 crore against ₹215.14 crore. Cash fell to ₹0.99 crore from ₹2.96 crore. Inventories were ₹7.5 crore against ₹7.79 crore, trade receivables were ₹55.47 crore against ₹56.55 crore, and trade payables were ₹81.84 crore against ₹90.16 crore.
H1 FY26 operating cash flow was negative ₹4.16 crore, compared with ₹2.91 crore in H1 FY25. Investing cash flow was negative ₹0.36 crore against negative ₹0.91 crore, and financing cash flow was negative ₹1.12 crore against negative ₹1.27 crore. Capital expenditure was ₹0.17 crore in H1 FY26, compared with ₹0.32 crore in H1 FY25.
| ₹ crore | As of 30 September 2025 | As of 31 March 2025 |
|---|---|---|
| Total assets | 154.74 | 158.64 |
| Total equity | −251.54 | −256.75 |
| Borrowings | 215.31 | 215.14 |
| Cash and equivalents | 0.99 | 2.96 |
| Inventories | 7.50 | 7.79 |
| Trade receivables | 55.47 | 56.55 |
Source: Company's results filing (XBRL).
| ₹ crore | H1 FY26 | H1 FY25 |
|---|---|---|
| Cash from operations | −4.16 | 2.91 |
| Cash from investing | −0.36 | −0.91 |
| Cash from financing | −1.12 | −1.27 |
| Capital expenditure | 0.17 | 0.32 |
Source: Company's results filing (XBRL).
How has Zenith Steel Pipes & Industries done over the last 8 quarters?
Across the reported quarters, revenue peaked at ₹45.84 crore in Q3 FY24 and reached its lowest point at ₹14.04 crore in Q2 FY26. PAT was highest at ₹9.89 crore in Q4 FY24 and lowest at a loss of ₹1.92 crore in Q1 FY25. The EBITDA margin peaked at 15.6% in Q4 FY24 and fell to -38.8% in Q2 FY26.
Revenue declined from ₹28.5 crore in Q1 FY25 to ₹30.07 crore in Q2 FY25, rose to ₹35.69 crore in Q3 FY25, and then fell to ₹24.82 crore in Q4 FY25, ₹18.92 crore in Q1 FY26 and ₹14.04 crore in Q2 FY26. PAT moved from a loss of ₹0.44 crore in Q2 FY25 to a loss of ₹0.20 crore in Q3 FY25, a profit of ₹2.78 crore in Q4 FY25, a profit of ₹0.96 crore in Q1 FY26 and a profit of ₹0.72 crore in Q2 FY26.
What did the auditors point out?
The review report contained a qualified conclusion. The auditor cited non-repayment of public deposits and interest on due dates, non-maintenance of prescribed liquid assets, non-compliance with applicable provisions and possible adjustments to carrying amounts, and said that adjustments and their impact could not be determined. The auditor also drew attention to accumulated losses exceeding share capital and reserves and stated that the going-concern basis was not adequately supported, while noting that the statement had been prepared on that basis.
The auditor’s emphasis of matter included an MOU with Tribute Real Estate Pvt. Ltd. concerning the company’s secured bank loans of Rs. 16,584.92 lakhs as on 30 September 2025. The arrangement was pending completion and subject to further negotiations and fulfilment of agreed conditions. The report also stated that the company had received a GST demand notice of Rs. 28.76 lakhs from the Tamil Nadu Commercial Tax Officer and had filed an appeal.
How did Zenith Steel Pipes & Industries shares react?
| After the filing | Stock | Iron & Steel Products median |
|---|---|---|
| 5 minutes | +3.9% | |
| 15 minutes | +3.7% | |
| 30 minutes | +2.4% | |
| Reaction day | +1.1% | −0.2% |
| Next day | −1.6% | −1.2% |
| 5 days | −2.2% | −4.6% |
Minutes are measured from the price when the filing appeared; days from the previous close. Source: MarketPing price-reaction measurement.
| Results filed on | Stock on the reaction day |
|---|---|
| 13 August 2025 | +1.1% |
| 29 May 2025 | −1.7% |
| 22 January 2025 | −0.7% |
| 16 October 2024 | −1.1% |
| 13 August 2024 | −2.0% |
| 28 May 2024 | +3.9% |
Source: MarketPing price-reaction measurement.
How did other Iron & Steel Products companies do?
Ninety-five other Iron & Steel Products companies were compared for the quarter. Their median revenue growth was 7.4%, and 91 grew faster than Zenith Steel Pipes & Industries, while 4 grew slower. Of the 104 peers whose profit was compared, 60 reported higher profit.
| Zenith Steel Pipes & Industries revenue growth (YoY) | −53.3% |
|---|---|
| Median of 95 other Iron & Steel Products companies | +7.4% |
| Companies with slower revenue growth than Zenith Steel Pipes & Industries | 4 of 95 |
| Companies with faster revenue growth than Zenith Steel Pipes & Industries | 91 of 95 |
| Companies whose net profit rose | 60 of 104 |
Source: Filed results (XBRL) of the industry's companies.
Quick answers
What was Zenith Steel Pipes & Industries' revenue in Q2 FY26?
Revenue from operations was ₹14.04 crore, down 53.3% from ₹30.07 crore in Q2 FY25 (consolidated).
Did Zenith Steel Pipes & Industries make a profit in Q2 FY26?
Yes. Net profit was ₹0.72 crore, against a net loss of ₹0.44 crore in Q2 FY25.
What was Zenith Steel Pipes & Industries' EPS in Q2 FY26?
Basic earnings per share were ₹0.05, against a loss of ₹0.03 in Q2 FY25.
How did Zenith Steel Pipes & Industries shares react to the Q2 FY26 results?
On the reaction day the stock moved +1.1% from the previous close; the median Iron & Steel Products stock moved −0.2%.
When did Zenith Steel Pipes & Industries announce its Q2 FY26 results?
On 14 November 2025, in a filing to the NSE.
Sources
- Board Meeting Intimation for Consider And Approve The Unaudited Standalone And Consolidated Financial Result For The Quarter And Half Year Ended September 30, 2025 (BSE, 8 November 2025) · PDF
- Outcome of Board Meeting (NSE, 14 November 2025) · PDF
- Outcome of Board Meeting (NSE, 14 November 2025) · PDF
- Unaudited Standalone And Consolidated Financial Result For The Quarter And Half Year Ended September 30, 2025 (BSE, 15 November 2025) · PDF
How this was written: every figure in the tables and charts is calculated from the company’s filed results (XBRL) and MarketPing’s price measurements. The text is drafted with AI from those figures and the filings, and a checker removes any sentence carrying a number it cannot trace to them. How we write these.
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