All-Time High Re-Bar Production, ~₹102 Cr Debt Reduction, Two-Notch Credit Upgrade to IVR BBB+/Stable, Long-Term NMDC Iron Ore Tie-Up, Amaravati & Defence Approvals, and PLI Specialty Steel Diversification

Visakhapatnam: Steel Exchange India Limited (NSE: STEELXIND, BSE: 534748), one of South India’s premier integrated steel manufacturers, announced its standalone unaudited financial results for the second quarter and first half ended September 30, 2026, as approved by its Board of Directors today. The results reflect a significant improvement in profitability, marked by substantial growth in quarterly and half-yearly net profits, higher EBITDA, and an increase in overall income, supported by continued focus on operational performance and cost management.

Key Standalone Financial Highlights

Q2 FY27 vs Q2 FY26

  • Total Income rose 47.42% YoY to ₹343.35 Cr in Q2 FY27, from ₹232.91 Cr in Q2 FY26.
  • EBITDA grew 33.50% YoY to ₹38.21 Cr, up from ₹28.62 Cr.
  • PAT increased 734.09% YoY to ₹17.62 Cr, compared with ₹2.11 Cr in Q2 FY26.
  • PAT Margin expanded by 423 bps to 5.13%, from 0.91% in Q2 FY26.

H1 FY27 vs H1 FY26

  • Total Income rose 14.17% YoY to ₹614.06 Cr in H1 FY27, from ₹537.86 Cr in H1 FY26.
  • EBITDA grew 13.05% YoY to ₹73.45 Cr, up from ₹64.97 Cr.
  • PAT increased 164.54% YoY to ₹32.65 Cr, compared with ₹12.34 Cr in H1 FY26.
  • PAT Margin expanded by 302 bps to 5.32%, from 2.29% in H1 FY26.

Key Operational & Financial Highlights

PAT up 8.3x YoY: Net Profit rose 734% YoY to ₹17.62 Cr in Q2 FY27 from ₹2.11 Cr in Q2 FY26, driven by operating leverage and lower finance costs, with net profit margin expanding 423 bps to 5.13%.

Total Income up 47% YoY: Total Income grew 47% YoY and 27% QoQ to ₹343.35 Cr in Q2 FY27, supported by strong demand and higher volume off-take.

Highest-ever quarterly Re-Bar output: Achieved all-time high quarterly Re-Bar production of 69,617 MT in Q2 FY27, with consecutive monthly records in August 2026 (24,824 MT) and September 2026 (25,095 MT).

Upgraded Reheating Furnace: The upgraded Reheating Furnace is now operational, adding ~27% to monthly rolling capacity.

Two-notch credit rating upgrade: Infomerics upgraded the long-term rating by two notches from IVR BBB-/Stable to IVR BBB+/Stable and the short-term rating from IVR A3 to IVR A2. The NCD rating was also upgraded to IVR BBB+/Stable. The upgrade is expected to lower the Company’s cost of borrowing.

Balance sheet deleveraging: Reduced total debt by ~₹102 Cr since December 2025 (~30% of total debt), including a further ₹16 Cr repaid during the quarter. Finance costs fell 27% YoY to ₹14.11 Cr.

Capital infusion via equity & warrants: Strengthened the equity base through preferential allotment and the conversion of 8,04,23,279 warrants into equity shares, approved by the Board on November 04, 2026, providing growth capital for brownfield capacity optimisation and working capital.

Iron ore supply security via NMDC: Signed a long-term MoU with NMDC Limited for iron ore (Fe 61–63%+ grade) from NMDC’s upcoming Visakhapatnam stockpile, securing raw material supply, reducing logistics costs and helping protect margins against price volatility.

Amaravati & defence approvals: SIMHADRI TMT received approval for use in Amaravati Capital City construction, and the Company’s empanelment with Military Engineer Services (MES), Ministry of Defence, was renewed for five years, providing long-term order visibility.

PLI specialty steel diversification: Advancing its planned diversification into value-added specialty steels under the Central Government’s Production Linked Incentive (PLI) Scheme, supporting import substitution and higher-margin growth.

Commenting on the financial performance, the management of the Company said: Q2 FY27 has delivered a structural profitability breakthrough for Steel Exchange India. Our Net Profit has risen over 8-fold to ₹17.62 Cr from ₹2.11 Cr in the prior-year period, demonstrating how our operational debottlenecking and financial restructuring are translating directly into bottom-line earnings. Total Income grew 47% YoY to ₹343 Cr, backed by our highest-ever quarterly Re-Bar production of nearly 70,000 MT following the commissioning of our new Reheating Furnace. By reducing debt by ~₹102 Cr since December 2025 and infusing growth capital, we secured a two-notch credit rating upgrade to IVR BBB+/Stable, while our finance costs declined 27% YoY.

With long-term raw material security through our MoU with NMDC, approval of SIMHADRI TMT for Amaravati Capital City infrastructure, and the renewal of our 5-year MES defence empanelment, SEIL has strong multi-year demand visibility. As we advance into high-margin specialty steels under the Government’s PLI scheme, we remain on track for sustainable, high return growth for all our shareholders.”