Shah Alloys Limited reports audited Standalone Financial Results for FY2026, notes major asset sales and bank settlement

Shah Alloys Limited reports audited Standalone Financial Results for FY2026, notes major asset sales and bank settlement​

Shah Alloys Limited has released the audited Standalone Financial Results for the quarter and financial year ended March 31, 2026. The results include significant operational transactions such as the sale of multiple assets and a substantial settlement agreement with HDFC Bank. Furthermore, the company appointed M/s G MCA & Co., Chartered Accountants, as its Internal Auditor for the Financial Year 2026-27.

The management noted that the Standalone financial results were reviewed by the Audit Committee and approved in the Board meeting held on May 30, 2026. The company also reported a correction to the Consolidated Independent Auditor's Report regarding a clerical error in the report submitted earlier.

Financial Highlights and Operational Events​

The audited reports revealed several exceptional items and major operational shifts during the year ending March 31, 2026:

• Asset Sales: The company recorded the sale of its 16-inch Rolling Mill Plant for a consideration of Rs 1700.00 lakhs, yielding a profit of Rs 1691.53 lakhs, which was recognized as an Exceptional Item. Additionally, the sale of Plant and Machinery (including Capital Work in Progress) along with technical know-how and technology transfer resulted in a gain of Rs 5347.68 lakhs, also classified as an Exceptional Item in the Statement of Profit and Loss.
• Disinvestment: A realized gain of Rs 1398.41 lakhs was recognized as an Exceptional Item following the disinvestment in shares of its associate, SAL Steel Limited, through a share purchase agreement dated September 04, 25.
• Bank Settlement: On January 27, 2026, the company entered into a settlement agreement with HDFC Bank concerning various facilities and assistance. This agreement stipulated payment of Rs 1800.00 lacs against total liability (Principal and Interest) of Rs 2523.77 lacs, resulting in a waiver of principal and interest amounting to Rs 723.77 lacs, which was recorded as income under Exceptional Items.

Corporate Governance and Audit Findings​

The auditor's report highlighted several key matters concerning the company's operations and financial health:

• Plant Closure: The audit noted that the company had declared the closure of its existing Iron and Steel plant, located at Santej, Tal Kalol, Dist Gandhinagar. This plant has been shut down since August 2025 due to technology obsolescence and increasing production costs, leading to persistent losses over several years.
• Going Concern: In view of the operational status, the auditors stated they were unable to give an opinion on the "going concern" status. However, as per management's representation that the company is exploring options in the best interest of stakeholders, accounts were prepared on a 'going concern' basis without making provision for asset impairment.
• Audit Completion: The reports confirm the appointment of M/s G MCA & Co., Chartered Accountants (Firm Registration No: 109850W) as Internal Auditor for FY 2026-27 and provide details regarding their appointment on May 30, 2026.

Financial Position Summary​

The company's financial status, as of March 31, 2026, showed specific figures across various categories, as detailed in the reported Standalone Assets and Liabilities statement:


Note: The provided source material contains detailed financial data across multiple statements (Standalone, Consolidated, and Cash Flow) as well as the operational details of asset sales and bank settlement. All figures have been preserved exactly as presented in the original documents.

SHAHALLOYS Stock Price Movement​

On Friday, Shah Alloys Limited shares edged higher to settle at ₹67.76, posting a solid 2.16% gain and climbing by ₹1.44 in the market session. The company’s equity recorded a total traded volume of 1,359 shares during the day.