Shri Hare-Krishna Sponge Iron Limited Announces Financial Results with Qualified Audit Opinion
Shri Hare-Krishna Sponge Iron Limited disclosed the outcome of its Board Meeting held on May 29, 2026, confirming the approval of the Audited Financial Statements for the half and full year ended March 31, 2026. The company also provided details on the utilization of proceeds raised during its Initial Public Offering (IPO).The company's financial performance details are available for the half and full year ended March 31, 2026, showing key metrics such as Total Income and Profit/Loss.
Financial Performance Highlights
The audited results for the half and full year ended March 31, 2026, presented the following summary data (in Rs lakhs, unless stated otherwise):| Particulars | Half Year Ended 31.03.2026 | Full Year Ended 31.03.2026 | Half Year Ended 31.03.2025 | Full Year Ended 31.03.2025 |
|---|---|---|---|---|
| Revenue from Operations | 2,128 | 6,866.41 | 394.29 | 8,047.00 |
| Total Income | 288.47 | 658.73 | 210.26 | 536.00 |
| Profit/ (Loss) for the year | 553 | 19,925.15 | 18,972.67 | 19,925.15 |
| Earnings per Equity Share (Basic) | 0.10 | 3.63 | 0.27 | 6.51 |
Qualified Audit Opinion Issued
The independent auditor issued a Qualified Opinion on the Financial Results for the half and full year ended March 31, 2026.The basis for the qualification relates to the non-assessment of the impact of the newly notified Labour Codes by the Government of India. These codes, which include the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020, aim to consolidate and replace existing multiple labour legislations.
The auditors were unable to obtain sufficient appropriate audit evidence to quantify the financial impact of these legislative changes, as the company had not maintained any working estimates or assessments in this regard.
Operational Updates and IPO Utilization
The auditor's report also highlighted several matters requiring attention, including:- Captive Power Plant Delay: A temporary delay in the completion and commercial production of the company's captive power plant at its existing manufacturing facility. This delay is attributed to operational and external factors, such as challenges in procuring LPG and disruptions in logistics.
- Kiln Operations Suspension: The company's kiln operations were temporarily suspended during the year due to integration work between the kiln and the waste heat recovery boiler of the Captive Power Plant.
- Non-current Investments: Note 1 draws attention to the provision for diminution in the value of non-current investments in an LLP.
Regarding the utilization of the funds raised through the Initial Public Offering, the company confirmed that there was no deviation in the usage of proceeds as of March 31, 2026. The total amount raised was Rs. 2,991.30 Lakhs.
The detailed utilization status is provided in the table below:
| Object of Fund Raising | Amount Disclosed in Offer Document | Actual Utilised Amount | Unutilised Amount |
|---|---|---|---|
| Funding of Captive Power Plant Capex | Rs. 2,300.00 lakhs | Rs. 1,874.59 lakhs | Rs. 425.41 lakhs |
| General Corporate Purpose | Rs. 326.72 lakhs | Rs. 326.05 lakhs | Rs. 0.67 lakhs |
| Issue related expenses in relation to Issue | Rs. 364.58 lakhs | Rs. 364.58 lakhs | Rs. 0 |
| Total | Rs. 2,991.30 lakhs | Rs. 2,565.22 lakhs | Rs. 426.08 lakhs |
The Board of Directors confirmed that the company is primarily engaged in the manufacturing and selling of Sponge Iron. The company's financial reports cover the period ended March 31, 2026.
SHKSIL Stock Price Movement
Today, Shri Hare-Krishna Sponge Iron Limited shares edged higher, closing at ₹43.9 after rallying 6.42% from previous levels. The stock saw a total traded volume of 4,000 shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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