Aanchal Ispat plans to raise up to ₹15 crore via a rights issue to meet NCLT resolution plan obligations. The company reported a turnaround to a ₹2.02 crore profit in FY26 after a FY25 loss.
Aanchal Ispat Plans ₹15 Crore Rights Issue Post NCLT Restructuring
₹2.02 crore profit in FY26 after ₹13.40 crore loss in FY25
Revenue down 34.65% in FY26 to ₹98.76 crore
Reader Takeaway: Rights issue aims to fund NCLT plan, profit turnaround is positive, but revenue decline and concentration risks remain.
What just happened
Aanchal Ispat Limited has announced a draft Letter of Offer for a rights issue aimed at raising up to ₹15.00 crore. The primary purpose of this fundraising is to meet obligations outlined in its resolution plan, which was approved by the National Company Law Tribunal (NCLT) in March 2025. Funds will be used for payments to secured financial creditors and operational needs.
Why this matters
This rights issue is crucial for Aanchal Ispat as it seeks to fulfill commitments made under its NCLT-approved resolution plan, signalling a step towards financial stability post-restructuring. Simultaneously, the company has shown a significant financial turnaround, reporting a net profit of ₹2.02 crore in Fiscal Year 2026, a marked improvement from a net loss of ₹13.40 crore in Fiscal Year 2025. This profit, coupled with a positive basic Earnings Per Share (EPS) of ₹7.13 against a previous year's loss of ₹(6.43), indicates operational recovery.
The backstory
The company underwent a corporate insolvency resolution process, culminating in the NCLT's approval of a resolution plan in March 2025. The financial figures for FY2026 reflect the initial phase of operations post-restructuring. However, the company's revenue saw a substantial contraction of 34.65% in FY2026, dropping to ₹98.76 crore from ₹151.13 crore in FY2025.
What changes now
The rights issue will provide the necessary capital to meet immediate financial obligations. The profit reported for FY2026 suggests a positive trajectory, but the company's capacity utilization remains low at 35.63% for its Howrah facility, which has an installed capacity of 9,000 MT per annum. Actual production was 31,714 MT in FY2026.
Risks to watch
The company faces geographical concentration risk, with 98.41% of its FY2026 revenue generated from West Bengal. It also operates on a purchase order-based model, leading to low revenue predictability. Compliance with the NCLT resolution plan is a critical watch point, as failure could lead to liquidation. The low capacity utilization at its single manufacturing facility is another concern.
Context metrics (time-bound)
As of Fiscal Year 2026, Aanchal Ispat's aggregate capacity utilization was 35.63%. Revenue in FY2026 stood at ₹98.76 crore, a decrease of 34.65% from FY2025's ₹151.13 crore. The company reported a profit of ₹2.02 crore in FY2026, compared to a loss of ₹13.40 crore in FY2025.
What to track next
Investors should monitor the successful completion of the rights issue and the effective deployment of funds towards NCLT obligations. Tracking the company's ability to increase capacity utilization, improve revenue predictability, and maintain compliance with the resolution plan will be key to its future stability and growth.