Aanchal Ispat has posted a PAT of Rs 2.02 crore for FY26, signaling a recovery following its NCLT-approved resolution plan. Despite the turnaround, the company faces material uncertainty warnings from auditors regarding its 'going concern' status, primarily due to Rs 21.50 crore in unpaid resolution plan installments. Shareholders should note that recent profitability was partly bolstered by one-time bad debt recoveries. The company has successfully raised public shareholding to 25% to meet regulatory norms, but management remains focused on navigating debt obligations and volatile raw material costs.
Aanchal Ispat Posts Rs 2.02 Crore Profit in FY26
Total Revenue for FY26 stood at Rs 101.29 crore, with a Profit After Tax of Rs 2.02 crore.
Reader Takeaway: The company returned to profitability, yet auditor-flagged debt payment defaults present a significant going concern risk.
What just happened
Aanchal Ispat has released its 31st Annual Report for FY 2025-26, highlighting its first year of operations following the implementation of an NCLT-approved resolution plan. The company successfully swung from a loss of Rs 13.40 crore in FY25 to a profit of Rs 2.02 crore in the current fiscal year. EBITDA also turned positive at Rs 3.37 crore compared to a loss of Rs 4.70 crore previously.
Why this matters
This is a critical transition year. While the balance sheet shows signs of stabilization, the auditor has raised a warning regarding 'material uncertainty' related to the company's ability to continue as a going concern. A primary driver for this concern is the Rs 21.50 crore in overdue payments under the NCLT resolution plan. The management has filed an application with the NCLT to realign these payment timelines.
The backstory
Following the NCLT process effective March 27, 2025, the company underwent a major capital restructuring. Mr. Mukesh Goel became the new promoter through a preferential allotment of shares. To comply with the Minimum Public Shareholding (MPS) norms—which had dipped to 5.03%—the promoter conducted an Offer for Sale (OFS) in February 2026, successfully increasing public float to 25%.
Risks to watch
Investors must watch the NCLT proceedings closely. The company's future liquidity remains tied to successful cash flow generation and the restructuring of its debt repayment schedule. Additionally, the auditor highlighted that profitability was significantly boosted by the recovery of previously written-off debts, with Rs 1.85 crore of these recoveries lacking documented verification.
What to track next
Watch for updates on the pending NCLT application regarding debt payment timelines and any further quarterly financial disclosures that indicate whether the company can sustain operational cash flows without relying on one-time debt recoveries.