Aanchal Ispat Reports ₹1.19 Cr Profit in Q4 FY26, Board Approves ₹10 Cr QIP Raise

Aanchal Ispat Limited's Board of Directors has approved the company's audited financial results for the fiscal year ending March 31, 2026. The company reported a Profit After Tax (PAT) of ₹1.19 crore for the fourth quarter (Q4 FY26), on revenue of ₹38.37 crore. For the full fiscal year FY26, Aanchal Ispat posted a PAT of ₹2.02 crore on revenue of ₹98.76 crore. The Board also approved a plan to raise up to ₹10 crore through a Qualified Institutions Placement (QIP), subject to shareholder and regulatory approvals.

This proposed QIP aims to provide fresh capital, supporting operations and growth as the company emerges from its revival phase. These audited results are the first released since Aanchal Ispat's trading resumed on December 17, 2025, following the approval of its Corporate Insolvency Resolution Process (CIRP) plan.

Aanchal Ispat operates in the steel and iron products sector, producing TMT re-bars and structural steel. The company underwent significant financial restructuring after entering CIRP on September 12, 2023. Its resolution plan, submitted by Mr. Mukesh Goel and approved by the National Company Law Tribunal (NCLT) on March 27, 2025, followed a period where its pre-insolvency net worth was negative. The company also approved a name change to Montera Limited in January 2026, pending final approvals.

Shareholders are set to vote on the proposed ₹10 crore QIP at an Extra-Ordinary General Meeting (EGM) on May 23, 2026. The company will also seek necessary regulatory approvals for the QIP, which could provide vital working capital or funds for growth. Aanchal Ispat remains focused on implementing its NCLT-approved resolution plan, although a delay in the first installment payment is currently awaiting adjudication.

Key Risks and Auditor Concerns

• Declining Net Worth and Resolution Plan Dependence: Auditors noted a declining net worth over five years, driven by operational losses and limited cash generation. The company's ability to continue as a going concern depends on the successful implementation of its resolution plan.
• Profit Driven by Non-Recurring Items: The reported profit was significantly influenced by recoveries from bad debts. This suggests the profit may not reflect the company's underlying operational performance.
• Trade Receivables Valuation: The company has not recognized Expected Credit Loss (ECL) on trade receivables, relying on management's judgment despite some long-outstanding amounts. This judgment-based assessment carries inherent uncertainty.
• Asset Valuation Uncertainty: Management's assessment of Property, Plant, and Equipment (PPE) recoverability also relies on judgment, without a formal impairment test, even though potential impairment indicators exist.
• Operational and Compliance Gaps: During the financial year ending March 31, 2025, the company operated without a Company Secretary and CFO, which could have affected regulatory compliance and internal controls.
• Past Regulatory Issues: BSE had previously imposed penalties for disclosure delays during CIRP, though a waiver was later granted.

Market Context

Aanchal Ispat competes in India's steel and iron products sector, an area dominated by larger integrated companies such as JSW Steel, Tata Steel, and Shyam Metalics. While these major players leverage economies of scale and diversified operations, Aanchal Ispat is focused on operational revival and capital infusion following its CIRP. Other segment players include MSP Steel & Power and Mukand Ltd., each navigating distinct market conditions and operational hurdles.

Key Financial Figures

• FY26 Standalone Revenue: ₹98.76 crore
• FY26 Standalone PAT: ₹2.02 crore
• Q4 FY26 Standalone Revenue: ₹38.37 crore
• Q4 FY26 Standalone PAT: ₹1.19 crore

Looking Ahead

• The outcome of the EGM on May 23, 2026, regarding QIP and other approvals.
• Securing necessary shareholder and regulatory approvals for the ₹10 crore QIP.
• Aanchal Ispat's success in implementing its resolution plan and managing cash flow, especially in light of auditor observations.
• Developments on the NCLT adjudication concerning the delayed first installment payment of the resolution plan.
• Future financial results that show sustainable operational profitability, moving beyond reliance on one-off income.