Riddhi Steel and Tube Q2 Performance Declines

Revenue: Rs 137.09 Crore | Net Profit: Rs 3.54 Crore

Reader Takeaway: Significant revenue and profit contraction coupled with negative operating cash flow and rising debt levels impact sentiment.

What just happened

Riddhi Steel and Tube Limited released its unaudited financial results for the half-year ended September 30, 2026. The company reported a significant contraction across key financial metrics compared to the same period last year. Revenue from operations fell to Rs 137.09 crore from Rs 246.80 crore. Net profit after tax (PAT) followed a similar trend, dropping to Rs 3.54 crore from Rs 6.08 crore. Basic Earnings Per Share (EPS) declined to Rs 2.84, down from Rs 7.34 in the previous corresponding period.

Why this matters

The results highlight a challenging business environment for the company. A nearly 45% decline in revenue indicates cooling demand or operational hurdles. Furthermore, the company recorded a negative net cash flow from operating activities of Rs 17.27 crore, which typically signals liquidity pressure. Shareholders should also note the rise in long-term borrowings, which grew to Rs 69.73 crore as of September 30, 2026, compared to Rs 44.85 crore in March 2026.

Auditor Appointments

As part of its governance, the Board approved the appointment of new auditors for the 2026-27 financial year. M/s. G R Shah & Associates have been appointed as the Secretarial Auditor, and M/s. C. P. Shah & Associates have been named as the Internal Auditor, both effective from November 4, 2026.

Risks to watch

The combination of lower profitability, negative cash flows, and expanding debt levels suggests a tightening margin of safety. Investors should closely monitor how the management plans to improve cash conversion cycles and deleverage its balance sheet in the coming quarters.