Scan Steels Posts Rs 840 Crore Revenue, Plans Major Capacity Expansion

Revenue grew to Rs 839.88 crore in FY26, while net profit stood at Rs 19.81 crore.

Reader Takeaway: Revenue growth remains steady, though dividend payouts are paused to fuel capital-intensive expansion and debt reduction.

What just happened

Scan Steels has released its standalone financial performance for FY26, showing a moderate revenue increase of 6.21% over the previous fiscal year. The company recorded a net profit of Rs 19.81 crore, resulting in an EPS of Rs 3.38. Simultaneously, management announced a strategic shift to prioritize capital expenditure over shareholder dividends, citing the need to conserve resources for modernization.

Why this matters

The company is embarking on three major expansion projects. At its Ramabhahal facility, it is setting up a 2,00,000 TPA MS Pipe and Structural Mill, supported by Rs 143 crore in funding. Additional furnace capacities are being added at the Budhakata unit, alongside a revival project at Scan Kai Ispat in Talcher. These projects are intended to scale production capacity significantly by the end of 2026.

Strategic Outlook

Management is targeting a revenue of Rs 1,200 crore for FY27. A key milestone in the company’s growth plan is its intent to list on the National Stock Exchange (NSE), which is aimed at improving stock liquidity and broadening its investor base.

Governance and Audit

The financial statements received an unmodified opinion from statutory auditors M/s. Das Pattnaik & Co. The company confirmed it remains in full compliance with corporate governance norms, and auditors reported no instances of fraud.

What to track next

Investors should monitor the timeline for the commercial production at the Ramabhahal mill and the progress of the NSE listing application. The ability of the company to manage debt servicing while executing its Rs 364 crore (approximate total project costs) expansion plan will be crucial for long-term margin stability.