Steelco Gujarat has officially restarted operations following its Corporate Insolvency Resolution Process, recording Rs 58.53 crore in revenue for FY 2025-26. While the company successfully raised Rs 160 crore via NCDs and completed a rights issue, it reported a widened net loss of Rs 37.27 crore, largely due to high restart-related finance and administrative expenses. Investors should track capacity utilization and debt servicing costs as the firm attempts to stabilize its business.
Steelco Gujarat FY26: A Transition Year
Revenue: Rs 58.53 Cr | Net Loss: Rs 37.27 Cr
Reader Takeaway: Revenue growth confirms operational revival, but rising finance costs and widened losses reflect significant recovery challenges.
What just happened
Steelco Gujarat has released its Annual Report for FY 2025-26, marking its first full year of operations following the Corporate Insolvency Resolution Process (CIRP). The company successfully commissioned commercial production on July 14, 2025. Financial performance highlights include a significant rise in revenue to Rs 58.53 crore compared to Rs 4.18 crore in the previous year. However, the company posted a net loss of Rs 37.27 crore, up from Rs 20.54 crore in the prior fiscal period.
Why this matters
The jump in revenue signals that the company is effectively transitioning from non-operational status to active production. However, the increase in loss indicates that the cost of restarting—specifically higher finance costs, employee benefits, and administration expenses—is exerting pressure on the bottom line. The company's future hinges on its ability to ramp up capacity and improve margins.
Financial Restructuring
To stabilize the balance sheet, Steelco Gujarat engaged in significant capital activity during the year:
- Debt Financing: In January 2026, the company issued 16,000 Secured, Listed, Non-Convertible Debentures (NCDs) worth Rs 160 crore to India Resurgence Asset Management Business Pvt. Ltd.
- Equity Capital: In June 2026, a rights issue of 13,30,060 shares was completed at Rs 112 per share to meet Minimum Public Shareholding requirements.
Governance and Auditors
The board has seen structural changes, including the appointment of Mr. Sudeep Saxena as an Additional and Independent Director. Additionally, the company appointed M/s. T R Chadha & Co. LLP as the new Statutory Auditor following the resignation of M/s. M Sahu & Co.
Risks to watch
Brickwork Ratings has assigned a BWR B+ / Negative rating to the company’s NCDs as of March 31, 2026. The negative outlook underscores the financial strain of the ongoing restart phase. Investors should closely watch how the firm manages its debt obligations and whether revenue growth can outpace the rising operational and interest costs.