Summary: Steel Exchange India reported a 296% YoY rise in net profit for Q1 FY26, supported by higher income and improved margins. Strategic approvals and a logistics subsidiary boosted sentiment, pushing the stock up 4% and 39.45% in 3 months.
Metal stocks rebounded on Monday, with the Nifty Metal index rising, and the momentum has continued on Tuesday as well.
So far in 2025, the Nifty Metal index has risen 7%, outperforming the Nifty 50, which is up 4.2% year-to-date.
Steel Exchange India Limited, a leading integrated steel manufacturer in South India and the company behind the trusted ‘SIMHADRI TMT’ brand, announced its unaudited standalone financial results for the first quarter of fiscal year 2026 (Q1 FY26) on August 4, 2025.
The financial highlights for Q1FY26 showed strong growth across key parameters. The company reported a Total Income of ₹304.95 crore, marking a 14.53% year-on-year (YoY) increase compared to Q1 FY25. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) stood at ₹36.35 crore, reflecting a significant 32.66% YoY growth. The EBITDA margin improved by 163 basis points (BPS), reaching 11.92% in Q1 FY26 from 10.29% in Q1 FY25.
Most notably, Steel Exchange India Limited posted a Net Profit of ₹10.23 crore, an impressive 296.30% YoY surge. The Net Profit margin also saw a substantial improvement of 238 BPS, climbing to 3.35% in Q1 FY26 from 0.97% in Q1 FY25.
Beyond the financial figures, Steel Exchange India highlighted several recent business achievements. Their ‘SIMHADRI TMT’ rebars received approvals for two major port projects in Andhra Pradesh: Machilipatnam, managed by Megha Engineering, and Mulapeta, a Vishwa Samudra JV.
Furthermore, on June 29, 2025, the company incorporated a wholly owned subsidiary, SEIL Infra Logistics Ltd, aiming to unlock value from non-core assets and sharpen focus on infrastructure and logistics. A significant contract was also secured from RINL, valued at up to ₹210 crore, for the conversion of 1.2 LTPA (lakh tonnes per annum) billets into Vizag Steel TMT rebars.
The momentum seen in the first quarter is attributed to growing demand for SIMHADRI TMT products and a focus on operational efficiency. Approvals for key infrastructure projects reaffirmed brand strength and quality trust, while strategic initiatives like the infra-logistics subsidiary are expected to unlock further value, leaving the company optimistic about building on this foundation throughout the year.
On August 4, 2025, the Board of Directors of Steel Exchange India Limited discussed a proposal to raise funds through a rights issue of fully paid-up equity shares. The proposed amount for the issue was capped at ₹150 crore.
The Board recommended a detailed reassessment of the company's funding needs and decided to defer the rights issue proposal. The matter will be revisited in a future Board meeting.
On Tuesday, Steel Exchange India share price jumped over 4% after posting its Q1FY26 results. As of 11:22 am, the stock price was trading at its day high of ₹10.84, up by 4.03%.
In the last 3 months, the stock has seen a surge of 39.45%.
Disclaimer: The article is for informational purposes only and not investment advice.
For android only