Shah Alloys Reports Rs 35.76 Crore Profit Despite Plant Closure, Sells Rolling Mill for Rs 1,700 Crore

Shah Alloys Limited posted a standalone net profit of Rs 35.76 crore for the quarter ended September 30, 2025, driven by an exceptional gain of Rs 16.92 crore from selling its 16-inch Rolling Mill Plant for Rs 1,700 lakhs. The company shut down its Iron and Steel plant in August 2025 due to technology obsolescence and rising production costs, raising concerns about its going concern status among auditors.

Shah Alloys Divests Stake in Associate Company S.A.L Steel Limited to Sree Metaliks

Shah Alloys Limited approved the divestment of its equity shareholding in associate company S.A.L Steel Limited. The company will sell 3,02,56,989 equity shares of face value ₹10 each to Sree Metaliks Limited through a Share Purchase Agreement dated September 04, 2025. The transaction will result in Sree Metaliks being classified as the new promoter of S.A.L Steel Limited, while existing promoters will be reclassified as public shareholders. Additionally, the board appointed Shri Rajnikant Amrutlal Vyas as Additional Director designated as Whole-time Director with effect from September 04, 2025, for a period of 5 years subject to shareholder approval. Vyas brings over 25 years of experience in sales, marketing, and operations management. The board also approved the notice for the 35th Annual General Meeting to be held on September 26, 2025, through video conferencing.

Shah Alloys Appoints Independent Director, Shuts Down Iron & Steel Plant Operations

Shah Alloys Ltd appointed Smt Nipa Jairaj Shah as Additional Non-Executive Independent Director for five years, effective August 14, 2025, subject to shareholder approval. The company also approved continuation of Shri Ashok Sharma as Whole Time Director despite reaching 70 years of age. The Board approved the 35th Annual General Meeting scheduled for September 26, 2025. The company declared closure of its Iron and Steel plant at Santej, Gujarat by end of August 2025 due to technology obsolescence and higher production costs causing persistent losses. For the quarter ended June 30, 2025, the company reported a net loss of Rs 2.83 crores compared to Rs 19.36 crores loss in the previous year quarter. Revenue from operations was Rs 23.64 crores versus Rs 29.76 crores in the corresponding previous quarter. The auditors expressed concerns about the company's going concern status due to the plant closure.