Electrotherm (India)526608Quarterly results
Board approves Q2 results; standalone net loss Rs. 20.06 crore, auditor flags unprovided interest
Board meeting on 04 November 2026 approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026.
By ScoutQuest · · 3 min read
| Line item | Latest | Year ago | YoY | Prev qtr | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 912.43 | 814.26 | +12.1% | 913.38 | −0.1% |
| Total income | 913.32 | 815.61 | +12% | 914.89 | −0.2% |
| Profit before tax | (27.37) | (28.49) | +3.9% | 8.81 | — |
| Profit after tax | (19.97) | (21.62) | +7.6% | 6.93 | — |
| Total comprehensive income | (19.84) | (23.01) | +13.8% | 7.07 | — |
| Basic EPS | (15.67) | (16.97) | +7.7% | 5.44 | — |
- Total income YoY change
- +12%
- Period
- Quarter Ended 30-09-26 Unaudited
Also decided at the meeting
- Approved variation of powers of Mr. Shailesh Bhandari (DIN: 00058866), MD designated as Executive Vice Chairman, w.e.f. 04th November, 2026 for his term upto 31st January, 2031, subject to shareholder approval.
- Approved Postal Ballot Notice seeking Members' special resolution for the variation of powers; appointed Mr. Arvind Gaudana (or failing him Mr. Bhavya Gaudana) of Gaudana & Gaudana as scrutinizer.
Auditor's review
Conclusion: Qualified
- Qualification for non-provision of interest on NPA loans: group net loss for the quarter understated by Rs 52.42 crore and half year by Rs 103.32 crore; liabilities understated by Rs 1499.29 Crores.
- Only the standalone review report is attached; it is qualified (interest of Rs 41.70 Crore for the quarter not provided) with emphasis on Notes 3(a)-(c), 5, 6 and 7.
Notes to the results
- Interest of approx. Rs 52.42 crore (quarter) and Rs 103.32 Crore (half year) on NPA loans not provided; loan liabilities and retained losses understated by Rs 1499.29 Crores.
- Parent defaulted on Invent ARC loan instalments of Rs. 56.00 crore and interest of Rs. 3.81 crore; Edelweiss ARC instalment of Rs. 15.79 Crores under extension request.
- DRT allowed Invent ARC's application against subsidiary Hans Ispat Ltd for Rs. 110.36 Crores with 11% simple interest; reversal of interest of Rs 11.67 Crore for the half year.
- Going concern of JV Bhaskarpara Coal, subsidiary Shree Ram Electro Cast and Hans Ispat affected by coal block de-allocation and lender asset auctions.
Results at a glance
The board met on 04 November 2026 and approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026.
Standalone, quarter ended 30 September 2026
- Revenue from operations: Rs. 912.43 crore, against Rs. 814.26 crore in the same quarter a year earlier.
- Profit/(Loss) after tax: a loss of Rs. 20.06 crore, against a loss of Rs. 21.71 crore a year earlier.
Standalone, half year ended 30 September 2026
- Revenue from operations: Rs. 1,825.81 crore, against Rs. 1,648.31 crore a year earlier.
- Net Profit/(Loss) after tax: a loss of Rs. 13.20 crore, against a profit of Rs. 5.97 crore a year earlier.
Consolidated, quarter ended 30 September 2026
- Revenue from operations: Rs. 912.43 crore.
- Net Profit/(Loss) after tax: a loss of Rs. 19.97 crore; for the half year the consolidated net loss after tax is Rs. 13.04 crore.
Auditor's review conclusion
The limited review report from Hitesh Prakash Shah & Co carries a qualified conclusion. The auditor states that interest has not been provided on a loan account which the banks classify as a non-performing asset: about Rs. 41.70 crore for the quarter and Rs. 82.16 crore for the half year, with total unprovided interest till date of Rs. 1148.28 crore.
- As a result, per the auditor, the net loss for the quarter is understated by Rs. 41.70 crore and the half-year net loss by Rs. 82.16 crore.
- The Asset Reconstruction Company liability and total retained earnings as on 30 September 2026 are stated to be understated by Rs. 1148.28 crore on this account.
What else the board decided
- Variation of powers of Mr. Shailesh Bhandari (DIN: 00058866), Managing Director designated as Executive Vice Chairman, with effect from 04 November 2026 during his current term, i.e. upto 31 January 2031, subject to approval of shareholders.
- A postal ballot notice is being sent to members for approval of that variation of powers by Special Resolution.
- Mr. Arvind Gaudana / Mr. Bhavya Gaudana, Practising Company Secretaries, were appointed to act as scrutinizer for the postal ballot.
What the notes to the results record
- The company states it defaulted in payment of loan installments amounting to Rs. 56.00 crore from the quarter ended 30 September 2025 onwards till 30 September 2026, with related interest of Rs. 3.81 crore, and is in discussion with Invent Asset Securitization and Reconstruction Private Limited for rescheduling; management expects no further liability on this.
- It has requested Edelweiss Asset Reconstruction Company Ltd for extended time for the last installment of Rs. 15.79 crore.
- On the Indian Overseas Bank loan, classified as a non-performing asset in August 2011 for a defaulted amount of Rs. 189.96 crore, the Debt Recovery Tribunal, Ahmedabad has passed a judgment for recovery, with future interest at 12.75% per annum with monthly rests.
- The Enforcement Directorate, by a provisional attachment order dated 25 September 2026, has provisionally attached Rs. 25.08 crore lying in two bank accounts of the company, along with equity shares of the company held by the promoters; the matter is pending before the Hon'ble Gujarat High Court.
- A petition before the NCLT, Ahmedabad was allowed by order dated 21 July 2026, permitting issue and allotment of 1,09,50,000 6% Non-Cumulative Redeemable Preference Shares of Rs. 10 each to five existing preference shareholders in lieu of unredeemable preference shares aggregating Rs. 10.95 crore.
Where the balance sheet stands (standalone)
- Total assets: Rs. 2,164.85 crore as at 30 September 2026, against Rs. 1,991.48 crore as at 31 March 2026.
- Total equity: negative Rs. 112.27 crore as at 30 September 2026.
- Short term borrowings: Rs. 983.06 crore as at 30 September 2026.
The overall takeaway for a reader: the numbers show a company reporting operating revenue growth but a loss at the profit line, a qualified auditor conclusion over interest not provided on a bad loan, and notes listing loan defaults and a provisional attachment order. The board also moved on a senior management role change that needs shareholder approval.
913.38 (Rs. In Crores)Revenue from operations, quarter
Total income, latest quarter913.32 (Rs. In Crores)
Total comprehensive income, quarter7.07 (Rs. In Crores)
Also from Electrotherm (India)
Board approves variation of powers of Managing Director Shailesh Bhandari as Executive Vice Chairman
4 Nov 2026
Default disclosed on term loan and working capital loan owing to Invent ARC
29 Oct 2026
Board meeting on 04 November 2026 to consider unaudited standalone and consolidated results
24 Oct 2026
More numbers
- Standalone Revenue from operations, quarter ended 30-09-2026912.43 (Rs. In Crores)
- Standalone Net Profit/(Loss) after tax, quarter ended 30-09-2026(20.06) (Rs. In Crores)
- Standalone Revenue from operations, half year ended 30-09-20261,825.81 (Rs. In Crores)
- Consolidated Net Profit/(Loss) after tax, quarter ended 30-09-2026(19.97) (Rs. In Crores)
- Unprovided interest on NPA loan account, quarterRs 41.70 Crore
- Unprovided interest on NPA loan account, half yearRs 82.16 Crore
- Total unprovided interest till dateRs 1148.28 Crore
- Default in payment of loan installmentsRs. 56.00 crore
- Total income, latest quarter913.32 (Rs. In Crores)
- Total income, year-ago quarter815.61 (Rs. In Crores)
- Total income, previous quarter914.89 (Rs. In Crores)
- Total comprehensive income, latest quarter(19.84) (Rs. In Crores)
- Total comprehensive income, year-ago quarter(23.01) (Rs. In Crores)
- Total comprehensive income, previous quarter7.07 (Rs. In Crores)
- Profit after tax, latest quarter(19.97) (Rs. In Crores)
- Profit after tax, year-ago quarter(21.62) (Rs. In Crores)
- Profit after tax, previous quarter6.93 (Rs. In Crores)
- Revenue from operations, latest quarter912.43 (Rs. In Crores)
- Revenue from operations, year-ago quarter814.26 (Rs. In Crores)
- Revenue from operations, previous quarter913.38 (Rs. In Crores)
- Profit before tax, latest quarter(27.37) (Rs. In Crores)
- Profit before tax, year-ago quarter(28.49) (Rs. In Crores)
- Profit before tax, previous quarter8.81 (Rs. In Crores)
Source: BSE · 4 Nov 2026
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