Zenith Steel Pipes & Industries531845Quarterly results
Board approves Q2 results; auditor gives qualified conclusion with going-concern doubt
Board approved 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 | 1,247.03 | 1,404.10 | −11.2% | 717.74 | +73.7% |
| Total income | 1,586.68 | 2,130.97 | −25.5% | 884.07 | +79.5% |
| Profit before tax | 33.19 | 73.18 | −54.6% | 45.77 | −27.5% |
| Profit after tax | 30.75 | 71.62 | −57.1% | 43.83 | −29.8% |
| Total comprehensive income | 28.51 | 70.89 | −59.8% | 44.01 | −35.2% |
| Basic EPS | 0.02 | 0.05 | −60% | 0.03 | −33.3% |
- Total income
- Latest 1,586.68; Year ago 2,130.97 (−25.5%); Prev qtr 884.07 (+79.5%)
- Profit after tax
- Latest 30.75; Year ago 71.62 (−57.1%); Prev qtr 43.83 (−29.8%)
- Period
- 30.09.2026
Auditor's review
- Only the standalone limited review report is attached; it carries a qualified conclusion (balance confirmations, frozen bank accounts, going concern, inventory valuation, deposit non-compliance).
Notes to the results
- Net worth continues to be negative due to accumulated losses; results prepared on a going concern basis (Note 11, standalone).
- TREPL MoU to settle bank borrowings of Rs.15,894.92 lakhs; Rs.6,599.92 lakhs repaid, balance Rs.9,295.00 lakhs unpaid (Note 8, standalone).
- Provision for expenses/balances of Rs.160.25 lakhs written back and recognised in Other Income during the quarter (Note 14, standalone).
- GST demand rectified; only penalty of Rs. 0.79 lakhs remained payable, paid on 07/08/2026 (Note 12, standalone).
The board of the company met on Wednesday, 04 November 2026 and approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the Limited Review Report. The trading window for dealing in the company's securities will open after 48 hours of the results being made public.
The auditor's conclusion is qualified
The statutory auditor, Devam & Associates LLP, issued a qualified conclusion on the standalone results. The stated reasons:
- Non-compliance with Section 74 of the Companies Act and the Companies (Acceptance of Deposits) Rules, 2014, covering non-repayment of public deposits and interest, non-maintenance of prescribed liquid assets and non-compliance with Company Law Board orders. The auditor describes this as a material non-compliance that may have regulatory implications.
- Trade payables, trade receivables, loans, advances, deposits, current liabilities and borrowings are subject to reconciliation and confirmation; direct balance confirmations were not sent to the parties.
- Certain current bank accounts are non-operating and frozen; a provision of Rs. 40.99 lakhs has been made, but statements and year-end confirmations for these accounts were not available.
- Inventory of Rs. 897.98 lakhs was valued on a weighted average cost basis, but supporting documentation to verify quantities, condition and cost allocation was not provided.
- Going concern: accumulated losses have fully eroded net worth as at 30/09/2026, and the auditor states that use of the going-concern basis in preparing the statement is not adequately supported.
Emphasis of matter
The auditor also draws attention to these items
- A Memorandum of Understanding with Tribus Real Estate Private Limited (TREPL) for takeover and settlement of existing bank borrowings aggregating Rs. 15,894.92 lakhs as on 31/12/2025. Out of this, TREPL has repaid Rs. 6,599.92 lakhs to lenders/ARCs by 24/03/2026, and the balance Rs. 9,295.00 lakhs remains unpaid as on that date.
- A SEBI order dated 31/03/2021 had barred the company from accessing the securities market for three years; the appellate tribunal reduced the debarment to the period already undergone and cut the monetary penalty from Rs. 1,000.00 lakhs to Rs. 25.00 lakhs. SEBI has shared a civil appeal before the Supreme Court, admitted on 02/01/2024; the penalty amount remains unpaid as of 30/09/2026.
- A consortium of banks began SARFAESI proceedings in February 2014 for dues of Rs. 19,319.00 lakhs as on 31/01/2014 and took symbolic possession of immovable assets at the Khopoli unit. The debt has since been assigned and the matter is before the Debt Recovery Tribunal, Pune, with the next hearing scheduled for 25/02/2027.
The numbers (standalone, unaudited)
- Revenue from operations for the quarter: Rs. 1,157.91 lakhs, against Rs. 1,376.23 lakhs in the same quarter a year earlier.
- Total income for the quarter: Rs. 1,497.56 lakhs.
- Profit for the period (continuing plus discontinuing operations): Rs. 26.94 lakhs, against Rs. 56.60 lakhs a year earlier.
- For the half year, revenue from operations was Rs. 1,864.66 lakhs and profit for the period Rs. 60.06 lakhs.
- Total equity as at 30 September 2026 was (Rs. 24,669.68 lakhs), i.e. negative.
Other disclosures in the notes
- A GST demand of Rs. 1,836.95 lakhs in Form DRC-08 was challenged before the Madras High Court, which granted a stay; a rectification order dated 10/07/2026 substantially rectified the demand, leaving a penalty of Rs. 0.79 lakhs, which was paid on 07/08/2026.
- Provisions written back during the quarter and half year total Rs. 160.25 lakhs, recognised under Other Income as "Provision Written Back/Sundry Balance written back".
- On the public offer proceeds of Rs. 13,500.00 lakhs, the table of projected amounts shows balance amount to be spent of Rs. 13,289 lakhs, and there is a provision for doubtful advances of Rs. 10,925 lakhs.
- Inventory valuation for finished goods, work-in-progress and scrap is done manually from cost sheets and management estimates, not from system-generated reports; management is strengthening internal controls and system-based tracking.
- The management states it is taking strategic measures, including engagement with key suppliers and customers and evaluation of other business options, and believes the company will be able to realise its assets and discharge liabilities in the normal course of business.
1,247.03 (Rs. In Lakhs)Revenue from operations, latest quarter
Revenue from operations, standalone, quarter ended 30.09.₹1,157.91 lakh
Profit before tax, latest quarter33.19 (Rs. In Lakhs)
Profit after tax, latest quarter30.75 (Rs. In Lakhs)
Total comprehensive income, latest quarter28.51 (Rs. In Lakhs)
Also from Zenith Steel Pipes & Industries
Board meeting on 04th November, 2026 to approve September quarter and half year results
29 Oct 2026
More numbers
- Revenue from operations, standalone, quarter ended 30.09.20261,157.91
- Profit/(Loss) for the period, standalone, quarter ended 30.09.202626.94
- Provision for frozen/non-operating bank accountsRs. 40.99 lakhs
- Inventories as at 30.09.2026Rs.897.98 lakhs
- Bank borrowings under TREPL settlement MoURs.15,894.92 lakhs
- Balance amount unpaid on the MoU borrowingsRs.9,295.00 lakhs
- SEBI penalty reduced toRs.25.00 lakhs
- Total equity as at 30.09.2026 (negative)(24,669.68)
- Total income, latest quarter1,586.68 (Rs. In Lakhs)
- Total income, year-ago quarter2,130.97 (Rs. In Lakhs)
- Total income, previous quarter884.07 (Rs. In Lakhs)
- Total comprehensive income, latest quarter28.51 (Rs. In Lakhs)
- Total comprehensive income, year-ago quarter70.89 (Rs. In Lakhs)
- Total comprehensive income, previous quarter44.01 (Rs. In Lakhs)
- Profit after tax, latest quarter30.75 (Rs. In Lakhs)
- Profit after tax, year-ago quarter71.62 (Rs. In Lakhs)
- Profit after tax, previous quarter43.83 (Rs. In Lakhs)
- Revenue from operations, latest quarter1,247.03 (Rs. In Lakhs)
- Revenue from operations, year-ago quarter1,404.10 (Rs. In Lakhs)
- Revenue from operations, previous quarter717.74 (Rs. In Lakhs)
- Profit before tax, latest quarter33.19 (Rs. In Lakhs)
- Profit before tax, year-ago quarter73.18 (Rs. In Lakhs)
- Profit before tax, previous quarter45.77 (Rs. In Lakhs)
Source: BSE · 5 Nov 2026
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