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Jayaswal Neco Industries Ltd

| Audited Financial Results for Q4 and Year Ended March 31, 2026

Report Source

⬤24th Apr 26

Summary : Jayaswal Neco Industries plans significant capacity expansion via preferential issue, with clean audit and resolved past legal issues.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Cost of Materials Consumed: INR 265,039 Lakhs (FY26).
  2. Employee Benefits Expense: INR 38,737 Lakhs (FY26).
  3. Finance Costs: INR 42,622 Lakhs (FY26).
  4. Depreciation and Amortisation Expense: INR 30,096 Lakhs (FY26).
  5. Other Expenses: INR 262,757 Lakhs (FY26).
  6. Revenue from Operations: INR 713,182 Lakhs (FY26).
  7. Other Income: INR 1,313 Lakhs (FY26).
  8. Segment Revenue: Steel (INR 664,301 Lakhs), Iron & Steel Castings (INR 52,043 Lakhs), Others (INR 1,051 Lakhs) for FY26.
  9. Net Cash Flow from Operating Activities: INR 136,744 Lakhs (FY26).
  10. Net Cash Used in Investing Activities: (INR 11,286) Lakhs (FY26).
  11. Net Cash Used in Financing Activities: (INR 128,429) Lakhs (FY26).
  12. Total Assets: INR 597,014 Lakhs (as of March 31, 2026).
  13. Equity Share Capital: INR 97,099 Lakhs (as of March 31, 2026).
  14. Other Equity: INR 187,037 Lakhs (as of March 31, 2026).
  15. Non-Current Borrowings: INR 131,180 Lakhs (as of March 31, 2026).
  16. Current Borrowings: INR 78,488 Lakhs (as of March 31, 2026).
  17. Preferential issue investor: M/s. Vibrant Enterprises (partnership firm).
  18. Partners include Smt. Nisha Jayaswal, Smt. Rita Jayaswal, Smt. Karishma Jayaswal, Smt. Hargunn Jayaswal, Smt. Ankita Jayaswal.
  19. Company not required to prepare consolidated financial statements.
  20. Statements are standalone, as it holds no beneficial interest in associate.

Corporate Overview

  1. Operations primarily in India, no identified geographical segment.
  2. Past provisional attachment of properties by Directorate of Enforcement (ED).
  3. Previous legal proceedings under Prevention of Money Laundering Act (PMLA).
  4. Manufacture and sale of Pellets, Pig Iron, Sponge Iron, Billets, Rolled Products.
  5. Captive power plants and mining activities in Chhattisgarh and Maharashtra.
  6. Manufacture and sale of Engineering, Construction, and Automotive Castings.
  7. Trading of Coal and PVC pipes.
  8. Formal and compliance-oriented, focused on regulatory disclosures.
  9. Emphasizes adherence to SEBI Listing Regulations.
  10. Steel
  11. Iron & Steel Castings
  12. Others (trading of Coal & PVC pipes)
  13. Setting up new 1.50 MT straight-grate pellet plant.
  14. Upgrading existing integrated steel plant with debottlenecking and value-additive schemes.
  15. INR 100 crore for new 1.50 MT straight-grate pellet plant in Siltara, Raipur.
  16. INR 100 crore for upgrades to existing integrated steel plant in Siltara, Raipur.
  17. Expansion includes environmental compliance measures like dust extraction systems.

Risk Factors

  1. Warrant conversion uncertainty by investors.
  2. Regulatory approval delays for issue.
  3. Project execution and timeline risks.
  4. Potential recurrence of past legal issues.

Key Drivers

  1. New pellet plant capacity expansion.
  2. Integrated steel plant upgrades.
  3. Successful preferential issue funding.
  4. Resolution of past legal issues.

Auditor’s Report

  1. Unmodified opinion on financial results for quarter and year ended March 31, 2026.
  2. Past attachment of properties by ED (Rs. 30,758 Lakhs) and PMLA case.
  3. Appellate Tribunal set aside provisional attachments; CBI Court discharged company.
  4. Supreme Court oral direction not to press for release of attached properties.

Board Commentary

  1. Re-appointment of M/s. Manisha & Associates as Cost Auditor for FY 2026-27.
  2. Past provisional attachment of properties by ED, now set aside.
  3. Discharge from PMLA case by CBI Court, upheld by Appellate Tribunal.
  4. Board approved financial statements and audit report as per Regulation 30.
  5. Past ED attachments and PMLA case resolved, appeals allowed.
  6. Company gave undertaking not to press for release of attached properties.
  7. Approval for preferential issue of 2,24,39,134 warrants for INR 200 crore.
  8. Proceeds to fund new pellet plant and integrated steel plant upgrades.

Corporate Governance

  1. Audit Committee reviewed results before Board approval.

Management Discussion & Analysis

Future Strategy

  1. Funding growth through preferential issue of warrants.
  2. Expanding manufacturing capacity with new pellet plant.
  3. Upgrading existing steel plant for efficiency and environmental compliance.

Operational Focus Areas

  1. Ensuring compliance with environmental norms during plant upgrades.

Risk Control Measures

  1. Legal issues related to ED attachments and PMLA case have been resolved.
  2. Company has received an unmodified audit opinion.

Critical Risks

  1. Uncertainty regarding full conversion of subscription warrants by investors.
  2. Potential delays in obtaining statutory and regulatory approvals for preferential issue.
  3. Project execution risks for new pellet plant and steel plant upgrades.
  4. Past legal issues, though resolved, could pose reputational risks.