Steel Exchange India Q1 FY27 Results: Net Profit Jumps 47%, Debt-to-Equity Falls to 0.27x
Steel Exchange India Limited (BSE: 534748 | NSE: STEELXIND) has reported a strong financial performance for the first quarter of FY2026-27, delivering a sharp increase in profitability despite a marginal decline in revenue. The company’s focus on cost optimization, lower finance costs, and strategic deleveraging helped drive earnings growth while strengthening its balance sheet.
The company also raised fresh capital during the quarter, significantly improving its net worth and supporting its long-term expansion plans.
Q1 FY27 Financial Highlights
For the quarter ended June 30, 2026, Steel Exchange India reported:
- Total Income: ₹270.71 crore
- Net Profit: ₹15.03 crore, up 46.89% YoY
- Sequential Profit Growth: 21.46%
- Net Profit Margin: 5.57%, compared with 3.41% in Q1 FY26
Despite softer revenue, disciplined cost management and improved operating efficiency enabled the company to deliver strong profit growth.
Lower Finance Costs Boost Earnings
One of the key contributors to the improved profitability was a substantial reduction in borrowing costs.
- Finance Cost (Q1 FY27): ₹13.98 crore
- Finance Cost (Q1 FY26): ₹18.89 crore
The reduction in interest expenses reflects the company’s continued efforts to reduce debt and improve its financial position.
Capital Raise Strengthens Balance Sheet
During the quarter, Steel Exchange India successfully completed preferential allotments of convertible equity share warrants, raising approximately:
- ₹140.90 crore
The fresh capital significantly strengthened the company’s financial position and increased its:
- Net Worth: ₹672.76 crore (record high)
The additional funds are expected to support future business expansion while improving financial flexibility.
Significant Improvement in Leverage
The company continued its deleveraging strategy, resulting in a sharp improvement in leverage.
- Debt-to-Equity Ratio (Q1 FY27): 0.27x
- Debt-to-Equity Ratio (Q1 FY26): 0.48x
The lower debt burden reduces financial risk and aligns with the company’s objective of becoming a net debt-free organization over the long term.
The company also reported a healthy asset coverage ratio of 3.77x, further reflecting the strength of its balance sheet.
Management Commentary
Commenting on the quarterly performance, the management stated that the results validate Steel Exchange India’s transition toward a more efficient and low-debt business model.
The company emphasized that stronger profitability, reduced leverage, and improved liquidity position it to capitalize on India’s increasing infrastructure investments and long-term steel demand.