Welcast Steels Limited has released its un-audited financial results for the quarter and half-year ended September 30, 2026. Notably, the company is preparing its financial statements on a non-going concern basis due to the permanent closure of its Bangalore factory effective December 15, 2025. This decision impacts asset valuations and financial reporting standards applied.
Financial Performance Under Review
Welcast Steels Limited has announced its un-audited financial results for the quarter and the half-year that concluded on September 30, 2026. The company’s Board of Directors approved these results on October 30, 2026. Accompanying the results is a limited review report from the statutory auditors.
Transition to Non-Going Concern Basis
A significant aspect of the financial reporting is the company’s preparation on a ‘non-going concern’ concept. This decision stems from the management’s resolution to permanently close its sole manufacturing facility located in Peenya Industrial Area, Bangalore, effective from the closure of business hours on December 15, 2025. Following this cessation, the factory license and power facilities have been surrendered. Due to pending labor disputes, the management intends to maintain the status quo, and the company currently has no plans for recommencing operations in the foreseeable future.
Consequently, the financial information for the quarter and half-year ended September 30, 2026, has been prepared under this non-going concern basis. Key implications include:
- All non-financial assets have been recognized at the lower of their carrying value and fair value less costs to sell.
- Financial assets continue to be recognized at fair value or amortized cost, adjusted for any loss allowances.
- All liabilities are recognized at expected settlement values.
- No adjustments have been made for contingent liabilities deemed not probable by management.
- Deferred tax assets or liabilities are not recognized for temporary differences and unabsorbed losses due to the absence of probable sufficient future taxable income.
Key Financial Figures
For the quarter ended September 30, 2026, the company reported a total income of ₹90.91 lakhs. Total expenses for the same period amounted to ₹141.94 lakhs, resulting in a Profit/(Loss) before exceptional items of (₹51.03 lakhs). The comprehensive income for the quarter was also (₹51.03 lakhs).
For the half-year ended September 30, 2026, total income stood at ₹259.07 lakhs, with total expenses at ₹382.00 lakhs. This led to a Profit/(Loss) before exceptional items of (₹122.93 lakhs) and a total comprehensive income/(loss) of (₹122.93 lakhs).
The Balance Sheet as at September 30, 2026, shows total assets of ₹3,425.52 lakhs and total equity and liabilities of ₹3,425.52 lakhs. The company’s equity share capital remains stable at ₹63.84 lakhs.
Cash Flow Statement Highlights
The Statement of Cash Flows for the half-year ended September 30, 2026, indicates net cash generated from operating activities was ₹31.76 lakhs. Investing activities resulted in a net cash outflow of (₹97.58 lakhs), while financing activities had a net cash outflow of (₹0.39 lakhs). The net increase in cash and cash equivalents for the period was (₹66.21 lakhs), leading to closing cash and cash equivalents of ₹10.80 lakhs.
Source: BSE
