Ashoka Metcast Shares in Focus as FY26 Profit Rises 47% to ₹10.8 Cr Despite Declining Revenue

Synopsis:- Ashoka Metcast Limited and its steel-manufacturing subsidiary reported a 47 percent rise in consolidated net profit to Rs. 10.80 crore for FY26 even as revenue from operations fell 29 percent year-on-year.

Shares of an Ahmedabad-based steel trading and manufacturing group came under the spotlight after the company filed its audited full-year and quarterly financial results with both exchanges on May 2, 2026. The results cover Ashoka Metcast Limited on a standalone basis and consolidate the finances of its subsidiary, Rhetan TMT Limited.

With a market capitalisation of Rs. 37.6 crore, the shares of Ashoka Metcast Limited were last available at Rs. 15.0 per share as of February 13, 2026, and may not reflect current trading levels. It is trading at a P/E of 4.12.

On a consolidated basis, revenue from operations for FY26 came in at Rs. 27.70 crore, down from Rs. 38.96 crore in FY25, a contraction of around 29 percent. The core steel trading segment accounted for virtually all operational revenue at Rs. 27.17 crore for the year. Despite the revenue decline, consolidated net profit rose to Rs. 10.80 crore from Rs. 7.34 crore in FY25. The explanation lies squarely in other income: the group reported Rs. 9.62 crore in other income for FY26, up from Rs. 6.43 crore in FY25, with interest income of Rs. 8.51 crore accounting for the bulk of it. Strip out other income and the group’s operating contribution was thin.

For the quarter ended March 31, 2026, consolidated revenue from operations came in at Rs. 10.35 crore, up 59 percent from Rs. 6.49 crore in Q4 FY25. Quarterly net profit was Rs. 2.22 crore against Rs. 0.54 crore a year earlier. The Q4 year-on-year comparison is favourable, but Q4 FY25 was a weak base. The prior year’s fourth quarter had posted a negative operating profit at the consolidated level.

The standalone entity reported FY26 revenue from operations of Rs. 3.26 crore, almost entirely from steel trading in Q4, against Rs. 1.80 crore in FY25. Standalone PAT for FY26 was Rs. 0.50 crore, down from Rs. 2.39 crore in FY25, as other income (primarily from inter-company loan receipts) halved year-on-year. The standalone entity took on Rs. 16 crore in long-term borrowings during FY26, the proceeds of which appear to have been deployed as loans to related or group entities. Non-current loans on the standalone balance sheet grew from Rs. 13.69 crore to Rs. 34.99 crore over the year.

Business Overview

Incorporated in 2009, Ashoka Metcast Limited trades steel products including TMT bars, angle bars, mild steel bars, and steel channels, with subsidiary Rhetan TMT Limited handling the manufacturing and larger trading operations. 

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