VISASTEEL - Visa Steel

📊 NSE: VISASTEEL 🏢 Mining / Minerals / Metals 📅 Last Updated: 12/14/2025 15:10

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single reportable segment, Ferro Alloys. Total income for the half-year ended September 30, 2025, was INR 2,509.31 million, representing a 12.2% decline compared to INR 2,858.26 million in the same period of the previous year.

Geographic Revenue Split

Not disclosed in available documents, though the company notes sensitivity to US tariffs and the Chinese economy.

Profitability Margins

The company reported a consolidated net loss of INR 235.46 million for Q2 FY26. For the half-year ended September 30, 2025, the net loss was INR 386.06 million, a sharp reversal from a profit of INR 1,098.24 million in H1 FY25.

EBITDA Margin

EBITDA is negative as total expenses of INR 993.02 million exceeded total income of INR 790.80 million in Q2 FY26. Operating expenses (excluding finance costs and depreciation) were INR 844.41 million, resulting in an operating loss margin of approximately 6.8% relative to total income.

Credit Rating & Borrowing

The company faces severe financial distress with a fully eroded net worth. A major qualified audit opinion highlights the non-recognition of interest expenses on borrowings totaling INR 14,044.87 million as of September 30, 2025.

⚙️ Operational Drivers

Raw Materials

Chrome ore and other materials for Ferro Alloy production. Cost of materials consumed was INR 542.21 million in Q2 FY26, representing 71.5% of revenue from operations.

Import Sources

Not specifically disclosed, but the company monitors global demand-supply conditions and the impact of the Chinese economy.

Raw Material Costs

Raw material costs were INR 542.21 million in Q2 FY26, accounting for 71.5% of revenue. Procurement strategies are not detailed, but costs are a primary driver of the operating loss.

📈 Strategic Growth

Expected Growth Rate

-12.20%

Growth Strategy

The company is focused on its core Ferro Alloys business; however, strategic growth is severely constrained by its 'Going Concern' status, eroded net worth, and current liabilities substantially exceeding current assets.

Products & Services

Ferro Alloys.

Brand Portfolio

VISA Steel.

Strategic Alliances

Joint Venture with VISA Urban Infra Limited; Subsidiary Kalinganagar Chrome Private Limited (KCPL).

🌍 External Factors

Industry Trends

The Ferro Alloys industry is currently facing a downturn due to global economic slowdowns and trade barriers, leading to cyclical demand and pricing pressures.

Competitive Moat

No durable moat is evident; the company is currently struggling with financial viability and eroded net worth.

Macro Economic Sensitivity

Highly sensitive to global steel demand, US trade tariffs, and Chinese industrial output.

Geopolitical Risks

Impact of US tariffs and global political uncertainty on trade flows.

⚖️ Regulatory & Governance

Industry Regulations

Subject to pollution norms and manufacturing standards applicable to the Ferro Alloys and steel industry.

Legal Contingencies

Significant legal/accounting contingency regarding the non-provision of interest on borrowings amounting to INR 14,044.87 million as of September 30, 2025.