Facor Alloys delivered a remarkable financial turnaround in the June 2026 quarter, posting a standalone net profit of ₹22.06 crore compared to a net loss of ₹4.66 crore in the corresponding quarter of the previous year. According to reports from Business Standard, this represents a complete reversal of the company's financial position from a loss-making to profit-making entity. The company's operational performance showed significant improvement across key metrics during the quarter, with the profitability shift driven by a one-time exceptional gain of ₹3,191.19 lakh from the sale of fixed assets, which offset an operating loss before tax of ₹245.47 lakh.
Sales revenue demonstrated exceptional growth, rising 480% to ₹0.29 crore in Q1 FY2026-27 from ₹0.05 crore in the same quarter of the previous financial year. As reported by Business Standard, this substantial revenue increase contributed significantly to the company's improved profitability. The company's operating profit margin (OPM) improved to -410.34% in Q1 FY2026-27 from -11360.00% in Q1 FY2025-26, indicating enhanced operational efficiency despite the negative margin percentage. However, the company remains in a transitional phase with minimal operational revenue of ₹28.76 lakh for the quarter, as plant operations have been shut down since October 31, 2023.
Facor Alloys has successfully completed the divestment of plant and machinery following shareholder approval via postal ballot on July 10, 2025. As reported by Business Standard, assets with a carrying amount of ₹381.50 lakh were sold during the quarter, generating the substantial profit. A remaining portion of assets valued at ₹25.22 lakh was reclassified to Property, Plant and Equipment for use in projects under the PM Gatishakti Policy. The company has issued a work order for upgrading its Private Railway Sidings and Goods Handling Terminal under the PM Gatishakti Policy, with Phase I of this project having commenced, marking a strategic pivot towards infrastructure services rather than traditional alloy manufacturing.
Profit Before Depreciation and Tax (PBDT) turned positive at ₹-2.39 crore in Q1 FY2026-27 compared to a loss of ₹6.59 crore in the corresponding quarter of the previous year. According to Business Standard, Profit Before Tax (PBT) also improved to ₹-2.45 crore from ₹6.91 crore loss in the year-ago period. However, the company faces audit challenges as statutory auditors K.K. Mankeshwar & Co. issued a disclaimer on consolidated financial results due to missing data from the overseas subsidiary. The company has filed a formal complaint with the Economic Offences Wing (EOW), Delhi Police, regarding this matter, with the CJM directing the EOW to submit an action taken report.
