Nova Iron & Steel Limited reported a significant decline in its first quarter performance for FY27, with revenue falling to ₹676.44 million compared to ₹1,131.16 million in the same quarter last year. According to the latest quarterly results, net income dropped to ₹8.59 million from ₹22.07 million in Q1 FY26, while basic earnings per share from continuing operations declined to ₹0.24 from ₹0.61 a year ago. The company's diluted earnings per share also fell to ₹0.24 from ₹0.61 in the corresponding quarter of the previous financial year.
Nova Iron & Steel posted a consolidated net loss of ₹1,596.91 lakh for FY26, representing a dramatic reversal from a profit of ₹14,879.22 lakh in the previous year. According to the latest financial results published in Financial Express and Chhattisgarh on September 11, 2026, revenue grew 11.9% to ₹46,666.07 lakh from ₹41,691.38 lakh in FY25, but total expenses surged to ₹49,007.74 lakh, causing an operating loss before exceptional items of ₹2,215.61 lakh. The company's financial position deteriorated significantly, with current liabilities exceeding current assets by ₹10,912.64 lakh as of March 31, 2026.
In a material post-balance sheet development, Nova Iron & Steel has discontinued its manufacturing operations and commenced trading in finished goods following the termination of its lease agreement with Shree Balaji Steel and Metal Private Limited due to breach of conditions. The company's capital work-in-progress carried in the financial results as of March 31, 2026, was disposed of in enforcement of charge. This fundamental shift from production to trading represents a substantial change in the nature and scale of the company's operations, marking the end of its manufacturing operations.
Nova Iron & Steel shares are currently trading at ₹18.5 as of September 11, 2026, with a market capitalization of ₹55.62 crore. The stock has shown strong recent performance with a 51.1% increase over the past six months and a 1-year return of 23.06%, though it declined 14.47% over the last year. The stock has traded in a 52-week range of ₹10.54 to ₹18.46, with the current trading range between ₹16.50 and ₹18.46 during the session. The company's PE ratio stands at -3.48 and PB ratio at -2.05 as of September 11, 2026, indicating challenging valuation metrics given the current financial performance.
Statutory auditors MNRS & Associates issued a qualified opinion citing significant concerns over the company's ability to continue as a going concern, unconfirmed balances, and regulatory non-compliance regarding asset disposals. The auditors also raised critical qualifications regarding an application under Section 7 of the IBC filed by M N Corporation for dues of ₹637.11 lakh that remains sub-judice, and provisional attachment orders affecting ₹28.40 crore worth of assets and shares that are pending adjudication by the Enforcement Directorate. The Board approved the audited results on September 9, 2026.
