Ahmedabad Steelcraft Ltd Q2FY26: From Silent Steel to Loud Profits – EPS 4.94, PAT Rockets 388%, and Auditors Exit Faster Than Audits
1. At a Glance
If you had blinked between June and September 2025, you probably missed a mini Bollywood climax at Ahmedabad Steelcraft Ltd (ASCL) — a company that moved its HQ from Ahmedabad to Ghaziabad, switched auditors, reshuffled top management, and still managed to deliver an EPS of ₹4.94 for Q2FY26. The company’s market cap stands at ₹286 crore, stock trades around ₹190, and its P/E of 14.3x sits way below the industry average of 21x.
Now hold your seat: quarterly sales jumped 68% YoY to ₹64.68 crore, and PAT ballooned 388% to ₹7.46 crore. And that’s not a typo. After years of negative or microscopic profits, ASCL now flaunts a ROE of 18.4% and ROCE of 21.4%, making it look like that student who failed every exam until this year’s miraculous comeback.
Debt? ₹0. Dividend? Also ₹0 (because clearly, they prefer keeping cash for better drama).
2. Introduction
Once a quiet steel trading outfit, Ahmedabad Steelcraft has now morphed into an EPC (Engineering, Procurement & Construction) player with ambitions stretching across power, telecom, railways, roads, bridges, and probably Mars next.
After FY24’s open offer, a fresh gang of promoters took charge — think of it as a corporate reboot. The shift from Ahmedabad to Ghaziabad wasn’t just geographical; it marked a strategic relocation from passive steel dealing to full-fledged infrastructure execution.
Between FY23 and FY25, revenues have leapt from ₹1 crore to ₹241 crore. That’s not just growth — it’s a resurrection. The company’s management musical chairs continued into FY26: CFO Kamlesh Sharma resigned in November 2025, and the Company Secretary quit a week later. Even the auditors changed — M/s Dhiren Shah & Co. exited, replaced by M/s Prateek Gupta & Co..
If companies could win Filmfare awards for plot twists, this one’s getting nominated.
3. Business Model – WTF Do They Even Do?
ASCL plays in the EPC (Engineering, Procurement, and Construction) domain, focused on power transmission, distribution, and substations. The company doesn’t just supply steel anymore — it now designs, builds, and erects power infrastructure, basically making sure electricity reaches where politicians promise it will.
In FY24, it expanded its Memorandum of Association (MOA) like a buffet menu — now allowed to trade, import, export, fabricate metals, cables, wires, conductors, machinery, and electrical gear. And because they clearly hate limits, they also added rights to develop infrastructure under BOT, BOOT, and BOO models — meaning they can build, own, operate, and (hopefully) not vanish.
The company now earns roughly:
25% from steel and window section sales,
15% from interest income, and
a hilarious 60% from “other income.”
Which begs the question — is ASCL’s “other income” their real main business?
4. Financials Overview
Let’s crunch the numbers before the CFO resigns again.
Source table
Metric
Q2FY26 (Sep 2025)
Q2FY25 (Sep 2024)
Q1FY26 (Jun 2025)
YoY %
QoQ %
Revenue (₹ Cr)
64.68
38.43
42.68
+68.3%
+51.5%
EBITDA (₹ Cr)
10.46
1.51
4.50
+592%
+132%
PAT (₹ Cr)
7.46
1.53
3.36
+388%
+122%
EPS (₹)
4.94
3.74
2.23
+32%
+121%
Result Type: QUARTERLY RESULTS → Annualised EPS = 4 × 4.94 = ₹19.76 per share
At ₹190 CMP, that’s a forward P/E of ~9.6x, a full 55% discount to industry median (21x). Not bad for a company that two years ago couldn’t find profit with a microscope.
But remember: when “other income” drives margins, sustainability is the real suspense.
5. Valuation Discussion – Fair Value Range Only
Let’s sanity-check this miracle.
Method 1 – P/E Valuation Industry P/E = 21x ASCL Annualised EPS = ₹19.76 Fair Value Range = 15x–20x → ₹296–₹395
Method 2 – EV/EBITDA Valuation EV = ₹284 Cr, EBITDA (FY25) = ₹26 Cr → EV/EBITDA = 10.9x Sector average ~12x → Fair Value Range = ₹270–₹320
Method 3 – DCF (Simplified) Assume ₹20 Cr PAT growing 15% annually for 5 years, 10% discount → ₹280–₹350
🎯 Fair Value Educational Range: ₹270–₹380
(This fair value range is for educational purposes only and is not investment advice.)
6. What’s Cooking – News, Triggers, Drama
This quarter was less “earnings call” and more “office reshuffle.”
CFO Kamlesh Sharma resigned on Nov 11, 2025.
Company Secretary Kirtan Panchal followed on Nov 18, 2025.
Auditors changed earlier in FY24 — always a spicy sign.
FY24’s open offer and takeover completely changed promoter control.
Preferential Allotment: ₹79.2 Cr worth of convertible warrants issued in Sep 2024.
Shifted HQ to Ghaziabad — clearly, they like NCR weather or SEBI proximity.
