01 — At a Glance
The Steel Company That Nearly Collapsed (Several Times) But Keeps Getting Back Up
- 52-Week High / Low₹191 / ₹110
- Q3 FY26 Revenue₹799 Cr
- Q3 FY26 PAT₹87 Cr
- Q3 EPS₹4.85
- Annualised EPS (Q1-Q3 Avg × 4)₹17.84
- Book Value / Share₹191
- Price to Book0.62x
- FY25 Sales₹4,014 Cr
- FY25 PAT₹355 Cr
- Debt/Equity0.10x
The Plot Twist: Prakash Industries traded at ₹191 just 5 months ago. Now it’s at ₹118. Quarterly sales down 13.8% YoY, yet CARE upgraded the rating from BB to BB+. The Supreme Court closed the Syndicate Bank CBI case in January 2026. The coal mine (Bhaskarpara) is finally producing. And yet, the stock has crashed 38% from its 52-week high. Welcome to the show.
02 — Introduction
The Company That’s Got More Drama Than a Daily Soap Opera
If you’ve been watching Prakash Industries on your portfolio, you’ve probably experienced the emotional range of a Bollywood third act. There are heroes. There are villains. There are court cases. There are comeback moments. And there’s the stock price doing a free fall that would make any skydiver jealous.
Established in 1980, Prakash Industries is an integrated steel manufacturer working the DRI (Direct Reduction Iron) route with 1.20 million tonnes of sponge iron capacity, 1.25 million tonnes of steel billets, and 1.10 million tonnes of finished steel output. They also run a 245 MW power plant (245 MW — now that’s a commitment to self-sufficiency). The company has manufacturing in Chhattisgarh, mines in Odisha and Chhattisgarh, and a grudge match with Indian courts that spans decades.
Q3 FY26 results showed ₹799 crore in sales (down 13.8% YoY) and ₹87 crore PAT (up 3.71% YoY). In non-meme terms: volumes are slumping, but margins are somehow surviving. The Bhaskarpara coal mine started commercial operations in February 2025 — which is huge for cost reduction. The Supreme Court closed the Syndicate Bank CBI case in January 2026, removing one of the biggest question marks hanging over the company. And yet, the market is pricing this company as if it owes money to Underworld Don Vicky Malhotra.
The Redemption Arc We Didn’t Ask For: The company defaulted on FCCB (Foreign Currency Convertible Bonds) coupon payments because investors provided wrong bank details. You can’t make this up. The Supreme Court now oversees deposit schedules with the RBI. As of January 21, 2026, PIL has deposited ₹128.16 crore of ₹154 crore. It’s like paying your loan officer to watch you pay your loan. But hey, at least it’s legal now.
03 — Business Model: Making Steel & Making Headlines
They Smelt It, They Dealt It. Now They’re Fighting About It in Court.
Prakash Industries makes steel the hard way — the integrated DRI route, which means they reduce iron ore directly into sponge iron instead of using the blast furnace method. Why? Lower capex, lower environmental impact, and the ability to blame raw material prices for everything.
The company sources coal from Coal India Limited (via long-term linkages) and their own Bhaskarpara mine. Iron ore comes from the Sirkaguttu mine in Odisha or the open market. The steel billets are sold to wire rod manufacturers, re-rolling mills, and the construction sector — basically anyone who needs steel but doesn’t want to go to JSW or Tata Steel. They’re the discount option in a premium market.
Their 245 MW power plant serves dual duty: running the steel manufacturing process and sometimes selling excess power. It’s like having a second business that pays for the first one, except the first one keeps losing money on raw material hedges.
Sponge Iron1.20 MnTPAcapacity installed
Steel Billets1.25 MnTPAannual capacity
Power Plant245 MWcaptive generation
Top 10 Customers~71%revenue concentration
Fun fact: The company’s operating margins stayed at 16% in Q3 FY26 despite a 13.8% sales decline. That’s the power of a captive coal mine (even if it just started operations) and a 245 MW power plant. It’s like the business is held together by duct tape and the unwavering belief that “this will pay off eventually.”
04 — Financials Overview
Q3: The Quarter When Numbers Did the Cha Cha Cha
