Aanchal Ispat Q4 FY26: ₹10 Cr Market Cap, ₹1.19 Cr Q4 PAT, 5.05 P/E, BWR D Rating, and a CIRP Turnaround That Still Smells Like Wet Cement
1. At a Glance
Aanchal Ispat is not a normal steel microcap story. It is a post-CIRP, renamed-soon, board-rebuilt, capital-restructured company where the stock has moved 634% in one year, while the business is still trying to prove that the revival is real and not just accounting smoke from the insolvency kitchen.
The latest price is ₹36.04. Market cap is only ₹10.21 crore. FY26 sales are ₹98.76 crore. FY26 PAT is ₹2.02 crore. That gives a reported P/E of 5.05. On paper, this looks cheap. On audit reading, it looks like a file that should be opened slowly, with gloves.
The company manufactures and trades iron and steel products. It sells TMT bars and structural steel products under the Relicon brand. The plant is located at Chamrail, Howrah. Capacity mentioned: about 75,000 MTPA for TMT rebars and 24,000 MTPA for structural products.
But the real story is not steel. The real story is survival.
Aanchal Ispat was admitted into CIRP by NCLT Kolkata on 12 September 2023. The resolution plan was approved on 27 March 2025. Control moved to a newly constituted board on 10 April 2025. In 2026, the company approved changing its name from Aanchal Ispat Limited to Montera Limited. It also approved shifting its registered office from Kolkata to Mumbai and changing its objects to enter electrical products, engineering and contracting services, railway and transport components, power, infrastructure, and mobility.
That is not a small pivot. That is a company walking out of insolvency and immediately saying, “Steel was the first act. Now please watch this magic trick.”
The Q4 FY26 result shows revenue of ₹38.37 crore, net profit of ₹1.19 crore, and EPS of ₹4.20. FY26 EPS is ₹7.13. So the P/E is:
₹36.04 / ₹7.13 = 5.05 times.
That is mathematically cheap. But financially, cheapness without clean cash flow is like a discount umbrella with holes.
2. Introduction
Aanchal Ispat is the kind of company where the headline number and the footnotes are fighting each other.
The headline says turnaround. The footnotes say caution. The stock chart says celebration. The auditor says, “Please read these ten paragraphs before clapping.”
The company reported FY26 revenue of ₹98.76 crore versus ₹151.13 crore in FY25. That is a decline in annual sales. Operating profit improved from a loss of ₹4.86 crore in FY25 to a profit of ₹0.85 crore in FY26. Net profit moved from a loss of ₹13.40 crore in FY25 to a profit of ₹2.02 crore in FY26.
That sounds like revival.
But other income in FY26 was ₹2.52 crore. The auditor also highlighted that FY26 profit before tax of ₹2.72 crore included significant recovery of bad debts, and specifically noted that ₹1.85 crore of bad debt recovery was non-recurring and not from core operations.
So the steel business did not exactly become a cash machine overnight. It became less broken, supported by non-operating income and restructuring effects.
The balance sheet now shows positive net worth of ₹8.19 crore as of March 2026. But current ratio is only 0.92. Cash flow from operations is negative ₹1.78 crore. Free cash flow is negative ₹2.02 crore. Borrowings are low at ₹1.69 crore, but other liabilities remain large at ₹59.03 crore.
The company has also announced a proposed ₹10 crore QIP. For a company with ₹10.21 crore market cap, that is not a side note. That is almost another company-sized fundraising sitting on the table.
So the big question is simple: is Aanchal Ispat a genuine turnaround, or just a distressed company wearing fresh paint?
Readers, what matters more here: the low P/E or the quality of earnings?
3. Business Model – WTF Do They Even Do?
Aanchal Ispat manufactures and trades iron and steel products.
The manufacturing side includes:
Source table
Product Area
Details
TMT bars
Sold under Relicon brand
Structural steel
Angles, channels, MS rounds
Re-bars
Used in infrastructure and construction
Trading goods
Mild steel billets, cement, clinker, re-bars
Job work
Mentioned in FY26 notes
Basically, the company sells products that go into construction and infrastructure. Not glamorous. No app. No AI. No subscription model. Just steel, sweat, working capital, and customers who probably negotiate like they are buying onions in wholesale.
The plant is ISO certified and located in Howrah. Installed capacity has been mentioned at about 75,000 MTPA for TMT rebars and 24,000 MTPA for structural products.
The business should normally be judged on volume, utilisation, margins, working capital, receivables, debt discipline, and cash conversion. In FY26, some of these improved, but not enough to declare the patient Olympic-ready.
The company also says it operates in a single business segment: manufacturing and trading of iron and steel products. However, the new object clause approved in January 2026 allows entry into electrical products, engineering and contracting services, railway and transport component manufacturing, power, infrastructure, and mobility.
That is a major strategic expansion. But from the provided data, no financial performance from these new areas is visible yet. So for now, investors should treat it as intent, not achievement.
4. Financials Overview
Latest official result type: Quarterly Results Latest quarter: Q4 FY26, March 2026 Figures: ₹ crore
Since March is Q4, full-year EPS is used. No annualising Q4 EPS.
Source table
Metric
Latest Quarter Q4 FY26
Same Quarter Last Year Q4 FY25
Previous Quarter Q3 FY26
Revenue
38.37
34.60
19.42
EBITDA / Operating Profit
0.13
-4.77
0.66
PAT
1.19
-13.05
0.57
EPS
4.20
-6.26
2.01
Q4 revenue rose 10.9% YoY. PAT jumped from a loss of ₹13.05 crore to profit of ₹1.19 crore. Sequentially, revenue nearly doubled from ₹19.42 crore to ₹38.37 crore.
But operating profit was only ₹0.13 crore on ₹38.37 crore revenue. That is an operating margin of just 0.34%. The steel business is not exactly printing money. It is more like finding coins under the sofa after years of losing wallets.
FY26 full-year picture:
Source table
Metric
FY25
FY26
Sales
151.13
98.76
Operating Profit
-4.86
0.85
Other Income
-12.38
2.52
Net Profit
-13.40
2.02
EPS
-6.43
7.13
Management has walked part of the talk: net worth is positive, operations restarted, profits returned, and trading resumed. But cash flow and auditor emphasis matters show the walk is still on a broken pavement.
5. Valuation Discussion – Fair Value Range Only
Current price: ₹36.04 FY26 EPS: ₹7.13 Market cap: ₹10.21 crore Enterprise value: ₹5.86 crore Book value per share: ₹28.90 FY26 EBITDA proxy: operating profit ₹0.85 crore plus depreciation ₹0.62 crore = ₹1.47 crore
Method 1: P/E Method
Current P/E:
₹36.04 / ₹7.13 = 5.05 times
Peer median P/E given: 23 times
But applying peer median blindly would be irresponsible because Aanchal has CIRP history, BWR D rating, weak cash flow, related-party exposure, and earnings quality concerns.
So a cautious distressed-turnaround P/E band is more reasonable:
