Incredible Industries FY26: An ₹840 Cr Steel Roller Where Profit Fell While the Books Say It Grew
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1 — At a Glance
Incredible Industries closed FY26 with sales of ₹840 crore, its highest ever, and a net profit of ₹11.5 crore — which is lower than the ₹12.5 crore it booked in FY25. Revenue climbed 11.5% while profit slipped. That is the first thing worth sitting with: a top line growing into record territory while the bottom line steps backward.
The operating margin explains the squeeze. On ₹840 crore of steel, the company keeps ₹23 crore as operating profit — a 2.7% margin. Every rupee of TMT bar that leaves the Durgapur works is chased almost to the finish line by raw material cost. This is a business where the difference between billets bought and bars sold is thin enough to read a newspaper through.
Behind that thin margin sits movement: capital work-in-progress jumped from ₹11 crore to ₹35 crore, two fresh term loans landed on the books, and a credit agency handed out a stable rating on the same week a second agency marked the company as “not cooperating.” Two ratings, two moods.
The market pays 13.7x earnings for all this, against an industry 22x.
A record revenue year that produced less profit — the question the rest of this entry circles is where ₹840 crore of sales goes before it reaches the shareholder.
2 — Introduction
Incredible Industries Limited, formerly Adhunik Industries, was incorporated in 1979 and rolls steel out of Durgapur, West Bengal. It makes thermo-mechanically treated bars, wire rods, rounds and nails, sold under the “Adhunik” brand across West Bengal, Bihar, Odisha and the North East through a dealer network. Installed capacity sits at 1,70,000 MTPA for rolled products. There is also a small wind power interest on the books.
The company buys its basic raw material — billets — largely from Adhunik Corporation Limited (ACL), a group entity that makes sponge iron and billets nearby. That proximity gives IIL a semi-integrated supply chain: ACL’s furnace feeds IIL’s rolling mill. It is also the origin of the related-party history that follows this company around, which Section 13 gets to.
FY26 was a building year. The board approved a ₹151 crore brownfield expansion in May 2025 — a Steel Melting Shop plus rolling-mill upgrade — and the year’s cash flows carry the fingerprints of that decision. Two term loans, from Bank of India (₹54 crore) and Central Bank of India (₹51 crore), were assigned during the year to fund it. In August 2025 the board also cleared a private placement of unlisted NCDs up to ₹200 crore. The company is arranging money.
3 — Business Model: WTF Do They Even Do?
They take metal that is soft and hot and make it into metal that is straight and sold.
More precisely: ACL turns iron ore into sponge iron and then billets. IIL takes those billets, reheats them, and rolls them into TMT bars — the ridged rods that hold up concrete buildings — plus wire rods, HB wire, stirrups (branded “Link EDGE”) and polished nails. The bars are marketed as earthquake- and corrosion-resistant. In construction-materials terms, this is a commodity with a brand sticker: a builder in Siliguri chooses Adhunik TMT partly on price, partly on the assurance that the rings holding his column together will not surrender in a tremor.
The economics are the economics of rolling steel, which is to say brutal. Cost of materials consumed in FY26 was roughly ₹762 crore against ₹840 crore of revenue. That single line eats about 91 paise of every sales rupee before power, wages, interest or depreciation gets a turn. There is no pricing power here worth the name — realizations move with the steel cycle, and the steel cycle answers to iron ore, coal, and scrap, none of which return IIL’s calls.
What the company is trying to change is the “semi” in semi-integrated. The ₹151 crore SMS project would let IIL make its own billets rather than buy them from ACL, capturing a slice of the chain it currently rents. Whether owning the furnace widens a 2.7% margin or just relocates the thinness upstream is the open question the CWIP line is quietly betting on.
Does backward integration fix a 2.7% margin, or just move the squeeze one furnace up the line?
4 — Financials Overview
Figures are in ₹ crore. The company reports as a single entity with no subsidiaries, so this is the whole picture. Latest period is Q4 FY26 (quarter ended March 2026).
