Bihar Sponge Iron Ltd (BIHARSPONG)
🎯 Key Takeaways
- Bihar Sponge Iron Ltd is in a distressed phase, marked by persistent losses, negative equity reserves, and minimal operational activity. The company reported zero revenue in the latest quarter (Jun 2026), continuing a downward trend from peak revenues in late 2025.
- ⚠️ Complete operational shutdown risk: Zero revenue in the latest quarter raises concerns about ongoing viability.
- Market Cap
- ₹108
- P/E Ratio
- 9.2
- P/B Ratio
- -3.17
- ROE
- -34.4%
- ROCE
- 15.1%
- Debt/Equity
- -3.28
- Promoter
- 69.2%
📖 The Story
Bihar Sponge Iron Ltd is in a distressed phase, marked by persistent losses, negative equity reserves, and minimal operational activity. The company reported zero revenue in the latest quarter (Jun 2026), continuing a downward trend from peak revenues in late 2025. With a P/E of 9.3 and ROE of -25.8%, the company is trading at a discount but reflects deep operational and financial stress. It operates with negligible institutional interest and no visible recovery strategy disclosed in filings.
📰 What's Happening
The company has seen a near-total collapse in operations, with revenue dropping to ₹0 in Jun 2026 from ₹87 in Dec 2025. Sequential revenue declines accelerated in H1 FY26, falling from ₹78 crore in Jun 2025 to ₹0 in Jun 2026. Operating performance deteriorated, with operating profit turning more negative and margins worsening from -5.4% to -25.5% over the same period. There is no public disclosure of new orders, capacity expansion, or strategic initiatives to reverse the trend. Management has not provided any forward-looking commentary on demand recovery or cost restructuring.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 78 | 64 | 87 | 17 | 0 |
| Operating Profit | -4 | -6 | -2 | -4 | -4 |
| OPM % | -5.4% | -8.6% | -2.5% | -25.5% | — |
| Net Profit | 2 | 2 | 6 | 1 | 2 |
| EPS | ₹0.24 | ₹0.19 | ₹0.69 | ₹0.14 | ₹0.28 |
Revenue has declined sharply over the past year, falling from ₹78 crore in Jun 2025 to ₹0 in Jun 2026, with operating losses deepening and margins turning severely negative. The company posted a net profit of only ₹2 crore in Jun 2026, down from ₹6 crore in Dec 2025, indicating weak profitability resilience. Despite asset growth in prior quarters, the current asset base of ₹92 crore (as of Mar 2026) is largely tied to reserves and borrowings, with no significant capex or investment activity disclosed. The financial trajectory reflects a business in structural decline with no visible reinvestment or turnaround signal.
🔮 Management Outlook & What's Next
There is no available forward guidance or explicit outlook from management in the latest filings. The company has not issued any commentary on demand, pricing, capacity utilization, or recovery plans following the revenue collapse. The absence of strategic updates or capital allocation commentary suggests a lack of active management engagement or clarity on future operations.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 90 | 90 | 90 | 90 |
| Reserves | -136 | -141 | -124 | -132 |
| Borrowings | 27 | 27 | 112 | 27 |
| Total Liabilities | 132 | 160 | 92 | 135 |
| Fixed Assets | 50 | 51 | 42 | 48 |
| Investments | 0 | 0 | 0 | 0 |
| Total Assets | 132 | 160 | 92 | 135 |
The balance sheet shows a fragile capital structure, with negative reserves (₹-124 crore as of Mar 2026) and minimal equity cushion. Borrowings remain low at ₹27 crore, but this reflects limited financing activity rather than strength. Total assets have declined from ₹135 crore to ₹92 crore over the past year, indicating asset erosion or reclassification, likely tied to the collapse in operations. There is no evidence of fresh investment or deleveraging initiatives; the financial position suggests stagnation and potential insolvency risks.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 | Mar 2026 |
|---|---|---|
| Operating | +8 | -3 |
| Investing | -0 | +2 |
| Financing | -9 | +2 |
| Net Cash Flow | -1 | +0 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 69.2% | 69.2% | 69.2% | 69.2% |
| FII | 0.0% | 0.0% | 0.0% | 0.0% |
| DII | 0.1% | 0.1% | 0.1% | 0.1% |
| Public | 26.1% | 26.4% | 26.4% | 26.4% |
| # Shareholders | 59,710 | 59,713 | 59,544 | 59,146 |
Promoter holding remains stable at 69.23%, but institutional interest is negligible — FII and DII holdings are flat at 0% and 0.07% respectively, with no signs of accumulation. The shareholder base remains highly concentrated among promoters and a small number of retail investors, with only 59,146 shareholders. There are no signals of activist involvement or foreign interest, and the lack of institutional inflows suggests declining confidence in the company’s prospects.
⚖️ Peer Comparison — Steel
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| JSWSTEEL | 3.08 L Cr | 12.4 | 20.9% | — | 0.95 |
| TATASTEEL | 2.32 L Cr | 21.0 | 12.7% | — | 0.83 |
| JINDALSTEL | 1.16 L Cr | 42.7 | 7.4% | — | 0.43 |
| SAIL | 76,188 | 17.8 | 9.5% | — | 0.36 |
| JSL | 61,444 | 18.9 | 18.0% | — | 0.37 |
| SHYAMMETL | 29,821 | 26.5 | 14.2% | — | 0.09 |
| SARDAEN | 17,663 | 15.6 | 19.2% | — | 0.45 |
| USHAMART | 15,482 | 30.5 | 20.6% | — | 0.04 |
| GPIL | 15,182 | 17.2 | 19.2% | — | 0.07 |
| GALLANTT | 12,953 | 29.8 | 15.4% | — | 0.17 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Complete operational shutdown risk: Zero revenue in the latest quarter raises concerns about ongoing viability. 2. Negative equity reserves indicate accumulated losses and potential insolvency. 3. No visible recovery strategy or management communication on demand revival. 4. High customer concentration or contract dependency risk, given the abrupt revenue drop from Dec 2025 to Jun 2026.
📋 Recent Filings
- 🟡 Board Meeting2026-09-28Bihar Sponge Iron held its 44th AGM on 28 September 2026 via video conference, adopting audited standalone financial statements for FY2026, appointing…
- 🟡 Board Meeting2026-09-28Bihar Sponge Iron held its 44th AGM on 28 September 2026 via video conference, adopting audited standalone financial statements for FY2026, appointing…
- Announcement2026-09-22Bihar Sponge Iron Ltd announced that its trading window will close on October 1, 2026, for insiders and connected persons until 48 hours after the un-…
- 🔴 annual report2026-09-05Bihar Sponge Iron Limited issued an inland letter to shareholders without registered email addresses, directing them to access the 44th AGM notice and…
- 🔴 annual report2026-09-03Bihar Sponge Iron Limited (BIHARSPONG) announced its 44th Annual General Meeting (AGM) to be held on 28 September 2026 via video conferencing, along w…
- 🔴 annual report2026-09-03Bihar Sponge Iron Limited (BIHARSPONG) held its 44th Annual General Meeting on 28 September 2026 via video conference. The meeting approved the audite…
- 🟡 Board Meeting2026-09-03Bihar Sponge Iron announced its 44th Annual General Meeting will be held on Monday, 28 September 2026 at 3:30 PM IST via video conferencing, with regi…
🧠 Analyst's Read
The company is in a critical phase with no visible path to recovery, marked by collapsing revenues and deteriorating financials. Investors should monitor for any signs of operational restart, debt restructuring, or management-led revival strategy, but current disclosures offer no indication of such efforts.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-29.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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