Scan Steels Ltd(SCANSTL)

NSE: SCANSTLBSE: 511672

₹ 46-4.17%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 279 crWebsite: www.scansteels.comUpdated: 24 Oct 2026

About

Scan Steels makes sponge iron, MS billets and rolled products such as TMT bars and structurals, with its own captive power, and reports a single segment, steel manufacturing. Revenue from operations was Rs 838.26 crore in FY26. It sold 162,469 MT of TMT in FY26, about 99% of it through its own branded channel.^[1][2][3]

Business segments

The company reports a single segment, steel manufacturing, with FY25 revenue from operations of Rs 789.2 crore.^[1]

Operations and capacity

FY26 utilisation: sponge iron (DRI) 84%, MS billets 81%, rolled products (TMT and structural) 82%, and 8 MW of captive power at 100%.^[3]
FY26 capacity stated on the call: MS billets 2.0 LTPA and rolled products 2.0 LTPA. TMT output of about 1.64 LTPA in FY26 was limited by billet supply.^[3]
The FY25 annual report states installed TMT capacity of 3,34,400 MT.^[1]
Hot charging at the rolling mill was commissioned in FY26, cutting costs.^[3]
The company's sponge iron unit at Bellary has been leased out since December 2022.^[1]

Key operating numbers

In FY26, TMT sales volume was 162,469 MT and rolled product production was 162,984 MT.^[3]
TMT realisation was Rs 43,430 per tonne in FY26.^[3]
EBITDA per tonne was Rs 3,013 in FY26.^[3]

Customers and distribution

In FY26, about 99% of TMT was sold through the company's own direct channel, and retailers made up about two-thirds of sales.^[3]
Management says the brand earns a premium of Rs 1,500-2,000 per tonne over unbranded players (FY26 call).^[3]

Expansion and capex

Theme 1 adds 1 LTPA of billet capacity, taking billets to 3 LTPA so the full 3 LTPA TMT capacity can run. Commissioning is targeted for September 2026.^[3]
Theme 2 is a 2 LTPA pipe and galvanizing mill. Capex is about Rs 80 crore, funded by term loans and internal accruals, with completion targeted for Q3 FY28.^[3]
Theme 2 products are expected to realise Rs 55,000+ per tonne, against Rs 43,430 per tonne for TMT in FY26.^[3]
Theme 3 is a Rs 850 crore greenfield project: a 12 LTPA pellet plant, 2.5 LTPA DRI, a coal washery and 50 MW of power, due by Q3 FY31.^[3]
Theme 3 funding: Rs 500 crore of equity, raised in three tranches, and Rs 350 crore of internal accruals, with no term debt.^[3]
Management targets about 7.5 LTPA of finished steel capacity by FY31.^[3]

Acquisition of Bindals Sponge

Scan Steels and KAII are acquiring Bindals Sponge through NCLT as a consortium. Its assets are a 350 TPD DRI kiln, 12.5 MW of power and 1 LTPA of billets.^[3]
Scan Steels has put Rs 20 crore into the Bindals deal. Integration is planned for Q4 FY27, and operations are expected to resume by March 2028 after overhaul.^[3]

Recent developments

The FY26 AGM proposes reclassifying all 1,50,00,000 authorised OCRPS of Rs 10 each into equity shares. Authorised capital stays at Rs 86.50 crore.^[4]
The board approved a preferential issue of 20,42,133 OCRPS. BSE in-principle approval was awaited at the time of the FY25 report.^[1]
All three independent directors left on August 8, 2025, and were replaced.^[1]
CRISIL reaffirmed the company's ratings at BBB+/Stable and A2+ (FY25 annual report).^[1]

Market Cap

₹279 Cr

High / Low

₹68 / 24

Stock P/E

12.1

Price / Book

0.7

Book Value

₹77

EPS

₹3.8

No. of Shares

5.86 Cr

ROCE

7.0%

ROE

5.1%

OPM

4.2%

Debt / Equity

0.16

Sales

₹838 Cr

Net Profit

₹22 Cr

Promoter holding

49.3%

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