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Visa Steel Ltd (VISASTEEL), a ferro-alloys and speciality-steel company headquartered in Kolkata with core assets at Kalinganagar in Jajpur, is showing early signs of operating recovery.
The company’s large ferro-chrome capacity and captive power base provide a strategic advantage, even as legacy balance-sheet challenges and regulatory issues remain under focus.
Strategic Industrial Footprint
Visa Steel operates a 125,000 tonnes per annum high-carbon ferro-chrome plant at Kalinganagar.
The facility comprises five submerged-arc furnaces supported by three 25 MW captive power units, allowing it to produce ferro-chrome at competitive costs. Its primary product, high-carbon ferro-chrome, is a critical input for stainless steel and special steel production, sectors that are expected to grow steadily with India’s infrastructure expansion.
Subsidiaries such as Kalinganagar Special Steel Private Limited, Kalinganagar Chrome Private Limited, VISA Ferro Chrome Limited, and VISA Special Steel Limited strengthen its footprint in downstream and allied operations.
Q1 FY26 Performance
For the quarter ended June 30, 2025, Visa Steel reported:
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Revenue from operations: Rs 1,709.78 million (~Rs 171 crore)
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Total income: Rs 1,718.51 million (~Rs 172 crore)
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Profit before exceptional items and tax: Rs 43.22 million (~Rs 4.3 crore)
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Net profit attributable to owners: Rs 43.22 million (EPS Rs 0.37)
This marked a return to reported profitability, reflecting production continuity and sales recovery.
However, the statutory auditor highlighted non-recognition of accumulated interest, estimated at Rs 399.29 million for Q1 and Rs 13,645.52 million cumulatively. If accounted for, the quarter would have shown a net loss of ~Rs 356.07 million instead of a profit. The auditor also noted a material uncertainty on going concern, underscoring the need for progress in Visa Steel’s debt resolution with Assets Care & Reconstruction Enterprise (ACRE).
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Market Snapshot
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Market Capitalisation: Rs 380–398 crore (early September 2025)
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Share Price: Rs 33–34 per share
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52-Week Range: Rs 25.00 – Rs 45.00
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All-Time High/Low: Rs 66.20 / Rs 2.45
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Beta: 0.05 (low volatility)
The stock currently trades at distressed valuations, reflecting investor caution around the company’s balance sheet.
Industry Context and Growth Drivers
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Domestic Steel Demand: India’s steel demand is forecast to grow in mid-to-high single digits in FY26, supported by infrastructure spending and construction growth. Rising stainless steel production ensures steady demand for ferro-chrome.
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Global Ferro-Chrome Market: Market research anticipates mid-single-digit growth in ferro-chrome consumption through 2025, aligning with Visa Steel’s core product focus.
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Operational Momentum: Despite financing stress, the Q1 results demonstrate that the company’s production base remains active, with ferro-chrome sales feeding into established supply chains.
Risks and Overhangs
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Debt Burden: With unprovided accumulated interest of over Rs 13,600 crore, balance-sheet restructuring remains a prerequisite for sustained performance.
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Regulatory Compliance: The company has received notices from the Odisha State Pollution Control Board regarding renewal of consent to operate, an issue that requires timely resolution.
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Commodity Cyclicality: Ferro-chrome and steel are cyclical commodities; short-term demand swings can significantly impact realisations and margins.
Outlook: Assets Provide Strategic Value, Restructuring Is Crucial
Visa Steel holds substantial hard assets in ferro-chrome capacity and captive power, positioning it to benefit from India’s structural growth in steel and infrastructure. The company’s operational recovery in Q1 FY26 is encouraging, but the investment case remains conditional on successful debt restructuring and regulatory clearances.
If management executes on deleveraging and sustains operational performance, Visa Steel could unlock significant shareholder value, riding on the dual tailwinds of domestic infrastructure growth and steady stainless steel demand.
(Note: This article is based on current market research and stock performance. All investments are subject to financial risks, and readers are expected to make their own decisions after thorough analysis)
