Bihar Sponge Iron (BIHSPONG) Q2 FY27 Reports Zero Revenue and ₹11 Crore Loss as Plant Remains Shut
The company posted no sales and a net loss of ₹11 crore in Q2 FY27 as its plant underwent major maintenance, with auditors flagging unresolved financial disputes.
Bihar Sponge Iron reported zero revenue and a net loss of ₹11 crore for Q2 FY27. The plant is under revamping, leading to no sales, while fixed costs and a sharp drop in other income drove the loss.
For a company whose sole business is making sponge iron, a quarter with zero sales is a full stop. Bihar Sponge Iron hit that mark in the September quarter, posting no revenue and a ₹11 crore loss as its plant remained shut for revamping.
The numbers show a complete operational halt. Revenue fell 100% both year-on-year and quarter-on-quarter to zero. This turned a ₹1.75 crore profit from a year ago into a ₹11 crore loss.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Metric
CurrentQ2 FY27
PreviousQ1 FY27
Same quarter LYQ2 FY26
Revenue (₹ Cr)
0.0YoY -100%
6.39
63.76
Profit (₹ Cr)
-11.0YoY -729%
2.48
1.75
The loss came despite a 207% quarter-on-quarter jump in total expenses to ₹12 crore. Reports from scanx.trade and MarketPing note this was driven by fixed costs like employee benefits and other expenses, which continued with no sales to offset them.
Why the Plant Went Silent
The company stated its plant is under revamping and major maintenance. This follows the exit of its previous operator, Vanraj Steels, in February 2026. A new Facility User Agreement was signed with Amalgam Steel & Power in March, but commercial operations have yet to begin.
Compounding the operational silence, other income—which had propped up profits in prior quarters—plunged 84% sequentially to just ₹1 crore. This left the company with no financial cushion against its running costs.
A Balance Sheet Under Strain
The operational shutdown is straining the financials. For the six months ended September, operating cash flow was negative ₹0.83 crore, as reported by news.tulsian.ai. The balance sheet shows negative equity of ₹42.27 crore.
Adding to the uncertainty, statutory auditors Doogar & Associates issued a qualified conclusion on the results. They cited an unprovided coal penalty of ₹2.15 crore and a massive ₹96.16 crore gap in provided interest on a government soft loan, as detailed by multibagg.ai.
Key Points
Bihar Sponge Iron reported zero revenue and a ₹11 crore net loss for Q2 FY27 due to a plant revamping halt.
Fixed expenses continued without sales, and other income fell sharply, eliminating a previous profit buffer.
Auditors qualified the results, highlighting unresolved disputes including a ₹96 crore interest provisioning gap.
The company's balance sheet shows negative equity and negative operating cash flow for the half-year.
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Hexa Perspective
This quarter underscores a company entirely dependent on a single, non-operational asset. The path forward hinges on the successful completion of the plant revamp under the new operator, Amalgam Steel & Power, and the subsequent restart of sales. Investors are left weighing the potential of a operational revival against a weakened balance sheet and significant unresolved financial contingencies. The stock's 12% decline over the past year reflects the deep uncertainty embedded in that calculation.
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Frequently asked questions
What were Bihar Sponge Iron's Q2 FY27 results?
Bihar Sponge Iron reported zero revenue from operations and a net loss of ₹11 crore for the quarter ended September 2026 (Q2 FY27). This compares to revenue of ₹63.76 crore and a profit of ₹1.75 crore in the same quarter last year.
Why did Bihar Sponge Iron report zero revenue in Q2 FY27?
Bihar Sponge Iron reported zero revenue because its sponge iron plant was under revamping and major maintenance. According to company filings and reports from scanx.trade, this halted all production and sales during the quarter.
What caused Bihar Sponge Iron's Q2 FY27 net loss of ₹11 crore?
The ₹11 crore loss was caused by fixed operating expenses, such as employee costs, continuing with zero sales revenue. Other income, which had supported profits in prior quarters, also fell sharply by 84% quarter-on-quarter to just ₹1 crore.
What is the status of Bihar Sponge Iron's plant revamp?
The plant revamp is in progress following a new Facility User Agreement with Amalgam Steel & Power Limited signed in March 2026. The company has stated commercial operations will commence upon completion of this renovation work.
Why did Bihar Sponge Iron's auditors issue a qualified opinion on the Q2 FY27 results?
Auditors Doogar & Associates issued a qualified conclusion citing several unresolved matters. As reported by multibagg.ai, these include an unprovided coal penalty of ₹2.15 crore and a ₹96.16 crore gap in provided interest on a government soft loan.
What is the ₹96.16 crore interest provisioning gap mentioned by Bihar Sponge Iron's auditors?
The auditors cited ₹123.62 crore of accrued interest on a Jharkhand government soft loan, of which only ₹27.46 crore has been provided in the company's books. This leaves a ₹96.16 crore difference, pending a decision on the company's request for an interest waiver.
What was Bihar Sponge Iron's cash flow from operations in H1 FY27?
For the six months ended September 2026, Bihar Sponge Iron's cash flow from operating activities was negative ₹0.83 crore, as reported by news.tulsian.ai. This reflects cash used during the period when the plant was not generating revenue.
What is Bihar Sponge Iron's net worth position?
As of September 30, 2026, Bihar Sponge Iron's total equity was negative ₹42.27 crore, indicating its liabilities exceed its assets. This is a result of accumulated losses over time.
Has Bihar Sponge Iron's management provided guidance on when operations will resume?
The company's filings state that commercial operations are proposed to commence upon successful completion of the ongoing plant renovation and revamping work. No specific timeline for resumption has been disclosed.
How has Bihar Sponge Iron's stock price performed over the past year?
Bihar Sponge Iron's stock declined 12.1% in the year leading up to November 13, 2026, closing at ₹11.38. This underperformance reflects the operational shutdown and financial challenges highlighted in the recent quarterly results.
Bihar Sponge Iron Q2 net profit
Bihar Sponge Iron reported a net loss of ₹11 crore for the quarter ended September 2026 (Q2 FY27). This is a severe decline from a net profit of ₹1.75 crore in the same quarter the previous year.
Bihar Sponge Iron Q2 FY27 results November 2026
Bihar Sponge Iron announced its Q2 FY27 results on November 13, 2026. The results showed zero revenue from operations and a net loss of ₹11 crore for the quarter ended September 2026.
