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Electrosteel Steel Ltd Unlisted Shares
DRHP Status : Not Filed
35
Fundamentals About Electrosteel Steel Ltd
Downloads & Investor Documents
All documents are provided for informational purposes and are subject to regulatory disclosures.
Key Financials of Electrosteel Steel Ltd
| P&L Statement | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Revenue | 4771 | 6596 | 7977 | 8508 |
| Cost of Material Consumed | 2683 | 4592 | 5022 | 4386 |
| Gross Margins | 43.76 | 30.38 | 37.04 | 48.45 |
| Change in Inventory | 130 | -250 | -405 | 148 |
| Employee Benefit Expenses | 154 | 161 | 213 | 226 |
| Other Expenses | 954 | 1530 | 2873 | 3587 |
| EBITDA | 850 | 563 | 274 | 161 |
| OPM | 17.82 | 8.54 | 3.43 | 1.89 |
| Other Income | 128 | 204 | 75 | 85 |
| Finance Cost | 376 | 338 | 376 | 432 |
| D&A | 346 | 345 | 444 | 463 |
| EBIT | 504 | 218 | -170 | -302 |
| EBIT Margins | 10.56 | 3.31 | -2.13 | -3.55 |
| PBT | -22 | 24 | -471 | -649 |
| PBT Margins | -0.46 | 0.36 | -5.9 | -7.63 |
| Tax | -2754 | 118 | 87 | 318 |
| PAT | 2732 | -94 | -558 | -967 |
| NPM | 57.26 | -1.43 | -7 | -11.37 |
| EPS | 14.78 | -0.51 | -3.02 | -5.23 |
Financial Ratios |
2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Operating Profit Margin | 17.82 | 8.54 | 3.43 | 1.89 |
| Net Profit Margin | 57.26 | -1.43 | -7 | -11.37 |
| Earning Per Share (Diluted) | 14.78 | -0.51 | -3.02 | -5.23 |
| Assets | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Fixed Assets | 4763 | 4567 | 4954 | 4859 |
| CWIP | 835 | 806 | 1299 | 1700 |
| Investments | 409 | 180 | 20 | 20 |
| Trade Receivables | 103 | 80 | 249 | 111 |
| Inventory | 635 | 1179 | 1394 | 1063 |
| Other Assets | 4585 | 4338 | 3330 | 3055 |
| Total Assets | 11330 | 11150 | 11246 | 10808 |
| Liabilities | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Share Capital | 1849 | 1849 | 1849 | 1849.03 |
| FV | 10 | 10 | 10 | 10 |
| Reserves | 4375 | 4278 | 3718 | 2750 |
| Borrowings | 2862 | 2862 | 2406 | 2293 |
| Trade Payables | 651 | 469 | 674 | 652 |
| Other Liabilities | 1593 | 1692 | 10572 | 3263.97 |
| Total Liabilities | 11330 | 11150 | 19219 | 10808 |
About Company
Electrosteel Steel Ltd (now operating as ESL Steel Ltd) runs a greenfield integrated steel plant in Siyaljori, Bokaro (Jharkhand). Its capacity is ~2.5 million tonnes per annum.
The plant includes: sinter plant, coke oven, blast furnace, BOF (basic oxygen furnace), billet caster, TMT bar / wire-rod mills, ductile iron (DI) pipe plant, and captive power.
Their product range covers: pig iron, billets, TMT bars, wire rods and ductile iron pipes.
The following table shows a 10-point analysis of Electrosteel Steels Limited (ESL Steel Limited, part of Vedanta Group via Vedanta Star). We will discuss each point in detail after this table.
| Parameter | Key Numbers | Insights |
|---|---|---|
| Business Overview | FY25 Revenue ~₹8,282 cr · PAT -₹266 cr · PAT margin negative | Integrated steel producer with 2.51 MTPA greenfield plant in Bokaro, Jharkhand; backward/forward integrated operations; focuses on TMT bars, wire rods, billets and structural steel; acquired by Vedanta in 2018 post-NCLT; operational improvements in FY25 but ongoing losses from high finance costs and cyclicality. |
| Industry & Market Position | Mid-tier integrated steel player · Capacity utilization improving · Vedanta ecosystem synergies | Benefits from Vedanta’s scale and raw material access; competitive in long products amid infra boom; faces competition from Tata Steel, JSW, SAIL; exposed to steel price and raw material volatility. |
| Revenue Growth Trend | FY23–FY25 CAGR ~10–15% · FY25 marginal dip (~ -4% YoY) | Volume-led growth post-acquisition; resilient despite market softness; long-term upside from capacity ramp-up and infrastructure demand. |
| Profitability & Margins | EBITDA doubled YoY · ROE negative · PAT negative (loss narrowed from ₹967 cr FY24) | Operational turnaround with improved efficiency; still loss-making due to high interest and depreciation; potential breakeven with sustained cost control. |
| Cash Flow Quality | Improving operating cash flows · No dividends | Strengthening from operational leverage and working capital management; capex and debt servicing remain key pressures; supported by Vedanta group. |
| Balance Sheet Strength | Book value ~₹23–24/share · Debt/Equity ~0.5x · High borrowings | Leveraged but manageable post-restructuring; strong parent backing; cyclical risk tied to steel demand and pricing. |
| Valuation Comfort | Unlisted price ~₹35–40 (Feb 2026) · P/B ~1.5–1.7x · Market cap ~₹6,600–7,400 cr | Discounted valuation reflecting turnaround risk; asset-heavy capacity provides value base; re-rating possible with profitability improvement. |
| Management & Governance | Vedanta-controlled (~95%+ stake) · Professional management · Transparent disclosures | Strong oversight via Vedanta group; clean governance framework; benefits from metals and mining expertise. |
| Growth Triggers & Catalysts | Infra-led steel demand · Cost optimization · Capacity debottlenecking · No confirmed IPO | Upside from India’s steel consumption growth and group synergies; incremental gains from efficiency improvements; relisting speculative. |
| Liquidity & Exit Visibility | OTC liquidity only · Delisted status · No IPO/DRHP plans | Moderate unlisted trading; liquidity risk typical for delisted turnaround plays; exit via OTC or potential future strategic action. |
Ownership/Resolution History
The company went through insolvency (NCLT) due to high debt.
In June 2018, Vedanta (via its subsidiary) acquired a controlling stake.
As per its annual report, Vedanta (or its unit) holds ~90% of the paid-up capital
Electrosteel was delisted from public stock exchanges; as part of the resolution, shareholders were offered a delisting exit price (~₹ 9.54/share).
Financial Performance
- In FY 2025, ESL’s EBITDA more than doubled, showing better operating efficiency.
- However, the company is still loss-making: net loss in FY25 reduced from ₹ 967 crore (FY24) to ₹ 266 crore.
- On the balance sheet, its debt-to-equity ratio remains moderate; liquidity is under stress, and its current ratio is weak.
Strategic Moves & Backwards Integration
- To reduce raw material costs, ESL acquired iron-ore mines:
- Nandidih Iron Ore Block (BICO)
- Nandidih Iron Ore & Manganese Block (FEEGRADE), Barbil, Odisha
- Rebranded its product lines:
- V-XEGA → TMT Bars
- V-DUCPIPE → DI Pipes
- V-WIRRO → Wire Rods
Risks & Challenges
- High leverage: legacy debt remains a major overhang.
- Negative profitability: even though losses are narrowing, return on equity is still negative.
- Raw material volatility: Steel business is highly sensitive to iron-ore, coking coal prices.
- Execution risk: mine integration and scaling operations while maintaining cost control.
Quick Summary
ESL Steel (formerly Electrosteel Steels) is now a Vedanta-controlled steel company, running a modern integrated plant in Bokaro. While it has made operational improvements (notably in EBITDA in FY 2025), it remains loss-making, with significant debt and liquidity stress. Backward integration into iron-ore could drive long-term cost benefits, but execution risks are non-trivial.
For an unlisted-share investor, the risk-reward hinges on Vedanta’s ability to turn around ESL’s financials and scale sustainably.
Shareholding Pattern of Electrosteel Steel Ltd
| Name | Holding |
|---|---|
| Vedanta Limited | 95.49% |
| Others | 4.51% |
Promoters of Electrosteel Steel Ltd
| Name | Designation | Linkedin Profile |
|---|---|---|
| Anil Agarwal | Founder & Chairman, Vedanta Group (Vedanta is the majority owner of ESL) |  |
| Arun Misra | Executive Director, Vedanta (part of the broader leadership) | |
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Frequently Asked Questions
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