A-One Steels India

South based steel player

A-One Steels India (ASIL), is engaged in the manufacturing and supply of steel and related industrial products such as sponge iron, MS billet, TMT bars, HR coils, CR coils, HR (MS) pipes, CR pipes, GP pipes, met coke and ferro alloys which are used across multiple end-use industries such as construction and infrastructure industry, power plants construction, dams, airports, bridges, flyovers, stadiums, highways, underground structures, industrial structures, high rise residential buildings constructions, and other industries.

The company operations are backward/vertically integrated with a diversified product portfolio comprising long and flat steel products, as well as industrial products used in steel manufacturing. The integrated manufacturing process of the company extends from the manufacturing of direct reduced iron, commonly known as sponge iron, to the manufacturing of MS billets and their further conversion into finished steel products including, TMT bars, HR coils, CR coils, HR (MS) pipes, CR pipes and galvanized tubes and pipes.

The Sponge iron, MS billets, HR coils and CR coils produced by ASIL are primarily intended to be used for captive consumption in downstream manufacturing process; thereby supporting its integrated operations. Any production in excess of its captive requirements is sold in the open market.

ASIL also manufacture industrial products used in steel manufacturing, including met coke and ferro alloys such as silicon manganese and ferro silicon, which are sold in open market. Its manufacturing processes also provide it with the flexibility to manufacture steel products across a range of formats, including various grades of TMT bars, specialized steel and alloy products, and tubes and pipes for varied applications.

The company and its subsidiaries together operates six manufacturing units across Karnataka (Gauribidanur, Chikkantapur, Bellary (Unit I & II) and Koppal) and Andhra Pradesh (Hindupur) with an aggregate installed capacity of 1733100 MTPA for intermediate, finished steel and industrial products as of Mar 2026.

ASIL source a significant portion of its power requirements under long-term power purchase agreements, including group-captive arrangements. It have entered into 10 power purchase agreements for solar power and six power purchase agreements for wind power on long-term contractual terms, together sourcing 230 MW from these PPAs. In addition, Bellary Facility I has a 14 MW thermal captive power plant and a 6 MW waste heat recovery boiler power plant and the Chikkantapur Facility has a 12 MW waste heat recovery boiler power plant.

In Fiscals 2026, 2025 and 2024, 57.19%, 55.28% and 53.04%, respectively, of its power requirements were met through solar and wind power sources, while 26.01%, 34.17% and 35.82%, respectively, were met through non-captive and WHRB power sources. The aggregate contribution from these power sources represented 83.20%, 89.46% and 88.86% of its power requirements in Fiscals 2026, 2025 and 2024, respectively.

The primary raw material used in its manufacturing process are scrap, iron ore, pellets, coal and coking coal, pig iron and wood charcoal/quartz and power. ASIL procure these raw materials through a combination of domestic and international market purchases, e-auctions, open market operations and long-term supply and linkage arrangements. Under certain long-term arrangements, the company procures iron ore against annual or periodically allocated quantities.

ASIL market certain of its products, including TMT bars and steel pipes, under the ?A-One Gold? brand. It also sells products branded as ?Jindal? through licensing arrangement and also as unbranded. Of the FY26 revenue from operations about 40.72% of revenue is from sale under ?AONE GOLD? brand, 9.98% under ?Jindal? brand and balance 49.29% is from unbranded.

The company sells its products across India through its distribution network and direct sales channels. As of March 31, 2026, its sales network comprised 1,246 direct retail sales channels, 32 authorized distributors and 57 institutional customers. A significant portion of its revenue from operations is generated from Karnataka, Andhra Pradesh, Tamil Nadu, Maharashtra and Telangana. Of the FY26 revenue about 54.86% is from Karnataka, 11.35% from AP, 7.21% from Tamil Nadu, 6.01% from Maharashtra, 4.39% from Telangana and 16.18% from others.

Of the FY26 revenue from operations, 29% is from TMT bars, 21.7% from pipes & tubes, 10.91% from sponge iron; 5.74% from MS billets, 10.45% from coal, 7.45% from iron ore, 6.67% from met coke and 4.54% from coil and 1.54% from scrap.

Captive consumption as a percentage of production for Sponge Iron (82.35%), MS billets(98.89%), HR coils and CR coils (88.81%) for FY 2026.

Of the FY26 revenue from operations about 93.49% is from domestic market and balance 6.51% from exports.

As part of its strategy to strengthen backward integration and secure access to manganese ore required for the production of ferro alloys, its subsidiary, A-One Gold Pipes and Tubes Private Limited, has acquired rights in relation to a mining lease originally held by M/s Bharat Parikh & Co. pursuant to transfer documentation executed on June 25, 2025. The mining lease covers an area of approximately 79.64 acres [comprising Sy. No. 57 ? Hullikere, Sy. No. 164 ? Guddal and Sy. No. 74 ? Harekell] in the state of Karnataka. Presently the company is in the process of completing the requisite regulatory formalities and obtaining or renewing the approvals required for commencement of mining operations.

The issue, Objects of the issue

The offer comprises fresh issue of equity shares of Rs 10 each aggregating to Rs 355 crore and an offer for sale of equity shares aggregating to Rs 50 crore by promoters [Rs 20 crore by Sandeep Kumar; Rs 20 crore by Sunil Jallan and Rs 10 crore Krishan K Jalan].

Of the net proceeds from fresh issue, the company intends to use Rs 250 crore towards prepayment or re-payment, in full or in part, of certain outstanding borrowings availed by the company; and balance towards general corporate purposes.

Outstanding borrowings as of end of July 15, 2026, stood at Rs 1158.14 crore.

ASIL is in the process of expanding its Koppal Facility by setting up a 6,00,000 MTPA iron ore beneficiation plant which is expected to be commissioned 50% in Fiscal 2027 and balance 50% in Fiscal 2028. It is also setting up a 10 MW WHRB power plant at the Koppal Facility of which 6 MW has been partially operational as on date and balance 4 MW capacity is expected to be commissioned during Q2FY27. The expansion projects at the Koppal facility are intended to be funded through a combination of internal accruals and borrowings.

Strengths

Backward integrated steel products manufacturer in southern India with a diversified product portfolio.

Sourced a significant amount of green energy with about 83-89.5% of its energy consumptions in the previous three Fiscals coming from renewable sources. Achieves a savings of approximately Rs 2/unit of electricity through its captive and WHRB power arrangements.

Diversified sales channels and customer base. Contribution of top 1/5/10 customers to revenue from operations in FY26 was 5.33%/19.41%/27.9% respectively.

Weaknesses

The demand and pricing in the steel industry is volatile and sensitive to the cyclical nature of the industries it serves. Low steel prices may adversely affect the businesses and results of operations of steel producers, resulting in lower revenue and margins and write-downs of finished steel products and raw material inventories. Any fluctuations in prices of steel and shifts in demand may have a significant impact in the company?s financial position.

Profits and margins have fluctuated in the past.

Any sustained slowdown in the end-use industries that consume the products of the company, particularly construction and infrastructure-related sectors, could adversely affect demand for a material portion of its manufactured product portfolio

More than 50% of its revenue from operations has historically been concentrated in the State of Karnataka.

Certain deficiencies were identified in relation to the enablement, operation and preservation of audit trail records in the accounting software used by the company and certain of its subsidiaries, which may expose it to regulatory action.

Have been subject to past and ongoing proceedings by certain regulatory and statutory authorities such as KERC, KPCB, SEBI, ROC and any adverse outcome may impact its reputation, business operations, and compliance standing.

All existing manufacturing facilities of the company are concentrated in two regions i.e. Karnataka and Andhra Pradesh.

Certain of its manufacturing lines operated below their installed capacities during Fiscal 2026, including TMT bars at the Hindupur Facility at 60.39% capacity utilisation, GP pipes at Bellary Facility II at 67.00% and ferro alloys at the 84 Chikkantapur Facility at 63.93%.

The company as of July 15, 2026 has provided corporate guarantees of Rs 185 crore for the loan availed by group company and Rs 220.50 crore for loans availed by its subsidiaries.

One of group companies i.e. A-One Gold Retail Private Limited is engaged in businesses that are similar to company?s business, and although non-compete arrangements have been entered into, any breach, non-enforcement or invalidation of such arrangements could result in conflicts of interest.

Have experienced negative cash flows from investing and financing activities in the recent past.

Right to distribute steel products under the ?Jindal? trademark for certain specific products in Karnataka is subject to contractual limitations and termination risk.

Vanya Steels, a subsidiary of the company has been issued various notices in relation to environmental non-compliances.

Any termination or disruption of power purchase agreements could adversely affect the business operations.

Have put option rights under share subscription and shareholders? agreements entered into by the company in relation to Radiance KA Sunshine Five Private Limited, and under the shareholders? agreement in relation to FP Suraj Private Limited and the enforceability of such rights may be subject to legal, regulatory, and other contractual limitations.

Valuation

Consolidated re-stated revenue in FY2026 stood higher by 18% to Rs 4167.33 crore. With OPM expanding by 240 bps to 7.3%, the growth of OP was 74% to Rs 303.64 crore. Finally, net profit after MI jumped to Rs 126.49 crore against a profit of Rs 8.49 crore, a year ago.

On the expanded equity, the EPS for FY2026 was Rs 16.3. On the upper price band, the PE works out to 24.8 times of its FY26 EPS. P/BV stood at 2.6 times and EV/Sales stood 1.0 times. ROE stands at 8.21%.

Repayment of Rs 250 crore from net proceeds will bring the borrowings down by about 21.59%, resulting in lower interest outgo. EPS for FY26 works out to Rs 19.4 if 21.59% of its interest cost is removed, keeping all other items, including tax rate, same. The reworked PE stood at 20.9 times.

In comparison, TMT bar manufacturers such as MSP Steel & Power, Jai Balaji Industries and Shyam Metallics quotes at a PE of 14 times, 44.5 times and 28.5 times and price/BV of 1.8 times, 2.6 times and 2.6 times respectively. ROE of MSP Steel & Power was 13.14% and that of Jai Balaji Industries was 5.86% and that of Shyam Metallics was 9.28%. Similarly the FY26 OPM of MSP Steel & Power was 2.7%, that of Jai Balaji Industries was 6% and that of Shyam Metallics was 12.6%.

A-One Steels India : Re-stated Consolidated Financials
	2403 (12)	2503 (12)	2603 (12)
Sales	3835.93	3544.37	4167.33
OPM (%)	4.5	4.9	7.3
OP	172.19	174.06	303.64
Other income	26.51	25.26	34.73
PBIDT	198.70	199.31	338.36
Interest	97.30	113.15	109.19
PBDT	101.40	86.16	229.17
Depreciation	43.22	55.87	62.68
PBT	58.18	30.29	166.50
EO Exp	0.00	4.44	-0.53
PBT after EO	58.18	25.85	167.02
Tax	19.27	18.14	39.62
PAT	38.91	7.71	127.41
Share of Profit from Associates	0.00	0.00	0.00
Minority Interest	0.46	-0.78	0.92
Net profit after MI	38.45	8.49	126.49
EPS (Rs)*	5.0	1.3	16.3
* on post IPO fully dilluted equity (on upper price band) of Rs 77.23 crore. Face Value: Rs 10
EPS is calculated after excluding EO and relevant tax
Figures in Rs crore
Source: Capitaline Corporate database

A-One Steels India : Issue Highlights
Fresh Issue (Rs crore)	355
Offer for sale (Rs crore)	50
Price band (Rs.) **
Upper	405
Lower	385
Post-issue equity (Rs crore)
in Upper price band	77.23
in Lower Price Band	77.69
Post-issue promoter (including promoter group) stake (%)	74.52
Minimum Bid (in nos.)	37
Issue Open Date	24-09-2026
Issue Close Date	28-09-2026
Listing	BSE, NSE
Rating	40 /100

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