Company Overview

Shri Hare-Krishna Sponge Iron Limited, incorporated in May 2003, is a prominent player in the manufacturing and sale of sponge iron. Operating as a leading integrated steel plant located approximately 22 km from Raipur, the company has established a strong foothold in the steel sector for over two decades, earning it the reputation of a trusted brand.

The core business involves the manufacturing and sale of sponge iron, a crucial raw material for steel production via electric arc and induction furnaces. Shri Hare-Krishna Sponge Iron has positioned itself as a reliable supplier, consistently focusing on producing high-quality sponge iron to meet the escalating demands of steel manufacturers across India.

Manufacturing Operations and Facilities

The company's manufacturing facility is situated in Siltara, Raipur, Chhattisgarh, spanning 13.45 acres with an annual production capacity of 30,000 metric tonnes. This facility is equipped with modern machinery and an in-house testing laboratory to rigorously assess the quality of key raw materials like iron ore, coal, and dolomite.

Shri Hare-Krishna Sponge Iron also operates as a prominent manufacturer of steel shots and grits in India. The integrated steel plant boasts a state-of-the-art covered shed area of 50,000 sq. ft. in Raipur. Its strategic location offers convenient access to essential raw materials, including high-quality iron ore, pellets, coal, and dolomite, vital for sponge iron production.

Beyond its primary product, the company has diversified its offerings to include by-products such as dolochar, iron ore fines, and waste scrap. Dolochar, a solid waste generated during sponge iron production, finds application in the manufacturing of steel billets, ingots, and re-rolled products.

Market Presence and Customer Base

Shri Hare-Krishna Sponge Iron primarily supplies its products to steel manufacturers located in Maharashtra, Madhya Pradesh, and Chhattisgarh. Although not reliant on long-term contracts, the company has cultivated enduring relationships with numerous repeat customers, which have underpinned sustained demand and stable sales over the years.

As of April 30, 2025, the company employs 92 full-time staff, reflecting its operational scale and dedication to maintaining a skilled workforce essential for its manufacturing activities.

Quality Certifications and Standards

The company adheres to stringent quality, environmental, and safety standards, evidenced by its certifications:

- ISO 9001:2015: For Quality Management Systems

- ISO 14001:2015: For Environmental Management Systems

- ISO 45001:2018: For Occupational Health and Safety Management Systems

These certifications underscore the company's commitment to excellence in quality, environmental stewardship, and workplace safety.

Financial Performance

The company's financial performance in recent years has shown a mixed trend.

- Revenue: Reached ₹83.60 crore in FY25, a marginal 2% decrease from ₹84.93 crore in FY24.

- Profit After Tax (PAT): Stood at ₹9.20 crore for March 2025, a 10% decline from ₹10.17 crore in FY24.

Key Financial Metrics (FY25):

- Total Assets: Increased from ₹58.58 crore in FY23 to ₹93.16 crore as of March 2025.

- Net Worth: Recorded at ₹73.59 crore in FY25.

- EBITDA: ₹10.78 crore (as of March 2025).

- Total Borrowings: ₹11.39 crore (as of March 2025).

- Return on Equity (ROE): 12.50%

- Return on Assets (ROA): 9.88%

- PAT Margin: 11.43%

- EBITDA Margin: 13.40%

- ROCE (Return on Capital Employed): 14.70%

Strategic Initiatives and Future Plans

Due to escalating power costs, the manufacturing operations for mild steel ingots, steel shots, grits, and other steel products have been temporarily suspended since 2020. To address this challenge, the company's strategic focus is on establishing a 5MW captive power plant at its existing manufacturing facility in Siltara, Raipur, Chhattisgarh. This initiative aims to significantly reduce energy costs and ensure a reliable power supply for its operations.

IPO and Market Listing

The Company successfully launched its IPO in June 2025, offering 50,70,000 equity shares with a face value of ₹10 each, raising an aggregate of ₹29.91 crore. The IPO price band was set between ₹56 to ₹59. The stock debuted on the exchange at ₹64.80, a premium to its offer price of ₹59.00.

As of July 2025, the market capitalization stands at ₹119 crore, positioning Shri Hare-Krishna Sponge Iron Limited as a mid-cap entity within the sponge iron manufacturing sector. The IPO garnered significant investor interest, subscribing 6.84 times.

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Shri Hare-Krishna Sponge Iron Limited represents a focused player in the sponge iron manufacturing sector, boasting established operations, recognized quality certifications, and strategic plans for capacity enhancement via captive power generation. While navigating challenges related to power costs and market competition, its strategic location, strong customer relationships, and planned infrastructure investments position it for potential growth within India's expanding steel sector.