Orissa Sponge Iron & Steel Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Orissa Sponge Iron & Steel Ltd trades at ₹219, between stages. That is −14.0% against its own 200-day average. On relative strength it has no relative-strength read yet.

Today the stock is between stages. At ₹219 it trades −14.0% versus its 200-day average.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

P/E does not price Orissa Sponge Iron & Steel Ltd — earnings are negative, so there is no multiple to rank against its own history. The revenue and margin lines below are where a turn, when it comes, would show first. On sales the market values Orissa Sponge Iron & Steel Ltd at 1.1× its FY26 revenue of ₹550 Cr.

With earnings negative, P/E does not price — there is no multiple to rank against its own history. The revenue and margin lines below are where the turn, when it comes, will show first.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Orissa Sponge Iron & Steel Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

The return-on-capital curve is not shown — net worth is negative, so a return on capital is not a meaningful number in any basis. This is a distressed balance sheet, and the stage is read from the growth curves alone.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Orissa Sponge Iron & Steel Ltd reported ₹0.0 Cr of revenue in the Jun 18 quarter. The last full year, FY26, came in at ₹550 Cr. The last four reported quarters add to ₹0.0 Cr. A multi-year compound rate is not shown because the annual history behind it is too short to compute one honestly.

FY26 revenue came in at ₹550 Cr (+20.1% on the year). The latest quarter (Jun 18) printed ₹0.0 Cr, null year on year.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

A clean operating margin is not in our numbers for Orissa Sponge Iron & Steel Ltd — its accounts do not report the operating-profit line this section reads, which is common for lenders and holding companies. The sections above and below carry the readings this company's filings do support.

This company's accounts do not report the operating-profit line this section reads — common for lenders and holding companies classified outside the financial bucket. The revenue and net-profit sections are the cleaner reads for Orissa Sponge Iron & Steel Ltd.

Why: the numbers show the operating margin move clearly, but the cost lines behind it sit below what we hold — so we state the move without inventing its driver.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Orissa Sponge Iron & Steel Ltd posted a net loss of ₹4.8 Cr in the Jun 18 quarter. The full FY26 year was a loss of ₹11.0 Cr. The same quarter a year earlier lost ₹20.2 Cr. 12 of the last 12 reported quarters were loss-making.

Jun 18 profit was ₹−4.8 Cr, null year on year. On the full year, FY26 printed ₹−11.0 Cr (−320.0%).

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 2 fiscal years 642% of Orissa Sponge Iron & Steel Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹−13.0 Cr of operating cash against ₹−11.0 Cr of profit. After ₹11.0 Cr of capital spending, ₹−24.0 Cr was left as free cash.

FY26: operating cash of ₹−13.0 Cr against reported profit of ₹−11.0 Cr, leaving free cash of ₹−24.0 Cr after ₹11.0 Cr of capital spending. Across the last 2 fiscal years the conversion rate is 642% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 642%: the cash cycle stretched 220 days between FY20 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 5.0× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Orissa Sponge Iron & Steel Ltd's cash conversion cycle runs 6 days in FY26, up from −214 days in FY20. Capital spending ran ₹129 Cr over the last 3 years. At FY26 sales of ₹550 Cr each day of that cycle holds about ₹1.5 Cr, so roughly ₹9.0 Cr sits inside the business at any moment.

FY26: debtors at 14 days, inventory at 61 days — roughly 2.0 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 6 days, looser than FY20's −214.

The full loop: cash goes out to suppliers and production on day 0; stock waits 61 days to sell; customers pay about 14 days after that; and suppliers themselves are paid at 69 days — netting out to the 6-day cycle.

In money terms: at FY26 sales of ₹550 Cr, each day of the cycle holds about ₹1.5 Cr — so the 6-day loop keeps roughly ₹9.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹129 Cr over the last 3 fiscal years against ₹26.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹161 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Orissa Sponge Iron & Steel Ltd earns a ROCE of 4% in FY26. That is up from a trough of −300% in FY19. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is −2.0% net margin on 0.81× asset turns.

FY26 ROCE is 4%, recovered from a FY19 trough of −300% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): −2.0% net margin × 0.81× asset turns × −9.30× balance-sheet leverage ≈ 15.1% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Orissa Sponge Iron & Steel Ltd's net worth is negative — it owes more than it owns — so a debt-to-equity ratio is not meaningful here. Operating profit covers the interest bill 1×. Over 5 years borrowings went from ₹124 Cr to ₹526 Cr. Capital spending ran ₹129 Cr across the last 3 of those years.

FY26: borrowings of ₹526 Cr against equity of ₹−73.0 Cr — net worth is NEGATIVE: the company owes more than it owns, so a debt-to-equity ratio is not meaningful (it just goes negative). This is a balance sheet under water. Operating profit covers the interest bill 1×. Over 5 years borrowings went from ₹124 Cr to ₹526 Cr while capital spending ran ₹129 Cr in just the last 3 — part of the build-out is riding on borrowed money.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 25.2 points of Orissa Sponge Iron & Steel Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 25.2% of the company. Promoters moved −2.7 points over the same window, to 26.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +25.2 points over 8 quarters to 25.2%; Promoters: −2.7 points over 8 quarters to 26.3%.

Why the register moved: domestic institutions drove it (+25.2 points), absorbed on the other side by promoters (−2.7 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Orissa Sponge Iron & Steel Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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