Maithan Alloys Limited has reported zero dematerialization requests during the fourth quarter of FY26, confirming full compliance with regulatory requirements under SEBI's Depositories and Participants Regulations. The company filed its quarterly compliance report on April 8, 2026, covering the period from January 1, 2026 to March 31, 2026.

Regulatory Compliance Status

The company confirmed that no dematerialization requests were received during the specified quarter, which meant no share certificates required destruction, mutilation, or cancellation in accordance with Sub-Regulation 5 of Regulation 74 of SEBI Depositories and Participants Regulations, 2018.

Stock Exchange Notifications

Maithan Alloys submitted the compliance confirmation to multiple stock exchanges where its shares are listed. Company Secretary Rajesh K. Shah signed the official communication sent to the exchanges.

Exchange Details

Third-Party Validation

The compliance status was independently verified by Maheshwari Datamatics Pvt. Ltd., the company's Registrar and Transfer Agent. The RTA, based in Kolkata, provided written confirmation that no dematerialization requests were processed during the quarter under review.

RTA Confirmation Details

Depository Services Notification

The company also informed both major depositories in India about the compliance status. Central Depository Services (India) Ltd. and National Securities Depository Ltd. were copied on the official communication, ensuring comprehensive regulatory disclosure across all relevant market infrastructure institutions.

This quarterly compliance filing demonstrates Maithan Alloys' adherence to SEBI's regulatory framework governing the dematerialization process and share certificate management. The zero dematerialization requests indicate stable shareholding patterns during the quarter, with no investors opting to convert physical shares to electronic form during this period.

Maithan Alloys Limited has received a credit rating outlook upgrade from CRISIL, with the rating agency revising its long-term facilities rating from 'CRISIL AA-/Negative' to 'CRISIL AA-/Stable' while reaffirming the short-term rating at 'CRISIL A1+'. The rating action covers total bank loan facilities worth Rs 600 crore and was communicated through a rating rationale dated March 31, 2026.

Rating Action Details

The company disclosed the rating revision under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The rating communication was received by the company on April 2, 2026, at 4:30 PM, with the formal rating letter received on April 3, 2026.

Business Performance Analysis

CRISIL's rating rationale highlighted the continuation of a subdued business risk profile, particularly due to consistently muted top line performance and pressure on profitability. In the first nine months of fiscal 2026, the company achieved sales volume of over 1.8 lakh metric tons with moderate realization of around Rs 80,000 per ton, resulting in operating income (including other related income) being limited to Rs 1,613 crore.

Power costs, forming around 30% of the total cost of sales, continue to significantly impact profitability, resulting in an operating margin of 9.50% in the first nine months of fiscal 2026. The operating margin had previously lowered to 7–10% in the two fiscals through 2025, down from over 13–37% in the five fiscals through 2023.

Financial Strength Factors

Despite operational challenges, the company maintains a strong financial risk profile supported by several key factors:

• Healthy Capital Structure: Net worth of Rs 3,739 crore as of March 31, 2025
• Low External Debt: Gearing and total outside liabilities to total net worth (TOL/TNW) ratios at comfortable levels of 0.20 times and 0.30 times respectively
• Robust Interest Coverage: Interest coverage remains strong at 8.50 times as of March 31, 2025
• Superior Liquidity: Bank limit utilization averaging around 48% for the twelve months ended December 2025

Facility-wise Rating Distribution

The Rs 600 crore total facilities are distributed across multiple banking partners and facility types:

Key Rating Drivers

CRISIL identified extensive promoter experience as a key strength, noting the group's position as one of India's largest manganese alloy manufacturers with an estimated 5% domestic market share. With over four decades of experience, the promoters bring deep market knowledge and strong customer relationships, both domestic and overseas.

However, the rating agency also highlighted exposure to volatility in raw material and finished goods prices, along with cyclicality in the ferroalloys industry, as key weaknesses. Revenue from operations was Rs 1,806 crore in fiscal 2025, representing three-year compounded degrowth of 15%.

Outlook and Rating Sensitivity

The stable outlook reflects CRISIL's belief that Maithan Alloys will continue to benefit from extensive promoter experience and a healthy financial risk profile. Upward rating factors include significant improvement in revenue driven by higher sales volume and steady profitability, while downward factors include any downturn resulting in earnings before interest, taxes, depreciation and amortization sustaining below Rs 180 crore.