Mishra Dhatu Nigam has been penalised ₹12,59,060 each by the Bombay Stock Exchange and National Stock Exchange for regulatory non-compliances during the quarter ended June 30, 2026.

The fines were imposed on August 25, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015. The penalties address violations of multiple SEBI LODR provisions, including Regulations 17(1), 17(2A), 18(1), 19(1)/19(2), 20(2)/(2A), and 21(2).

Compliance Context

The company disclosed that it has not paid any fines to the stock exchanges regarding board composition non-compliances to date. Mishra Dhatu stated that the authority to appoint directors rests with the President of India, acting through the Ministry of Defence, rather than with the company’s board.

Consequently, the firm indicated an impossibility of compliance with certain board-related mandates. It plans to submit a fine waiver request to both exchanges in line with NSE Circular No: NSE/CML/51846 dated March 31, 2022.

Financial Impact

Mishra Dhatu asserted that the levied fines have no impact on its financial position, operations, or other activities. The total potential liability from these specific penalties stands at ₹25,18,120, inclusive of GST, across both exchanges.

Mishra Dhatu Nigam reported a 27.42% year-on-year increase in net profit after tax (PAT) to ₹16.31 crore for the first quarter of FY27. The specialized metals manufacturer also saw its turnover surge by 40.46% to ₹239.49 crore, supported by strong demand in defense and space sectors.

Financial Performance

The company’s EBITDA grew by 12.89% to ₹46.6 crore, while profit before tax (PBT) rose by 25.89% to ₹23.92 crore. Production value for the quarter stood at ₹260.36 crore, marking a 7.9% increase compared to the corresponding period last year.

What the Numbers Show

Despite robust top-line growth, EBITDA margins contracted significantly. The company attributed this divergence to adverse price variances of approximately ₹13 crore due to raw material hikes and an additional ₹5 crore hit from doubled LPG prices caused by geopolitical tensions. Management indicated that margins are expected to normalize by Q3FY27 as input costs stabilize.

Order Book and Strategic Developments

As on July 1, 2026, the order book stood at ₹2,329 crore. The sector-wise breakdown reveals heavy reliance on strategic government clients:

• Defense: 66%
• Space (ISRO): 21%
• Energy: 9%
• Others: 4%

Management highlighted several key operational milestones:

• Secured S400 certification from General Electric USA for mechanical, chemical, and metallography testing, enabling domestic testing services previously outsourced abroad.
• Successfully isothermally forged nickel-based super alloys for fighter aircraft programs using its 6,000-ton press.
• Rolled 7000 series aluminum alloy for a PSU, marking the first commercial order for aluminum rolling using existing wide plate mill facilities.
• Initiated production of bulletproof jackets (ABHED) developed with DRDO and IIT Delhi, with testing expected to conclude by next quarter.

Outlook and Capex

The company plans to incur capital expenditure of approximately ₹50–60 crore in FY27, primarily for maintenance. A larger modernization proposal involving ₹1,000 crore over three years is under ministry evaluation to replace aging equipment and improve yield. Management expects full realization of these investments only after four to five years.

Export sales currently contribute around 10% of turnover, with current year exports reaching ₹33 crore and an open order book of ₹25 crore. The company aims to increase export contribution further through new certifications like Nadcap.