Maithan Alloys Ltd, a leading ferro alloy producer, has reported a narrowed net loss for the second quarter, despite an increase in revenue. The company's financial performance shows mixed results, with improvements in some areas and challenges in others.

Financial Highlights

Maithan Alloys reported a revenue of ₹5.00 billion in Q2 FY2026, up from ₹4.70 billion in the same quarter last year, representing a 6.38% year-over-year increase. Despite the revenue growth, the company continued to face challenges, as evidenced by its financial results.

The net loss for the quarter stood at ₹1.12 billion, an improvement from the ₹1.50 billion loss reported in Q2 FY2025. This represents a 25.33% reduction in net loss year-over-year, indicating some progress in the company's efforts to mitigate losses.

Profitability Concerns

While the top-line growth and narrowed losses are positive indicators, Maithan Alloys experienced a significant decline in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The EBITDA for Q2 FY2026 was ₹160 million, a sharp decrease from ₹540 million in the corresponding quarter of the previous year, marking a 70.37% decline.

The EBITDA margin also saw a substantial compression, falling to 3.19% from 11.49% year-over-year. This 830 basis points reduction in EBITDA margin suggests that the company faced considerable pressure on its operational efficiency and profitability during the quarter.

Operational Updates

In a recent development, Maithan Alloys has appointed Mr. Sreejith Ariyanthari Thazherradam as the Plant Head of its Vishakhapatnam Unit, effective November 13, 2025. Mr. Thazherradam, who will serve as a Senior Management Officer, brings over 20 years of experience in the Ferro Alloys manufacturing sector.

Looking Ahead

While Maithan Alloys has shown some improvement in narrowing its losses, the significant decline in EBITDA and margin compression indicate ongoing challenges. The company may need to focus on cost management and operational efficiency to improve its profitability in the coming quarters.

Maithan Alloys Limited , a key player in the Indian ferro-alloy industry, has announced a significant development in its operations. The company's wholly owned subsidiary, Impex Metal Ferro Alloys Limited, has restarted production after a prolonged shutdown.

Production Restart Details

• Restart Date: November 11, 2025
• Facility: One of two furnaces for ferro-alloy manufacturing
• Previous Status: Complete production shutdown since end of April 2023
• Expected Commercial Production: Later this month
• Second Furnace: Expected to restart within 5 to 7 days

This move marks a pivotal moment for Impex Metal Ferro Alloys, which had completely halted production by the end of April 2023 for an indefinite period. The restart of operations signals a potential turnaround for the subsidiary and could have implications for Maithan Alloys' overall production capacity.

Merger Plans

Adding to the significance of this development is an ongoing corporate restructuring initiative:

• Merger Scheme: Approved by Board of Directors on May 28, 2025
• Parties Involved: Impex Metal Ferro Alloys Limited and Maithan Alloys Limited
• Current Status: Awaiting approval from the National Company Law Tribunal

The proposed merger, once approved, could streamline operations and potentially enhance the company's market position in the ferro-alloy sector.

Market Implications

The resumption of production at Impex Metal Ferro Alloys may indicate:

1. Improved market conditions in the ferro-alloy sector
2. Strategic realignment of Maithan Alloys' production capabilities
3. Potential for increased output and market share in the coming months

Investors and stakeholders will be keen to see how this restart impacts Maithan Alloys' financial performance and market standing in the ferro-alloy industry.

As the situation develops, further updates on the full resumption of operations and the progress of the merger process will be crucial for understanding the long-term implications for Maithan Alloys and its position in the market.