Electrotherm (India) Limited has responded to a surveillance inquiry from BSE Limited regarding unusual trading activity in its shares. The company submitted its clarification on January 6, 2026, addressing concerns about a significant increase in trading volume across exchanges.

Company's Response to Volume Surge

In its official communication to BSE Surveillance, Electrotherm stated that it is not aware of any specific reasons for the significant increase in its share trading volume. The company characterized the volume surge as "purely market driven," indicating that no internal corporate developments or announcements have directly contributed to the increased trading activity.

Regulatory Compliance Commitment

Electrotherm reaffirmed its commitment to regulatory compliance in its response to the exchange. The company emphasized that it has consistently informed stock exchanges of all relevant events and information as required under Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015.

Communication Details

The clarification was submitted by Company Secretary and Compliance Officer Fageshkumar R. Soni, who holds membership number F8218. The response was digitally signed and submitted on January 6, 2026, at 14:59:04 IST, demonstrating the company's prompt response to the exchange's inquiry.

Market Surveillance Context

The BSE surveillance inquiry, referenced as L/SURV/ONL/PV/APJ/2025-2026/843, was issued on January 6, 2026, seeking clarification on the unusual trading patterns. Such inquiries are routine procedures by stock exchanges to ensure market integrity and investigate any unusual price or volume movements that may require explanation from listed companies.

Electrotherm's response indicates transparency in its communication with regulators while acknowledging that market-driven factors beyond the company's direct control can influence trading volumes. The company has requested BSE to take its clarification on record, completing the regulatory requirement for responding to the surveillance inquiry.

Electrotherm (India) Limited , a leading engineering and technology company, has announced its financial results for the second quarter and half-year ended September 30, 2025, revealing a mixed performance amidst ongoing financial challenges.

Revenue and Profit Analysis

The company reported a marginal increase in revenue from operations for Q2 FY2026:

Despite the slight growth in revenue, Electrotherm witnessed a significant decline in net profit after tax, which decreased by 53% year-over-year.

Segment Performance

The company's performance varied across its different business segments:

The Special Steel Division, despite being the largest revenue generator, reported a significant loss, impacting the overall profitability.

Financial Challenges and Loan Defaults

Electrotherm is grappling with several financial challenges:

1. The company defaulted on a loan repayment of ₹6.00 crores plus ₹2.45 crores in interest to Invent Assets Securitisation Reconstruction Private Limited.
2. The lender has agreed to reschedule payments, subject to an 11% annual interest rate, with full clearance required by December 31, 2025.
3. Auditors have qualified their opinion due to non-provision of interest on loan accounts classified as non-performing assets, with unprovided interest totaling ₹988.94 crores as of the reporting date.

Ongoing Financial Reconciliations

Electrotherm has settled some previous loan obligations with Rare Asset Reconstruction Limited, but reconciliation processes are still ongoing. The company is in the process of obtaining a No Dues Certificate, which will determine the final accounting treatment of these liabilities.

Looking Ahead

While Electrotherm has shown resilience in maintaining its revenue, the significant drop in profitability and ongoing loan repayment issues pose challenges for the company. The management's ability to navigate these financial hurdles and improve the performance of its loss-making segments will be crucial for the company's future outlook.

Investors and stakeholders will be closely watching how Electrotherm addresses its loan repayment schedules and improves its overall financial health in the coming quarters.