Maithan Alloys Limited , a leading ferro alloys manufacturer, has successfully completed the incorporation of its wholly-owned subsidiary for Non-Banking Financial activities, marking a significant milestone in the company's diversification strategy.

NBFC Subsidiary Successfully Incorporated

The company has incorporated Maithan Capital Limited as its wholly-owned subsidiary, receiving the Certificate of Incorporation from the Ministry of Corporate Affairs on December 18, 2025. The certificate was received by the company at 11:47 A.M. on the same day, completing the process that was initially authorized by the Board of Directors on November 13, 2025.

Financial Structure and Investment Details

The subsidiary has been established with an authorized, issued, subscribed and paid-up capital of ₹11.00 crore, comprising 1,10,00,000 equity shares of ₹10 each. The entire shareholding is held by Maithan Alloys Limited and its nominees, making it a completely owned subsidiary.

Business Objectives and Strategic Impact

Maithan Capital Limited has been incorporated to carry out Non-Banking Financial activities as may be permitted by the Reserve Bank of India (RBI). This strategic move represents Maithan Alloys' diversification beyond its core ferro alloys operations, potentially opening new revenue streams in the financial sector.

The newly incorporated company is yet to commence its business operations and will require necessary approvals from RBI for its NBFC activities. As of the incorporation date, the subsidiary reports nil turnover and PAT, with a net worth of ₹11.00 crore.

Leadership Appointments and Operational Updates

Alongside the subsidiary incorporation, the company has also appointed Mr. Sreejith Ariyanthari Thazhemadam as Senior Management Officer and Plant Head of its Visakhapatnam Unit, effective from November 13, 2025. Mr. Thazhemadam brings over 20 years of experience in ferro alloys manufacturing, with qualifications including B.E. in Metallurgy Engineering and proficiency in SAP and ERP systems.

Company Operations Overview

These developments reflect Maithan Alloys' strategic approach to business diversification while strengthening its operational leadership across its ferro alloys manufacturing units.

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.