Maithan Alloys Limited has received a credit rating reaffirmation from CARE Ratings, maintaining its strong financial standing in the market. The rating agency communicated its decision through a letter dated December 10, 2025, which was received by the company and subsequently disclosed to stock exchanges under regulatory compliance requirements.

Rating Details and Categories

CARE Ratings reaffirmed the company's credit ratings across multiple facility categories. The rating committee reviewed and maintained CARE AA- Stable (Double A Minus, Outlook: Stable) for long-term bank facilities and CARE A1+ (A One Plus) for short-term bank facilities.

Facility Breakdown and Banking Partners

The company's banking arrangements span across multiple leading financial institutions. Long-term fund-based limits of ₹90.00 crores include cash credit facilities with Axis Bank Limited (₹30.00 crores), State Bank of India (₹30.00 crores), IndusInd Bank Limited (₹18.00 crores), and HDFC Bank Limited (₹12.00 crores).

Short-term facilities totaling ₹435.00 crores primarily consist of letters of credit and bank guarantees. The letter of credit facilities are distributed among State Bank of India (₹130.00 crores), Axis Bank Limited (₹115.00 crores), HDFC Bank Limited (₹63.00 crores), CitiBank (₹49.00 crores), and IndusInd Bank Limited (₹43.00 crores). Bank guarantee facilities of ₹35.00 crores are provided by State Bank of India.

Rating Assessment Basis

The rating reaffirmation was conducted based on recent developments including the company's operational and financial performance for FY25 (Audited) and H1 FY26 (Unaudited). CARE Ratings' assessment reflects the company's continued financial stability and operational efficiency during the review period.

Regulatory Compliance and Timeline

Maithan Alloys submitted this information to stock exchanges pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The rating event occurred on December 10, 2025, at 09:52 P.M., and the company promptly communicated this development to the Calcutta Stock Exchange Limited, National Stock Exchange of India Limited, and BSE Limited on December 11, 2025.

Future Monitoring and Surveillance

CARE Ratings reserves the right to undertake surveillance and review of the rating from time to time based on circumstances warranting such review, subject to at least one review or surveillance every year. The rating agency may revise, reaffirm, or withdraw the rating assigned based on periodic reviews and any events or information that warrant such action.

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.