Marsons Ltd Receives BWR BBB-/Stable Credit Rating for Rs 35 Crore Facilities

Marsons Limited has officially received a BWR BBB-/Stable credit rating for its long-term bank facilities and BWR A2 for short-term facilities from Brickwork Ratings. The company filed the rating communication with BSE on December 11, 2025, following a brief delay due to a short circuit at their office on December 5, 2025, which caused complete power failure and internet connectivity issues.

Credit Rating Details

Brickwork Ratings assigned the ratings for Marsons Limited's bank loan facilities totaling Rs 35 crores from ICICI Bank. The rating breakdown is as follows:

Facility Type:	Amount (Rs Cr)	Rating	Action
Fund Based:	5.00	BWR BBB-/Stable	Assignment
Non-Fund Based:	30.00	BWR BBB-/Stable	Assignment
Short Term (Sub-limit):	(10.00)	BWR A2	Assignment
Total:	35.00	-	-

Financial Performance Highlights

The company has demonstrated exceptional financial growth, with revenue expanding significantly from Rs 6.46 crores in FY24 to Rs 168.36 crores in FY25. Key performance metrics include:

Metric:	FY 2025	FY 2024	YoY Change
Operating Revenue:	Rs 168.36 cr	Rs 6.46 cr	2505.88%
EBITDA:	Rs 25.22 cr	Rs 1.19 cr	2019.33%
Net Profit:	Rs 28.02 cr	Rs 0.63 cr	4348.41%
Tangible Net Worth:	Rs 122.49 cr	Rs 14.22 cr	761.46%

The company's debt profile improved considerably, with the Total Debt/TNW ratio reducing from 0.63 times in FY24 to 0.02 times in FY25, while the current ratio strengthened from 1.10 times to 3.37 times.

Rating Rationale and Strengths

Brickwork Ratings highlighted several key strengths supporting the rating assignment. The company maintains extensive management experience with over four decades in transformer manufacturing and currently holds a healthy order book of approximately Rs 294 crores. Marsons stands out as the only manufacturer in Eastern India capable of producing transformers of 132 kV class and above, providing a strong competitive edge.

The company serves reputed clients including major state utilities such as West Bengal State Electricity Distribution Company Limited (WBSEDCL), West Bengal State Electricity Transmission Company Limited (WBSETCL), and works with leading EPC contractors like KEC International Ltd and Banaras Locomotive Works (BLW).

Product Portfolio and Market Position

Marsons manufactures a diversified range of transformers including Distribution and Power Transformers (10 KVA to 160 MVA, 220 kV class), Furnace Transformers, Dry-Type Transformers, and Industrial Duty Transformers (IDTs). The company's manufacturing facility at Budge Budge Tank Road, Kolkata, spans 4,00,000 sq.ft. and operates a NABL-accredited transformer testing laboratory.

Risk Factors and Outlook

Despite strong performance, the ratings are constrained by working capital intensity, susceptibility to raw material price fluctuations, and the highly competitive nature of the transformer manufacturing industry. The company also faces exposure risks from stringent pollution control norms and evolving ESG regulations.

The stable outlook indicates moderate likelihood of rating change over the medium term. Brickwork Ratings expects the company to enhance its scale of operations, improve profitability margins, and strengthen its working capital cycle through timely order execution.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.10%	-3.04%	-7.50%	-20.09%	-34.31%	+3,143.19%

Marsons Limited has announced a significant corporate action that will interest its shareholders. The company's Board of Directors has declared an interim dividend, accompanied by detailed tax deduction guidelines. Let's break down the key points of this announcement:

Dividend Declaration

Aspect	Details
Dividend Rate	5 paise per equity share
Percentage	5% on face value of Re. 1
Financial Year	2025-26
Record Date	December 3, 2025

Tax Deduction Guidelines

Marsons Limited has issued comprehensive tax deduction at source (TDS) guidelines for its shareholders. Here are the key points:

KYC Mandate: Physical shareholders are required to update their Know Your Customer (KYC) details.
TDS Rates: The rates vary based on shareholder categories and documentation:

Shareholder Category	TDS Rate	Conditions
Resident Individuals	Nil	If total dividend in FY doesn't exceed Rs. 10,000
Resident Individuals with PAN	10%	For dividend exceeding Rs. 10,000
Without PAN/Invalid PAN	20%	-
Non-Resident Shareholders	20% (plus surcharge and cess)	Subject to DTAA benefits if applicable

Documentation: Shareholders may need to submit various forms (e.g., 15G/15H, 10F) or declarations to avail of lower or nil TDS rates.
Deadline: The company has set December 3, 2025, as the deadline for submitting tax-related documents.

Implications for Shareholders

Dividend Income: Shareholders on record as of December 3, 2025, will be eligible to receive the interim dividend.
Tax Planning: Shareholders should review their dividend income and tax situation to determine if they need to submit any declarations or forms to optimize their tax liability.
KYC Update: Physical shareholders must ensure their KYC details are up to date to avoid any issues with dividend payments.

Conclusion

This interim dividend declaration by Marsons Limited demonstrates the company's commitment to rewarding its shareholders. The detailed tax guidelines provided show a proactive approach to helping shareholders navigate the tax implications of their dividend income. Shareholders are advised to carefully review the guidelines and take necessary actions before the specified deadline to ensure smooth processing of their dividend payments and appropriate tax treatment.

Investors should note that while dividends can provide regular income, they should be considered as part of a broader investment strategy. As always, it's recommended to consult with a financial advisor for personalized advice based on individual financial situations and goals.