Mishra Dhatu Nigam Limited (MIDHANI), a Government of India enterprise, has been fined Rs 1,18,000 (inclusive of GST) by the BSE Limited (BSE) for non-compliance with board composition regulations. The fine, imposed on November 28, 2025, pertains to the quarter ended September 30, 2025, and specifically relates to Regulation 17(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR).

Key Points

1. Fine Details:

   • Amount: Rs 1,18,000 (inclusive of GST)
   • Imposed by: BSE Limited
   • Date of Imposition: November 28, 2025
   • Non-compliance Period: Quarter ended September 30, 2025
   • Regulation Violated: Regulation 17(1) of SEBI LODR

2. MIDHANI's Response:

   • The company has not paid the fine
   • Reason: Authority for appointing Directors rests with the President of India through the Ministry of Defence
   • Action Plan: MIDHANI plans to submit a fine waiver request to BSE

3. Waiver Request Basis:

   • Citing impossibility of compliance
   • In line with NSE circular No: NSE/CML/51846 dated March 31, 2022

4. Impact on Company:

   • MIDHANI states the fine has no impact on its financial, operational, or other activities

Company's Stance

MIDHANI maintains that it has no role in the appointment of Directors to its Board. The company emphasizes that this authority lies solely with the President of India, acting through the Ministry of Defence. This unique governance structure for government enterprises presents challenges in complying with certain SEBI regulations designed for private sector companies.

Next Steps

The company plans to submit a fine waiver request to BSE, citing the impossibility of compliance due to its governance structure. This approach aligns with a similar circular issued by the National Stock Exchange (NSE) in 2022, which potentially provides a precedent for such situations.

Implications

This incident highlights the ongoing challenges faced by public sector enterprises in aligning with regulatory requirements designed primarily for private sector companies. It underscores the need for regulatory bodies to consider the unique governance structures of government-owned entities when enforcing compliance measures.

As the situation develops, investors and market watchers will be keen to see how regulatory bodies respond to MIDHANI's waiver request and whether this leads to any broader policy discussions on compliance requirements for public sector enterprises listed on stock exchanges.

Mishra Dhatu Nigam Limited (MIDHANI), a key player in the specialty metals and alloys sector, has released its financial results for the second quarter of fiscal year 2026, revealing a mixed performance with strategic initiatives aimed at future growth.

Financial Performance

MIDHANI reported a turnover of INR 209.73 crores for Q2 FY26, compared to INR 262.12 crores in the same period last year, marking a decrease in revenue. However, the company maintained its profit after tax at INR 12.77 crores. The value of production for Q2 FY26 stood at INR 256.38 crores, indicating ongoing production activities despite the revenue dip.

For the first half of FY26, MIDHANI achieved:

• Turnover: INR 380.22 crores (vs INR 425.57 crores in H1 FY25)
• Value of Production: INR 497.67 crores (3.9% growth from INR 479.01 crores in H1 FY25)
• Profit Before Tax: INR 38.12 crores
• Profit After Tax: INR 25.58 crores

Order Book and Future Outlook

The company maintains a robust order book of INR 1,869.00 crores as of October 1, 2025, providing visibility for FY26 and beyond. MIDHANI is targeting a revenue of INR 1,300.00 crores for FY26, with expected growth driven by its superalloys and titanium alloys business.

Strategic Initiatives

1. Metal Bank Initiative: MIDHANI has signed a Memorandum of Understanding to create a metal bank at its facility. This initiative aims to ensure uninterrupted production and supplies for projects of national importance by addressing raw material supply chain challenges.

2. ABHED Bulletproof Jacket Technology: The company has signed an MoU for ABHED bulletproof jacket technology, developed by DRDO and IIT Delhi. This is expected to boost future orders for bulletproof jackets.

3. Product Mix: MIDHANI's current revenue mix includes:

   Product	Percentage
   Super alloys	21.00%
   Titanium alloys	19.00%
   Maraging steel	15.00%
   Specialty steel	37.00%
   Other grades	8.00%

4. Export Initiatives: The company is pursuing NADCAP certification, which is expected to be completed by Q4, potentially enhancing its ability to secure export orders.

5. Capacity Expansion Plans: MIDHANI is in discussions to install higher capacity equipment, particularly in the forging line, to support growth over the next 15-20 years.

Challenges and Opportunities

While MIDHANI faces some short-term challenges, including raw material constraints for certain alloys due to geopolitical situations, the company sees significant opportunities in import substitution and exports. The management estimates that about INR 8,000.00 crores worth of super alloys and titanium alloys are currently being imported into India, presenting a substantial market opportunity.

Dr. S.V.S. Narayana Murty, Chairman and Managing Director of MIDHANI, commented, "We are confident of meeting our targets. The super alloy and titanium alloy businesses will be key growth drivers as we move forward."

As MIDHANI navigates through the current fiscal year, its focus on strategic initiatives, export growth, and capacity expansion positions the company to capitalize on the growing demand for specialty metals and alloys in defense, aerospace, and energy sectors.