Maithan Alloys Limited has informed the Exchange about Credit Rating- Revision
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CRISIL Ratings has downgraded Maithan Alloys' long-term rating from 'CRISIL AA/Negative' to 'CRISIL AA-/Stable', while reaffirming the short-term rating at 'CRISIL A1+'. The downgrade reflects subdued business performance with operating income of Rs 1,613 crore in the first nine months of fiscal 2026, driven by lower sales volume and moderate realizations. Power costs, which make up 30% of production costs, continue to pressure profitability, with operating margins at 9.5%. Return on capital employed fell to 6-9% from 27% in fiscal 2023. Despite these challenges, the company maintains a strong financial position with net worth of Rs 3,739 crore and low external debt.
The downgrade signals credit risk has increased due to lower profitability and returns. However, the change in outlook to 'Stable' indicates CRISIL sees the current situation as manageable. The rating remains investment grade, but borrowers may face slightly higher borrowing costs.