Maithan Alloys Q2 profit aided by Rs 88.42 crore tax credit

Maithan Alloys Limited reported consolidated profit of Rs 83.74 crore for the quarter ended September 30, 2026, after an Rs 88.42 crore deferred-tax credit exceeded its Rs 28.85 crore profit before tax. The credit followed the September 24, 2026 listing of its National Stock Exchange of India Limited shares on BSE.

What did Maithan Alloys report for the September 2026 quarter?

Maithan Alloys reported Rs 83.74 crore consolidated profit for the quarter ended September 30, 2026, compared with Rs 395.72 crore in the quarter ended June 30, 2026 and a restated loss of Rs 119.02 crore a year earlier. Profit attributable to owners was Rs 81.06 crore, while non-controlling interests accounted for Rs 2.68 crore. Total comprehensive income was Rs 83.77 crore.

Revenue from operations rose to Rs 556.83 crore in the September 2026 quarter from Rs 539.53 crore in the June 2026 quarter and Rs 490.82 crore in the restated September 2025 quarter. Other income, however, was a loss of Rs 39.82 crore, against income of Rs 417.17 crore in June 2026 and a loss of Rs 153.46 crore a year earlier. That shift reduced profit before tax to Rs 28.85 crore from Rs 497.82 crore sequentially.

The September 2025 comparative figures were restated following the merger of Impex Metal & Ferro Alloys Limited into Maithan Alloys. The National Company Law Tribunal, Kolkata Bench, sanctioned the scheme on June 8, 2026, and it became effective when the certified order was filed with the Registrar of Companies, West Bengal, on June 30, 2026. The scheme’s appointed date was March 31, 2024.

Why was Maithan Alloys’ tax expense negative in Q2?

Maithan Alloys recorded a total tax credit of Rs 54.89 crore in the September 2026 quarter, comprising current tax expense of Rs 35.52 crore and deferred-tax credit of Rs 88.42 crore. This converted Rs 28.85 crore of profit before tax into Rs 83.74 crore of profit after tax. In the June 2026 quarter, total tax expense was Rs 102.10 crore on profit before tax of Rs 497.82 crore.

The company said the equity shares of National Stock Exchange of India Limited, held as an investment measured at fair value through profit or loss, or FVTPL, were listed on BSE on September 24, 2026. Maithan Alloys said the listing changed the applicable capital-gains tax rate from that for unlisted shares to the lower rate for listed shares, based on the holding period at September 30, 2026.

Under Indian Accounting Standard 12, or Ind AS 12, Maithan Alloys remeasured the deferred-tax liability on fair-value gains. The explanatory note describes an Rs 89.82 crore reversal recognised as a deferred-tax credit, whereas the consolidated results table shows an Rs 88.42 crore deferred-tax credit. The filing does not give a reconciliation for the Rs 1.40 crore difference between those disclosures.

How did investment movements affect Maithan Alloys’ earnings?

Maithan Alloys said other income included a net Rs 90.82 crore fair-value and realised loss on current and non-current FVTPL investments in the September 2026 quarter. This contrasted with a Rs 396.72 crore gain in the June 2026 quarter and a Rs 220.62 crore loss in the September 2025 quarter. The investment movement coincided with the decline in quarterly profit before tax to Rs 28.85 crore.

For the half year ended September 30, 2026, the net fair-value and realised gain on those investments was Rs 305.90 crore, below Rs 415.37 crore in the restated half year ended September 30, 2025. Half-year profit before tax declined to Rs 526.67 crore from Rs 554.70 crore, while profit after tax increased to Rs 479.46 crore from Rs 418.88 crore as total tax expense fell to Rs 47.21 crore from Rs 135.82 crore.

The Ferro Alloys segment accounted for all reported September-quarter revenue of Rs 556.83 crore. Its segment result before interest and tax was Rs 93.75 crore, while finance cost was Rs 12.46 crore and net other unallocable expenditure was Rs 52.40 crore. These items reduced consolidated profit before tax to Rs 28.85 crore.

What changed in Maithan Alloys’ balance sheet and cash flow?

Maithan Alloys’ consolidated assets stood at Rs 6,039.34 crore on September 30, 2026, compared with Rs 4,893.55 crore on March 31, 2026. Current investments increased to Rs 2,142.89 crore from Rs 1,653.12 crore, inventories rose to Rs 1,512.90 crore from Rs 1,246.54 crore, and non-current investments increased to Rs 1,452.39 crore from Rs 1,187.24 crore.

Cash and cash equivalents increased to Rs 156.71 crore on September 30, 2026 from Rs 58.96 crore at the start of the financial year. Operating activities generated Rs 176.48 crore in the half year ended September 30, 2026, compared with Rs 118.84 crore in the corresponding prior-year half. Investing activities used Rs 419.72 crore, including Rs 1,127.43 crore spent on current investments and Rs 207.87 crore spent on non-current investments.

Financing activities generated Rs 340.99 crore during the first half after Rs 387.14 crore of net proceeds from short-term borrowings. Current borrowings rose to Rs 621.21 crore on September 30, 2026 from Rs 231.18 crore on March 31, 2026, while non-current borrowings were Rs 3.06 crore against Rs 4.12 crore. Total liabilities increased to Rs 1,450.09 crore from Rs 735.19 crore, and total equity increased to Rs 4,589.25 crore from Rs 4,158.46 crore.

Conclusion

Maithan Alloys’ Rs 83.74 crore September-quarter profit was supported by the deferred-tax credit associated with the listing of its National Stock Exchange of India Limited shares, while profit before tax was Rs 28.85 crore. Revenue rose both sequentially and year on year to Rs 556.83 crore, but the Rs 90.82 crore investment-related loss reported in other income reduced pre-tax earnings.

The next point to watch is whether Maithan Alloys clarifies the difference between the Rs 89.82 crore deferred-tax reversal cited in its explanatory note and the Rs 88.42 crore deferred-tax credit in its results table. The company has also restated comparative September 2025 results following the Impex merger, which became effective on June 30, 2026.