Manaksia Coated Reports Strong FY26 Results, Dividend Proposed

Manaksia Coated Metals & Industries Ltd has released its audited financial results for the fiscal year ending March 31, 2026.

The company reported consolidated revenue of ₹781.63 crore and a consolidated net profit of ₹15.39 crore. This marks a significant year-on-year increase in profitability.

The Board of Directors has recommended a final dividend of Re. 0.05 per equity share, equivalent to a 5% payout on the face value of Re. 1.

Key board appointments, including Internal and Cost Auditors for FY 2026-27, were also approved. The re-appointment of a Wholetime Director is proposed, pending shareholder approval.

Impact for Shareholders

These audited financial results offer a clear view of the company's performance over the last fiscal year. The proposed dividend provides a direct return to shareholders, signaling management's confidence in the company's earnings. Approving new auditors and re-appointing key personnel helps ensure operational stability and corporate oversight.

Company Background and Recent History

Manaksia Coated Metals & Industries manufactures and exports galvanized and pre-painted steel coils and sheets. These products are used in construction, automotive, and home appliances.

For FY25, the company reported a consolidated net profit of ₹15.39 crore on total income of ₹790 crore. This contrasts with FY24, when revenue was ₹74.62 crore and net profit was ₹1.12 crore, indicating a substantial recovery.

In December 2024, shareholders approved a ₹134.55 crore fundraising through equity warrants. These funds are earmarked for debt reduction, capacity expansion, and technology upgrades. The company has a history of dividend payouts, with a similar Re. 0.05 per share recommended previously.

However, Manaksia Coated has faced challenges. In October 2024, it received a SEBI fine of ₹2.63 crore for alleged stock price manipulation. A credit rating downgrade in April 2023 was attributed to declining profitability and high debt levels. Concerns have also been raised regarding a low return on equity of 7.49% over three years and high borrowing costs. The company's internal auditor resigned in July 2025.

Shareholder Actions and Next Steps

Shareholders will vote on the recommended final dividend and the proposed re-appointment of the Wholetime Director at the upcoming general meeting. These approvals are important for continuing shareholder returns and maintaining stable leadership. The appointment of new auditors will bring a fresh review of the company's financial health and controls for the coming fiscal year.

Key Risks to Monitor

The SEBI fine for alleged stock price manipulation and the past credit rating downgrade highlight potential governance and financial risks. Persistent issues such as a low return on equity and high borrowing costs indicate ongoing operational and financial management challenges. Raw material price volatility, common in the steel industry, could affect future profit margins, as seen in FY23.

Competitive Landscape

Manaksia Coated Metals operates in the coated steel segment, competing with larger entities like JSW Steel Coated Products Ltd, which is India's largest coated steel manufacturer. Tata Steel also offers advanced metallic coated steel products. While APL Apollo Tubes Ltd is a major player in steel tubes, its focus differs slightly. These peers operate with significant scale and diversified product portfolios.

Investors will be looking for updates on the use of warrant funds, management's strategy for growth, and performance of new galvalume product lines, which are expected to improve earnings.