Whalesbook
📉 The Financial Deep Dive
Manaksia Coated Metals & Industries (MCMIL) has delivered a strong operational performance for the nine months ended FY26 (9M FY26), with total income rising 15.13% year-on-year (YoY) to ₹667.52 Cr. Profitability saw a dramatic uplift, with EBITDA surging 66.90% YoY to ₹76.57 Cr, driving EBITDA margins higher by 356 basis points (bps) to 11.47%. Net profit for the period more than tripled, escalating by a remarkable 241.25% YoY to ₹35.32 Cr, with net profit margins expanding by 350 bps to 5.29%. Diluted Earnings Per Share (EPS) also saw substantial growth, up 151.07% YoY to ₹3.49.
In the third quarter of FY26 (Q3 FY26), while total income saw an 8.62% YoY decline to ₹189.90 Cr due to a planned plant shutdown for technological upgrades, the company demonstrated resilience. Net profit still managed to grow by 46.68% YoY to ₹7.35 Cr, and EBITDA margins improved by 144 bps to 9.73%, showcasing improved operational efficiency even during the temporary disruption.
🚀 Strategic Analysis & Impact
MCMIL is actively transforming its operational capabilities and capacity. The continuous galvanising line was successfully upgraded to Aluminium-Zinc (Alu-Zinc) coating technology in December 2025, with commercial production now underway. This positions MCMIL as one of the few Indian producers equipped with 100% Alu-Zinc capacity, catering to growing demand for corrosion-resistant materials.
Further bolstering future growth, contracts have been awarded for a second colour coating line. This expansion, slated for Q1 FY27 commissioning, will increase total colour coating capacity by a significant 174% to 2,36,000 MTPA. Complementing these growth initiatives, a 7 MW captive solar power project in Gujarat is also scheduled for Q1 FY27 commissioning, expected to reduce power costs by an estimated 30-35%.
The company holds a healthy export order book of approximately ₹350 Cr, which, combined with peak domestic demand season, provides a strong near-term outlook. Management is focused on deleveraging, targeting a Net Debt to EBITDA ratio of under 1x by the end of FY26, a notable improvement from 1.93x in FY25.
🚩 Risks & Outlook
The planned shutdown in Q3 FY26 impacted short-term revenue but was a strategic investment in technology. Key risks for the upcoming periods include the efficient execution of the colour coating line expansion and the solar project commissioning, alongside managing input costs and global steel price volatility. However, the outlook remains positive, driven by enhanced capacities, a strong export pipeline, and expected volume, sales, and margin improvements through FY27.