MIDHANI Profit Tumbles 45%! But A HUGE Order Book & Global Deals Hint At Hidden Strength - Should You Buy?

Reviewed By

Satyam Jha | Whalesbook News Team

Detailed Coverage:

Mishra Dhatu Nigam Ltd (MIDHANI), a state-owned producer of specialty metals and alloys, announced a significant 45.6% year-on-year decrease in net profit for the quarter ending September 2025, bringing it down to ₹12.95 crore from ₹23.82 crore in the previous year. The company's revenue also saw a 20% decline, falling to ₹209.7 crore from ₹262.1 crore. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) experienced a 32.8% drop, settling at ₹32.5 crore compared to ₹49.06 crore a year ago. Operating profit margins contracted to 15.7% from 18.7% year-on-year, attributed to challenges in execution and increased cost pressures.

Despite the financial headwinds in the quarter, MIDHANI continues to benefit from strong underlying demand, evidenced by a robust order book standing at ₹1,869 crore as of October 1, 2025. Key sectors like defence, aerospace, and energy are major contributors to this demand. The company's management expects higher production orders in the upcoming fiscal year FY26, particularly from naval and aerospace segments, which could lead to increased turnover. Furthermore, MIDHANI's export business has shown steady growth over the past three years, with rising orders from prominent global original equipment manufacturers (OEMs) such as Boeing, Airbus, and GE.

Impact This news has a moderate impact on investor sentiment towards Mishra Dhatu Nigam Ltd and the specialty metals PSU sector. The decline in quarterly profits may create short-term headwinds. However, the company's substantial order book and expanding export presence, particularly with major global players, suggest underlying operational strength and future growth potential, which could mitigate some of the negative impact. Investors will closely watch the execution of these orders and future profitability. Rating: 6/10