Mishra Dhatu Nigam (Midhani) posted a 40% jump in revenue to ₹239.49 crore for Q1 FY27, backed by a strong ₹2,329 crore order book. While the company saw profit growth, rising raw material and fuel costs squeezed operating margins. Investors are now monitoring how the company manages cost pressures and executes its aerospace expansion plans through the rest of the fiscal year.
Mishra Dhatu Nigam Ltd (Midhani) reported a strong start to the new fiscal year with its Q1 FY27 results. The company saw a 40.46 percent year-on-year rise in revenue, reaching ₹239.49 crore. Net profit also climbed by 27.42 percent to ₹16.31 crore. This growth reflects the ongoing demand for specialized alloys used in India's defence and aerospace sectors, which remain the primary drivers of the company's business.
Order Book and Sector Demand
The company’s order book remains healthy at ₹2,329 crore as of July 1, 2026. The defence sector continues to be the largest contributor, making up 66 percent of the total backlog. This is followed by the space sector at 21 percent and the energy sector at 9 percent. This mix provides significant revenue visibility, ensuring the company has a steady flow of work as it continues to support national defence and space programs.
Margin Pressures and Raw Material Costs
Despite the jump in revenue, Midhani faced challenges regarding profitability margins. The company reported pressure on operating margins, primarily due to higher costs for key raw materials like nickel, molybdenum, and tungsten. Additionally, a sharp increase in LPG prices has added to the production costs. These factors combined to create a headwind for the company's bottom line in the first quarter. The management has indicated that they expect these cost pressures to stabilize, with a target for margin normalization by the third quarter of FY27.
Operational Milestones and Growth
On the operational front, Midhani is actively working to diversify its services and expand its capabilities. The company recently secured S400 certification from GE Aerospace. This approval allows Midhani to conduct mechanical, chemical, and metallography testing for aerospace components, effectively opening a new potential revenue stream in the testing services market. The company is also continuing its focus on indigenous manufacturing, with plans to ramp up capacity to meet the growing requirements for advanced alloys in both domestic and export markets.
Moving forward, the key monitorable for investors will be how the company manages its input costs and whether it can successfully improve its margins by the end of the year. Investors will also be looking for updates on the execution of its large order book and progress on its capital spending plans for capacity expansion, which are intended to support long-term growth in the defence and aerospace segments.