Manaksia Coated

Manaksia Coated Metals & Industries Limited reported a robust Q1 FY26, with consolidated total income growing 29.97% year-on-year to INR253.94 crores. Net profit surged 359.70% to INR14.01 crores, while EBITDA increased 93.36% to INR28.62 crores. The EBITDA margin expanded by 370 basis points, reaching 11.27%, reflecting enhanced operational efficiency and marginal expansion. Earnings per share improved 253.86% to INR1.42 per share, underscoring the company's focus on profitable growth.

The company is actively advancing strategic expansions, including an Alu-Zinc technology upgrade for its galvanizing line, scheduled for completion by Q2 FY26, which will enhance capacity to 180,000 metric tons per annum. A second color coating line, increasing capacity by over 170% to 235,000 metric tons, is expected to be commissioned in Q4 FY26. Additionally, a 7-megawatt captive solar power plant is underway in Gujarat to meet energy requirements, reduce grid dependency, and enhance cost efficiency. The total capex for these three projects is approximately INR150 crores.

Exports were a significant growth driver in Q1 FY26, with export revenue soaring 182.28% year-on-year and contributing a record 57% to total revenue. Management emphasized the sustainability of this performance, attributing it to long-term customer development in European and Middle Eastern markets over 5-7 years. The company aims to maintain export revenue at 50% or above for the full year, leveraging its port-based location on the western coast of India for cost-effective export movement.

The Alu-Zinc technology upgrade is a key focus, transitioning to a premium product known for superior corrosion resistance (3 times that of regular galvanized steel) and higher margins. This product, relatively new to India (introduced 6-7 years ago), commands a premium and is expected to see double-digit growth in the domestic market, driven by infrastructure expansion and government support. The company anticipates achieving 75-80% utilization for the Alu-Zinc line within 60-90 days of commissioning, contributing significantly to EBITDA expansion.

The company successfully raised INR174.87 crores through preferential warrants, with INR161.22 crores already infused and INR13 crores pending from warrant conversion. These funds are being used to reduce existing debt and support growth projects. The total capex for the current three projects (Alu-Zinc, solar, second color coating) is approximately INR150 crores, with INR50 crores already spent. A future third phase involving cold rolling backward integration is estimated at INR220-250 crores, which the company aims to fund primarily through internal accruals and profits generated in FY26 and FY27.

Manaksia Coated Metals aims to become a top-three player in value-added downstream steel products, targeting a total capacity of half a million tons. The company sees significant growth potential in the Indian market due to massive infrastructure creation and government initiatives like the PLI scheme and national steel policy. Furthermore, global barriers against Chinese products (anti-dumping duties, quality standardization) are creating opportunities for Indian exporters to gain market share, supporting a 'China plus one' policy.