Manaksia Coated Metals & Industries Limited

Manaksia Coated Metals & Industries Limited reported a consolidated total income of INR190 crores in Q3 FY26, a 9% year-on-year decline primarily due to a planned 35-day plant shutdown for technology upgrades. Despite this, EBITDA increased by 7% year-on-year to INR19 crores, with the EBITDA margin expanding by 144 basis points to 10%, reflecting improved operational efficiency. Net profit surged 47% year-on-year to INR7 crores, translating to a net margin of 4% and an EPS of INR0.73, up 9% year-on-year.

For the first nine months of FY26, the company's total income rose 15% year-on-year to INR580 crores. EBITDA saw a significant increase of 67% to INR77 crores, with a margin expansion of 356 basis points, reaching 11%. Net profit for the nine-month period grew by 241% year-on-year to INR35 crores, resulting in a net margin of 5% and an EPS of INR3.49, a 151% increase year-on-year.

The company successfully commissioned its Aluminium-Zinc coating technology upgrade during Q3 FY26, increasing capacity by 36% to 1,80,000 tons per annum. This positions Manaksia amongst select players in India with 100% Aluminium-Zinc coating capability. The upgrade involved a 35-day shutdown for comprehensive overhauling and was completed efficiently, with the first coil produced with excellent quality and no yield losses.

Manaksia plans to commission a second color coating line in early FY27, which will expand overall coating capacity by 174% to 2,36,000 tons per annum, further strengthening its value-added product portfolio. Additionally, a 7-megawatt peak captive solar power plant is targeted for Q1 FY27, expected to offset 50-55% of grid power consumption and deliver significant energy cost savings.

The company reported a strong export order book of approximately INR350 crores, with export revenue accounting for 67% of total revenue in 9M FY26. Management noted robust demand from the European Union and a sharp increase in domestic demand since December, expected to sustain until July. India holds a competitive advantage in exports due to its capacity and the absence of anti-dumping duties faced by competitors like China.

Despite rising raw material prices for zinc and aluminum (touching $3,200-$3,500 per ton), Manaksia maintains its margins by passing on cost increases to customers within one to two months. The shift from galvanized to Alu-Zinc and pre-painted Alu-Zinc products inherently offers margin expansion due to premium pricing and lower raw material costs. Pre-painted Alu-Zinc commands a 13-14% higher realization per ton (INR83,000-INR85,000) compared to plain Alu-Zinc (INR71,000-INR73,000).

The company maintains a very strong liquidity position with largely unutilized working capital facilities. Funding for both the upcoming second color coating line and the solar power plant has already been secured. Management aims for a healthy balance of debt and equity for future projects, relying on internal accruals and long-term bank debt, with external participation evaluated as needed.