Detailed Narrative
Record FY26 Performance Amidst Global Headwinds
Manaksia Coated Metals & Industries Limited achieved its strongest financial year on record in FY26, with consolidated revenue growing 13.5% YoY to INR 896 crores. This performance was delivered despite significant external disruption🌐s, including a nearly 100% QoQ surge in freight rates, a 200% spike in industrial fuel prices, and 50-75% cost escalations in petrochemical-based raw materials due to the Middle East conflict. Despite these challenges, the company's EBITDA increased by 49.21% YoY to INR 92.21 crores, and PAT surged by 164% YoY to INR 40.69 crores.
Strategic Premiumization and Export-Led Growth
A key driver of FY26 success was the deliberate strategy of premiumization, with pre-painted steel, the highest value product, now constituting 80% of total quantities sold, up from 74% in FY25. Exports were a watershed, with tonnage growing 110% YoY to 66,172 metric tons and contributing 68.21% to total revenue, a 97% YoY increase. This robust export performance, coupled with strong customer acceptance for new products, underscores the company's global competitiveness and market penetration.
Significant Capacity Expansion and Technology Upgrades
The company successfully commissioned its alu-zinc coating technology upgrade by December '25, increasing capacity from 132,000 MT to 180,000 MT and achieving 100% alu-zinc coating capability. Further capacity expansion includes a second color coating line, expected to be commissioned by July '26, which will add 150,000 MT, increasing total color coating capacity to 236,000 MT (a 174% increase). These projects, along with a planned cold rolling complex within FY28, are central to achieving a 3x growth in P&L and balance sheet by FY29.
Commitment to Green Energy and Financial Discipline
Manaksia is investing in a 7-megawatt captive solar power plant in Gujarat, targeted for commissioning by July '26. This initiative is expected to offset 50-55% of grid power dependency and generate annual savings of INR 7-7.5 crores in power costs. Financially, the company demonstrated strong discipline, improving its net debt-to-EBITDA ratio to 1.01x in FY26 from 1.93x in FY25, and achieving a credit rating upgrade to A/A1. Management aims to maintain a conservative leverage profile, striving for a debt-to-equity ratio between 1x and 1.5x.
Q4 Margin Compression and H1 FY27 Recovery Outlook
Q4 FY26 saw EBITDA margin compress to 6.84% due to extraordinary cost escalations from geopolitical events. However, management confirmed that since April 2026, they have successfully passed through the entire impact of incremental costs to customers in new orders. Consequently, they anticipate margins in H1 FY27 to be 'drastically better' than Q4 FY26, expecting a meaningful recovery assuming normalization of energy and raw material costs and no further global conflicts.
Robust Order Book and Future Market Penetration
The company maintains a robust order book in the range of INR 350-400 crores, largely driven by export customers who are proactively placing advance orders to ensure supply security. Management is confident in sustaining export growth and penetrating new markets, particularly in the Americas region (North, South, Central, Caribbean), which shows a strong preference for alu-zinc products. The current 60-65% utilization of the new alu-zinc line is expected to increase significantly in H2 FY27, contributing to future revenue and profitability.