Man Industries (India) Limited — Q1 FY26 earnings call

Call held 12 Aug 2025

Management summary

Man Industries reported strong Q1 FY26 profitability and margin expansion despite a slight revenue decline of 0.6% YoY, attributed to geopolitical disruptions and deferred export shipments. The company maintains a robust order book of INR 3,200 crores and a substantial bid pipeline of INR 15,000 crores. Strategic capacity expansions in Saudi Arabia and Jammu are on track for Q3/Q4 FY26 commissioning, aiming to capitalize on surging demand and higher-margin projects.

Highlights

  • Strong profitability and margin expansion, with EBITDA up 39% YoY to INR 80.6 crores and margin at 10.86%.

  • PAT increased significantly by 45% YoY to INR 27.6 crores.

  • Robust order book of INR 3,200 crores as of June 30, 2025, with an additional INR 15,000 crores in the bid pipeline.

  • Strategic capacity expansions in Saudi Arabia and Jammu are on track for Q3/Q4 FY26 commissioning.

  • Management expects full-year revenue growth of 15-20% and operating profit growth faster than top-line.

Concerns

  • YoY revenue declined 0.6% due to deferment of export shipments worth around INR 150 crores.

  • Geopolitical disruptions caused shipping liner issues and backlogs, leading to shipment delays.

Key financials

  1. Consolidated Income ₹774 Cr -0.6%YoY
  2. EBITDA ₹80.6 Cr +39%YoY
  3. EBITDA Margin 10.9%
  4. PAT ₹27.6 Cr +45%YoY
  5. Net Margin 3.6%

What they filed

Q1 FY27: revenue up 41.9%, net profit up 117.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue806 732 1,218 742 834 +3%830 +13%1,157 −5%1,053 +42%
EBITDA64 79 121 49 121 +89%128 +62%140 +16%143 +192%
Net profit32 34 68 28 37 +16%55 +62%51 −25%61 +118%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹3,200 Cr

as of 2025-06-30 quantified

Inflow this quarter

₹1,400 Cr

Execution

Between 6 to 12 months. Most of it, 70 to 80% would be recognized this year.

Composition

  • Exports (geography) 80%

Pipeline

L1 awaiting loa

Additional INR 15,000 crores in bid pipeline, with several high-value projects at L1 stage.

Cancellations & deferrals

  • deferred: Export shipment worth around INR 150 crores deferred due to geopolitical disruptions and shipping issues.
The order book is continuously increasing and is higher than last year, with expectations of having the highest order book in the company's history in the next two quarters.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹650 Cr this quarter · ₹1,220 Cr (FY26) planned
    • Saudi Arabia 300,000 TPA capacity facility (phase one spiral) ₹630 Cr
    • Jammu stainless-steel seamless plant ₹590 Cr
    • Middle East coating plant for ICB
    The total Capex for these two projects is approximately INR 1,200 crore. ... Jammu around INR 590 crores, 350 crores have been expensed and committed and another 240 crores would be done in the next three to four months. Saudi, approximately out of the INR 630 crores, 300 crores is committed and expensed and another INR 330 crores over the next six months.
  • Liquidity Liquidity disclosed INR 70 crore upfront payment from real estate project received in March (last quarter).
    And what about that INR 70 crore upfront payment? That is already received. Yes, we already received in March itself, in last quarter.

Guidance & targets

Revenue

  • Full Year Revenue Growth Revenue · FY26 · Medium confidence approximately 20% higher than last year
    The entire revenue would be approximately 20% higher than what was there last year.

    — Mr. Nikhil Mansukhani

  • Top Line Growth Revenue · FY26 · High confidence 15 to 20%
    And on the top line front, it says we are calling 15 to 20% top line growth. Correct? Yes, that's correct.

    — Mr. Nikhil Mansukhani

  • Saudi Plant Incremental Turnover Revenue · Post-commissioning · High confidence approximately INR 3,000 crores
    and an approximate estimated turnover incremental turnover would be approximately INR 3,000 crores.

    — Mr. Nikhil Mansukhani

  • Real Estate Annual Revenue Revenue · YoY · Medium confidence approximately INR 80 to 100 crores
    But I think approximately INR 70 to 80 crores should be there. ... And then YoY it will be approximately INR 80 to 100 crores.

    — Mr. Nikhil Mansukhani

  • Real Estate Total Cash Revenue Revenue · Post-launch · Medium confidence approximately INR 700 to 800 crores
    The total cash revenue with the company would be approximately INR 700 to 800 crores.

    — Mr. Nikhil Mansukhani

Profitability

  • Operating Profit Growth vs Top Line Growth Profitability · FY26 · High confidence much faster than the top line growth
    Okay. So, basically, what you're calling out also to the previous participant is that this year, largely, we'll see better margin orders getting executed throughout the year. So the operating profit growth will be much faster than the top line growth. Is it correct? Yes, that's correct.

    — Mr. Sandeep Kumar

  • Real Estate Profit Profitability · Post-launch · Medium confidence almost INR 200 crores and above
    The revenue which is invested, we are making much larger return on it. The revenue which was invested, which has come back to the company is almost going to be INR 200 crores and above that everything is profit.

    — Mr. Nikhil Mansukhani

Margin

  • EBITDA Margin on New Orders Margin · Ongoing · High confidence north of 10%
    The EBITDA margin would be north of 10%.

    — Mr. Nikhil Mansukhani

Order Inflow

  • Full Year New Order Inflow Order Inflow · FY26 · High confidence around 3,900 crores

    Previously 2,000 to 2,500 crores → around 3,900 crores

    2,500 more now from here. The total will be around 3,900.

    — Mr. Nikhil Mansukhani

Order Book

  • Opening Order Book Order Book · FY27 · Medium confidence around INR 2500 to 3,000 crores
    and should have an order opening book of around INR 2500 to 3,000 crores for next year, hopefully.

    — Mr. Nikhil Mansukhani

What to watch in Q2 FY26

Jammu Plant Commissioning

Q4 FY26
Current Construction started, majority machines delivered, hot trials expected Q4 FY26
Target Hot trials commence, approvals secured

Why it matters

Successful commissioning of the Jammu plant is crucial for new capacity and leveraging GST benefits.

The majority of the machines are being delivered. The construction of NPEB has already started. We should be in Q4 ready for hot trials. And for some approvals as well, we will apply them.

Risks & concerns

  • Geopolitical Disruptions and Shipping Delays

    medium

    Conflicts (India-Pakistan, Israel-Iran) affected shipping liners and caused backlogs at ports, leading to deferment of INR 150 crores in export shipments.

    Management acknowledged

  • Increased Competition in Global Markets

    medium

    Anticipated slightly more competition, but company relies on track record, value-added products, and strategic investments (Middle East coating plant) to maintain competitive edge.

    Management acknowledged

  • Overcapacity in Saudi Market

    low

    Management believes demand growth (6-6.8% CAGR in water, oil/gas, hydrogen, carbon capture) will absorb new capacities for 10-12 years, but acknowledges risk if many new players enter.

    Analyst downplayed

Q&A highlights

7 direct
Business Normalization and H2 Outlook Direct
So, quarter is likely better or similar to the current one, approximate and Q3, Q4 are very, very robust because of all the deliveries and multiple shipment and new orders. The Q3, Q4 are much going to be higher than the Q1, Q2. The entire revenue would be approximately 20% higher than what was there last year.

Provides clear guidance on the expected sequential improvement in business performance and full-year revenue growth.

Asked by Darshil Pandya

Operational Nature of Other Income Direct
Other income is part of the operation. It is incentive, Forex, other things, which is forming part of the operations only. This is not from the leasing or some interest income or something. This is operational other income. That's why we are adding that to our operation from operations only for all our calculations.

Clarifies that 'other income' is operational and contributes to core business profitability, addressing analyst concerns about margin quality.

Asked by Darshil Pandya

Jammu Plant GST Benefits and Investment Direct
Basically, it is 18% gross GST on every sale that you do in the country and that is, you can take the benefit of over 10 years. So, suppose you have an investment of machineries of INR 100 crores, you get a grant of around INR 300 crores, which can be utilised over 10 years. So, you would get INR 30 crores in the form of entire 18% GST, number one. Number two, you would get a 6% interest subsidiary if you borrowed from bank. These are the two main subsidiaries. ... Around INR 430 crores.

Details the significant financial incentives for the Jammu plant, including GST rebates and interest subsidies, and quantifies the investment.

Asked by Shubham Purohit

Saudi Market Demand-Supply Gap Direct
So, if you talk about the LSAW, pretty much the market is around 2 million tonnes and HSAW is around 1.5 to 2 million tonnes as well. ... The annual supply in LSAW is approximately 800 to 900 thousand tonnes on the higher side and spiral is approximately 800,000 tonnes, 700 to 800,000 tonnes. ... So, basically the demand is 3, 3.5, the supply is 1.5. Correct.

Highlights the significant unmet demand in the Saudi pipe market, providing a strong rationale for the company's capacity expansion there.

Asked by Pritesh Chheda

Saudi and Jammu Capex Progress Direct
Jammu around INR 590 crores, 350 crores have been expensed and committed and another 240 crores would be done in the next three to four months. Saudi, approximately out of the INR 630 crores, 300 crores is committed and expensed and another INR 330 crores over the next six months.

Provides a detailed breakdown of Capex incurred and planned for the two major expansion projects, indicating execution progress.

Asked by Darshan Gangar

Risk of Overcapacity in Saudi Partial
With these numbers, no. But if more and more players come, there's always a risk. ... So, 6.8% CAGR is something around water, and then they have oil, gas, hydrogen, carbon capture, a lot of them. So, I think for now, the next 10 to 12 years, we don't find that there would be a overcapacity.

Addresses a key industry concern, with management acknowledging the risk but downplaying its immediate impact due to strong demand growth.

Asked by Darshan Gangar

Real Estate Project Financials Direct
This year will be slightly lower because it is the launch year. ... And then YoY it will be approximately INR 80 to 100 crores. The total cash revenue with the company would be approximately INR 700 to 800 crores. The revenue which is invested, we are making much larger return on it. The revenue which was invested, which has come back to the company is almost going to be INR 200 crores and above that everything is profit.

Provides specific financial projections for the real estate venture, including annual revenue, total cash revenue, and expected profit.

Asked by Sahil Chopra

Geopolitical Reasons for Shipment Delays Direct
It was all of them put together. It was the India, Pakistan. It was the Israel, Iran due to which the shipping liners were affected. The ships coming, which we had booked were affected. Also, was due to the shipment issues, there was a backlog even in Kandla Mundra And that's the one of the main reasons why we could not though the material was at port, we could not load it and send it out.

Explains the specific external factors that impacted Q1 revenue recognition and execution, providing context for the slight revenue decline.

Asked by Yash Mehta

3 min read 7 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

Man Industries reported a consolidated income of INR 774 crores in Q1 FY26, experiencing a slight YoY decline of 0.6%. Despite this, the company demonstrated strong profitability, with EBITDA surging by 39% YoY to INR 80.6 crores. This led to a substantial margin expansion of 290 basis points, bringing the EBITDA margin to 10.86%. Net profit (PAT) also saw a significant increase of 45% YoY, reaching INR 27.6 crores, with the net margin improving by 110 basis points to 3.6%.

Robust Order Book and Bid Pipeline

As of June 30, 2025, Man Industries maintained a healthy order book of INR 3,200 crores. Complementing this, the company has a substantial bid pipeline of INR 15,000 crores, with several high-value projects currently at the L1 (lowest bidder) stage, indicating strong future revenue potential. Exports contribute approximately 80% to the current order book, underscoring the company's global market presence. Management expects a total new order inflow of INR 3,900 crores for FY26, with INR 1,400 crores already secured in Q1.

Strategic Capacity Expansion Initiatives

The company is actively pursuing two major capacity expansion projects in Saudi Arabia and Jammu, with a combined Capex outlay of approximately INR 1,200 crores. The Saudi facility, a 300,000 TPA spiral pipe plant, involves a Capex of INR 630 crores and is projected to add INR 3,000 crores to incremental turnover upon completion by FY26. The Jammu stainless-steel seamless plant, with an investment of INR 590 crores, is also on track, with machinery delivered and hot trials anticipated by Q4 FY26. These expansions aim to capitalize on surging demand and higher-margin opportunities.

Operational Other Income and Margin Strategy

Management clarified that 'other income,' comprising incentives and forex gains, is operational and directly contributes to the company's EBITDA, rather than being from non-operating assets. The company's strategy focuses on securing higher-margin, value-added products and projects, both domestically and for export. This approach is expected to ensure that overall margins for the year remain 'north of the numbers' achieved in Q1, with new orders targeted to yield EBITDA margins above 10%.

Real Estate Venture Update and Projections

Man Industries provided an update on its real estate project, anticipating its launch in Q2 or Q3 FY26. The company projects an annual revenue contribution of approximately INR 80-100 crores from this venture, with a total estimated cash revenue of INR 700-800 crores. Furthermore, the project is expected to generate significant profit, with the revenue from the invested capital yielding returns of over INR 200 crores.

Market Demand and Geopolitical Challenges

The demand for LSAW and HSAW pipes, particularly in the Saudi market, remains robust, with an annual demand of 3.5 million tonnes against a supply of 1.5 million tonnes, creating a significant market opportunity. However, the company faced challenges in Q1 FY26 due to geopolitical disruptions, including conflicts in India-Pakistan and Israel-Iran. These events affected shipping liners and caused backlogs at ports like Kandla Mundra, leading to the deferment of approximately INR 150 crores worth of export shipments.

FY26 Outlook and Execution Momentum

Management expressed optimism for the remainder of FY26, particularly for the second half, with Q3 and Q4 expected to be significantly stronger than Q1 and Q2. This positive outlook is driven by the conversion of new orders and accelerated execution. The company projects an overall revenue growth of 15-20% for the full year, with operating profit growth anticipated to outpace top-line growth, reflecting the focus on higher-margin order execution.

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