Man Industries (India) Limited — Q2 FY26 earnings call

Call held 14 Nov 2025

Management summary

Man Industries reported a strong Q2 FY26, achieving its highest ever quarterly EBITDA margin of 12.5%. The company's order book stands at Rs. 4,750 crores, predominantly export-driven, with a substantial bid pipeline. Strategic expansions in Saudi Arabia and Jammu are on track for commissioning in FY27, aiming for a total revenue of Rs. 7,000 crores with improved blended margins. The company remains net cash positive and reiterates its 20% revenue growth guidance for FY26.

Highlights

  • Highest ever quarterly EBITDA margin of 12.5%, reflecting execution excellence and cost management.

  • Q2 FY26 PAT grew 16% YoY to Rs. 37 crores, demonstrating profitability despite stable revenue.

  • Strong order book of Rs. 4,750 crores, providing 6-9 months of revenue visibility, with 90% from exports.

  • Robust bid pipeline exceeding Rs. 15,000 crores, indicating future growth opportunities.

  • Strategic expansion projects in Saudi Arabia and Jammu are progressing well, targeting significant revenue contribution by FY27.

Concerns

  • Q2 FY26 revenue growth was modest at 3.5% YoY and 12.4% QoQ, attributed to lead times and raw material availability for specific orders.

Key financials

2 periods

Q2 FY26

  • Revenue
    ₹834 Cr
    YoY +3.5% QoQ +12.4%
  • EBITDA
    ₹102 Cr
    YoY +37%
  • EBITDA Margin
    12.5%
  • PAT
    ₹37 Cr
    YoY +16% QoQ +34%

H1 FY26

  • Revenue
    ₹1,576 Cr
    YoY +1.4%
  • EBITDA
    ₹182 Cr
    YoY +38%
  • PAT
    ₹65 Cr
    YoY +27%
  • Cash Profit
    ₹100 Cr
    YoY +34%

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

₹4,750 Cr

as of 2025-09-30 quantified

Execution

visibility is spread over the next six to nine months.

Composition

  • Exports (geography) 90%

Pipeline

qualified rfp

robust bid pipeline exceeding Rs.15,000 crores, covering opportunities in iron and gas, water transmission and a specialized coated pipe segment across global markets.

The current order book provides 6-9 months of revenue visibility, with a strong export component, and the bid pipeline indicates significant future opportunities.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹57 Cr
    • Jammu plant expansion (total project cost) ₹595 Cr
    • Equity invested in Jammu plant ₹200 Cr
    Viraj Mahadevia: 'expansion, it is a 1,200 crores expansion overall; however, the CAPEX this year is showing as only 57 crores.' ... Sandeep Kumar Garg: 'For Jammu, almost 200 crores we have invested and some were invested in last year also.' ... Sandeep Kumar Garg: 'As far as Jammu is concerned, we have a project cost of 595 crores.'
  • Debt Gross ₹1,150 Cr · Net cash ₹14 Cr
    Regarding balance sheet, as on 30th September '25, we have a net cash position of Rs.14 crores considering all the debt. Net position is positive, Rs.14 crores cash. ... Yes, our peak borrowing will be around Rs.1,150 crores to 1,200 crores. ... It makes up the dollar and rupees, that is why dollar would be around 6%, rupees will be around 8% to 9%, so we are estimating the interest cost will be around Rs.120 crores.
  • Liquidity Cash ₹14 Cr Company is in a net cash positive position.
    Regarding balance sheet, as on 30th September '25, we have a net cash position of Rs.14 crores considering all the debt. Net position is positive, Rs.14 crores cash.

Guidance & targets

Revenue

  • H2 FY26 Revenue Revenue · H2 FY26 · High confidence ₹2,200 crores
    With a strong momentum in execution, we expect H2 FY26 to the strongest half year in the company's history with revenue of around Rs.2,200 crores, enabling us to comfortably deliver our 20% revenue growth guidance for 2026.

    — Dr. R. C. Mansukhani

  • FY26 Revenue Growth Revenue · FY26 · High confidence 20%
    enabling us to comfortably deliver our 20% revenue growth guidance for 2026. ... We reiterate our full year guidance of proposed 20% revenue growth in FY26

    — Dr. R. C. Mansukhani

  • FY27 Revenue Revenue · FY27 · Medium confidence ₹7,000 crores
    In '27 our existing facility plus Saudi and Jammu, both will be operational, roughly we will be touching around 7,000 crores revenue

    — Sandeep Kumar Garg

  • FY27 Revenue Contribution - India Operations Revenue · FY27 · High confidence ₹4,500 crores
    India operations would be around 4,500 crores

    — Dr. R. C. Mansukhani

  • FY27 Revenue Contribution - Saudi Plant Revenue · FY27 · High confidence ₹2,000 crores
    Saudi will be 2,000 crores

    — Dr. R. C. Mansukhani

  • FY27 Revenue Contribution - Jammu Plant Revenue · FY27 · High confidence ₹500 crores
    Jammu will be around 500 crores.

    — Dr. R. C. Mansukhani

Profitability

  • EBITDA Margin Profitability · FY26 · High confidence 11% to 12%
    We expect to maintain double-digit EBITDA margin between 11% to 12%, we are estimating, supported by favorable product mix, cost discipline and operational excellence

    — Dr. R. C. Mansukhani

  • FY27 EBITDA (for ₹7,000 cr revenue) Profitability · FY27 · Medium confidence >₹800 crores
    In 7,000 crores, we should reach around 800 crores-plus.

    — Dr. R. C. Mansukhani

  • Jammu Plant EBITDA Margin Profitability · FY27 · High confidence 18% to 22%
    Jammu will be around 18% to 22%

    — Dr. R. C. Mansukhani

  • Saudi Plant EBITDA Margin Profitability · FY27 · High confidence 12% to 15%
    Saudi will be between 12% and 14%. ... Madam, the Saudi, we can give the guidance of EBITDA, will be between 12% to 15%.

    — Dr. R. C. Mansukhani

  • Blended EBITDA (after new plants commissioning) Profitability · FY27 · Medium confidence 13%
    Blended will be coming around 13% of EBITDA.

    — Sandeep Kumar Garg

  • FY27 PAT Margin Profitability · FY27 · High confidence 5% to 5.5%
    It will be in the range of 5% to 5.5%.

    — Sandeep Kumar Garg

Other

  • Real Estate Monetization Revenue Other · next five years · Medium confidence ₹700 crores
    We have a horizon of five years to get this revenue monetized. Once project will be launched, we are expecting 700 crores at the conservative side to be received in the next five years.

    — Sandeep Kumar Garg

What to watch in Q3 FY26

H2 FY26 Revenue Achievement

next quarter
Current H1 FY26 Revenue: ₹1,576 crores
Target H2 FY26 Revenue: ₹2,200 crores

Why it matters

To verify the company's ability to achieve its full-year revenue growth guidance, which is heavily back-ended.

With a strong momentum in execution, we expect H2 FY26 to the strongest half year in the company's history with revenue of around Rs.2,200 crores, enabling us to comfortably deliver our 20% revenue growth guidance for 2026.

Risks & concerns

  • SEBI Order

    medium

    A SEBI order was issued, but the company has obtained a stay order, and the matter is currently sub judice.

    Analyst acknowledged

  • Raw material price volatility

    low

    Management states that raw material purchases are hedged at the time of order booking, mitigating the impact of price fluctuations on profitability.

    Analyst acknowledged

Q&A highlights

6 direct
FY27 Revenue Target and Order Book Direct
In '27 our existing facility plus Saudi and Jammu, both will be operational, roughly we will be touching around 7,000 crores revenue... This order book is currently for India operation. When we start the Saudi operation that order book will further add to our order book position.

Clarifies the ambitious FY27 revenue target and how the current order book relates to future capacity from new plants.

Asked by Darshil Jhaveri

Blended EBITDA Margin for FY27 with new plants Direct
Jammu will be around 18% to 22% and Saudi will be between 12% and 14%. ... In 7,000 crores, we should reach around 800 crores-plus.

Provides specific margin expectations for the new Saudi and Jammu plants, and the overall blended EBITDA target for the projected FY27 revenue.

Asked by Darshil Jhaveri

Interest Cost for New Plants Direct
our peak borrowing will be around Rs.1,150 crores to 1,200 crores. ... we are estimating the interest cost will be around Rs.120 to 125 crores in one year for all the three plants.

Gives an estimate of the peak borrowing and associated annual interest cost, which is crucial for financial modeling of the expansion.

Asked by Darshil Jhaveri

SEBI Order Status Direct
SEBI order, we got the stay order immediately after the order in few days and now the matter is sub judice.

Provides an update on a regulatory matter, indicating it is currently under legal review and a stay order has been obtained.

Asked by Divyansh Thakur

Reason for lower Q2 Revenue YoY Partial
Madam, our business is like nature, the lead time. Every order having a different kind of the raw material. So, once we get the order, although a very good order book position over there, once we receive the order, some raw material few weeks, some raw material few months, so that is why we have to see the priority. Now, all the orders are under execution and you will see great growth in the coming quarters.

Explains that revenue recognition is tied to raw material availability and lead times, rather than a lack of orders, and anticipates stronger growth in coming quarters.

Asked by Hailey Shah

Gross Profit Margin Increase despite Raw Material Prices Direct
First of all, whenever we get an order, we hedge our purchases. So, recent increase or decrease in the raw material prices does not affect our profitability, because our raw material supply is hedged at the time of booking the order. ... Second, the profitability has been higher because as was explained by Chairman in his opening remark, because of product mix and the better operation synergies, value added product also.

Clarifies the company's strategy of hedging raw material purchases to protect margins and highlights the positive impact of product mix and value-added products on profitability.

Asked by Karishma Nahar

US Market Plans Partial
US market looks good, but currently we do not have any plans. Currently, we are executing two big projects, Saudi and Jammu. ... Let us concentrate on the two projects right now on our hand. For the three, four, four, five months, we will be very busy over there to stabilize the thing and then we will talk about the other markets in the world.

Indicates the company's current focus on Saudi and Jammu expansions, deferring plans for the US market until these projects are stabilized.

Asked by Rohan Rawat

Real Estate Monetization Plan Direct
The project which we have monetized, the developer is seeking all the legal approvals. That project, after he got all the environmental approvals, he will be launching it very soon. ... We have a horizon of five years to get this revenue monetized. Once project will be launched, we are expecting 700 crores at the conservative side to be received in the next five years.

Provides details on the real estate monetization project, including its status, expected launch, and the projected revenue over the next five years.

Asked by Puneet Chokani

3 min read 6 chapters

Detailed narrative

Q2/H1 FY26 Financial Performance

Man Industries reported Q2 FY26 revenue from operations at Rs. 834 crores, a growth of 3.5% YoY and 12.4% QoQ. EBITDA for the quarter grew by 37% YoY to Rs. 102 crores, with the margin expanding by 340 basis points to 12.5%, marking the highest ever in the company's history. PAT increased by 16% YoY and 34% QoQ to Rs. 37 crores. For H1 FY26, revenue stood at Rs. 1,576 crores (up 1.4% YoY), EBITDA grew 38% YoY to Rs. 182 crores, and PAT increased 27% YoY to Rs. 65 crores. The company attributes the margin expansion to execution excellence, product mix optimization, operational discipline, and cost management.

Order Book and Bid Pipeline

As of September 30, 2025, the company's order book stands at Rs. 4,750 crores, providing revenue visibility for the next six to nine months. Exports constitute approximately 90% of this order book, highlighting strong international traction, particularly in the GCC region and Southeast Asia. Man Industries also maintains a robust bid pipeline exceeding Rs. 15,000 crores, covering opportunities in iron and gas, water transmission, and specialized coated pipe segments across global markets.

Strategic Expansion & Capacity

The company's expansion initiatives in Saudi Arabia and Jammu are progressing well. The Saudi Arabia facility is expected to commence operations by Q4 2026, followed by a commercial ramp-up. The Jammu plant, which will focus on stainless steel seamless pipe manufacturing, is under progress and targeted to start production from April 1, 2026. These projects are expected to significantly strengthen geographical reach, capacity, and enable participation in high-value segments, contributing to diversified growth.

FY26 and FY27 Outlook and Guidance

Man Industries expects H2 FY26 to be its strongest half-year, with revenue around Rs. 2,200 crores, enabling the company to comfortably achieve its 20% revenue growth guidance for FY26. The company aims to maintain a double-digit EBITDA margin between 11% to 12% for FY26. For FY27, with both new plants operational, the company targets a revenue of approximately Rs. 7,000 crores, with an EBITDA exceeding Rs. 800 crores. The Jammu plant is expected to have an EBITDA margin of 18-22%, and the Saudi plant 12-15%.

Balance Sheet and Debt Position

As of September 30, 2025, Man Industries is in a net cash positive position of Rs. 14 crores, considering all debt. The peak gross borrowing is estimated to be around Rs. 1,150-1,200 crores, with an annual interest cost of Rs. 120-125 crores for all three plants. The cost of debt is estimated at around 6% for dollar borrowings and 8-9% for rupee borrowings. The company's policy of hedging raw material purchases protects profitability from price volatility.

Real Estate Monetization

The company is pursuing a real estate monetization project through its subsidiary, Merino Shelter. The developer is currently seeking legal and environmental approvals, after which the project will be launched. Man Industries expects to receive approximately Rs. 700 crores from this project over the next five years, which will be recognized as revenue in the subsidiary and consolidated in the financials under segment reporting.

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