Man Industries (India) Limited — Q3 FY26 earnings call

Call held 9 Feb 2026

Management summary

Man Industries reported its highest-ever quarterly EBITDA and PAT margins in Q3 FY26, driven by strong operational discipline and product mix optimization. The company holds a robust executable order book of ₹4,000 crores and a healthy bid pipeline of ₹11,500 crores. Strategic capacity expansions in Saudi Arabia and Jammu are progressing, with Saudi expected to be completed by Q1 FY27 and Jammu slightly delayed. Management upgraded its FY26 margin guidance and anticipates 25-30% consolidated growth in FY27.

Highlights

  • Highest ever quarterly EBITDA of ₹136 crores, up 61.4% YoY.

  • Highest ever quarterly PAT of ₹55 crores, up 61% YoY.

  • EBITDA margin expanded 480 bps YoY to 16.2%, reflecting product mix optimization and cost management.

  • Executable order book of ₹4,000 crores provides 6-12 months execution visibility.

  • Net cash position of ₹38 crores as of December 31, 2025, indicating strong balance sheet.

  • FY26 EBITDA margin guidance upgraded to 13-14% from an initial 11-12%.

Concerns

  • Sharp increase in other expenses in Q3 FY26 due to higher freight and logistics costs for Delivered Duty Paid (DDP) orders.

  • Jammu facility expansion is slightly delayed due to war and natural calamities (flooding) in the region.

Key financials

2 periods

Q3 FY26

  • Total Income
    ₹838.7 Cr
    YoY +13.7% QoQ +2.9%
  • EBITDA
    ₹136 Cr
    YoY +61.4%
  • EBITDA Margin
    16.2%
  • PAT
    ₹55 Cr
    YoY +61%

9M FY26

  • Total Income
    ₹2,427 Cr
    YoY +4.5%
  • EBITDA
    ₹318 Cr
    YoY +47%
  • PAT
    ₹120 Cr
    YoY +41%
  • Cash Profit
    ₹175.9 Cr
    YoY +47%

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

₹4,000 Cr

as of 2025-12-31 quantified

Execution

execution visibility over the next 6-12 months

Composition

  • Exports (geography) 83%
  • LSAW pipes (within exports) (product) 80%

Pipeline

qualified rfp

Current bid pipeline

Cancellations & deferrals

  • deferred: Jammu facility slightly delayed due to war and natural calamities (flooding).
The bid book is dynamic and fluctuates frequently due to continuous bidding activity and varying outcomes.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • Remaining spend for Saudi and Jammu facilities expansion ₹350 Cr
    Approximately 75% is already spent out. The current is around 25% and then the trials and everything. So maybe about INR 400 crores is pending to be spent? Yes, give or take. Around 25% would be INR 350-INR 400 crores.
  • Debt Net cash ₹38 Cr Cost 8%
    As on 31st December 2025, we have a net cash position of INR 38 crores. The average borrowing cost is around in the range of 8%, between 8% and 8.5%.
  • Liquidity Cash ₹38 Cr Company is in a net cash position.
    As on 31st December 2025, we have a net cash position of INR 38 crores.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · FY26 · High confidence 13-14%

    Previously 11-12% → 13-14%

    we retired our original FY '26 revenue guidance of INR 3,600-INR 3,700 crores, and upgraded our margin guidance to 13%-14%, compared to the initial margin guidance of 11%-12%.

    — NIKHIL MANSUKHANI

  • EBITDA Margin Profitability · FY27 · High confidence 13-14%
    Yes, Divyansh. Thank you for your question. Yes, we should be trying to sustain 13%-14% EBITDA margin for FY '27 as well.

    — NIKHIL MANSUKHANI

Growth

  • Consolidated Growth Growth · FY27 · High confidence 25-30%
    Darshil, we would be looking at approximately 25%-30% growth in FY '27 from FY '26.

    — NIKHIL MANSUKHANI

Capacity

  • Saudi Facility Completion Capacity · Q1 FY27 · High confidence Q1 FY27
    The Saudi facility is advancing as planned, and is expected to be completed by Q1 FY '27

    — NIKHIL MANSUKHANI

  • Jammu Facility Completion Capacity · Q1/Q2 FY27 · High confidence Q1/Q2 FY27
    Q1 for the Saudi and Jammu, I think, by Q2.

    — NIKHIL MANSUKHANI

Revenue

  • Saudi Facility Revenue Revenue · FY27 · Medium confidence INR 1,500-2,000 crores
    INR 1,500 and INR 2,000 crores depending on the steel price and everything, it will be between INR 1,500 and INR 2,000 crores.

    — NIKHIL MANSUKHANI

  • Jammu Facility Revenue Revenue · FY27 · High confidence INR 300 crores
    We are expecting approximately INR 300 crores.

    — NIKHIL MANSUKHANI

  • Merino Shelters Real Estate Revenue Revenue · FY27 · High confidence INR 70-100 crores
    We are expecting between INR 70-100 crores FY '27.

    — NIKHIL MANSUKHANI

  • Merino Shelters Total Project Revenue Revenue · next 6-7 years · High confidence INR 600-700 crores
    It is under RERA approval. And we should be launching it sometime in March 1st week. And this would generate an overall topline of around INR 600-INR 700 crores. This will come back into the company over the next 6-7 years.

    — NIKHIL MANSUKHANI

What to watch in Q4 FY26

Saudi Facility Commercial Operations

Q1 FY27
Current Trials ongoing, completion expected Q1 FY27
Target Commercial operations commenced

Why it matters

Verification of the Saudi plant's operational start is crucial for realizing the projected FY27 revenue and capacity expansion.

The Saudi facility is advancing as planned, and is expected to be completed by Q1 FY '27

Risks & concerns

  • Jammu Facility Project Delays

    medium

    The Jammu facility is slightly delayed due to regional war and natural calamities (flooding) impacting manpower and operations.

    Management acknowledged

  • Commodity Price Volatility

    medium

    Fluctuations in steel and other commodity prices can impact revenue and project values, affecting the achievement of growth targets.

    Management acknowledged

  • Increased Freight and Logistics Costs

    low

    Higher freight and logistics costs, particularly for Delivered Duty Paid (DDP) orders, led to a sharp increase in other expenses in Q3 FY26.

    Management acknowledged

Q&A highlights

7 direct
FY27 EBITDA Margin Guidance Direct
Yes, Divyansh. Thank you for your question. Yes, we should be trying to sustain 13%-14% EBITDA margin for FY '27 as well.

Confirms the upgraded margin guidance is expected to be sustainable into the next fiscal year, providing clarity on future profitability.

Asked by Divyansh Thakur

Remaining Capex for New Facilities and Completion Timeline Direct
Approximately 75% is already spent out. The current is around 25% and then the trials and everything. Yes, give or take. Around 25% would be INR 350-INR 400 crores. Q1 for the Saudi and Jammu, I think, by Q2.

Provides specific figures for remaining capital expenditure (₹350-400 crores) and clarifies the completion timelines for the Saudi (Q1 FY27) and Jammu (Q1/Q2 FY27) facilities.

Asked by Viraj Mahadevia

Real Estate Segment (Merino Shelters) Revenue and Cash Flow Direct
Merino Shelters is now going to launch the project. It is under RERA approval. And we should be launching it sometime in March 1st week. And this would generate an overall topline of around INR 600-INR 700 crores. This will come back into the company over the next 6-7 years. And there is no cost affiliated to this. This is purely the money coming back into the company.

Details the launch of a new, high-margin revenue stream from the real estate segment, expected to contribute significantly to cash flow without associated costs.

Asked by Fenil

FY27 Growth and Margin Conservatism Partial
EBITDA levels, we will be able to manage between 13% and 15%. And we would rather be a little conservative and over perform, right. Everyone likes that. So we would rather be in the range of 11%-13% and then try and deliver above 13%. But I think this is sustainable level currently for us.

Management explains their conservative margin guidance despite recent higher performance, suggesting a cautious but confident outlook on sustainable profitability (13-15%).

Asked by Darshil Jhaveri

Finance Costs Post New Plant Commissioning Direct
Practically, till the project gets its COD, all the costs are capitalized and after the COD will happen, it will go to the P&L. That cost will increase depending on the loan.

Clarifies the accounting treatment of finance costs for new projects, indicating that these costs will move from capitalization to P&L post-Commercial Operation Date (COD), impacting future profitability depending on debt levels.

Asked by Darshil Jhaveri

Saudi Plant First Year Revenue and Working Capital Needs Direct
So we would be completing in Q1 with the trials as well in Quarter 1 FY '27. And we are looking at around 50%-60% utilization in the year 1. INR 1,500 and INR 2,000 crores depending on the steel price and everything, it will be between INR 1,500 and INR 2,000 crores. Majorly, it is from the non-fund-based side. And that would be approximately between the peak load if we are executing INR 1,500-INR 2,000 crores would be around INR 750-INR 900 crores of non-fund-based basically for LCs and BGs.

Provides specific revenue projections and working capital requirements for the Saudi plant's first year of operation, crucial for understanding its immediate financial impact.

Asked by Rohan Baranwal

Jammu GST Benefit Mechanism Direct
We have to pay the GST, recover and pay the GST and then, we have to apply with that document to the government for a grant to get it repaid. Correct. So we have to account for it. We have to pay the tax for it. And then, we make this and we send it to the government and you get it every quarter.

Explains the process of receiving the 3x capex GST benefit for the Jammu facility, clarifying it's a reimbursement process rather than an upfront reduction.

Asked by Satyan Wadhwa

Bid Book Fluctuation and Discrepancies Direct
These are bid books. Basically, we keep bidding a lot of projects and the bid book actually changes very often, like we might be bidding hundreds of projects. And when the bids go away, certain we get, certain someone else get, certain we don't qualify. So when we say bid book is also if for taxation or duty reasons, we are not able to supply in that region. All those put together go into the bid book. So that is why it is varying.

Management clarifies the dynamic nature of the bid book, explaining why its value can fluctuate and why it differs from the firm order book, addressing analyst concerns about discrepancies.

Asked by Harsh Jain

2 min read 6 chapters

Detailed narrative

Record Q3 FY26 Performance and Margin Expansion

Man Industries achieved its highest-ever quarterly EBITDA of ₹136 crores and PAT of ₹55 crores in Q3 FY26, representing a 61.4% and 61% YoY growth respectively. The EBITDA margin expanded by 480 basis points YoY to 16.2%, attributed to sustained focus on product mix optimization, strong operational discipline, and effective cost management. Total income for the quarter stood at ₹838.7 crores, growing 13.7% YoY.

Upgraded FY26 Guidance and Positive FY27 Outlook

The company upgraded its FY26 EBITDA margin guidance to 13-14% from an initial 11-12%, reflecting strong momentum. For FY27, management expects to sustain EBITDA margins between 13-14% (or 13-15%) and projects approximately 25-30% consolidated growth from FY26 levels, with an internal goal of 50-55% growth.

Strategic Capacity Expansions Nearing Completion

Key civil works and major equipment installations for the Saudi Arabia and Jammu facilities are substantially completed. The Saudi facility is expected to be completed by Q1 FY27, while the Jammu facility is anticipated to be ready by Q1/Q2 FY27. Approximately ₹350-400 crores of capital expenditure remains to be spent on these projects, which will significantly strengthen geographical reach and capacity.

Robust Order Book and Bid Pipeline

As of December 31, 2025, the company's executable order book stands at ₹4,000 crores, providing execution visibility for the next 6-12 months. Exports are a key growth driver, accounting for 83% of the order book, with LSAW pipes comprising 80% of the export mix. The current bid pipeline is robust at approximately ₹11,500 crores, indicating strong future order potential.

Merino Shelters Real Estate Project Launch

The Merino Shelters real estate project is slated for launch in the first week of March 2026, pending RERA approval. This project is expected to generate an overall topline of ₹600-700 crores over the next 6-7 years. Importantly, this revenue stream will have no associated costs, contributing purely as income to the company, and is projected to start contributing ₹70-100 crores in FY27.

Strong Balance Sheet and Cost of Debt

Man Industries maintains a strong balance sheet, reporting a net cash position of ₹38 crores as of December 31, 2025. The average borrowing cost for the company is in the range of 8% to 8.5%. For the Jammu facility, a 6% interest subsidy results in an effective payback rate of 3.5%, further optimizing financing costs.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Capital Goods earnings calls