Man Industries (India) Limited — Q4 FY25 earnings call

Call held 13 May 2025

Management summary

Man Industries reported a record Q4 and FY25, with revenue growing 11% to ₹3,557 crore and PAT up 46% to ₹153.2 crore, driven by strong operating performance and a 70 bps EBITDA margin expansion to 9.9%. The company secured a robust order book of ₹2,500 crore and a bid pipeline of ₹15,000 crore, with exports contributing 75-80%. Strategic initiatives include the monetization of non-core assets for an estimated ₹650-700 crore over 5-6 years and new plant commissioning in Saudi Arabia and Jammu by Q3 FY26, aiming for significant capacity and revenue growth.

Highlights

  • FY25 Revenue grew 11% to ₹3,557 crore despite a 12% decline in steel prices.

  • FY25 PAT increased 46% YoY to ₹153.2 crore, marking the highest ever achieved by the company.

  • FY25 EBITDA Margin expanded 70 bps to 9.9%, reflecting strong operating performance.

  • Secured an order book of ₹2,500 crore and a bid pipeline of ₹15,000 crore, with exports contributing 75-80% of revenue and 80% of the order book.

  • Successful monetization of non-core asset (Merino Shelters) with ₹70 crore upfront and an estimated ₹650-700 crore share over 5-6 years.

Concerns

  • Cash flow in Q4 FY25 was lower than EBITDA due to project-specific inventory and receivables buildup, though management expects neutralization next quarter.

  • Order book declined sequentially from ₹3,200-3,300 crore to ₹2,500 crore, which management attributed to the rolling nature of the business and not a concern for future growth.

Key financials

2 periods

Q4 FY25

  • Total Income
    ₹1,233.9 Cr
    YoY +50%
  • PAT
    ₹68.1 Cr
    YoY +182%

FY25

  • Total Income
    ₹3,557 Cr
    YoY +11%
  • EBITDA
    ₹353.2 Cr
    YoY +20%
  • EBITDA Margin
    9.9%
    YoY +0.7%
  • PAT
    ₹153.2 Cr
    YoY +46%

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.

Segment breakdown

  • ERW Segment
    10% Consolidated Revenue Contribution
  • Water Segment
    10% Revenue Contribution

Order book

high confidence

Total value

₹2,500 Cr

as of 2025-03-31 quantified

Execution

Rs. 2,500 crores will be completed in current year (FY26)

Composition

  • Export (geography) 80%

Pipeline

qualified rfp

Bid pipeline

The order book is a rolling process, with new orders continuously being secured and executed. While the order book may fluctuate, the bid pipeline remains strong, and the company is confident in achieving its targets.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed Remaining capex for Saudi and Jammu projects will be spent in current fiscal. Working capital for new plants will be separately assessed by banks, who have in principle agreed to support.
    • New projects in Saudi Arabia ₹600 Cr
    • New projects in Jammu (stainless steel pipe) ₹564 Cr
    • Routine expenditure, upgradation, modernization ₹25 Cr
    Both of our new projects in Saudi Arabia, Jammu are progressing well, remains on track to be operational and by Quarter 3, FY'26. We are regularly incurring our CAPEX and seeing good progress. And we will spend the remaining capex amount in the current fiscal to complete the project.
  • Debt Debt disclosed
    • New borrowing Debt portion for Saudi project (total ₹600 crore project cost). In principle letter received, final stage of freezing with bank. ₹400 Cr
    Debt, we are working with the bank. Total project is Rs. 600 crore. Rs. 400 crore is about debt portion. And we are at the final stage of freezing the bank...

Guidance & targets

Revenue

  • Topline Growth Revenue · FY26 · High confidence 20%
    we are confident of achieving 20% growth topline during this fiscal.

    — DR. RAMESH CHANDRA MANSUKHANI

  • Standalone Revenue Revenue · FY26 · High confidence ₹4,000 crores
    So we are at 20%-25% growth as a standalone should reach around Rs. 4,000 crores as we expected

    — DR. RAMESH CHANDRA MANSUKHANI

  • Merino Shelters Monetization (First Year) Revenue · FY26 · High confidence ₹80 crores
    We expect almost Rs. 80 crore revenue coming in first year and then Rs. 120 crore every year over the next five years.

    — MR. SANDEEP KUMAR GARG

  • Merino Shelters Monetization (Annual) Revenue · next five years · High confidence ₹120 crores

    — MR. SANDEEP KUMAR GARG

  • Saudi Plant Full Capacity Revenue Revenue · full capacity · Medium confidence ₹2,000-2,500 crores
    This is actually revenue will come in the full force once the plant is opened around Rs. 2,500 crores, once full-fledged and this Jammu will be between Rs. 1,000 crores to Rs. 1,200 crores.

    — DR. RAMESH CHANDRA MANSUKHANI

  • Jammu Plant Full Capacity Revenue Revenue · full capacity · Medium confidence ₹1,000-1,200 crores

    — DR. RAMESH CHANDRA MANSUKHANI

Margin

  • EBITDA Margin Improvement Margin · FY26 · High confidence 50 to 100 basis points
    We anticipate a 50 to 100 basis improvement in EBITDA margins, driven by a more favorable product mix specifically.

    — DR. RAMESH CHANDRA MANSUKHANI

Capacity

  • New Plants Operationalization Capacity · Q3 FY26 · High confidence Operational
    Both of our new projects in Saudi Arabia, Jammu are progressing well, remains on track to be operational and by Quarter 3, FY'26.

    — DR. RAMESH CHANDRA MANSUKHANI

  • New Plants Optimization Capacity · 2 years post Q3 FY26 · Medium confidence Optimization achieved
    Roughly in 2 years period, we will able to achieve the optimization.

    — MR. SANDEEP KUMAR GARG

What to watch in Q1 FY26

Order Book Growth

Next quarter
Current ₹2,500 crore as of March 31, 2025
Target Increase in order book, materialization of bid pipeline

Why it matters

Essential for achieving the FY26 revenue growth target of 20% and maintaining execution visibility.

2,500 crores, comfortable order position to achieve the new target current year because we have bid book very comfortable and we are expecting order will be materialized very soon. 2,500 crores, only will be completed in this current year, 26.

Risks & concerns

  • Working Capital Build-up

    medium

    Project-specific inventory and receivables buildup in Q4 FY25 led to lower cash flow, but management expects neutralization in the next quarter.

    Analyst acknowledged

  • New Project Execution and Ramp-up

    medium

    The new plants in Saudi Arabia and Jammu are under construction and expected to be operational by Q3 FY26, with a 2-year ramp-up period for optimization, posing inherent execution and ramp-up risks.

    Management on track

  • Order Book Volatility

    low

    Sequential decline in order book was noted by an analyst, but management clarified it's a rolling process typical for export-oriented businesses and not a concern for future growth.

    Analyst downplayed

Q&A highlights

6 direct, 1 evasive
Merino Shelters Monetization Accounting and Future Cash Flows Direct
The total estimation of the project, 5 to 6 years, all the approvals we got it and the work is already started. We got Rs. 70 crore year 2025. Current year revenue also we will get. Every year we will get the revenue for next 5-6 years. We are estimating around Rs. 700 crore revenue will be there.

Clarified the accounting treatment of the ₹368 crore booking from non-core asset sale and provided specific annual revenue expectations for the next 5-6 years, emphasizing it's net revenue.

Asked by Pritesh Chheda

Order Book vs. FY26 Revenue Guidance Partial
No, I would more clarify. That is not a right indication and every project is having evaluation process. It takes time and we are very much confident to improve upon the order book position very soon, because there is not any barometer to gauge so many orders is coming in one quarter, the second quarter will be very less. It is not a right barometer for the market for this project and we are mostly in export business. So this kind of things always happens.

Addressed analyst concern about the declining order book relative to ambitious FY26 revenue guidance, explaining it's a rolling process and not indicative of future prospects due to the nature of export business.

Asked by Dhavan Shah

New Plants Revenue Potential and Ramp-up Timeline Direct
This is actually revenue will come in the full force once the plant is opened around Rs. 2,500 crores, once full-fledged and this Jammu will be between Rs. 1,000 crores to Rs. 1,200 crores. ... Roughly in 2 years period, we will able to achieve the optimization.

Provided specific revenue targets for the new Saudi and Jammu plants at full capacity and a timeline for achieving optimal utilization post-commissioning, crucial for long-term growth.

Asked by Arpit Tapadia

Q4 Margin Drivers Direct
No, partly many projects are going together and mostly the exports. And the realization is improved because nowadays we are getting higher value-added products, very specialized products. The Company's objective and motto is to get more value addition to reward to our shareholders.

Explained that improved Q4 margins were due to a favorable product mix, higher value-added products, and increased exports, rather than a single large order.

Asked by Pritesh Chheda

Working Capital for New Projects Direct
No, Working capital will be separately assessed by our banks. On the right time, before few months of the production, maybe 3-4 months, our banks in principle agreed to support and we are very confident to arrange the working capital limits.

Addressed concerns about funding working capital for the new plants, confirming bank support and confidence in securing necessary limits.

Asked by Prabal Jain

Impact of Raw Material Prices on Margins Direct
See, our business is that once we get an order confirmation, same time we get raw material rates also freeze and confirm and hedged. So any fluctuation in the raw material prices, doesn't affect our project and project profitability.

Clarified the company's hedging strategy, assuring that raw material price volatility does not impact project profitability due to rate freezing upon order confirmation.

Asked by Kaushal

Dividend Policy and Reinvestment Direct
No. Not now. In future, I don't know. Currently, our board has not proposed any dividend. Currently in this balance sheet no, but in future I don't know. ... And the reason being we are into expansion mode so we want to reinvest the profit into our CAPEX project.

Explained the decision not to declare a dividend for FY25, linking it to the strategy of reinvesting profits into ongoing CAPEX for expansion.

Asked by Arvind

Man Infra Status Evasive
No, that is matter that is sub judice and that's why we do not want to comment particular. Particular subject we do not know, you are talking overall, you are talking any specific and that's why there is a matter sub judice, but that is a separate Company, and we are separate, there is no impact on this Company whatever they are doing.

Management declined to provide an update on Man Infra, citing the matter as sub judice and a separate entity, indicating no new information or resolution.

Asked by Arvind

2 min read 7 chapters

Detailed narrative

Record FY25 Performance and Margin Expansion

Man Industries achieved its highest-ever performance in FY25, with consolidated revenue growing 11% to ₹3,557 crore despite a 12% decline in steel prices. PAT increased 46% YoY to ₹153.2 crore. This strong growth was underpinned by a 70 bps expansion in EBITDA margin to 9.9%, driven by a favorable product mix, increased exports, and value-added offerings.

Robust Order Book and Bid Pipeline

The company reported a strong order book of ₹2,500 crore as of March 31, 2025, complemented by a substantial bid pipeline of approximately ₹15,000 crore. Management expressed confidence in achieving 20% topline growth in FY26, with 75-80% of current revenue and 80% of the order book stemming from exports, highlighting a strategic focus on international markets.

Strategic Non-Core Asset Monetization

Man Industries successfully initiated the monetization of its non-core asset, Merino Shelters Private Limited, receiving an upfront consideration of ₹70 crore in FY25. The company is entitled to 30% of the developed area, with an estimated monetization value of ₹650-700 crore over the next 5-6 years. This is expected to generate ₹80 crore in FY26 and ₹120 crore annually thereafter, contributing to net revenue without associated expenses.

New Manufacturing Facilities in Saudi Arabia and Jammu

Progress on new projects in Saudi Arabia and Jammu is on track, with both facilities expected to be operational by Q3 FY26. These plants are projected to add significant revenue potential, with Saudi contributing ₹2,000-2,500 crore and Jammu ₹1,000-1,200 crore at full capacity. Optimization of these new capacities is targeted within two years of commissioning.

ERW Segment Growth and Diversification

The ERW segment, a new division launched last year, now contributes approximately 10% of consolidated revenue. Having secured API accreditations and export orders from Western countries, the company aims for increased capacity utilization and continued growth in this segment. This expansion further diversifies its product offerings and market reach.

Raw Material Price Hedging Strategy

Management confirmed that their business model effectively mitigates raw material price volatility. Upon order confirmation, both product prices and raw material rates are frozen and hedged with suppliers. This strategy ensures protection of profit margins and project profitability, insulating the company from market fluctuations.

Reinvestment Focus and No FY25 Dividend

The company's board did not propose a dividend for FY25, opting instead to reinvest profits into ongoing CAPEX projects for capacity expansion in Saudi Arabia and Jammu. This decision reflects a strategic focus on funding future growth initiatives and enhancing long-term shareholder value through increased operational scale and market presence.

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