Mishra Dhatu Nigam Limited

MIDHANI reported a turnover of INR209.73 crores for Q2 FY26, marking a 20.06% year-on-year decline from INR262.12 crores in the previous year. For the first half of FY26, turnover stood at INR380.22 crores, down 10.66% from INR425.57 crores. Despite the top-line contraction, the Value of Production (VoP) for H1 FY26 grew by 3.9% to INR497.67 crores. Profitability remained stable, with H1 FY26 EBITDA and PAT margins at 21.82% and 6.73% respectively, indicating efficient cost management.

The company maintains a robust order book of INR2,220 crores as of November 14, 2025. This order book is composed of 70% from defense, 20% from space, and 10% from energy and other sectors. An additional INR500 crores worth of orders are in the pipeline, with tenders already participated in and expected to be realized by March 2026. Management expects the current order book to be executed within 12 to 18 months, providing strong revenue visibility.

MIDHANI has entered into a Memorandum of Understanding (MoU) to create a metal bank at its Hyderabad campus within 6-8 months. This initiative aims to ensure uninterrupted supply of 6 critical raw materials, which are currently imported, for projects of national importance. Additionally, the company signed an MoU for ABHED, a lightweight and high-protection bulletproof jacket technology developed by DRDO and IIT Delhi, which is expected to significantly increase future orders in this segment.

The company acknowledges that supply chain interruptions for imported raw materials have impacted its ability to book certain export orders. Specifically, geopolitical situations have made it challenging to import titanium alloys, leading to a shortfall in export revenue for the current year. The metal bank initiative is a strategic step to mitigate these risks and achieve self-sufficiency in critical raw materials.

MIDHANI's capacity utilization varies depending on the product mix, with processing times ranging from 2 months for steel to 4 months for super alloys and titanium alloys, leading to inventory build-up and delayed revenue recognition. The company identifies super alloy and titanium alloy businesses as key growth drivers for H2 FY26, with current order books of INR450 crores and INR600 crores respectively. Management believes that while capability and demand exist for a significantly higher turnover (e.g., INR5,000 crores), infrastructure is the primary bottleneck, which will be addressed through future capex.

MIDHANI aims to increase its export revenue by 10-15% over the next 2-3 years, targeting INR100-150 crores annually. To facilitate this, the company is pursuing NADCAP certification, which is essential for securing international export orders. This certification is expected to be completed by Q4 FY26, enabling MIDHANI to compete more effectively in the global market for super alloys and titanium alloys.