Mishra Dhatu Nigam Limited — Q3 FY26 earnings call

Call held 21 Feb 2026

Management summary

Mishra Dhatu Nigam reported strong Q3 FY26 results with significant QoQ growth in turnover and PAT, driven by execution in super alloys and titanium. The company maintains a robust order book of ₹2,594 crores and is progressing on strategic initiatives like the metal bank and NADCAP certification. However, the Utkarsha Dhatu Nigam JV is being closed, and RDSO certification for springs is still awaited.

Highlights

  • Turnover for Q3 FY26 was ₹275.66 crores, recording a robust 31.44% growth over Q2 FY26 turnover of ₹209.72 crores.

  • Profit after tax (PAT) for Q3 FY26 stood at ₹27.46 crores, a significant increase from ₹12.76 crores in Q2 FY26.

  • The company's order book position is strong at ₹2,594 crores as of February 17, 2026, with an execution timeline of 2 years.

  • MIDHANI achieved CEMILAC certification for 10 cast and rods super alloys, demonstrating its technical capability.

  • A customer-owned metal bank is being established, expected to be fully operational within 6 months (by Q1 FY27), to mitigate supply chain risks.

Concerns

  • The joint venture Utkarsha Dhatu Nigam Limited with NALCO is being formally closed due to non-viability, as the annual requirement for aerospace-grade aluminum alloys is too small for a dedicated plant.

  • RDSO certification for helical springs is still pending, which is a prerequisite for supplying to Vande Bharat and metro coaches, potentially delaying market entry for this product.

Key financials

2 periods

Q3 FY26

  • Turnover
    ₹275.66 Cr
    QoQ +31.4%
  • Value of Production
    ₹304.05 Cr
    QoQ +18.6%
  • PBT
    ₹39 Cr
    QoQ +104.1%
  • PAT
    ₹27.46 Cr
    QoQ +115.2%

9M FY26

  • Turnover
    ₹655.88 Cr
    YoY -1.1%
  • Value of Production
    ₹801.73 Cr
    YoY +8.9%
  • PBT
    ₹77.1 Cr
  • PAT
    ₹53.04 Cr

What they filed

Q1 FY27: revenue up 40.6%, net profit up 23.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue262 238 411 170 210 −20%276 +16%553 +35%239 +41%
EBITDA49 52 93 34 33 −33%55 +6%116 +25%37 +9%
Net profit24 25 56 13 13 −46%27 +8%78 +39%16 +23%
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

₹2,594 Cr

as of 2026-02-17 quantified

Execution

2 years for execution

Composition

  • Titanium alloys (product) ₹741 Cr 28.6%
  • Defence (client type) 72%
The company has a strong order book with a significant portion from defense and titanium alloys, ensuring revenue visibility for the next two years.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex Capex disclosed
    That we are working on that, the projects are under evaluation. We are working on that. It's not yet finalized. Probably by end of this Q4, we would be able to give a clarity on that.
  • M&A Utkarsha Dhatu Nigam Limited (JV with NALCO) Joint venture · Abandoned

    Due to non-viability of the project and the total annual requirement for aerospace-grade aluminum alloys being too small for a dedicated plant.

    Project recommended for closure, formal closure process ongoing.

    So your question is Utkarsha. So with respect to that, the due to the non, I mean, viability of the project, it has been recommended for closure. So that is a very brief answer to your question. We are not going to pursue that project anymore. We are going to formally close down. We are continuously discussing with NALCO. Both of us are going to discuss on this and take the proposal for closures forward.

Guidance & targets

Profitability

  • Sustainable EBITDA Margin Profitability · On an average · High confidence Around 23%
    Around 23% on an average, we can take.

    — Management

Certification

  • NADCAP Certification Certification · Q4 FY26 · High confidence Received by end of Q4
    Okay. Actually, the audit is over, some minor queries we are answering. So it should be we should be getting it by end of Q4.

    — S.V.S. Narayana Murty

Infrastructure

  • Metal Bank Operationalization Infrastructure · Within 6 months (by Q1 FY27) · High confidence Fully operational within 6 months
    So maybe down the line within 6 months, a fully-fledged metal bank of 6 important raw materials that are essential for all the defense and other customers will be in place inside MIDHANI.

    — S.V.S. Narayana Murty

Revenue

  • Incremental Revenue Growth Revenue · Year-over-year · Medium confidence Around 20%
    Okay, maybe around 20% incremental revenues, we can expect it until the capex things are finalized. Once the capex clarity has come, then probably we will be able to revisit that figures. Otherwise, in the current capacities and current utilization, we can expect a 20% increase year-over-year.

    — Management

Market Expansion

  • Foreign Vendor Certification for Aero Customers Market Expansion · Within 2 years · Medium confidence On supplier list within 2 years
    Yes, certainly, in the next 2 years, definitely, we can we'll have significant understanding for a couple of materials to some of the aero customers outside whomever you are popularly -- you are listening. So we'll be in their supplier's list.

    — S.V.S. Narayana Murty

Capex

  • Capex Plan Finalization Capex · Q4 FY26 · High confidence Clarity by end of Q4
    That we are working on that, the projects are under evaluation. We are working on that. It's not yet finalized. Probably by end of this Q4, we would be able to give a clarity on that.

    — Management

What to watch in Q4 FY26

NADCAP Certification Status

end of Q4 FY26
Current Audit over, minor queries being answered
Target Certification received

Why it matters

Crucial for international recognition and potential export opportunities in heat treatment processes.

Okay. Actually, the audit is over, some minor queries we are answering. So it should be we should be getting it by end of Q4.

Risks & concerns

  • RDSO certification pending for helical springs

    medium

    The company needs RDSO certification to supply helical springs for Vande Bharat and metro coaches, which is currently under process and not yet obtained, delaying market entry.

    Management acknowledged

  • JV closure due to non-viability

    low

    Utkarsha Dhatu Nigam Limited JV with NALCO is being formally closed as the market for its specific products (aerospace-grade aluminum alloys) is too small to be viable for a dedicated plant.

    Management acknowledged

Q&A highlights

8 direct
Titanium capacity utilization and product mix for revenue Direct
So if you look at the alloy-wise revenue in the third quarter for the 9 months, we have super alloy contribution is around 20% and titanium alloys is around 19%, maraging steel is about 15%, and special steel is about 37% and remaining all other grades about 9%. So predominantly, super alloys and titanium alloys constitute about 40% of our total revenue.

Clarifies the current revenue contribution from key product segments and highlights the focus on high-margin super alloys and titanium.

Asked by Amit Dixit

NADCAP certification status Direct
Okay. Actually, the audit is over, some minor queries we are answering. So it should be we should be getting it by end of Q4.

Provides a clear timeline for the completion of a crucial international certification for heat treatment, which can enhance export opportunities.

Asked by Henil Bagadia

Opportunity for ABHED bulletproof jackets Direct
So we are having capability already. We are under testing of the ABHED. Multiple testing needs to be done at the ballistic material's testing laboratory, and we are conducting and we are ready to take the orders now. Okay. We'll be participating aggressively, and we will be getting the order. And when such a big order comes, definitely it will be -- multiple people it will be given. So we are hoping that we'll be in the race, and we'll work towards that.

Indicates the company's readiness to participate in significant tenders for a new defense product, potentially opening a new revenue stream.

Asked by Henil Bagadia

Status and impact of the metal bank Direct
No, this is a customer-owned metal bank that is located inside MIDHANI. It won't -- it's not having any impact on the working capital of the company because the inventory that is being held in the metal bank is in the books of the customers, not in the books of MIDHANI.

Clarifies that the metal bank is customer-owned, meaning it will not impact MIDHANI's working capital or inventory days, while still providing supply chain insulation.

Asked by Shashi Ranjan

Closure of Utkarsha Dhatu Nigam Limited JV Direct
So your question is Utkarsha. So with respect to that, the due to the non, I mean, viability of the project, it has been recommended for closure. So that is a very brief answer to your question. We are not going to pursue that project anymore. We are going to formally close down.

Confirms the abandonment of a previously discussed JV, providing clarity on future strategic direction and resource allocation.

Asked by Shashi Ranjan

Raw material sourcing for titanium Direct
Okay it is like this, titanium alloys, as you know, India is having a titanium alloys production sponge production plant at Chavara in Kerala, okay? That is about 500 tons per annum. It makes titanium sponge. And the actual production is about 150 tons per annum and the quality of sponges that comes in different grades. So it will not be able to meet the total requirement of the order book, whatever MIDHANI have. So normally, we import to meet the requirements, and we meet so we import from East European nations and to meet our requirements.

Explains the domestic supply deficit for titanium sponge and the reliance on imports, highlighting a key raw material dependency.

Asked by Ravi Naredi

Growth drivers for Q4 FY26 and future revenue targets Direct
Yes, growth driver. So we are now currently manufacturing some of the aeronautical grids, okay? So some of the aero grids to our aero customers, we are now currently processing. And then whatever are under processing from Q3, we are going to liquidate them. And some special steels are also there in that, which will be booking them in the fourth quarter.

Identifies specific products (aeronautical grids, special steels) that will drive revenue in the upcoming quarter, providing insight into short-term execution.

Asked by Sujal

Path to becoming a ₹2,000 crores company and foreign vendor certifications Direct
And by installing additional capacity in critical areas, MIDHANI will be able to achieve higher growth. And that 3 to 5 we are looking at 10 years and beyond long-term plan. So that is what our slowly, we want to move towards a INR2,000 crores company in maybe coming 10 years.

Outlines the long-term vision for significant growth, emphasizing the need for strategic capex and capacity expansion to achieve the ₹2,000 crores revenue target.

Asked by Rushabh

3 min read 6 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

Mishra Dhatu Nigam reported a strong Q3 FY26, with turnover reaching ₹275.66 crores, marking a robust 31.44% sequential growth from ₹209.72 crores in Q2 FY26. Value of production also increased by 18.6% QoQ to ₹304.05 crores. Profit before tax (PBT) surged to ₹39 crores from ₹19.11 crores in the previous quarter, and profit after tax (PAT) more than doubled to ₹27.46 crores from ₹12.76 crores. For the nine-month period (9M FY26), turnover was ₹655.88 crores, slightly lower than ₹663.54 crores last year, but value of production grew by 8.86% to ₹801.73 crores.

Order Book and Product Mix

The company maintains a healthy order book of ₹2,594 crores as of February 17, 2026, with an execution timeline of 2 years. Approximately 29% of the order book, or ₹741 crores, is attributed to titanium alloys. Defense orders constitute a significant 72% of the total order book. The revenue mix for 9M FY26 shows super alloys contributing around 20%, titanium alloys 19%, maraging steel 15%, and special steel 37%, with the remaining 9% from other grades. Management highlighted that super alloys and titanium alloys together account for about 40% of total revenue, indicating a focus on high-value products.

Strategic Achievements and Certifications

MIDHANI achieved several notable milestones, including the supply of 31 titanium alloy windows for the Ram Janmabhoomi at Ayodhya, marking the first architectural use of titanium in India. The company also supplied approximately 90 tons of material for the Presidential Dais for Republic Day. Technically, MIDHANI received CEMILAC certification for 10 cast and rods super alloys and is awaiting NADCAP certification for heat treatment, with the audit completed and minor queries being addressed, expected by the end of Q4 FY26.

Metal Bank and Raw Material Strategy

To mitigate supply chain disruptions, MIDHANI has established a customer-owned metal bank within its premises, working with 5 customers. This metal bank is expected to be fully operational within 6 months (by Q1 FY27), with purchase procedures and civil works underway. Management clarified that since the inventory in the metal bank is customer-owned, it will not impact MIDHANI's working capital or inventory days. India's domestic titanium sponge production is limited to about 150 tons per annum against a capacity of 500 tons, necessitating imports from East European nations to meet MIDHANI's requirements.

New Product Opportunities: ABHED Jackets and Helical Springs

MIDHANI is actively pursuing new product opportunities. For ABHED bulletproof jackets, the company has acquired technology transfer from IIT Delhi-DRDO and is currently testing the product, ready to aggressively participate in upcoming tenders, including a ₹1,000 crores tender. For helical springs, a new plant has been established and is being operationalized for Vande Bharat requirements. However, RDSO certification is essential for market entry and is currently in process. The company aims to supply high-quality large-size springs and explore export opportunities.

Long-Term Growth Vision and Capex Plans

MIDHANI aims to grow into a ₹2,000 crores company over the next 10 years, which will require significant capacity enhancement and infrastructure development. The capex plan is currently under evaluation and is expected to be finalized by the end of Q4 FY26. Management indicated that with current capacities, the company expects around 20% incremental revenue growth year-over-year. Additionally, MIDHANI is working towards foreign vendor certifications, expecting to be on the supplier list for some international aerospace customers within 2 years, further boosting export potential.

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