Mishra Dhatu Nig

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.

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.

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.

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.

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.

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.