Detailed Narrative
Q4 FY25 and Annual Performance Highlights
MIDHANI achieved its highest ever quarterly turnover of ₹410.56 crores in Q4 FY25, representing a 1.25% growth year-on-year. The value of production for the quarter also saw a significant increase of 16.78% to ₹329.16 crores. Profitability metrics were strong, with PBT rising by 13.37% to ₹77.16 crores and PAT increasing by 21.04% to ₹56.14 crores. For the full fiscal year, MIDHANI recorded its highest annual turnover of ₹1,074.1 crores, albeit with a marginal growth of 0.13% over FY24. Full-year EBITDA grew 11.1% to ₹248.97 crores, and PAT increased by 20.61% to ₹110.07 crores.
Raw Material Strategy and Indigenization Efforts
The company addressed concerns about raw material supply, stating that it does not import critical materials from China and has access to non-Chinese suppliers. MIDHANI imports various alloying elements like Pure Nickel, Cobalt, Moly, Tungsten, and Chromium. To mitigate price volatility and reduce import dependence, the company has undertaken significant indigenization efforts, successfully developing three master alloys and salvaging scrap. These initiatives aim to improve cost efficiency and ensure a stable supply chain.
Order Book and Segmental Outlook
As of April 1, 2025, MIDHANI's order book stood at a robust ₹1,832 crores, providing strong revenue visibility for the coming years. The order book composition is heavily skewed towards Defence (84%), followed by Space (8%), Energy (2%), and Exports (2%). The company anticipates an order inflow of approximately ₹1,500 crores for FY25. Management expects continued strong demand from strategic sectors such as Aerospace, Defence, Atomic Energy, Navy, Missile, and Power, driving future order growth.
Capital Expenditure and Capacity Utilization
MIDHANI invested ₹50 crores in capex during FY25, primarily for strengthening manufacturing infrastructure and commissioning new facilities. For FY26, the company plans to increase its annual capex to ₹75-100 crores. The newly commissioned Titanium plant is expected to achieve 100% capacity utilization in FY26, with a capacity of 250-300 tons per month. However, the Wide Plate Mill, a ₹600 crore investment, is not yet fully utilized as it was established for strategic purposes and will take more time to reach full production and revenue contribution.
Profitability and Margin Outlook
While historical EBITDA margins were in the 25-30% range, increased competition from private and imported parties has led to a current EBITDA margin range of 20-25%. Management is actively working to improve margins through operational efficiencies, raw material cost reduction, and better product mix. They are targeting an EBITDA margin of 25% for FY26, with potential to reach around 30% once the Wide Plate Mill achieves full utilization. The company's focus on higher-value products and indigenization is expected to support margin expansion.
Export Market Expansion
MIDHANI's export performance saw significant growth in FY25, nearly tripling compared to the previous year. The company is actively pursuing international certifications from major overseas customers like Safran and GE. With a current export order position of ₹35-40 crores, management is optimistic about further growth, targeting to cross ₹100-120 crores in export revenue in the coming years. This expansion is driven by MIDHANI's competitive positioning and its role as a reliable supply partner in the global market.