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    Mishra Dhatu Nig

    MIDHANI
    Capital Goods·3 Jun 2026
    Management Summary

    MIDHANI reported a strong Q4 and record FY26 performance, driven by highest ever quarterly and annual turnovers, and significant PAT growth. The company achieved record Titanium production and secured key certifications like NADCAP. Strategic initiatives include establishing a metal bank to mitigate raw material supply chain risks and investing in advanced manufacturing facilities. Despite challenges with raw material supply and energy costs, the company maintains a positive outlook with a healthy order book and ambitious growth targets.

    Highlights

    6
    • Highest ever quarterly turnover of INR552.7 crores, registering a growth of 34.63% against the previous year's corresponding quarter.

    • Highest ever annual turnover of INR1,208.63 crores, registering a growth of 12.52% against the previous financial year.

    • PAT for FY26 stood at INR130.79 crores, with a growth of 18.82% against the previous financial year.

    • Achieved highest ever Titanium production of 700 tons, almost doubling from previous years.

    • Obtained NADCAP certification for heat treatment, a high-level certification in aerospace and defense sectors.

    • Inaugurated a world-class aerospace fastener manufacturing facility worth INR40 crores.

    Concerns

    4
    • Ongoing supply chain disruptions for procurement of critical raw materials.

    • Issues related to LPG and energy due to Middle East and European crises.

    • Powder manufacturing facility facing license/clearance issues, delaying installation.

    • Need to reduce old inventory (WIP and scrap) by 10-15%.

    Key financials

    Metrics

    6

    Periods

    2

    Q4 FY26

    4
    • Turnover
      ₹552.7 Cr
      YoY+34.6%
    • Value of Production
      ₹392.19 Cr
      YoY+19.1%
    • PBT
      ₹107 Cr
      YoY+38.7%
    • PAT
      ₹77.75 Cr
      YoY+38.5%

    FY26

    2
    • Turnover
      ₹1,208.63 Cr
      YoY+12.5%
    • PAT
      ₹130.79 Cr
      YoY+18.8%

    Segment breakdown

    • Space (FY25-26 Turnover)₹93 Cr7.7%
    • Defense (FY25-26 Turnover)₹301 Cr25.0%
    • PSUs (FY25-26 Turnover)₹603 Cr50.0%
    • Energy (FY25-26 Turnover)₹2 Cr0.2%
    • Others (FY25-26 Turnover)₹129 Cr10.7%
    • Exports (FY25-26 Turnover)₹78 Cr6.5%
    Donut· Share of Revenue

    Order Book

    high confidence

    Total Value

    ₹ 2,290 crores

    as of 2026-04-01

    quantified

    Composition

    Defense(client type)
    79.0%
    Titanium(product)
    ₹ 660 crores

    Pipeline

    other

    Expected orders to be booked in FY26-27

    "The company has a healthy order book with a significant portion from the defense sector and expects to book substantial new orders in the current financial year."

    Source:
    Prepared remarks

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Capex

    ₹1,000 crores

    Preference for OR (internal accruals) and term loans

    Guidance & targets

    7
    CategoryTargetPriority
    Revenue
    Top Line Growth
    15%
    High
    Revenue
    Top Line Growth Target
    20%
    Medium
    Profitability
    EBITDA Margins
    23-25%
    High
    Order Inflow
    Orders to be booked
    INR1,500 crores
    High
    Export Revenue
    Export Turnover
    at least INR100 crores
    High
    Inventory
    Opening Inventories Reduction
    10-15%
    High
    Fastener Plant
    Revenue from fastener plant
    at least INR25 crores
    High

    Metal Bank Establishment

    within 4 months
    CurrentCivil works ongoing
    TargetEstablished and operational

    Why it matters

    The metal bank is crucial for mitigating raw material supply chain risks and ensuring uninterrupted production.

    Yes. Metal bank, maybe we are expecting within another 4 months, we'll be able to establish because now some civil works and all are going on.

    How to verify

    detailed_narrative[title='Raw Material and Supply Chain Management']

    Risks & concerns

    5
    RiskSeverity

    Supply chain disruptions for raw materials

    Certain supply chain disruptions exist for procurement of raw materials, which the metal bank aims to address.Management acknowledged

    medium

    Issues related to LPG and energy

    Middle East and European crises are causing issues with LPG and energy, potentially leading to delays.Management acknowledged

    medium

    License and clearance issues for powder manufacturing facility

    The powder facility, a dual-use equipment, has faced clearance issues, delaying its installation and commercialization.Management acknowledged

    medium

    Price volatility of raw materials

    Raw material prices can spike, and long-term defense orders often lack price variation clauses, posing a risk to margins.Analyst acknowledged

    medium

    Old inventory management

    Efforts are ongoing to reduce old inventory (WIP and scrap), with a target of 10-15% reduction.Management acknowledged

    low

    Q&A highlights

    8

    “So we are looking at the niche markets of Aerospace and Defence for manufacture of these very, very complex alloys. So that is how we position ourselves. We are the suppliers of these materials and we also expect some good overseas sales.”

    Analyst sought clarity on long-term strategic vision and positioning in niche markets.

    asked by Sucrit Patil

    2 min read6 chapters

    Detailed Narrative

    01

    Record Performance in Q4 and FY26

    MIDHANI achieved its highest ever quarterly turnover of INR552.7 crores in Q4 FY26, marking a 34.63% year-on-year growth. The annual turnover for FY26 also reached a record INR1,208.63 crores, an increase of 12.52% over the previous financial year. Profit After Tax (PAT) for FY26 stood at INR130.79 crores, demonstrating an 18.82% growth compared to FY25, reflecting strong operational execution and demand.

    02

    Strategic Initiatives and Product Achievements

    The company is establishing a metal bank to ensure uninterrupted supply of critical raw materials, addressing supply chain disruptions. MIDHANI achieved its highest ever Titanium production of 700 tons, nearly doubling previous years' output. Notable achievements include supplying 90 tons of armor-grade steel for the presidential dais and 31 architectural Titanium windows for the Ram Janmabhoomi temple, marking a first for India in architectural applications.

    03

    Capital Expenditure and Modernization Plans

    MIDHANI plans a capital expenditure of approximately INR1,000 crores over the next three years, primarily aimed at replacing aging equipment with state-of-the-art facilities in downstream operations to improve efficiency and yield. The company has already inaugurated a INR40 crores aerospace fastener manufacturing facility, which is now operational and expected to generate at least INR25 crores in revenue annually.

    04

    Order Book and Future Outlook

    As of April 1, 2026, the company's order book stood at INR2,290 crores, with the defense sector contributing approximately 79% of the total. MIDHANI expects to book new orders worth about INR1,500 crores in FY26-27. The management targets a 15% year-on-year top-line growth, with an aspirational target of 20%, and anticipates maintaining EBITDA margins in the 23-25% range.

    05

    Raw Material and Supply Chain Management

    The company acknowledges ongoing supply chain disruptions for critical raw materials, which are largely imported from various countries including former USSR states, European countries, and the USA. The metal bank initiative is a direct response to these challenges. Additionally, MIDHANI is navigating issues related to LPG and energy supply due to global geopolitical events, which may cause minor delays in orders.

    06

    Certifications and New Product Development

    MIDHANI secured NADCAP certification for heat treatment, a critical accreditation that allows OEMs to directly procure materials. The company also obtained airworthiness certificates for 10 critical aerospace-grade super alloys and steel. Furthermore, MIDHANI has developed a cast superalloy single-crystal blade material, a highly competitive and complex metallurgical achievement, which has passed all customer tests.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.