Monolithisch India Ltd — Q2 FY26 earnings call

Call held 16 Oct 2025

Management summary

Monolithisch India Limited reported strong H1 FY26 results with 40% YoY revenue growth to INR57 crores and 57% YoY PAT growth to INR8.8 crores. The company is undergoing significant capacity expansion, aiming to increase capacity from 132,000 MTPA to 514,000 MTPA over the next eight months, funded by IPO proceeds. Management provided robust growth targets for FY25-28, including 60% Revenue CAGR, 70% EBITDA CAGR, and 74% PAT CAGR, and is also acquiring Mineral India Global Private Limited to enhance synergy and corporate governance.

Highlights

  • Revenue for H1 FY26 increased 40% YoY to INR57 crores, up from INR41 crores in H1 FY25.

  • PAT for H1 FY26 grew 57% YoY to INR8.8 crores, compared to INR5.6 crores in the prior period.

  • Company projects robust growth with 60% Revenue CAGR, 70% EBITDA CAGR, and 74% PAT CAGR over FY25-28.

  • Significant capacity expansion from 132,000 MTPA to 514,000 MTPA is underway, funded by IPO proceeds.

  • Strategic acquisition of Mineral India Global Private Limited (INR40-50 crores revenue) is expected to close by early November, adding synergy and enhancing corporate governance.

Concerns

  • Seasonality in H1 due to heavy rain and moisture sensitivity impacts production and quality standards.

  • Sluggishness in the Indian secondary steel market contributes to H1/H2 seasonality.

  • Export market expansion faces challenges from political instability (Bangladesh), power issues (Nepal), and high transportation costs to Middle East/Africa.

Key financials

  1. Revenue ₹57 Cr +40%YoY
  2. EBITDA Growth 38% +38%YoY
  3. PAT ₹8.8 Cr +57%YoY

What they filed

Q1 FY27: revenue up 62.1%, net profit up 150.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue26 30 29 28 37 +42%41 +37%47 +62%
EBITDA6 7 7 5 9 +50%11 +57%13 +86%
Net profit4 4 4 5 6 +50%8 +100%10 +150%
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

low confidence
Management notes strong demand visibility driven by customer capex plans and a high customer retention rate of 60-70%. They anticipate the ramming mass market to grow from 3-3.5 lakh tons/month to 4-4.5 lakh tons/month by 2030, supporting their capacity expansion.

Source: Inferred

Capital allocation

high confidence
  • Capex ₹11.73 Cr this quarter · ₹44.46 Cr (FY26-Q1FY27) planned entirely from IPO proceeds
    • Capacity enhancement from 132,000 MTPA to 514,000 MTPA
    • Cost reduction initiatives (solar panels, automation)
    Kritish Tekriwal: Following our IPO, we set out to execute two major capex projects, INR16.57 crores in the parent company and INR27.89 crores in Metallurgica, our wholly-owned subsidiary. Together, these projects will enhance our total capacity from 1,32,000 metric tons per annum as of April 1, 2025, to 5,14,000 metric tons per annum over the next eight months... out of the total INR44.46 crores earmarked for capex, INR11.73 crores has already been deployed, and the remaining INR32.73 crores will be utilized progressively through Q1 FY27... cost reduction like the solar panel cost, and as well as the automation cost, is that included or that is separate? ... Yes, sir. Yes, sir. Yes, sir. It is included, sir.
  • Debt Debt disclosed
    Kritish Tekriwal: Ma'am, we are a debt-free company. And whatever capex plans have been taken are all from the IPO proceeds... there is no debt at the moment. And we do not see any debt coming to us in the near future either.
  • M&A Mineral India Global Private Limited Acquisition · Pending regulatory · Consideration ₹[object Object] (undisclosed)

    Increase better corporate governance, embark on a journey of making the entire ecosystem better, and enhance synergy.

    Adds INR40-50 crores top line and INR5-7 crores PAT; financials to be consolidated in FY26 from acquisition date.

    Kritish Tekriwal: I would also like to take this time to introduce the fact that we have gone for an EOGM yesterday to take in Mineral India Global Private Limited, a group company which was working on the same business line inside the Monolithisch net... cost of acquisition of that company is coming somewhere around INR17 crores-INR17.5 crores... That company has around INR40 crores-INR50 crores of top line and between INR5 crores-INR7 crores of PAT... Harsh Tekriwal: EODM process is 1st November. As soon as we get approval from our shareholders, within next 5-10 days, we will try to take this in... From that date, it will get into that, we will consol it.
  • Liquidity Liquidity disclosed Accruals are expected to be sufficient for the acquisition; Director will provide interest-free loans if additional fluidity is required to prevent liquidity crunch.
    Kritish Tekriwal: That is just for the fact that we feel that the accruals will be sufficient for us to acquire that. But, if at all we require any extra fluidity, then the Director will provide loans on an interest-free basis so that there is no liquidity crunch coming in.

Guidance & targets

Revenue

  • Revenue CAGR Revenue · FY25-28 · High confidence 60%
    Looking ahead, we remain focused on sustaining this momentum with revenue CAGR FY 25-28 projected in the range of 60%, supported by capacity additions and diversified client base.

    — Kritish Tekriwal

  • Current FY Revenue Revenue · This financial year (FY26) · High confidence INR140-160 crores
    Sir, we are targeting somewhere around INR140 crores to INR160 crores revenue in this financial year that will close.

    — Harsh Tekriwal

Profitability

  • EBITDA CAGR Profitability · next three years (FY25-28) · High confidence 70%
    We aim to maintain this performance, targeting an EBITDA CAGR of around 70% over the next three years.

    — Kritish Tekriwal

  • PAT CAGR Profitability · next three years (FY25-28) · High confidence 74%
    Going forward, we expect to sustain this trajectory with bad CAGR projected in the range of 74% in the next three years.

    — Kritish Tekriwal

  • Current FY PAT Profitability · This financial year (FY26) · High confidence INR22-24 crores
    at present we are looking at somewhere INR140 crores to INR160 crores of top line and somewhere around INR22 crores to INR24 crores of PAT.

    — Harsh Tekriwal

Capacity

  • Total Capacity Capacity · over next eight months (from April 1, 2025) · High confidence 514,000 MTPA
    projects will enhance our total capacity from 1,32,000 metric tons per annum as of April 1, 2025, to 5,14,000 metric tons per annum over the next eight months.

    — Kritish Tekriwal

  • Monolithisch Capacity (Parent) Capacity · by December 31st, 2025 · High confidence 250,000 MTPA
    Sir, 2,06,000 is already operational from 2nd of October. And it will reach 2,50,000 by December 31st.

    — Harsh Tekriwal

Capacity Utilization

  • New Capacity Utilization Capacity Utilization · when capacity comes for WOS · High confidence 80-90%
    we plan to run on 80% or 90% efficiency at least in the next phase when the capacity comes for the WOS.

    — Kritish Tekriwal

  • Overall Capacity Utilization Capacity Utilization · by FY28 · High confidence 80-85%
    Ma'am, by '28, we are targeting 80% to 85% of capacity utilization.

    — Kritish Tekriwal

Cost Savings

  • Net Cost Reduction (from solar panels) Cost Savings · N/A · Medium confidence 0.3-0.4%
    on an ideal basis, that would at least help us by 0.4% or 0.3% on the net cost incurred if you talk about solar panels or renewable energy that we are trying to take in.

    — Kritish Tekriwal

Market context

  • Margin Expansion (from economies of scale) Margin · N/A · Medium confidence at least 1%
    So, just by economies of scale, we are expanding by a margin at 1% and then with the additional cost saving, we can further save.

    — Kritish Tekriwal

What to watch in Q3 FY26

Mineral India Global Private Limited acquisition completion and consolidation

Next quarter (early November 2025)
Current EOGM held, awaiting shareholder approval
Target Acquisition completed, financials consolidated

Why it matters

This acquisition is expected to enhance corporate governance, provide synergies, and add INR40-50 crores to the top line, impacting future reported financials.

Harsh Tekriwal: EODM process is 1st November. As soon as we get approval from our shareholders, within next 5-10 days, we will try to take this in... From that date, it will get into that, we will consol it.

Risks & concerns

  • Seasonality in H1 due to rain and moisture sensitivity

    medium

    Production becomes tough in H1 due to heavy rain, and ramming mass is a moisture-sensitive product, affecting quality standards.

    Management acknowledged

  • Sluggishness in the Indian secondary steel market

    medium

    Can lead to inventory stocking and contributes to H1/H2 seasonality.

    Management acknowledged

  • Potential for price erosion/margin contraction from overcapacity

    medium

    Management believes there is enough demand from unorganized players and expanding customers, and they will not 'kill margins by our extra capacity'.

    Analyst downplayed

  • Export market challenges (Bangladesh, Nepal, Middle East/Africa)

    medium

    Bangladesh has payment turmoil; Nepal has power problems; Middle East/Africa exports are challenged by high transportation costs from the East, requiring a new unit in West India.

    Management acknowledged

Q&A highlights

8 direct
Ramming mass market size and growth in India. Direct
the current market size for ramming mass would be around 3-3.5 lakh tons a month... India plans to reach 300 million tons of steel by 2030... market will be somewhere around 4, 4.5 lakh tons of ramming mass per month.

Provides crucial market context and future growth potential for the company's core product, indicating significant headroom for expansion.

Asked by Deepak Poddar

Revenue target post-expansion and export plans. Direct
we are standing at INR160 crores of revenue without any capex coming into the picture... Regarding the exports, we have started doing good numbers in Nepal... aggressively trying to identify a unit in Ahmedabad or Rajasthan so that the cost of transportation that would occur for taking the product from East to West is not taken and we can export at the right margins.

Clarifies immediate revenue potential from the acquisition and outlines strategic plans for export market expansion, including geographical focus and logistics considerations.

Asked by Arpit Jain

Entry barriers in the industry. Direct
the biggest thing is that this is a very critical component... people want a reliable supplier, a person or a company who has good credentials of manufacturing this... you should have at least 5 years to 10 years of credentials to supply to good companies.

Explains the qualitative barriers to entry, emphasizing reliability, track record, and quality over just cost, which supports the company's competitive advantage and pricing power.

Asked by Deepak Ajmera

Quality standard vs. competitors and patent. Direct
the patent could be of manufacturing, could be of any particular process or could be any protocol that I have been following... If there would be any sky and high difference of product quality, will it be possible for us to cater to the biggest players of secondary steel in India?

Addresses concerns about competitive differentiation and quality, asserting their ability to serve major players despite competitor patents, implying their product quality is on par or superior.

Asked by Hardik Gandhi

Market readiness for 3x capacity expansion and potential price erosion. Direct
there is still 50% at least of unorganized players... mostly 80% or 70% of our clients that we cater to are on capex trajectory... we will never kill our margins by our extra capacity.

Reassures analysts about demand absorption for increased capacity, citing significant unorganized market share and vigorous customer expansion, while committing to margin protection.

Asked by Hardik Gandhi

Working capital management and seasonality. Direct
our working capital requirement is a little seasonal... when we get the cheapest rent, then we stock the goods... boric acid and boron oxide... we try to give them PO for 3 to 4 months when the dollar is at the right price.

Provides insight into the company's proactive strategies for managing working capital, inventory, and raw material procurement to mitigate seasonal and price volatility risks, demonstrating operational prudence.

Asked by Ankur Gulati

Funding for capex and debt-free status. Direct
Ma'am, we are a debt-free company. And whatever capex plans have been taken are all from the IPO proceeds... there is no debt at the moment. And we do not see any debt coming to us in the near future either.

Confirms strong financial health and conservative funding strategy for ambitious growth plans, reducing financial risk and enhancing investor confidence.

Asked by Ridhi Agarwal

Timeline for Mineral India acquisition and consolidation. Direct
EODM process is 1st November. As soon as we get approval from our shareholders, within next 5-10 days, we will try to take this in... From that date, it will get into that, we will consol it.

Provides a clear timeline for the completion and financial consolidation of the strategic acquisition, which will materially impact future reported financials and operational synergies.

Asked by Deepanshu Jain

3 min read 7 chapters

Detailed narrative

Strong H1 FY26 Performance and Ambitious Growth Targets

Monolithisch India Limited reported robust financial performance for H1 FY26, with revenue growing 40% year-on-year to INR57 crores from INR41 crores in H1 FY25. Profit After Tax (PAT) saw an even stronger increase of 57% year-on-year, reaching INR8.8 crores from INR5.6 crores. The company has set ambitious forward-looking targets, projecting a Revenue CAGR of 60%, an EBITDA CAGR of 70%, and a PAT CAGR of 74% over the next three years (FY25-28), reflecting confidence in sustained growth.

Significant Capacity Expansion Underway

The company is executing two major capex projects totaling INR44.46 crores, funded entirely by IPO proceeds. This expansion aims to significantly boost total capacity from 132,000 metric tons per annum (MTPA) as of April 1, 2025, to 514,000 MTPA within the next eight months. INR11.73 crores has already been deployed, with the remaining INR32.73 crores to be utilized by Q1 FY27. The parent company's capacity is expected to reach 250,000 MTPA by December 31, 2025, with new capacity targeting 80-90% utilization.

Strategic Acquisition of Mineral India Global Private Limited

Monolithisch is in the process of acquiring Mineral India Global Private Limited, a group company, through an EOGM, with shareholder approval expected by early November 2025. This acquisition, valued at INR17-17.5 crores, is set to enhance corporate governance and create synergies. Mineral India currently contributes INR40-50 crores in top line revenue and INR5-7 crores in PAT, and its financials will be consolidated from the date of acquisition in FY26.

Industry Landscape and Competitive Advantage

The Indian ramming mass market is estimated at 3-3.5 lakh tons per month, with potential to grow to 4-4.5 lakh tons per month as India aims for 300 million tons of steel production by 2030. Monolithisch emphasizes its competitive edge through product quality, reliability, and established credentials, which are critical in an industry where product failure can lead to significant operational and safety issues. The company also benefits from its strategic location near major steel clusters, serving over 80% of integrated steel plants.

Operational Efficiency and Margin Improvement Initiatives

The company is focused on enhancing operational efficiency and cost discipline. New capacity additions are expected to reduce costs and improve operating margins, with specific initiatives like solar panel installation projected to reduce net costs by 0.3-0.4%. Management anticipates at least 1% margin expansion from economies of scale. Additionally, the company employs strategic working capital management, including opportunistic raw material stocking during favorable pricing conditions, to mitigate price volatility.

Export Market Development and Challenges

Monolithisch is actively pursuing export opportunities, currently doing good numbers in Nepal and selling to Bangladesh through indirect suppliers to avoid payment issues. The company is aggressively seeking to establish a new unit in Ahmedabad or Rajasthan to serve the Middle East and African markets more cost-effectively, as current transportation costs from its East India facility make direct exports to these regions less feasible. Challenges include political instability in Bangladesh, power issues in Nepal, and high freight costs for distant markets.

Debt-Free Status and Funding Strategy

The company proudly maintains a debt-free status, with all current and planned capex projects being funded through IPO proceeds. Management explicitly stated that they do not foresee taking on any debt in the near future. In case of any additional liquidity requirements, the Director is prepared to provide interest-free loans, ensuring that the company's growth initiatives are not constrained by funding.

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