Monolithisch India Ltd — Q4 FY26 earnings call

Call held 7 May 2026

Management summary

Monolithisch India Limited reported an outstanding Q4 and full-year FY26, achieving record revenue, EBITDA, and PAT, driven by strong volume growth and operational efficiencies. The company is expanding capacity through Greenfield and Brownfield projects, aiming to become the largest ramming mass manufacturer globally. With a robust financial position and strategic product offerings like SGB Limited, Monolithisch is well-positioned for sustained growth despite ongoing macroeconomic headwinds.

Highlights

  • Record-setting Q4 FY26 performance with Revenue up 35% YoY to ₹41 crores, EBITDA up 75% YoY to ₹11 crores, and PAT up 81% YoY to ₹8 crores.

  • Achieved highest ever annual volume, revenue, EBITDA, and PAT in FY26, with revenue growing 39% YoY to ₹135 crores and PAT growing 60% YoY to ₹23 crores.

  • EBITDA margins expanded to 28.1% in Q4 FY26 and maintained strong at 23.63% for FY26, driven by enhanced contribution from SGB Limited and improved operational efficiencies.

  • Capacity utilization reached a staggering 81.5% in FY26, with Mineral India Global's capacity expanded by 25% to 72,000 MTPA, and a major Greenfield project underway to become the largest ramming mass manufacturer globally.

  • Maintained an 'almost debt-free' balance sheet with ROCE at 46% for FY26 and net cash from operating activities increasing 3.4x to ₹14 crores.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹41 Cr
    YoY +35%
  • EBITDA
    ₹11 Cr
    YoY +75%
  • PAT
    ₹8 Cr
    YoY +81%
  • EBITDA Margin
    28.1%
  • PAT Margin
    19.9%

FY26

  • Revenue
    ₹135 Cr
    YoY +39%
  • EBITDA
    ₹32 Cr
    YoY +52%
  • EBITDA Margin
    23.6%
  • PAT
    ₹23 Cr
    YoY +60%
  • ROCE
    46%
  • Net Cash from Operating Activities
    ₹14 Cr
    YoY +250%

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 indicated a very strong order book, but did not provide specific quantitative figures for the total order book or new order inflows for the quarter.

Source: Q&A

Capital allocation

high confidence
  • Capex ₹47.9 Cr IPO proceeds and internal accruals
    • Greenfield project for capacity enhancement
    • Brownfield project (replacement of existing production line)
    • Mineral India Global capacity expansion
    Of the total capex allocation of INR47.90 crores from IPO proceeds, INR24.16 crores has already been deployed, with the balance of INR23.7 crores to be utilized in a phased manner through Q1 FY27. Launched last year, SGB Limited has witnessed strong initial traction and an encouraging customer response, reinforcing its positioning as a next-generation premium offering. ... Whatever capex fund was required is already in hand with us and we will not require any fund to scale to whatever we have committed to.
  • Debt Debt disclosed
    Backed by almost debt-free balance sheet, healthy return ratios and stakeholder support, we are confident of sustaining growth momentum while driving operational efficiency and value creation. ... Debt-free, we are very clear on it that we are there's no point I see that there should be a debt that is going to come into our picture because the inventory that you see, the cash that we have, we manage it in a way that if we have surplus cash, we try to stock up our inventory. Our last 7 years of record have explained us that whatever we purchase now, after 8 to 10 months it gives us 10% to 15% of premium.
  • Liquidity Cash ₹14 Cr Net cash from operating activities increased 3.4x to ₹14 crores in FY26. The company aims to maintain ₹30-35 crores or ₹60-65 crores cash in hand for FY27. IPO proceeds included ₹20 crores for working capital.
    The net cash from operating activities also increased 3.4x to INR14 crores approximately compared to INR4 crores in financial year 25. ... Sir, the target that we have for fiscal '27 is that we should have INR30 crores to INR35 crores cash in hand and INR28, INR60 crores to INR65 crores, right? So now we do not have the exact number of whether we would require any working capital or not if the cycle in which we are keeping the inventory now, this is going to finish as long as the world normalizes. We are not going to be so high on inventory. ... So we raised INR82.02 crores in total and in that around INR20 crores was for the working capital and INR47 crores was for the capex.

Guidance & targets

Revenue

  • FY27 Revenue Revenue · FY27 · High confidence ₹250-300 crores
    For FY27, we remain optimistic and are targeting revenue of INR250 crores to INR300 crores with EBITDA margins in the range of 22% to 25%, supported by strong scale-up by addition of Metalurgica and an improving product mix led by SGB Limited.

    — Harsh Tekriwal

  • Q1 FY27 Revenue Revenue · Q1 FY27 · High confidence ₹52-55 crores
    In conclusion, the company enters FY27 with a very strong momentum, with Q1 revenue guidance of INR52 crores to INR55 crores and a full-year target of INR250 crores to INR300 crores.

    — Harsh Tekriwal

  • Peak Revenue Potential (Current Capacity) Revenue · FY28 · Medium confidence ₹450-500 crores
    Sir, the peak revenue that we could do is around INR450 crores to INR500 crores. ... Sir, in general we tend to operate the plant at 85% to 90% capacity. So right now in the last 2 months to 3 months the rates have increased much faster than the average trend of ramming mass because of the global uncertainty and things like that. So it is not possible for me to give you a exact figure or a number, but I mean INR450 crores, INR500 crores is the top line that we could do with the entire capex that we have and 80%, 90% is what we are looking at should come from the this segment, sir.

    — Harsh Tekriwal

Profitability

  • FY27 EBITDA Margins Profitability · FY27 · High confidence 22-25%
    For FY27, we remain optimistic and are targeting revenue of INR250 crores to INR300 crores with EBITDA margins in the range of 22% to 25%, supported by strong scale-up by addition of Metalurgica and an improving product mix led by SGB Limited.

    — Harsh Tekriwal

Capacity

  • Total Group Capacity Capacity · FY27 · High confidence 5,74,000 MTPA
    With total group capacity expected to reach 5,74,000 MTPA.

    — Harsh Tekriwal

Market Share

  • Largest Ramming Mass Manufacturer Market Share · late Q1 FY27 to early Q2 FY27 · High confidence Largest globally
    We are also confident of becoming the largest manufacturer of ramming mass by late Q1 FY27 to early Q2 FY27.

    — Harsh Tekriwal

Customer Migration

  • SGB Limited Customer Migration from SGB 777 Customer Migration · Starting Q1 FY27 · High confidence Over 60%
    The company expects over 60% customer migration from SGB 777 starting Q1, driven by superior product performance and reliability.

    — Harsh Tekriwal

Working Capital

  • Receivable Days Working Capital · Ongoing · High confidence 50-55 days

    From 72 days today

    Sir, the receivable days have decreased from 72 to around 50 to 55, 60 days in the last year if you say broadly.

    — Harsh Tekriwal

Liquidity

  • Cash in Hand Liquidity · FY27 · Medium confidence ₹30-35 crores or ₹60-65 crores
    Sir, the target that we have for fiscal '27 is that we should have INR30 crores to INR35 crores cash in hand and INR28, INR60 crores to INR65 crores, right?

    — Harsh Tekriwal

Market context

  • Mineral India Global FY27 Revenue Revenue · FY27 · High confidence ₹55-60 crores
    Sir, the revenue that you could expect is somewhere around INR55 crores to INR60 crores from Mineral India.

    — Harsh Tekriwal

  • Mineral India Global Utilization Utilization · Ongoing · High confidence 90-95%
    Mineral India should run in a run rate of 90% to 95% efficiency because the things are pretty much set here and there is no doubt about it that it should run below 90% to 95% efficiency.

    — Harsh Tekriwal

What to watch in Q1 FY27

Greenfield Project Commissioning

by AGM (next quarter)
Current Under construction, expected by end of Q1 FY27 or early Q2 FY27
Target Fixed definitive date for inauguration

Why it matters

Successful commissioning is key to achieving the target of becoming the largest ramming mass manufacturer globally and realizing future revenue potential.

But yes, we'll give a guidance of the capex plan for FY28 in our AGM and what we are going to do, what is the next step that company is going to take. We are expecting that by the time we arrive on AGM we'll have a fixed definitive date for the inauguration of the new plant as well.

Risks & concerns

  • Ongoing Macroeconomic Headwinds

    medium

    Company delivered outstanding performance despite ongoing macroeconomic headwinds.

    I am pleased to share that despite ongoing macroeconomic headwinds, your company delivered an outstanding performance, closing FY26 on a strong note with a record-setting quarter in both revenue and profitability.

    Management acknowledged

  • Volatility in Additive and Bag Rates

    medium

    High volatility in input costs could impact smaller players and market dynamics.

    Not exactly because what is happening is there is a lot of unidentified or I would say that small players running into this, they would have to take the exit especially in this rough time where there is so much volatility in additive rates, bag rates and everything.

    Management acknowledged

  • Global Uncertainty and Raw Material Price Volatility

    medium

    Global uncertainty has led to faster increases in ramming mass rates and potential supply chain disruptions for additives.

    So right now in the last 2 months to 3 months the rates have increased much faster than the average trend of ramming mass because of the global uncertainty and things like that. ... And apart from that, the additives also that come to us, like the boron oxide, it travels largely from the European side or the US subcontinent, and the boric acid that comes to us, the raw material of that comes from the Middle East side. So till now the supply has been good and we have tried to maintain three months, two months inventory in hand so that we are ready for any tough kind of situation.

    Management acknowledged

  • Potential Oversupply in Industry

    low

    Management believes regional players will exit due to volatility, mitigating oversupply concerns.

    So you are not worried of any oversupply concerns or anything of that sort? ... Not exactly, sir. Not exactly because what is happening is there is a lot of unidentified or I would say that small players running into this, they would have to take the exit especially in this rough time where there is so much volatility in additive rates, bag rates and everything. So it is not a game of person who would have less capital. So we are thinking that in the next 5 months, 6 months there is a lot of regional players that would exit from the industry.

    Analyst downplayed

Q&A highlights

7 direct
Greenfield Campus Land Acquisition and Cost Direct
Sir, the land is approximately right now what we have purchased is around INR50 lakh to INR80 lakh. This is basically, so the initial land which was there with the RS Refractory was around 13.5 acres and now we are trying to increase it and reach around 17 to 18 acres. The land cost there is around say INR30 lakh to INR40 lakh per acre. So we plan to invest INR2 crores to INR3 crores in land and make it a 18 to 20 acre campus.

Clarifies the investment in land for future expansion and the scale of the new Greenfield campus.

Asked by Kushal Kasliwal

Realization Drop in Q4 FY26 Direct
No sir, there is no drop in realization. The realization remains, the average pricing of the product was last year around INR7.6, now it is around INR8.1. What you might be seeing is that we have catered to some non-premix, that is without the additives customers as well. So when we are talking about the without mix customers INR1,800 -- INR1,600 to INR1,800 of the additive cost goes down and that is why their rate remains on the side of INR6,500.

Explains that the perceived drop in realization is due to a change in product mix, including lower-cost non-premix products, rather than a general price decline.

Asked by Swaraj Mehta

Mineral India Global Product Mix and Margins Partial
Sir, Mineral India is dealing with more of smaller furnaces and furnaces in the range of 15 metric tons. So the margins there are going to switch now because after the installation of the new machinery we are going to cater to the bigger furnaces more and that is why the realization is going to almost be at par to Monolithisch. ... So maybe one you could understand that in future in the coming quarters you could see 1% or 1.5% difference in the profitability of Mineral India and Monolithisch.

Provides insight into the strategic positioning of Mineral India Global to cater to larger furnaces and its expected profitability relative to Monolithisch, with a slight margin difference due to scale.

Asked by Swaraj Mehta

Peak Revenue Potential and Timeline Direct
Sir, the peak revenue that we could do is around INR450 crores to INR500 crores. ... Sir, that is at present going to go into the next FY when it comes to the complete utilization because we have to understand that right now it is the in the rainy season the plant is going to start. So we are not expecting that the production will ramp up immediately. So at this current quarter what we are expecting is at this current FY what we are expecting is somewhere INR200 crores to INR225 crores will come from the existing capability that we have.

Clarifies the long-term revenue potential of the expanded capacity and the phased ramp-up timeline, with existing capabilities contributing to FY27 revenue.

Asked by Utkarsh Somaiya

Debt-Free Status and Inventory Strategy Direct
Debt-free, we are very clear on it that we are there's no point I see that there should be a debt that is going to come into our picture because the inventory that you see, the cash that we have, we manage it in a way that if we have surplus cash, we try to stock up our inventory. Our last 7 years of record have explained us that whatever we purchase now, after 8 to 10 months it gives us 10% to 15% of premium.

Reaffirms the company's commitment to remaining debt-free and explains the strategic rationale behind maintaining higher inventory levels to capitalize on price premiums.

Asked by Utkarsh Somaiya

Market Share and Competitive Edge Direct
Sir, a lot of competitive edge, sir, because the maximum of iron ore is available near Odisha, Jharkhand, and maximum steel plants that are working in our segment are skewed towards Chhattisgarh, Madhya Pradesh, then Jharkhand, Odisha, West Bengal, Bihar. So this is the place where maximum of the work is happening on the melting of iron ore and pellets and the belts which are there near the Jalna or in the top, there are more scrap based. So we are placed where we should be, I think. That is the logic that we have, sir.

Highlights the company's strategic geographical advantage in Eastern India, close to raw material sources and major steel plants, as a key competitive differentiator.

Asked by Vinayak Khosla

Greenfield Capex Funding Direct
No, sir. Greenfield Capex, whatever we have in our kitty is sufficient for us. We are still evaluating whether we would have to switch INR5 crores-INR6 crores from whatever is available and use it as working capital. Whatever capex fund was required is already in hand with us and we will not require any fund to scale to whatever we have committed to.

Confirms that the Greenfield capex will be funded through existing resources (IPO proceeds and internal accruals) without requiring additional debt.

Asked by Jonathan Fernandes

Technology and Automation in Plants Direct
Sir, I do not know what technology our peers are utilizing, but be rest assured our plans are that when we inaugurate the new unit, we want to invite all the people interested and who have been a part in Monolithisch to come and see what technology we are using, how things are happening. ... But be rest assured that the technology that we are using is going to be the best in class because the list of vendors that we have taken the machineries from, I do not think that you would find those kind of machineries installed anywhere in India.

Emphasizes the company's focus on best-in-class technology and automation, particularly for the new unit, to drive operational efficiency and reduce labor dependency.

Asked by Naman Desai

3 min read 6 chapters

Detailed narrative

Q4 & FY26 Performance Highlights

Monolithisch India Limited delivered an outstanding Q4 FY26, with revenue growing 35% YoY to ₹41 crores, EBITDA increasing 75% YoY to ₹11 crores, and PAT surging 81% YoY to ₹8 crores. For the full fiscal year 2026, the company achieved its highest ever annual volume, revenue, EBITDA, and PAT. Revenue for FY26 stood at ₹135 crores, marking a 39% YoY growth, while PAT reached ₹23 crores, up 60% YoY. The company's EBITDA margins expanded to 28.1% in Q4 FY26 and averaged 23.63% for the full year, reflecting strong profitability and operational efficiency.

Strategic Developments & Capacity Expansion

The company is executing a major Greenfield project aimed at enhancing capacity by the end of Q1 FY27 or early Q2 FY27, positioning Monolithisch as the largest ramming mass manufacturer globally. This new facility in West Bengal will strengthen its presence in the high-demand Eastern cluster. Additionally, the capacity expansion at Mineral India Global, a wholly-owned subsidiary, has been completed, increasing its capacity by 25% to 72,000 MTPA from 57,600 MTPA, with statutory approvals expected within 15 days. Of the ₹47.90 crores allocated from IPO proceeds for capex, ₹24.16 crores have been deployed, with the balance ₹23.7 crores to be utilized in Q1 FY27.

SGB Limited: Premium Product & Market Strategy

SGB Limited, the company's next-generation premium offering, has gained strong initial traction, with over 60% customer migration expected from SGB 777 starting Q1 FY27. This product offers superior performance, including a 15-20% improvement in lifespan and a differentiated minimum heat assurance scheme of 52-55 hours. Management plans for SGB Limited to contribute 60% of total sales for Monolithisch and 30-40% for Mineral India. Its unique warranty-backed proposition drives better realizations and supports margin expansion, creating sustainable value for stakeholders.

Financial Performance & Capital Structure

The company's financial performance from FY23 to FY26 shows a strong CAGR of 48% in revenue, 68% in EBITDA, and 72% in PAT. Monolithisch maintains an 'almost debt-free' balance sheet, with a robust ROCE of 46% for FY26. Net cash from operating activities significantly increased 3.4x to ₹14 crores in FY26 compared to ₹4 crores in FY25. The company's strategy includes managing inventory to stock up during favorable pricing conditions, which has historically yielded a 10-15% premium after 8-10 months.

Industry Outlook & Competitive Landscape

The ramming mass market is growing, with the overall market size expected to reach ₹2,000-2,100 crores by the end of the current year. Monolithisch benefits from its strategic presence in Eastern India, close to iron ore sources and major steel plants. Management believes that smaller, unorganized players may exit the industry due to volatility in additive and bag rates, which could consolidate market share for established players. The company aims to achieve a peak revenue potential of ₹450-500 crores with its current capacity, targeting 85-90% utilization.

Operational Efficiency & Automation

Ongoing efforts to improve efficiency at the newly established Brownfield line have led to a reduction in consumables and labor costs in Q4 FY26. The company is committed to automation, funded by IPO proceeds, to reduce labor dependency and improve productivity. This focus on automation is expected to yield a 'stunning' labor output ratio, especially with the entirely integrated Metalurgica project. This strategic move addresses concerns about labor prices and availability, ensuring sustained operational excellence.

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