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    Munish Forge Ltd

    MUNISH
    Capital Goods·24 Nov 2025
    Management Summary

    Munish Forge Limited reported a resilient H1 FY26, achieving approximately ₹82 crores in revenue and an improved EBITDA margin of 15.5%. Despite minor dispatch delays due to external factors, the company maintains a strong order book of ₹113 crores, with significant contributions from defense. Strategic focus on defense and railways, coupled with IPO proceeds, is expected to drive future growth and margin expansion towards a FY26 PAT target of 10%.

    Highlights

    5

    • H1 FY26 revenue from operations was approximately ₹82 crores.

    • EBITDA margin improved to 15.5% in H1 FY26 from 13.4% in the previous year, driven by product mix.

    • PAT for H1 FY26 was approximately ₹7 crores, yielding a PAT margin of 8.4-8.5%.

    • Total order book is robust at approximately ₹113 crores, with ₹70-71 crores from defense.

    • Received bulk production clearance for 120MM HE bombshells and a third prestigious railway order, including entry into the Vande Bharat segment.

    Concerns

    2

    • H1 dispatches were rescheduled due to regional floods in Punjab and geopolitical developments, causing minor timing shifts in deliveries.

    • Other expenses increased to 19% in H1 FY26 compared to 13% in FY25, partly due to IPO-related expenses and machinery purchases.

    Key financials

    Single quarter

    08 metrics
    1. 01Revenue from Operations₹82 Cr
    2. 02EBITDA₹13 Cr
    3. 03EBITDA Margin15.5%+15.7%YoY
    4. 04PAT₹7 Cr
    5. 05PAT Margin8.4%

    Order Book

    high confidence

    Total Value

    ₹ 113 crores

    as of 2025-09-30

    quantified

    Execution

    execution timeline for the 113 CR order book is around six to seven months

    Composition

    Mix3 products
    • Defense62.4%
    • Bombshells23.9%
    • Tank Tracks38.5%

    Share of order book by product · partial disclosure (124.8% of book)

    Cancellations / Deferrals

    • other:Certain dispatches rescheduled to H2 due to regional floods in Punjab and geopolitical developments, causing minor timing shifts in deliveries. All orders remain intact.

    "The order book is resilient, with secured orders providing confidence in achieving targets, revenue, and profitability."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹7 crores

    IPO proceeds

    Liquidity

    Liquidity disclosed

    IPO funds are coming in, with some funds (approx. ₹10 crores) still awaited, which will be utilized for planned capex and strategy implementation.

    Guidance & targets

    7
    CategoryTargetPriority
    Revenue
    Total Revenue
    ₹205 crores
    		High
    Revenue
    Defense Revenue
    ₹37.5 crores
    		Medium
    Revenue
    Railways Turnover
    ₹37.5 crores
    		Medium
    Revenue
    Railways Turnover
    ₹32.5 crores
    		Medium
    Margin
    PAT Margin
    10%
    		High
    Product Mix
    Defense Product Mix Share
    10%
    		High
    Capacity
    155 MM Bombshell Production
    5500 units/month
    		Medium

    Railways Developmental Orders Progress

    next quarter
    CurrentThree developmental orders received, fourth on the way; first order delivery by December, second by January, third by February.
    TargetSuccessful delivery of initial developmental orders and progress towards bulk orders.

    Why it matters

    Successful execution of developmental orders is crucial for transitioning to larger, more profitable railway contracts and achieving FY27 revenue targets.

    First one is going to go by December. And our first one is going to go by December and probably in December we'll have to give the second one also. 2nd January is the last date. So December we'll give the second one also third one which you're going to get today. So that will be January, February.

    How to verify

    order_book.composition[dimension='product', name='Railways']

    Risks & concerns

    1
    RiskSeverity

    Dispatch rescheduling due to external factors

    H1 dispatches were rescheduled to H2 due to regional floods in Punjab and geopolitical developments, causing minor timing shifts in deliveries, though all orders remain intact. — Management acknowledged

    medium

    Q&A highlights

    8

    “So we have gotten a couple of developmental orders for railways. We are currently manufacturing those. The sampling process is a bit of you know longer process where we have to develop the process product itself. ... today morning we got the information from the sales that a third order from railway is on the way. And so this is a prestigious order, the third one. So we're getting into the Vande Bharat segment with this.”

    Management provided an update on their new railway segment entry, confirming multiple developmental orders and a strategic focus on this high-growth area, including the Vande Bharat segment.

    asked by Nishita

    2 min read5 chapters

    Detailed Narrative

    01

    H1 FY26 Financial Performance and Operational Resilience

    Munish Forge Limited reported H1 FY26 revenue from operations of approximately ₹82 crores. Despite challenges such as regional floods in Punjab and geopolitical developments leading to rescheduled dispatches, the company achieved an EBITDA of ₹13 crores, translating to an improved EBITDA margin of 15.5% compared to 13.4% in the previous year. PAT stood at approximately ₹7 crores, with a PAT margin of 8.4-8.5%, demonstrating robust profitability and operational resilience.

    02

    Strategic Focus on Defense and Railways Driving Product Mix Shift

    The company is actively shifting its product mix towards higher-margin defense and newly entered railway segments. H1 defense sales were approximately ₹9 crores, with a full-year target of ₹35-40 crores. The total order book stands at ₹113 crores, with ₹70-71 crores from defense, including ₹27 crores for bombshells and the remainder for tank tracks. This strategic shift is a key driver for the observed gross margin improvement from 36% to 43% in H1.

    03

    Entry into Railways and Vande Bharat Segment

    Munish Forge has successfully secured two developmental orders for railways and recently received a third prestigious order for the Vande Bharat segment. The strategy involves developing niche, difficult-to-make parts with less competition and better margins, leveraging a consultant with 20 years of railway experience. The company aims for ₹35-40 crores in railway turnover by FY27 and ₹30-35 crores by FY27-28, with initial developmental orders expected to be delivered by February.

    04

    Capex and IPO Proceeds for Efficiency and Capacity

    The company plans a capital expenditure of approximately ₹7 crores for FY26, primarily for line balancing, quality improvement, and the purchase of CNC, VMC machines, and induction furnaces. These investments are being funded by IPO proceeds, with approximately ₹10 crores still awaited. The capex is aimed at increasing operational efficiency and utilization of the existing capacity, which management believes can support up to ₹300 crores in revenue without significant changes.

    05

    Guidance and Future Outlook

    Munish Forge is optimistic about achieving a total revenue of approximately ₹205 crores for FY26, with defense contributing ₹35-40 crores. The company targets a PAT margin of 10% for FY26, driven by the favorable product mix and IPO fund utilization. They have also received bulk production clearance for 120MM HE bombshells and are working towards manufacturing clearance for 155MM bombshells, with a potential production capacity of 5-6 thousand units per month.

    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.