Manaksia Coated Metals: Forging Ahead with Strategic Upgrades and Robust Growth

Manaksia Coated Metals & Industries Limited (MCMIL), a prominent manufacturer and exporter of coated steel products, has reported its unaudited financial results for Q3 and 9M FY26. Despite a temporary dip in Q3 revenue due to a planned plant shutdown, the company demonstrated strong profitability, driven by strategic technological upgrades and enhanced operational efficiencies. For Q3 FY26, MCMIL reported a consolidated total income of INR 189.90 crore, an 8.62% year-on-year decrease. However, EBITDA saw a healthy increase of 7.27% to INR 18.50 crore, with the EBITDA margin expanding by 144 basis points to 9.73%. Net profit surged by an impressive 46.68% to INR 7.35 crore, translating into a net profit margin of 3.87%, up 146 basis points year-on-year. Diluted EPS also grew by 8.95% to INR 0.73 per share.

The 9M FY26 period showcased even stronger performance, with total income rising by 15.13% year-on-year to INR 667.52 crore. EBITDA for the nine-month period increased by a substantial 66.90% to INR 76.57 crore, with the margin expanding by 356 basis points to 11.47%. Net profit for 9M FY26 zoomed by 241.25% to INR 35.32 crore, and diluted EPS grew by 151.07% to INR 3.49 per share. This robust performance underscores MCMIL's strategic focus on operational excellence, disciplined execution, and calibrated expansion, even amidst temporary operational challenges.

Strategic Initiatives Driving Future Growth

The management highlighted several key strategic initiatives that are set to bolster MCMIL's growth trajectory. A significant milestone was the successful commissioning of the Alu-Zinc coating technology upgrade in December 2025. This upgrade, executed through a planned shutdown, increased the Continuous Galvanising Line (CGL) capacity from 132,000 MTPA to 180,000 MTPA. This positions MCMIL as one of the few producers in India with 100% Alu-Zinc coating capability, enabling a shift towards premium, high-value steel products and is expected to drive up to 40% EBITDA growth.

In parallel, MCMIL is investing in a 7 MW captive solar power plant in Gujarat, targeted for commissioning in Q1 FY27. This project is expected to reduce power costs by 30-35% and enhance the company's sustainability profile. Furthermore, contracts for a second colour-coating line have been awarded, with commissioning scheduled for Q4 FY26. This expansion will significantly increase the overall coating capacity from 86,000 MTPA to 236,000 MTPA, further strengthening the company's position in high-margin, value-added pre-painted steel products.

Product Mix and Market Dynamics

MCMIL has strategically shifted its focus towards higher-value pre-painted steel products over the past 2-3 years. This is evident in the Q3 FY26 product-wise revenue breakdown, where pre-painted steel coils contributed 81.68% of the revenue (INR 152.65 crore), while galvanised steel coils accounted for 14.52% (INR 27.13 crore). For the 9M FY26 period, pre-painted steel coils contributed 81.20% (INR 533.45 crore) of the revenue, showcasing the success of this strategic pivot.

From a market perspective, MCMIL is supported by a robust export order book of approximately ₹350 crore. Exports continue to be a key growth driver, contributing 66.69% of total sales for 9M FY26. The domestic market has also entered its peak demand season, providing strong visibility for superior performance in the upcoming quarters. The company's management noted that while metal prices (zinc and aluminum) are rising, they are generally able to pass on these cost increases to OEM and export customers with a short time lag, maintaining their margins.

Financial Health and Outlook

MCMIL's financial health remains strong, with a focus on disciplined capital allocation. The company is firmly on track to achieve a Net Debt to EBITDA ratio of under 1x by the end of FY26, a significant improvement from 1.93x in FY25. This reflects strong cash flows and prudent financial management. The management also highlighted strong liquidity with largely unutilized working capital facilities and confirmed that financial tie-ups for the second color coating line and the solar power plant are already in place.

Looking ahead, MCMIL is confident in delivering sustained performance and long-term value creation for all stakeholders. The successful commissioning of the Alu-Zinc line, coupled with upcoming capacity expansions and sustainability initiatives, positions the company well to capitalize on evolving market opportunities and strengthen its leadership in the coated steel segment. The company's proactive approach to technology, efficiency, and market diversification underpins its optimistic outlook for the future.