Manaksia Coated Metals FY26: Record profits, export-led growth, and a big capacity buildout

Manaksia Coated Metals and Industries Limited reported a strong FY26, combining higher realisations, a sharper export mix, and a more value-added product portfolio. On a consolidated basis, total income rose to INR 896.27 crore in FY26 versus INR 789.66 crore in FY25. Profitability improved meaningfully, with EBITDA at INR 92.21 crore (10.29% margin) and PAT at INR 40.69 crore (4.54% margin).

The Q4 picture was more mixed. Total income increased to INR 228.75 crore, up 20% sequentially and 9% year-on-year, but EBITDA fell to INR 15.64 crore with margin compression to 6.84%. Management attributed the margin softness to a sudden spike in freight, energy, and input costs following disruptions linked to the Middle East conflict. In the concall, management also stated that new customer contracts have been repriced to pass through the incremental cost pressures.

FY26 performance was driven by mix, realisations, and exports

Management highlighted that FY26 realisation per ton improved to INR 82,193 versus INR 73,622 in FY25, reflecting a shift toward higher value-added products and a better mix. The company also pointed to “premiumisation” as a central strategy. A major enabler in FY26 was the commercialisation of its Alu-Zinc coating technology upgrade, which management described as a move toward a more premium coated steel segment.

Exports became the dominant growth engine. In FY26, export contribution increased to 68.21% of total revenue, up from 39.20% in FY25, as per the investor presentation’s export versus domestic split. Management positioned this as both a demand diversification lever and a hedge against domestic cyclicality.

Product mix is changing, but Alu-Zinc still drives most revenue today

The company’s revenue remains dominated by Alu-Zinc or galvanised coated steel products, though it is trying to expand the pre-painted portfolio. The investor presentation shows FY26 product-wise revenue split at 80% from Alu-Zinc or galvanised steel sheets and coils, 17% from pre-painted steel sheets and coils, and 3% from other income streams.

The quarterly mix indicates a similar structure in Q4 FY26, with the same three buckets at 78.25%, 19.46%, and 2.28% respectively. The presentation text also notes that value-added pre-painted coils are a promising growth area, although the FY26 split suggests that revenue is still largely led by the base coated product segment.

A separate operational indicator in the presentation shows a rising share of pre-painted volumes over the past 2 to 3 years. In the concall, management stated that pre-painted steel constituted 80% of quantities sold in FY26, up from 74% in FY25, framing this as a deliberate premiumisation trend.

Capacity expansion and integration are the core of the FY27 to FY28 plan

The near-term project pipeline is centred on two commissioning targets in Q2 FY27. First is the second colour coating line (CCL-2), with capex of INR 65 crore, expected to increase pre-painted capacity from 86,000 MTPA to 236,000 MTPA. The company describes this as an advanced line with a 2-coat 2-bake system, high line speed, and faster changeovers. In the concall, management said the line is in advanced stages of erection and is targeted for completion in July 2026.

Second is the 7 MW captive solar power plant in Gujarat, with capex of INR 30 crore. The presentation indicates expected commissioning by Q2 FY27 and suggests power cost could decline by up to 40%, translating to annual savings of up to INR 7 crore. Management added in the concall that the solar plant could replace about 50% to 55% of grid power dependence, with partial impact in Q2 and full impact from Q3 onwards.

Beyond FY27, the company’s larger strategic ambition is backward integration. The investor presentation outlines a 360,000 MTPA cold rolling mill complex (estimated capex INR 200 crore) targeted by FY28, intended to shift the key input from cold rolled coils toward hot rolled coils. The company claims this should improve supply security, reduce supplier dependence, improve cost predictability, and increase value capture.

Separately, Phase 2 also includes a second Alu-Zinc coating line, estimated capex INR 150 crore, with the goal of doubling Alu-Zinc coating capacity to 360,000 MTPA by FY28.

Order book visibility and balance sheet progress

The investor presentation cites an order book of INR 375 crore to be executed over the next six months, with exports comprising 80% of the order book. Management in the concall also referenced an order book range of INR 350 crore to INR 400 crore, describing it as largely export-driven.

On balance sheet strength, the company highlights deleveraging and improved credit metrics. Net debt was presented at INR 81 crore in FY26 versus INR 162 crore in FY23. Debt to equity improved to 1.13x in FY26. Management also stated that it achieved a net debt to EBITDA ratio of 1.01x in FY26. The presentation notes credit rating upgrades, with Acuite upgrading long-term and short-term ratings to A and A1, and D&B assigning a 4A2 rating.

However, cash flow remains a monitorable area. Consolidated cash flow from operations in FY26 was negative at -8.88 crore, even as reported profitability improved. This gap suggests working capital or other operating movements absorbed cash during the year.

Takeaways for investors

FY26 was a strong year for Manaksia Coated Metals, with clear improvement in profitability, higher realisations, and a step-change in export contribution. The company is also trying to move up the value chain by scaling pre-painted capacity and by upgrading into Alu-Zinc technology.

The next phase depends on execution. Management is attempting to bring CCL-2 and the captive solar plant online by Q2 FY27, while keeping an eye on the larger FY28 integration plan. Q4 FY26 showed how quickly margins can compress when freight, energy, and input costs spike. The company’s claim of cost pass-through on new contracts and its stated sustainable EBITDA margin range of 10% to 12% will be important reference points as FY27 unfolds.