Manaksia Coated Metals targets threefold FY29 output, income

Manaksia Coated Metals & Industries Limited is targeting three times its FY26 output, total income and earnings before interest, tax, depreciation and amortisation (EBITDA) by FY29. Manaksia Coated Metals bases that objective on a 1,50,000 metric-tonne-per-annum (MTPA) colour coating line, FY28 Alu-Zinc and cold rolling projects, and a 7-megawatt (MW) captive solar plant.

What is Manaksia Coated Metals targeting for FY29?

Manaksia Coated Metals is targeting three times its FY26 output, total income and EBITDA by FY29. Its FY26 base was 1,04,251 MTPA of total output of Alu-Zinc and pre-painted steel sheets and coils, total income of Rs 896.27 crore, and EBITDA of Rs 92.21 crore; the presentation states each FY29 measure as 3x without providing an absolute target.

The FY29 plan combines capacity expansion, backward integration and power-cost measures rather than setting a sales-only objective. Management said the second colour coating line and captive solar plant, both targeted for Q3 FY27, plus backward integration and product premiumisation, are intended to support the threefold output, income and EBITDA vision.

How will Manaksia Coated Metals increase coating capacity?

Manaksia Coated Metals plans to lift pre-painted steel capacity from 86,000 MTPA in FY26 to 2,36,000 MTPA in FY27E, where E means estimated. The Rs 65 crore Phase 1 second colour coating line adds 1,50,000 MTPA and was expected to be commissioned in Q3 FY27, taking pre-painted capacity to 2.7 times the FY26 level.

The new colour coating line is specified for thicknesses of 0.3 millimetres to 1.2 millimetres and widths of 610 millimetres to 1,450 millimetres, with a maximum speed of 90 metres per minute. Its two-coat, two-bake system, regenerative thermal oxidiser ovens and quick changeovers are intended to support multiple paint systems, three-colour printing and hot-lamination finishes.

Manaksia Coated Metals also targets an additional 1,80,000 MTPA Alu-Zinc coating line in FY28, at estimated capital expenditure of Rs 150 crore. That Phase 2 project would double galvanised and Alu-Zinc capacity from 1,80,000 MTPA in FY26 to 3,60,000 MTPA, with interchangeable inline Alu-Zinc and magnesium coating technologies planned.

What will the FY28 cold rolling project change?

Manaksia Coated Metals plans a 3,60,000 MTPA cold rolling mill complex in FY28, with estimated capital expenditure of Rs 200 crore. The backward-integration project is intended to process more readily available hot-rolled coils, secure material supply and reduce supplier dependence before material moves to downstream coating operations.

The mill is specified for a maximum speed of 1,450 metres per minute and coils up to 1,550 millimetres wide. It is designed for input thicknesses between 1.5 millimetres and 4.5 millimetres, and output thicknesses from 0.15 millimetres to 2.3 millimetres, alongside a hot-rolled slitter, push-pull pickling line, roll grinder, acid regeneration plant, and edge-trimming and rewinding equipment.

Management identifies improved margins, cost predictability, quality consistency, faster customer customisation, stock-keeping-unit rationalisation and production flexibility as expected benefits. The cold rolling complex’s 3,60,000 MTPA capacity matches the planned FY28 galvanised and Alu-Zinc capacity, and the company says the second Alu-Zinc line would facilitate full utilisation of the new cold rolling capacity.

How is Manaksia Coated Metals seeking to reduce power costs?

Manaksia Coated Metals expects to commission a 7 MW captive solar power plant by Q3 FY27, with estimated capital expenditure of Rs 30 crore. Management expects effective power cost to decline by up to 40% and annual savings to reach up to Rs 7 crore, which are projected outcomes rather than reported savings.

The solar facility is planned to use dual-axis tracker technology, which management says will maximise generation yield per MW. The presentation also cites accelerated depreciation on the full investment and a lower carbon footprint for the company and its products, making the plant a cost-optimisation component alongside the Q3 FY27 colour coating addition.

What did Manaksia Coated Metals report before expansion?

Manaksia Coated Metals reported Q2 FY27 total income of Rs 321.55 crore, compared with Rs 223.68 crore in Q2 FY26 and Rs 263.07 crore in Q1 FY27. Q2 FY27 EBITDA was Rs 36.91 crore, versus Rs 29.45 crore a year earlier and Rs 29.09 crore in the preceding quarter, while profit after tax was Rs 18.73 crore against Rs 13.96 crore in Q2 FY26.

The quarter’s EBITDA margin was 11.48%, compared with 13.17% in Q2 FY26 and 11.06% in Q1 FY27. For H1 FY27, total income increased to Rs 584.62 crore from Rs 477.62 crore in H1 FY26, while EBITDA rose to Rs 66 crore from Rs 58.07 crore; the EBITDA margin changed to 11.29% from 12.16%.

H1 FY27 profit after tax increased to Rs 32.83 crore from Rs 27.97 crore in H1 FY26, while the associated margin moved to 5.62% from 5.86%. Management attributed Q2 FY27 performance to export demand, improved realisations and a growing Aluminium-Zinc steel contribution, while noting elevated raw-material and freight costs.

Conclusion

Manaksia Coated Metals has set its FY29 threefold targets against a defined operating programme: a 1,50,000 MTPA colour coating addition, a 1,80,000 MTPA Alu-Zinc addition, a 3,60,000 MTPA cold rolling complex and 7 MW of captive solar capacity. The four disclosed components represent estimated capital expenditure of Rs 445 crore.

The nearest execution point is Q3 FY27, when the Rs 65 crore colour coating line and Rs 30 crore solar plant are targeted for commissioning. The next milestones are the Rs 150 crore Alu-Zinc line and Rs 200 crore cold rolling complex targeted in FY28, with their completion and utilisation remaining central to management’s FY29 plan.