Manaksia Coated Metals Q2 income rises, margin narrows

Manaksia Coated Metals & Industries Limited, referred to as Manaksia Coated Metals, reported Q2 FY27 total income of Rs 321.55 crore, up 43.8% year on year, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 25.3% to Rs 36.91 crore. The difference reduced EBITDA margin to 11.48% from 13.17% in Q2 FY26, although net profit increased 34.2% to Rs 18.73 crore.

Why did Manaksia Coated Metals’ Q2 FY27 income increase?

Manaksia Coated Metals’ Q2 FY27 total income increased because revenue rose to Rs 318.69 crore from Rs 220.33 crore in Q2 FY26, while other income was Rs 2.86 crore. Total income was also 22.2% above Rs 263.07 crore in Q1 FY27, showing growth against both the preceding quarter and the prior-year quarter.

Management attributed the Q2 FY27 performance to export demand, improved realisations and a growing Aluminium-Zinc steel portfolio across domestic and international markets. It also cited niche applications including dry wall systems, metal ceilings and metal roofing; pre-painted steel sheets and coils remained the largest Q2 FY27 revenue category at 69.19%.

The comparison shows that Q2 FY27 income grew faster than EBITDA year on year, at 43.8% versus 25.3%. EBITDA increased by Rs 7.46 crore from Q2 FY26 and by Rs 7.82 crore from Q1 FY27; management said pricing discipline and value-added products supported record EBITDA per metric tonne, without disclosing the per-tonne amount.

How did costs affect Manaksia Coated Metals’ Q2 FY27 margin?

Manaksia Coated Metals’ EBITDA margin fell to 11.48% in Q2 FY27 from 13.17% in Q2 FY26 because total expenditure rose to Rs 284.64 crore from Rs 194.23 crore. That Rs 90.41 crore rise exceeded the Rs 79.46 crore increase in total income over the same year-on-year comparison.

Raw-material costs reached Rs 212.12 crore in Q2 FY27, compared with Rs 150.95 crore in Q2 FY26, while other expenses increased to Rs 65.47 crore from Rs 38.66 crore. Employee costs rose to Rs 7.05 crore from Rs 4.62 crore, and management specifically identified elevated raw-material and freight costs.

The quarterly margin was nevertheless 0.42 percentage points above Q1 FY27’s 11.06%, when EBITDA was Rs 29.09 crore on total income of Rs 263.07 crore. Q2 FY27 EBITDA of Rs 36.91 crore therefore improved sequentially, but the margin remained 1.69 percentage points below Q2 FY26.

Below EBITDA, finance costs were Rs 8.48 crore in Q2 FY27, against Rs 8.26 crore a year earlier, and depreciation increased to Rs 3.33 crore from Rs 2.17 crore. Profit before tax before exceptional items rose to Rs 25.10 crore from Rs 19.02 crore, with no exceptional items reported for either quarter.

What were Manaksia Coated Metals’ Q2 and H1 FY27 profits?

Manaksia Coated Metals reported Q2 FY27 net profit of Rs 18.73 crore, up 34.2% from Rs 13.96 crore in Q2 FY26 and 32.8% from Rs 14.10 crore in Q1 FY27. Earnings per share increased to Rs 1.75 from Rs 1.43 a year earlier, while total comprehensive income was Rs 19.02 crore versus Rs 14.59 crore.

Net-profit margin was 5.83% in Q2 FY27, compared with 6.24% in Q2 FY26 and 5.36% in Q1 FY27. Tax expense rose to Rs 6.37 crore from Rs 5.06 crore year on year, following the increase in profit before tax to Rs 25.10 crore.

For H1 FY27, total income increased 22.4% to Rs 584.62 crore from Rs 477.62 crore in H1 FY26, while EBITDA increased 13.7% to Rs 66.00 crore from Rs 58.07 crore. The half-year EBITDA margin declined to 11.29% from 12.16%, extending the pattern of income growing faster than operating profit.

H1 FY27 net profit was Rs 32.83 crore, 17.4% above Rs 27.97 crore in H1 FY26, and earnings per share rose 9.3% to Rs 3.09. Finance costs declined to Rs 15.34 crore from Rs 16.03 crore in the half year, whereas depreciation rose to Rs 6.63 crore from Rs 4.32 crore.

What do Manaksia Coated Metals’ sales mix and plans show?

Manaksia Coated Metals’ Q2 FY27 revenue mix shifted towards Aluminium-Zinc and galvanised steel sheets and coils, which accounted for 26.48% of sales versus 6.51% in Q2 FY26. Pre-painted steel sheets and coils accounted for 69.19%, down from 89.51% a year earlier and 73.17% in Q1 FY27, while other products represented 4.33%.

Exports contributed 71.25% of Q2 FY27 revenue and domestic sales made up 28.75%. The export share was higher than 64.93% in Q1 FY27 but below 85.06% in Q2 FY26; for H1 FY27, exports represented 68.40% of revenue, close to the 68.21% share in FY26.

At H1 FY27, fixed assets stood at Rs 250.09 crore, up from Rs 198.56 crore at FY26, while inventories increased to Rs 389.66 crore from Rs 339.40 crore. Long-term borrowings rose to Rs 121.52 crore from Rs 76.78 crore, and net worth increased to Rs 385.36 crore from Rs 348.96 crore.

Management said a second colour-coating line and a captive solar power plant were targeted for commissioning in Q3 FY27. It said the line would support value-added products and the plant would improve energy-cost efficiency, alongside investment in Salesforce customer relationship management software and manufacturing execution system software for production planning and process control.

Conclusion

Manaksia Coated Metals delivered higher Q2 FY27 income, EBITDA and net profit, with total income reaching Rs 321.55 crore and EBITDA reaching Rs 36.91 crore. However, expenditure rose faster than income year on year, reducing EBITDA margin to 11.48% from 13.17%; the sales mix also recorded a larger contribution from Aluminium-Zinc and galvanised products than in Q2 FY26.

The next disclosed event is the targeted Q3 FY27 commissioning of the second colour-coating line and captive solar plant. Management’s FY29 vision is to triple FY26 output of 1,04,251 metric tonnes per annum, total income of Rs 896.27 crore and EBITDA of Rs 92.21 crore, making execution of capacity, cost and product-premiumisation plans the stated matter to watch.