M&B Engineering: Building on Record Performance and Strategic Expansion

M&B Engineering Ltd., a prominent player in India's pre-engineered buildings (PEB) and self-supported roofing solutions sector, has reported a stellar performance for the third quarter and nine months ended December 2025. The company achieved its highest-ever quarterly and nine-month consolidated revenues, underscoring strong operational momentum and strategic execution. For Q3 FY26, revenue from operations stood at INR 352 crores, marking a healthy 7% year-on-year growth. The nine-month period saw an even more impressive surge, with revenue reaching INR 896 crores, a robust 33% year-on-year increase. This growth was complemented by a 29.6% increase in EBITDA for Q3 FY26 to INR 44 crores and a 25.6% increase for 9MFY26 to INR 114 crores, demonstrating efficient cost management and operational leverage.

The company's performance highlights a strong demand environment, both domestically and internationally. Export sales have been a significant contributor, with consolidated export revenue for Q3 FY26 at INR 63.17 crores and for 9MFY26 at INR 119.95 crores, reflecting a remarkable 107% year-on-year growth. North America, particularly the United States, has emerged as a key growth driver for M&B Engineering's international business. A testament to this growing global presence is the single largest export order secured in Q3 FY26, valued at INR 212 crores from the United States, reinforcing the company's engineering capabilities and competitiveness on the global stage.

Strategic Divisions Drive Growth

M&B Engineering operates through two primary divisions: Phenix, focusing on Pre-Engineered Buildings (PEBs) and complex structural steel components, and Proflex, specializing in self-supported steel roofing solutions. Both divisions have shown robust performance. For 9MFY26, the Phenix division contributed INR 702 crores to the revenue, while the Proflex division added INR 194 crores. The company's unexecuted order book stood at INR 1,059 crores as of December 31, 2025, representing a 38% year-on-year growth, with Proflex accounting for 23% (INR 240 crores) and Phenix for 77% (INR 818 crores). Within Phenix, export orders constituted INR 316 crores, highlighting the increasing contribution of high-value international projects.

Capacity Expansion and Market Outlook

To sustain its growth trajectory, M&B Engineering is undertaking strategic capacity expansions. A new Proflex unit, sourced from the UAE, was commissioned in January 2026, and two additional units from the US are expected to be operational by Q1 FY27. These additions are projected to increase Proflex's installed capacity by approximately 3 lakh square meters per annum. For the Phenix division, the Sanand plant expansion is underway and targeted to be operational by Q2 FY27, adding 20,000 tons of capacity. The Cheyyar plant expansion will follow, aiming for operational status by Q1 or Q2 FY28. The company also has a long-term strategy to establish a third plant in North India, targeting a total PEB capacity of 300,000 tons across all three plants within the next three to four years.

The management remains confident in its FY26 outlook, projecting a topline of around INR 1,250 crores and an EBITDA margin of approximately 12.75%. For FY27, the company anticipates strong higher-teen growth, supported by an unbuilt export order book of INR 280-300 crores from FY26. The medium-term outlook for the PEB market in India is optimistic, driven by investments in industrial and infrastructure sectors. Globally, the PEB market is expected to reach USD 32-35 billion by 2029, while the Indian market is projected to reach INR 330-345 billion by 2030. The company is also proactively leveraging trade deals, such as the recently announced agreement between India and the US, and exploring entry into the EU market.

Disciplined Execution and Future Growth Drivers

M&B Engineering's management emphasized its focus on disciplined execution, profitable growth, and value creation. The company's ability to convert its pipeline into firm orders and its strong execution track record are key strengths. While capacity constraints in Sanand led to a strategic prioritization of exports, the domestic order book remains very strong. Management is also prioritizing margins over just topline growth, ensuring sustainable profitability.

Looking ahead, key growth drivers include the low penetration of PEBs in the building sector, increased focus on renewable energy, infrastructure development, and the expansion of warehousing and cold storage facilities. Government-led innovative construction projects and industrial capex are also expected to fuel demand. For Proflex, growth in industrial warehousing, agriculture warehousing, railway investments, and new-age roofing systems are significant opportunities. The company's strategic investments in capacity and its strong market position are set to capitalize on these emerging trends, reinforcing its leadership in the construction landscape.