M&B exports hold 25% of order book despite H1 mix shift

M&B Engineering reported that export orders accounted for 25% of its Rs 1,109 crore consolidated orders on hand at Q2/H1FY27, while exports made up 12% of Rs 703 crore in H1FY27 order inflow, down from 22% in FY26. The existing backlog was therefore more export-weighted than first-half order bookings.

What is M&B's export order book in H1FY27?

M&B's export orders represented 25% of consolidated orders on hand of Rs 1,109 crore at Q2/H1FY27. The export share was one percentage point below the 26% reported at FY26 and Q1FY27, while total orders on hand increased from Rs 1,083 crore at FY26 and Rs 1,053 crore at Q1FY27. Management said the order book was 19% higher year on year.

The export backlog is disclosed under M&B's Phenix business, which had Rs 874 crore of orders on hand at H1FY27. Exports represented 31% of Phenix orders on hand, while industry and infrastructure represented 69%. Proflex had Rs 235 crore of orders on hand, split between warehousing at 35%, industry at 32%, railways at 22% and other sectors at 11%.

The divisional data places the export order exposure in Phenix rather than Proflex. Phenix accounted for Rs 874 crore of the Rs 1,109 crore consolidated backlog, while the disclosed Proflex sector mix does not include exports. The difference between Phenix's 31% export share and M&B's 25% consolidated export share reflects the inclusion of the Rs 235 crore Proflex order book.

Why did M&B's export order mix change in H1FY27?

M&B's export share of order inflow was 12% in H1FY27, compared with 22% in FY26, as Phenix domestic accounted for 61% and Proflex for 27% of first-half bookings. H1FY27 order inflow was Rs 703 crore, whereas FY26 inflow was Rs 1,539 crore for the full year. The disclosed comparison is therefore between a half-year mix and a full-year mix.

The quarterly figures show a higher export contribution in Q2FY27 than Q1FY27. Exports accounted for 10% of Rs 262 crore of order inflow in Q1FY27 and 14% of Rs 441 crore in Q2FY27. Q2FY27's export share was also one percentage point above the 13% reported in Q2FY26, while total Q2 order inflow rose 12% year on year and 69% quarter on quarter.

Phenix domestic remained M&B's largest source of new orders in both FY27 quarters disclosed. It comprised 62% of Q2FY27 inflow, compared with 24% for Proflex and 14% for Phenix export; the Q1FY27 mix was 59%, 31% and 10%, respectively. Thus, H1 export mix was below FY26's 22%, but the quarterly export contribution rose by four percentage points from Q1 to Q2.

How has M&B's export revenue changed in H1FY27?

M&B recorded Rs 95.44 crore of sales outside India in H1FY27, up from Rs 56.79 crore in H1FY26, while sales within India increased to Rs 580.33 crore from Rs 487.72 crore. Consolidated sales and services rose 24.1% to Rs 675.77 crore. Based on these disclosed sales values, overseas sales increased faster in percentage terms than total sales.

Within Phenix, exports accounted for 19% of Rs 512 crore in H1FY27 revenue, compared with 80% for industry and infrastructure and 1% in an unlabelled category. Exports represented 31% of Phenix's Rs 874 crore orders on hand. The disclosed mix therefore shows a higher export share in Phenix backlog than in Phenix revenue recognised during the first half.

Q2FY27 Phenix revenue had a greater export weight than H1FY27 revenue. Exports accounted for 23% of Rs 298 crore of Q2 Phenix revenue, versus 19% of Rs 512 crore for H1FY27, while industry and infrastructure represented 76% in Q2 and 80% for H1. Phenix sales volume increased to 36,382 metric tonnes in H1FY27 from 31,674 metric tonnes in H1FY26.

What supports M&B's future export opportunities?

M&B's Sanand facility received CE certification from TÜV NORD, which management described as an important step towards addressing European pre-engineered building and structural-steel opportunities. Management also said it remained focused on expanding its United States export business. The presentation does not disclose an export revenue target, order-inflow target or timetable for business arising from the certification.

Phase I of M&B's Sanand brownfield expansion began commercial production and added 20,000 metric tonnes per annum of capacity. Total pre-engineered building capacity across Sanand and Cheyyar reached approximately 124,000 metric tonnes per annum. The additional capacity accompanies Rs 874 crore of Phenix orders on hand and H1FY27 Phenix sales volume of 36,382 metric tonnes.

Management said its confidence in delivering more than 25% revenue growth in FY27 was supported by the enquiry pipeline, existing order book, capacity expansion, and domestic and international opportunities. It also stated a target of more than 20% compound annual growth rate over the next three to four years, alongside progressive profitability improvement. These are management targets, not reported outcomes.

Conclusion

M&B's figures show export activity moving differently across revenue, backlog and new orders. Sales outside India rose to Rs 95.44 crore in H1FY27 from Rs 56.79 crore a year earlier, while export orders remained 25% of the Rs 1,109 crore consolidated backlog. However, export orders accounted for 12% of H1FY27 inflow, below FY26's 22%, despite the quarterly share rising from 10% in Q1FY27 to 14% in Q2FY27.

The next updates should show whether the Q2FY27 rise in export order mix continues and how the 31% export share of Phenix's Rs 874 crore backlog converts into revenue. Management's European opportunity following CE certification, focus on the United States market, 20,000-metric-tonne annual Sanand capacity addition and FY27 revenue-growth objective of more than 25% are the disclosed developments to watch.