Stock Report

Manaksia Coated Metals Reports Stellar Q1 FY27 Performance with PAT Surging 162% Sequentially

Posted On : 2026-07-14 20:51:37( TIMEZONE : IST )

The Board of Directors of Manaksia Coated Metals & Industries Limited (MCMIL) has approved the company's consolidated financial results for the first quarter of the fiscal year 2026-27, ended June 30, 2026. The premium coated steel manufacturer kicked off the new fiscal year with explosive sequential growth, headlined by a 162.45% quarter-on-quarter surge in net profit and an all-time high operating efficiency metric.

Key Financial Trajectory and Margin Expansion

Manaksia Coated Metals posted consolidated revenue from operations of ₹263.07 crore for Q1 FY27. This represents a solid 15% expansion sequentially over the ₹228.75 crore recorded in the preceding quarter (Q4 FY26), and a 3.59% improvement over the ₹253.94 crore logged in the corresponding quarter of the previous year.

The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) landed at ₹29.08 crore, representing a sharp 85.99% jump quarter-on-quarter compared to ₹15.64 crore in Q4 FY26. EBITDA margins improved significantly by 422 basis points sequentially to reach 11.06%.

Profit after tax (PAT) finished the quarter at ₹14.10 crore, soaring 162.45% above the ₹5.37 crore reported in the March 2026 quarter. Cash profit also witnessed a substantial rise, growing 115.28% sequentially to ₹17.40 crore. Diluted earnings per share (EPS) doubled quarter-on-quarter to ₹1.32 from ₹0.65. Finance costs for the period normalized at ₹6.86 crore, reflecting an 11.77% reduction year-on-year.

Operating Efficiencies and Product Premiumization

The quarter's performance was heavily driven by enhanced capacity utilization and a strategic focus on premium value-added products. The company achieved an all-time high EBITDA per ton of ₹10,401, scoring an 87.01% sequential jump over the ₹5,562 per ton recorded in Q4 FY26. Realization per ton also advanced 11.89% quarter-on-quarter to ₹88,597.

Operational production highlights for Q1 FY27 include:

Galvanized / Alu-Zinc Production: Reached 27,941 metric tons (MT), marking an 8% quarter-on-quarter growth.

Pre-Painted Steel Production: Expanded by 4% sequentially to touch 20,510 MT.

Value-Added Product Mix: Pre-painted steel accounted for 74% of total sales during the quarter, highlighting the company's structural shift toward high-margin items.

The operating performance was achieved despite elevated raw material costs, as aluminum, zinc, and paints remained at multi-year highs alongside higher freight and fuel outlays stemming from geopolitical disruptions. MCMIL successfully mitigated these headwinds by passing on the bulk of raw material price increases to customers across new order bookings.

Robust Export Growth and Strategic Expansions

International market operations remained highly resilient, with exports contributing 65% of the company's total sales volume during the quarter. Export revenues registered an increase of 13% sequentially and 20% year-on-year, propelled by a 25% volume expansion in pre-painted steel exports. The manufacturer also widened its global footprint by successfully entering four new international markets: Latvia, Brazil, Jamaica, and Somalia.

Management highlighted substantial progress on several strategic, capital-intensive expansion projects located at its primary manufacturing facility in Kutch, Gujarat. The company's Alu-Zinc technology upgrade, which expanded capacity by 36% from 1,32,000 TPA to 1,80,000 TPA back in December 2025, continued to stabilize, achieving a capacity utilization rate of roughly 62% this quarter.

Looking ahead, the company's second color coating line-which will boost total color coating capacity by 174% to 2,36,000 TPA-has reached the advanced stages of erection and commissioning and is on schedule for commercial launch in Q2 FY27.

Additionally, a 7 MWp captive solar power project handled by EPC partner Prozeal Green Energy is tracking toward a Q2 FY27 commissioning date. This project is expected to offset 50% to 55% of grid power dependencies at the Kutch plant, lowering overall energy costs. To refine demand forecasting and customer management, the company is also actively implementing a Salesforce CRM 360-degree digital system.

Karan Agrawal, Whole Time Director, Manaksia Coated Metals & Industries Limited said, "Q1 FY27 has been a quarter of strong operational execution for Manaksia Coated Metals & Industries Limited, with sequential improvement across revenue, profitability, and operating metrics despite a challenging global operating environment. EBITDA per tonne reached an all-time high of Rs. 10,401, reflecting the benefits of higher realizations, improved operating efficiencies and increasing contribution from value-added products.

During the quarter, the Aluminium-Zinc coating line continued to stabilize, achieving capacity utilisation of approximately 62%. The upgraded Alu-Zinc and Pre-painted Alu-Zinc products have received encouraging acceptance from both domestic and export customers, providing confidence in the gradual ramp-up of capacity utilisation over the coming quarters. The benefits of the technology upgrade are now becoming increasingly visible through improved realizations and stronger operating performance.

The quarter was also characterised by elevated raw material prices, with aluminium, zinc and paints remaining at multi-year highs, alongside higher freight and fuel costs arising from geopolitical disruptions. Despite these headwinds, the Company successfully passed on most raw material cost increases to customers for all new order bookings, while uninterrupted plant operations ensured continuity of production and timely execution.

Export performance remained resilient, driven by sustained demand across key international markets and continued growth in value-added product exports, reinforcing the Company's strategy of strengthening its presence in premium coated steel markets. The company successfully added four new countries in its list of international market presence.

The Company also made significant progress on its strategic growth initiatives. The second colour coating line has entered the advanced stages of erection and commissioning and remains on track for commercialisation during Q2 FY27, substantially expanding our value-added production capacity. Simultaneously, the 7 MW captive solar power project is progressing as planned and is expected to reduce energy costs while enhancing our sustainability profile.

With a healthy export order book, improving capacity utilisation of the Alu-Zinc line, upcoming commissioning of key expansion projects and continued focus on premiumisation, operational excellence and cost optimisation, we remain well positioned to deliver sustainable growth and create long-term value for all stakeholders."

Shares of Manaksia Coated Metals & Industries Limited was last trading in BSE at Rs. 129.25 as compared to the previous close of Rs. 126.20. The total number of shares traded during the day was 48560 in over 1213 trades.

The stock hit an intraday high of Rs. 130.50 and intraday low of 125.60. The net turnover during the day was Rs. 6207513.00.