Manaksia Coated Metals & Industries Limited (MCMIL) is a prominent manufacturer and exporter of high-performance coated metal products, specializing in Pre-Painted and Plain Galvanised Steel in both coil and sheet forms. Operating from a technologically advanced manufacturing facility strategically located in Kutch, Gujarat—near the major ports of Kandla and Mundra—the company effectively serves a diverse range of industries. These include construction, automotive, home appliances, FMCG, and general engineering. The company's history dates back to the Manaksia Group's origins in 1978 in the metal packaging industry, with MCMIL being formed through a corporate restructuring in 2018.

MCMIL is recognized for its commitment to quality, leveraging cutting-edge machinery to produce value-added steel solutions. It has established a strong market presence with its brands, such as Zinvalgo and Singham. The company boasts a robust operational footprint, with a presence in over 20 states across India and an extensive export network spanning 43 countries in Europe, Africa, and the Middle East, earning it the status of a 3-Star Export House. With over 400 employees, MCMIL is certified with ISO 9001:2015, ISO 14001:2015, and OHSAS 18001:2007, underscoring its focus on operational excellence and quality assurance. The company's vision is centered on contributing to India's manufacturing excellence and achieving holistic, responsible growth for all its stakeholders.

Official Website: http://www.manaksiacoatedmetals.com/

• Q3 FY26 Performance (Y-o-Y):

• Total Income: Declined by 8.6% to ₹189.91 Cr from ₹207.83 Cr. This was impacted by a planned shutdown for a technology upgrade.

• EBITDA: Increased by 7.3% to ₹18.51 Cr from ₹17.25 Cr.

• EBITDA Margin: Improved to 9.74% from 8.30%.

• Net Profit: Grew by 46.7% to ₹7.35 Cr from ₹5.01 Cr.

• Net Profit Margin: Expanded to 3.87% from 2.41%.

• 9M FY26 Performance (Y-o-Y):

• Total Income: Grew by 15.1% to ₹667.52 Cr from ₹579.81 Cr.

• EBITDA: Increased significantly by 71.5% to ₹76.57 Cr from ₹44.66 Cr.

• EBITDA Margin: Expanded sharply to 11.47% from 7.91%.

• Net Profit: Surged by 241.3% to ₹35.32 Cr from ₹10.35 Cr.

• Net Profit Margin: Grew substantially to 5.29% from 1.79%.

• Balance Sheet Health:

• The company's Net Worth has shown consistent growth, increasing from ₹119.25 Cr in FY23 to ₹335.06 Cr in H1 FY26.

• Total borrowings (long-term + short-term) have decreased from ₹182.34 Cr in FY23 to ₹103.22 Cr in H1 FY26, indicating a focus on deleveraging.

• The company is on track to achieve a Net Debt to EBITDA ratio of under 1x by the end of FY26, a significant improvement from 1.93x in FY25.

• Key Financial Ratios:

• Return on Capital Employed (ROCE): Stood at 13.77% in FY25, up from 9.15% in FY23.

• Debt to Equity: Has steadily improved, reducing from 1.53x in FY23 to 1.19x in H1 FY26.

• Interest Coverage Ratio: Strengthened from 1.32x in FY23 to 3.36x in H1 FY26, showcasing improved ability to service debt.

• Earnings Per Share (EPS): Increased from ₹1.43 in FY23 to ₹2.07 in FY25. For 9M FY26, the EPS was ₹3.49, already surpassing the full-year FY25 figure.

The company demonstrates strong financial performance with significant growth in profitability and margins, coupled with a clear trend of strengthening its balance sheet through debt reduction.

• Focus on Value-Added Products: MCMIL has strategically shifted its focus from commodity galvanised steel to higher-margin, value-added pre-painted steel products. This is evident as pre-painted steel's contribution to revenue grew to 81.7% in Q3 FY26.

• Technological Advancement to Alu-Zinc: The company recently upgraded its continuous galvanising line to produce Alu-Zinc coated steel. This advanced product offers 3x the corrosion resistance of traditional galvanised steel, commands a premium price, and has fewer competitors.

• Extensive Global Reach: With a presence in 43 countries and a 3-Star Export House recognition, MCMIL has a well-diversified revenue stream. Exports constituted 70% of revenue in 9M FY26, reducing dependence on the domestic market and capturing global demand.

• Strategic Manufacturing Location: The plant's location in Kutch, Gujarat, provides a significant logistical advantage due to its proximity to Kandla and Mundra ports, facilitating efficient import of raw materials and export of finished goods.

MCMIL's uniqueness stems from its strategic focus on high-value products, technological superiority with its new Alu-Zinc line, and a strong, diversified global export footprint.

• Strong Demand Forecast: India is poised to lead global steel demand growth. The domestic per-capita steel consumption is targeted to increase from 86.7 kg in FY23 to 160 kg by 2030-31.

• Favorable Government Policies: The industry is supported by multiple government initiatives. The National Steel Policy 2017 aims for over 300 MT of production capacity by 2030, and a ₹6,322 Cr Production-Linked Incentive (PLI) scheme for specialty steel has been launched to boost domestic manufacturing of value-added products.

• Infrastructure Push: Growth is driven by increased activity in infrastructure, construction, automotive, and railways, which are key end-user industries for coated steel products.

• Protective Measures: The government has implemented safeguard duties and other measures to protect domestic steel players from unfair import competition, ensuring a stable operating environment.

The company is operating in a highly favorable industry environment, buoyed by strong domestic demand projections and robust government policy support aimed at boosting capacity and consumption.

• Sales Volume Growth: Total sales volume has grown at a 17.21% CAGR from FY23 to 9M FY26. This growth has been led by the pre-painted steel segment, whose volume contribution has increased substantially.

• Robust Order Book: The company has a strong order book of ₹500 Cr, to be executed over the next 12 months. Exports make up ₹350 Cr (70%) of this order book, providing strong near-term revenue visibility.

• Export-Led Revenue Expansion: Exports have become a primary growth driver, with their share in revenue climbing from 21.6% in FY23 to a commanding 70.0% in 9M FY26.

• Profitability Surge: Growth is not just in revenue but also in profitability. For 9M FY26, EBITDA grew 71.5% and Net Profit surged 241.3% year-over-year, driven by an improved product mix and operational efficiencies.

Growth is being propelled by rising sales volumes, a strategic pivot to higher-value products, and a significant expansion in the export market, all underpinned by a healthy order book.

• Margin Expansion with Alu-Zinc: The successful transition to Alu-Zinc coated steel production is a major opportunity. This premium product is expected to drive EBITDA growth of up to 40% due to higher realizations and greater market acceptance.

• Cost Savings via Renewable Energy: The planned 7 MW captive solar power plant will reduce power costs by an estimated 30-35%. This initiative will lower operating expenses, improve margins, and cater to the growing demand for "green steel."

• Entry into New High-Value Segments: A planned new coil slitting line will allow MCMIL to provide customized products for Original Equipment Manufacturers (OEMs) in the white goods and automotive industries, opening up new, high-margin revenue streams.

• Backward Integration Benefits: The planned Phase 3 capex includes a 300,000 MTPA Cold Rolling Mill (CRM) complex. This backward integration will provide raw material security, greater control over quality, optimize inventory, and capture intermediate processing margins.

The company has clear opportunities for significant margin expansion through its new Alu-Zinc line and backward integration, complemented by cost efficiencies from captive solar power and growth in new OEM markets.

• Current Utilization (Q3 FY26):

• Pre-painted Steel Coils: The high-value line operated at 96% utilization on an installed capacity of 86,000 MTPA.

• Galvanised/Alu-Zinc Steel Coils: Operated at 68% utilization on an enhanced capacity of 1,80,000 MTPA. The temporarily subdued rate was due to a planned plant shutdown for the technology upgrade to Alu-Zinc.

• Phase 1 Capex (Completed in FY26):

• Successfully upgraded the galvanising line to Alu-Zinc technology, increasing its capacity by 36% from 1,32,000 MTPA to 1,80,000 MTPA.

• Phase 2 Capex (Planned for FY27):

• New Colour Coating Line (CCL 2): A 150,000 MTPA line to be commissioned, which will increase the high-margin pre-painted steel capacity by over 170%.

• Captive Solar Power Plant: A 7 MW plant to reduce energy costs.

• New Coil Slitting Line: A 30,000 MTPA facility to cater to OEMs.

• Phase 3 Capex (Planned for FY28):

• Backward Integration: A 300,000 MTPA Cold Rolling Mill (CRM) complex to secure raw material supply.

• Further Galvanising Expansion: A second Alu-Zinc coating line that will double capacity from 180,000 MTPA to 360,000 MTPA.

The company is operating its high-value product line at near-full capacity and is executing a significant, multi-phase capex plan to massively scale up capacity, integrate backward, and enhance product capabilities.

• Immediate Growth from New Capacity: The primary focus is to ramp up the newly commissioned Alu-Zinc line to boost production volumes, sales, and margins beginning in Q4 FY26.

• Deleveraging the Balance Sheet: A key financial objective is to reduce the Net Debt to EBITDA ratio to below 1x by the end of FY26, signifying a commitment to financial prudence and a stronger balance sheet.

• Dominance in Value-Added Products: The commissioning of the second colour-coating line in FY27 is a strategic move to solidify the company's position as a leading player in high-margin, pre-painted steel products.

• Long-Term Self-Sufficiency: The plan for backward integration into cold rolling by FY28 aims to create a more resilient business model by securing the primary raw material, controlling quality, and improving the overall cost structure.

• Commitment to Sustainability: The development of a 7 MW captive solar plant underscores the company's plan to reduce its carbon footprint and operational costs, aligning with global sustainability trends.

Future plans are centered on leveraging new capacity for immediate growth, deleveraging the balance sheet, and executing a long-term strategy of significant capacity expansion and backward integration.

• Strong Upward Trend: Profitability margins have improved significantly. The EBITDA margin expanded to 11.47% in 9M FY26 from 7.91% in 9M FY25. The Net Profit Margin grew even more impressively, to 5.29% from 1.79% over the same period.

• Product Mix as a Key Driver: The margin improvement is directly linked to the increasing share of revenue from high-value pre-painted steel coils, which rose from 75.7% in Q3 FY25 to 81.7% in Q3 FY26.

• Future Margin Levers:

• Alu-Zinc Products: The shift to premium Alu-Zinc steel is expected to drive EBITDA growth by up to 40%.

• Cost Efficiencies: The future 7 MW captive solar plant is projected to cut power costs by 30-35%, which will directly benefit the bottom line.

• Backward Integration: The planned CRM complex will allow the company to capture processing margins currently paid to external suppliers.

Profitability margins are on a strong upward trajectory, driven by a superior product mix, with significant further expansion anticipated from the new Alu-Zinc line and future cost-saving initiatives.

• Advantage in Alu-Zinc Market: The company notes that the market for Aluminium-Zinc coated steel, its new flagship product, has fewer competitors compared to the market for standard galvanised steel.

• Premium Product Positioning: This strategic shift allows MCMIL to operate in a less crowded space. Alu-Zinc coated steel has greater market acceptability and commands a premium price, giving the company a competitive edge in pricing and product differentiation.

The company's strategic move into Alu-Zinc coated steel places it in a less competitive market segment, providing a distinct advantage over players focused on traditional galvanised products.

• Macroeconomic Headwinds: The company's performance is inherently linked to the economic health of India and its key international markets. A downturn in the global economy or the steel industry could adversely affect demand and pricing.

• Project Execution Risk: MCMIL is undertaking an ambitious, multi-phase capex plan involving significant investment. Any delays in commissioning these projects or cost overruns could impact financial projections and returns.

• Input Cost and Currency Volatility: As a manufacturer, the company is exposed to fluctuations in the price of key raw materials like steel. Furthermore, with over two-thirds of its revenue coming from exports, it is exposed to foreign currency exchange rate volatility.

• Competitive Pressures: While the move to Alu-Zinc provides an edge, the broader coated steel market remains competitive. The company must continue to innovate and operate efficiently to maintain its market position.

Key risks include exposure to macroeconomic cycles, the successful and timely execution of large-scale capital projects, and the effective management of raw material price and currency volatility.

• Credit Rating Upgrade: Reinforcing its financial strength, the company received a credit rating upgrade from Acuité Credit Rating. Its long-term rating was improved to 'A' from 'A-' and its short-term rating to 'A1' from 'A2'.

• Experienced Leadership: MCMIL is led by a seasoned management team with decades of deep-domain experience. Key personnel have backgrounds from major industry players like JSW and SABIC, bringing extensive expertise in operations, finance, and quality assurance.

• Shareholding Structure: As of December 31, 2025, the Promoter and Promoter Group hold a majority stake of 57.46% in the company, ensuring alignment of interests with long-term strategic goals. The public holds the remaining 42.54%.

The company's financial discipline is validated by a recent credit rating upgrade, and it is steered by a deeply experienced management team with a strong track record in the industry.