M & B Engineering Ltd Q4 FY26 Earnings Analysis

- Targeting 20%-25% top-line (revenue) growth in FY27 and FY28 under normal operating conditions. - Export volumes expected to grow from 7,400 tons in FY26 to around 10,000 tons in FY27, representing approximately 14%-15% of total volumes, with export revenue targeted at INR275-300 crores. - Domestic volume in Phenix (pre-engineered buildings) expected to increase from 72,000 tons to 85,000-90,000 tons in FY27, indicating robust volume growth. - Proflex plant volume projections to rise modestly, from 17 lakhs to 17.25 lakhs square meters in FY27. - Consistent order pipeline of around INR1,000-1,100 crores expected to support volume growth. - Capacity utilization to remain healthy with expansions ongoing: Sanand plant expansion expected commissioning by Q2 FY27, with utilization planned around 65%-68% post-expansion. - Management optimistic on continued growth despite challenges from raw material costs and geopolitical uncertainties.

- M&B Engineering targets a top-line growth of around 23%-25% for FY27, supported by a strong order book and healthy bid pipeline. - Export volumes are expected to increase to about 10,000 tons in FY27, with export revenues aimed at INR275-300 crores, up from INR166 crores in FY26. - EBITDA margins are affected by forex losses, steel price volatility, and freight costs; adjusted EBITDA stood around 13% in FY26. - Management refrains from giving specific margin guidance for FY27 due to geopolitical and input cost uncertainties but aims to improve margins by balancing input cost control and pricing. - Profit after tax (PAT) grew 20% in FY26, with management confident of sustaining growth with disciplined execution and capacity expansion. - Workforce expansion planned at Sanand and steady recruitment at Cheyyar to support growth. - Overall, management remains cautiously optimistic about growth and profitability, emphasizing a full-year performance view over quarterly variability.

- Capex incurred in FY26 was INR 33 crores. - Planned capex for FY27 is around INR 100 crores. - FY27 capex will include: - Expansion of the Sanand plant (20,000 metric tons capacity addition). - Part capex for Cheyyar plant expansion, expected in H2 FY27. - Other regular capex. - Sanand plant expansion commissioning is on track for Q2 FY27. - Management indicates continued investment aligned with strong order pipeline and capacity expansion strategy.

- As per the call transcript, there is no explicit mention of any new fundraising plans through debt or equity in the near future. - The company has utilized 53% of the net IPO proceeds (INR259.32 crores), with INR137.81 crores utilized as of March 31, 2026. - The use of IPO funds includes working capital and capex, with planned capex of around INR100 crores for FY27. - Management explained that they used long-term funds raised from the IPO to manage working capital and reduce creditors, leading to some negative operational cash flow appearances. - No specific statements indicate fresh fundraising initiatives beyond the IPO proceeds and current fund usage. - The company suggests focusing on optimizing existing resources and executing expansion plans without stating plans for additional debt or equity issuance at this time.

- Q4 order inflow was INR 387 crores, down from INR 480 crores in Q3. - Current unexecuted order book is approximately INR 1,083 crores. - Order book to revenue ratio stands at 0.86. - Current bid pipeline is strong, valued around INR 1,000 to 1,100 crores. - Pipeline includes a good mix of large, medium, and small orders across sectors. - Export order book is around INR 280 crores. - Overall, the company is confident about the order pipeline but acknowledges ongoing market uncertainties affecting order closure timelines.