Man Industries (India) Ltd Q1 FY27 Earnings Analysis

- The current stand-alone order book is approximately INR 3,000 crores, executable over the next 6 to 12 months, providing a strong revenue base for FY27. - Consolidated revenue guidance for FY27 is INR 5,000 to INR 5,500 crores, with India contributing around INR 4,000 crores and the remainder from Saudi Arabia. - The company expects 30% to 35% constant growth over the next 3 to 4 years at the consolidated level (India and Saudi). - For FY28, growth is projected at around 25% to 30% compared to FY27. - NPC’s revenue is expected between INR 1,500 to INR 2,000 crores for FY27 with EBITDA margin of around 15%+. - The company anticipates achieving 85% utilization at NPC by FY28–FY29. - Large bid book of INR 15,000 to 16,000 crores indicates strong future order inflows. - Growth drivers include energy sector rebuilding post-war and expansion in Middle East, MENA, Africa, Far East, and South America regions.

- Man Industries expects a 30-35% growth in consolidated revenue for the next 3-4 years, driven by combined India and Saudi operations. (Page 14) - FY27 consolidated revenue guidance is between INR 5,000 to 5,500 crores, up from INR 3,500 crores in FY26. (Pages 4, 14) - NPC subsidiary in KSA is expected to achieve 85% utilization and generate INR 3,000-3,500 crores revenue by FY28-FY29, contributing significantly to earnings. (Page 13) - EBITDA margins expected to stabilize in the 13-15% range with improved product mix and geographic diversification. (Page17) - Synergies from acquisition and higher-margin Saudi operations expected to expand margins further. (Page 14) - FY28 expected to see 25-30% growth over FY27. (Page 11) - Merino real estate business expected to contribute INR 70-80 crores profit annually over next 3 years from FY27. (Page 7) Overall, strong growth and margin expansion are anticipated in the medium term.

- Capex of INR340 crores was spent in FY26. - Upcoming FY27 capex includes $40 million for coating plant completion, plus Jammu project capex totaling around INR580 crores consolidated. - Jammu plant expected to complete in FY27. - Coating facility at Saudi (NPC) being set up on existing land; pipe mill greenfield project scrapped due to NPC acquisition. - A 3-year plan for NPC plant upgrades budgeted at around $5 million (total), consisting of small, offline upgrades. - No new pipe mills planned in Saudi; focus on coating facility expansion. - Cash flows from operations to be partly used for coating upgrades and repayment to reduce debt. - Capex completion targeted by March FY27 for coating plant in Saudi.

- The company has taken $70 million debt for the acquisition of NPC, with an interest rate of approximately 6.5% to 7% in USD. - $32 million of the acquisition funding was self-funded (equity). - No debt is on the India balance sheet for this acquisition; the loan is taken at the local (Saudi) level with Man India providing only a corporate guarantee. - Post-completion of the Jammu project and acquisition, consolidated interest costs are expected around INR160-170 crores by FY28, slightly higher than FY27. - There is no explicit mention of any new fundraising plans through debt or equity beyond existing commitments for capex and acquisition financing. - Capex is mostly funded: Jammu plant completion by FY27, coating plant capex by the Saudi subsidiary. - The company aims to use cash for coating and plant upgrades and repay debt.

- Current stand-alone order book stands at approximately INR 3,000 crores, executable over the next 6 to 12 months. - The bid book has increased significantly to almost INR 15,000 to 16,000 crores, including opportunities from NPC. - The company expects new orders to flow in the next few months, indicating order book improvement. - For consolidated operations (India and Saudi Arabia), a growth of 30-35% is anticipated over the next 3-4 years. - FY27 consolidated revenue guidance is between INR 5,000 crores to INR 5,500 crores, reflecting confidence in combined business platform. - The Saudi business has new Aramco orders expected to sustain full quarter production. - Some near-term execution challenges include shipments delayed due to Hormuz situation, but capacities are available to capitalize on opportunities.