Man Industries (India) Ltd Q3 FY25 Earnings Analysis

- FY '26 revenue guidance: Rs. 5,500 crores, a 25% growth over the previous year. - Volume growth expected around 20-25% in FY '26 despite market softness. - Existing facilities to contribute Rs. 4,000 crores revenue in FY '26. - Jammu and Saudi projects to start production by Q3 FY '26, adding Rs. 1,500 crores revenue in H2 FY '26. - FY '27 revenue expected to exceed Rs. 6,000 crores with full-year production from new plants. - EBITDA margins are targeted to maintain around 11-12% initially, improving to 20-25% from Jammu plant after stabilization. - Bid pipeline strong at Rs. 15,000 crores, providing high visibility for future order inflow. - Confident in meeting volume and revenue targets backed by confirmed orders of Rs. 2,900 crores.

- FY '26 revenue guidance is Rs. 5,500 crores, approximately 25% volume growth expected. - FY '27 revenue expected to exceed Rs. 6,000 crores with full-year production from new projects. - EBITDA margin guidance maintained at 11% to 12% for FY '26 and FY '27, with potential for improvement post-stabilization of new plants. - New Jammu and Saudi plants to contribute Rs. 1,500 crores in FY '26 and Rs. 2,000 crores plus in FY '27. - Volume growth driving revenue increase, despite commodity steel price fluctuations. - Debt expected to support new projects, with net debt to EBITDA around 1.25x by FY '27. - Earnings expected to benefit from improved product mix and higher-value-added products. - Management confident in meeting FY '26 and FY '27 guidance based on strong order book and bid pipeline of Rs. 15,000 crores.

- Man Industries is undertaking a significant CAPEX of around Rs. 1,100 to Rs. 1,150 crores, split between: - Jammu plant: Rs. 550 crores - Saudi plant: Rs. 600 crores - As of the report date, about Rs. 150 crores has been spent from internal accruals and equity. - Financial arrangements for Rs. 790 crores in loans are tied up but not yet drawn; remaining funding will be from internal accruals. - Loan borrowings will be through subsidiaries with Man Industries providing guarantees in part. - Both Jammu and Saudi projects are progressing well, with production expected to start in Q3 FY '26. - These new plants are expected to add Rs. 1,500 crores revenue in FY '26 and Rs. 2,000+ crores in FY '27, aiding overall growth. - No current plans for equity raising; enabling resolution exists but will be considered only if needed in the future.

- Man Industries Limited is planning to fund its Rs. 1,100–1,150 crores CAPEX (Jammu Rs. 550 crores and Saudi Rs. 600 crores) through a mix of debt and internal accruals. - Approximately Rs. 790 crores of loans are tied up but yet to be drawn; loan drawdown will occur as LC payments are required. - The balance funding for CAPEX will come from promoter contributions/internal accruals. - Currently, no new equity fundraising is planned, though an enabling resolution for raising equity was passed, which will be considered in future if needed. - Debt related to the new projects is being raised by subsidiary companies with Man Industries providing guarantees; this debt is not currently on Man Industries' standalone books. - Interest rates on loans are roughly SOFR + 200 basis points.

- Current strong order pipeline is Rs. 2,900 crores, with execution expected within 6 to 12 months. - Bid book pipeline stands at Rs. 15,000 crores. - Company is confident of meeting FY '25 full-year revenue guidance of Rs. 3,300 crores. - FY '26 guidance anticipates a turnover of around Rs. 4,000 crores based on current visibility and new projects (Jammu and Saudi). - Additional order inflow of approximately Rs. 1,100 crores needed soon to meet targets, with confidence due to Rs. 15,000 crores bids. - Existing confirmed orders of Rs. 2,900 crores exclude new project order inflows expected to contribute significantly. - Maximum completion timeline for order book is up to 14 months, demonstrating order execution confidence.