MCON Rasayan India Ltd Q2 FY26 Results & Concall Highlights: Revenue, Margins & Order Book
Published 1 Jun 2026 | Other Construction Materials | Market Cap: ₹31 Cr
Expecting over 50% year-on-year growth in sales revenue. Targeting over 50% year-on-year revenue growth in the next two to three years.
From MCON Rasayan India Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.
Price
₹48.5
Market Cap
₹31 Cr
P/E Ratio
10.1
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📊 Revenue & Sales Performance
- →Expecting over 50% year-on-year growth in sales revenue.
- →Targeting to reach ₹70 crore sales by the end of the current fiscal year (FY26).
- →Planning to grow from approximately ₹28 crore to ₹70+ crore within the year.
- →Aim to cross ₹100 crore revenue mark by next year (FY27).
- →Expansion through new FOCOs (Franchise Owned Company Operated units) to increase capacity by additional 7,000-7,500 metric tons per FOCO.
- →Government projects and infrastructure orders expected to contribute significantly and ramp up sales.
- →Liquid admixture division targeted to increase contribution from 13% to over 20% in FY26.
- →Continued focus on high-margin products and market expansion to sustain growth.
- →Expecting rapid market penetration increase from under 1% currently to about 1.5-2% in three years.
📈 Profitability & Margins
- →Targeting over 50% year-on-year revenue growth in the next two to three years.
- →Shift towards higher-margin products (admixtures, paint division) expected to improve EBITDA gradually.
- →EBITDA margin improvement expected, aiming to reach 15% by FY27.
- →PAT expected to grow steadily with a focus on high-margin products and better working capital management.
- →ROE anticipated to reach double digits, likely after crossing the Rs 100 crore turnover mark (expected next year).
- →Working capital might remain stretched for 6-8 months due to rapid expansion but will improve thereafter.
- →Overall profit improvement driven by operational efficiencies, cost control, and increased sales volumes.
- →EPS expected to improve alongside PAT growth as business scales and margin quality improves.
🏗️ Capital Expenditure Plans
- →Expansion of government project division to increase market reach across Maharashtra, Goa, Gujarat, and Union Territories.
- →Potential capital expenditure ("capex") of a few lakhs to increase liquid product manufacturing capacity at Vapi plant by adding machinery.
- →Planning new FOCOs (Franchise Owned Company Operated units) with roughly 7,000 to 7,500 metric tons capacity each to expand production; two additional FOCOs planned currently.
- →No immediate plans for major new borrowing; incremental borrowing may happen by end of the financial year.
- →Possible future capex for establishing new plants in faraway zones (eastern or northeast regions) if large orders are received there.
- →Channel financing initiatives and inventory management improvements ongoing but not classified as capex.
- →Overall strategic focus on expanding product mix, better inventory management, and high-margin products to improve margins.
💰 Fundraising & Capital Structure
- →Currently, MCON Rasayan India Limited is **not planning any immediate further borrowing** from banks; any new borrowing is expected **towards the end of the financial year**.
- →The **blended cost of borrowing** is around **8.5% to 8.7%**.
- →For FY27 and beyond, the company **expects to require funds** to sustain growth.
- →The planned approach for future fundraising is a **balanced mix of debt and equity**.
- →No specific timelines or amounts for equity raising are detailed yet, but it's part of the company's growth strategy.
📋 Order Book & Pipeline
- →MCON Rasayan India Limited operates primarily through a distributor model; hence, they do not maintain a traditional order book.
- →Orders come continuously month-on-month rather than being booked upfront.
- →For bigger builders and infrastructure companies, there are Letters of Intent (LOIs) but not confirmed orders.
- →Current LOIs (potential order backlog) stand at approximately ₹18–18.5 crore.
- →The mix of orders is roughly 70% low margin products and 30% high margin products.
- →Recent monsoon delays caused order postponements, but business normalcy and order inflows have resumed in the last 15 days.
- →Order dispatch turnaround time is quick, around 3 to 4 days from order receipt.
- →The company targets to increase contribution from higher-margin admixtures and liquid products in coming years.
Key Metrics
Frequently Asked Questions
What were MCON Rasayan India Ltd Q2 FY26 results?
Expecting over 50% year-on-year growth in sales revenue. Targeting over 50% year-on-year revenue growth in the next two to three years.
What is MCON Rasayan India Ltd share price analysis?
MCON Rasayan India Ltd currently shows a neutral. The stock trades at a P/E of 10.1 with a market cap of ₹31 Cr. Investors should review the full earnings analysis for detailed insights.
Is MCON Rasayan India Ltd planning capital expenditure?
Expansion of government project division to increase market reach across Maharashtra, Goa, Gujarat, and Union Territories.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.