Manaksia CoatedQ1 FY27
Manaksia Coated Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹125P/E: 32.8Market Cap: ₹1.3K CrSector: Industrial Products
Management growth scorecard
Revenue
Category 1
Margin
Category 2
Fundraise
Yes
Order
Yes
Capex
Yes
4 of 5 growth signals are positive — a strong management growth story.
Full analysisRevenue guidance
Category 1- →FY27 volume target: ~150,000 tons with estimated revenue of INR 1,300-1,350 crores.
- →FY28 volume target: 180,000 to 210,000 tons from the new color coating line, revenue potential INR 1,700-1,800 crores.
- →Phase 2 Alu-Zinc expansion expected post-capital tie-up, potential peak revenue INR 2,500-2,700 crores combining Phase 1 and Phase 2 lines.
- →Ramp-up for the second color coating line expected to reach 50-60% utilization in H2 FY27.
- →Long-term order book visibility of 3-5 months with consistent demand from export and domestic OEM customers.
- →Growth driven by capacity additions, Alu-Zinc ramp-up, solar power savings, and strong export momentum.
Margin guidance
Category 2- →Q1 FY27 EBITDA margin improved to 11.06%, with optimism for further growth driven by new capacities and renewable energy investments.
- →Expected EBITDA margin improvement of 1-2% over current levels; timing for full impact may vary within FY27.
- →Revenue growth guidance of approximately 45-50% for FY27 supported by ramp-up of Alu-Zinc capacity and second color coating line.
- →Peak revenues from Alu-Zinc at full utilization expected between INR 2,500 - 2,700 crores after Phase 2 commissioning.
- →EBITDA per ton at record INR 10,400 in Q1; expected to sustain and improve with upcoming projects.
- →PAT margin improved to 5.36% in Q1, with PAT growth of 163% quarter-on-quarter.
- →EPS grew 102% quarter-on-quarter to INR 1.31 in Q1; further EPS growth anticipated with capacity ramp-up.
- →Investments like solar power plant and second color coating line to structurally reduce costs and enhance operating profits.
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Fundraise plans
Yes- →The company plans a new capex of approximately INR350 crores for Phase 2 expansion, including backward integration and a second Alu-Zinc line.
- →Funding for this capex is expected through a mix of internal accruals, debt, and equity.
- →The estimated additional debt required for the new capex is around INR100 crores, though this is not yet finalized and depends on earnings.
- →Current debt stands at about INR115 crores, including debt for recent completed capex (second color coating line and solar power plant).
- →Peak debt for the current projects is estimated not to exceed INR125-130 crores.
- →Overall, leverage is expected to remain moderate, with a debt-to-equity ratio not exceeding around 1.25x.
Order book
Yes- →Current order book is approximately INR 450 crores, with a tolerance of plus or minus INR 20-25 crores.
- →The timeline to execute this order book is about 4.5 to 5 months.
- →The company expects to maintain an order book ranging between INR 350 crores to INR 450 crores continuously for the rest of the year.
- →Orders primarily come from long-term customers with repetitive quarterly orders rather than one-time projects.
- →Visibility on demand is strong for the next 3 to 5 months continuously.
- →MoUs with customers provide annual offtake indications, supporting confidence in stable order inflows.
- →The order book has grown gradually over the last few years from INR 100-120 crores to the current INR 400-450 crores, reflecting increased capacity and customer confidence.
Capex plans
Yes- →Current completed capex of about INR 140 crores includes:
- → - Alu-Zinc technology upgrade
- → - Second color coating line
- → - Solar power plant
- →Remaining debt to be deployed for current capex is INR 15-20 crores.
- →Planned future capex of INR 350 crores for:
- → - Backward integration with a cold rolling mill (CRM)
- → - Capacity expansion by adding a second Alu-Zinc line (Phase 2)
- →Funding mix for future capex: internal accruals, debt (estimated around INR 100 crores), and equity.
- →Debt-to-equity ratio expected to remain below 1.25x post future capex.
- →Cold rolling mill capex to start in FY28; current capex mainly covers existing capacity upgrades.
- →The cold rolling mill will improve working capital cycle drastically by reducing inventory holding.
How does Manaksia Coated rank vs peers in Industrial Products?
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