Any current/future new fundraising through debt or equity?

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.

Any current/future capex/capital investment/strategic investment?

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 f

Future growth expectations in sales/revenue/volumes?

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 FY2

Future growth expectations in earnings/operating earnings/profits/EPS?

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 improvemen

Current/ Expected Orderbook/ Pending Orders?

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. O

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MCON Rasayan India LtdQ3 FY26Other Construction Materials

MCON Rasayan India Ltd Q3 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹44.8P/E: 15.7Market Cap: ₹36 CrSector: Other Construction Materials

Management growth scorecard

Revenue

Category 2

Margin

Category 2

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→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.

Margin guidance

Category 2

→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.

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Fundraise plans

Yes

→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

→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.

Capex plans

Yes

→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.

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