One of the leading coated steel manufacturers and exporters, specialising in pre-painted galvanised steel and plain galvanised steel in both coil and sheet forms, has reported a 491 percent jump in net profit in Q2 and is worth watching.
We are talking about Manaksia Coated Metals & Industries Limited (MCMIL), engaged in the manufacturing of value-added secondary metal products like galvanised corrugated sheets, galvanised plain sheets, colour-coated (pre-painted) sheets, etc., with manufacturing units located at Kutch, Hyderabad, Guwahati and Bhopal.
In this article, we’ll take a closer look at the company’s financial performance, revenue breakdown, capacity guidance, future outlook, order book, and other key aspects.
With a market cap of Rs. 1,522 crores, shares of Manaksia Coated Metals surged around 1 percent and closed in the green at Rs. 145.45 on Friday, as against its previous closing of Rs. 144.5 on BSE. The stock has delivered multibagger returns of around 130 percent in one year, but has fallen by over 1 percent in one month.
Production Capacity guidance
MCMIL has been steadily expanding its production capacity across its key product segments – pre-painted steel, galvanised steel, and cold rolled steel – through multiple phases of growth and modernisation.
For pre-painted steel, the company’s production capacity has grown significantly from 40,000 MTPA in FY06 to 86,000 MTPA in FY22, supported by electrical upgrades and the installation of a new incinerator. Under Phase 2, the company plans to install a new Continuous Coating Line (CCL) of 1.5 lakh MTPA, which will boost the total capacity to 2.36 lakh MTPA by FY27, marking over 170 percent increase.
In galvanised steel, starting with 1.08 lakh MTPA in FY18, the company increased its capacity to 1.32 lakh MTPA by FY23 through furnace upgrades. In Phase 1, capacity is expected to rise by 36 percent to 1.8 lakh MTPA by FY26, with a conversion to Alu-Zinc coating technology. Further expansion under Phase 3 will double capacity to 3.6 lakh MTPA by FY28, with the addition of a second Alu-Zinc coating line.
For cold-rolled steel, MCMIL is undertaking a backward integration initiative. Under Phase 3, it plans to establish a Cold Rolling Mill (CRM) Complex in collaboration with Hitachi, with a projected capacity of 3 lakh MTPA by FY28.
Furthermore, the company has initiated the development of a 7 MWp solar power plant project at Kutch in partnership with a leading EPC firm. The project is aimed at reducing over 50 percent of the company’s grid power dependency through renewable energy integration.
Product-Wise Revenue Breakdown & Order Book
In Q2 FY26, Manaksia Coated Metals & Industries Limited reported total revenue of Rs. 220.3 crore. The majority of this came from the pre-painted steel coils segment, which contributed Rs. 197.2 crore, accounting for 89.5 percent of total revenue. Revenue from galvanised steel coils stood at Rs. 14.3 crore, representing 6.5 percent of total revenue, while the “other” segment contributed Rs. 8.77 crore, or 4 percent.
The company’s value-added pre-painted steel coils continued to outperform, highlighting strong demand and strategic focus on higher-margin products, while reliance on galvanised steel products has gradually reduced.
In Q2 FY26, the company reported a strong order book position of Rs. 600 crore, with expectations to execute the entire order book over the next 12 months. Exports continue to dominate its business mix, contributing around 85 percent of the total order book, valued at Rs. 510 crore, while domestic orders account for the remaining 15 percent, worth Rs. 90 crore.
Financial Highlights & Investment Overview
In Q2 FY26, MCMIL reported a consolidated revenue from operations of Rs. 220 crores, a growth of nearly 26 percent YoY from Rs. 175 crores in Q2 FY25. Similarly, the company’s net profit for the quarter stood at Rs. 14 crores, representing an increase of nearly 491 percent YoY from Rs. 2.4 crores, over the same period.
In terms of financial ratios, Manaksia Coated Metals has reported a RoE of 8.11 percent and ROCE of 15.4 percent, with a debt-to-equity ratio of 0.31. Further, the stock is currently trading at a higher P/E of 43.3, compared to the industry average of 23.9.
The company’s high-value product mix, including galvanised, pre-painted, and premium Alu-Zinc coated steel products, provides it with a strong competitive edge. The Alu-Zinc addition enhances corrosion resistance, improves product realisation, and contributes meaningfully to overall margins.
The company aims to strengthen its financial metrics, focusing on higher return on capital employed (ROCE) and return on equity (ROE) through improved profitability and operational performance.
Operating in a high-entry-barrier industry, characterised by stringent quality standards, sophisticated coating technology, and significant capital investment, Manaksia benefits from a well-established market position.
Written by Shivani Singh
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