Manaksia Coated Metals & Industries Ltd (NSE: MANAKCOAT) Q3 2026 Earnings Call dated Feb. 04, 2026
Corporate Participants:
Karan Agrawal — Whole Time Director
Analysts:
Unidentified Participant
Nishita — Analyst
Dhaval Jain — Analyst
Presentation:
operator
The conference is now being recorded.
operator
Sa.
operator
Sa. Sa. Sa. Sa.
operator
Foreign. Ladies and gentlemen, good day and welcome to Q3 and 9M FY26 results conference call of Manaxia Coated Metals and Industries Limited as a reminder, all participants lines will be in the listen only mode and there will be an opportunity for you to ask the questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star than zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rauner. Thank you. And over to you.
Unidentified Participant
Thank you.
Unidentified Participant
On behalf of Kiryan Advisors, I welcome you all to the conference call of Manakya Koten Metal Land Industries Ltd. From the management team we have Mr. Karan Agarwal, full time director, Mr. Mahendraban, chief financial officer and Mr. Tushar Agrawal, senior Vice President. Now I hand over the call to Mr. Karan Agarwal.
Unidentified Participant
Over to you sir.
Karan Agrawal — Whole Time Director
Good morning ladies and gentlemen. It’s a pleasure to connect with you and share an update on the progress of Manaxia Coated Metals and Industries Ltd. For the first nine months of financial year 26, this period has been characterized by strong business momentum, disciplined execution and a focused strategic approach. On behalf of the management, I warmly welcome you to our Q3FY26 earnings conference call. I am joined today by Mr. Mahendra Bung, our CFO and Mr. Tushar Agrawal, senior Vice President. We sincerely thank you for your time, participation and continued trust in our long term growth journey.
The first nine months of fiscal 26 have been encouraging for Manaksia Coated Metals and industries as we continue to reinforce our position in the value added coated steel segment through consistent performance and expanding capabilities. Our diversified portfolio of pre painted and galvanized steel products remain well aligned with the evolving customer requirements and market opportunities. Q3 of fiscal 26 was another resilient quarter for us. Our consolidated total income fell by 9% year on year to rupees 190 crores due to a planned plant shutdown undertaken for technology upgradation and transition to Alu zinc coating technology. However, EBITDA increased slightly to Rupees 19 crores reflecting a 7% growth while EBITDA margin expanded by 144 basis points to 10%, highlighting overall improvement in operational efficiency and product mix.
Net Profit surged by 47% to Rupees 7 crores year on year translating into a net margin of 4% which is up by 146 billion points year on year earning per share also increased by 9% year on year to Rs. 0.73 per share for 9 months of FY26. Total income rose by 15% year on year touching Rupees 580 crores while EBITDA increased 67% to Rs. 77 crores with a margin expansion of 356 basis points to 11%. Net profit grew by 241% year on year to Rs. 35 crores translating into a net margin of 5%. EPS stood at Rupees 3.49 per share which is up by 151% year on year.
Looking ahead, we are entering an exciting phase of growth with multiple strategic initiatives progressing well and remain firmly on track. During the current quarter, the aluminum zinc coating technology upgrade was successfully commissioned resulting in a 36% increase in capacity touching one 80,000 tonnes per annum and positioning us amongst select players in India with 100% aluminium zinc coating capability. The second color coating line is expected to be commissioned in early FY27 and it will expand overall coating capacity by a staggering 174% touching two 36,000 tons per annum, further strengthening our value added product portfolio and expanding customer reach.
In addition to this, the 7 megawatt peak captive solar power plant is targeted for Q1 of FY27 and is expected to offset approximately 50 to 55% of the grid power consumption, delivering meaningful energy cost savings while advancing our sustainability agenda. In parallel, the company has started has partnered with Salesforce for implementation of a new age customer relationship management system.
Karan Agrawal — Whole Time Director
This initiative will enhance data driven customer.
Karan Agrawal — Whole Time Director
Engagement, improve service quality and support higher sales conversion and customer retention, further reinforcing our outlook. The company is supported by a robust export order book of approximately 350 crores while the domestic market too has entered its peak demand season. Both these factors combined and with newly commissioned capacities and improving product mix, these form strong tailwinds for strong visibility and accelerated growth and superior performance in the quarters ahead. Thank you for joining us today and for your continued confidence in Manakhsha Coated Metals and Industries Ltd. We will be happy to take your questions.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Samira an individual investor. Please go ahead. Hello.
Unidentified Participant
Good morning, sir. Am I audible?
operator
Yes, ma’, am, you are audible. You can proceed ahead with your question. You are audible to us.
Unidentified Participant
Sir.
Unidentified Participant
First of all, congratulations on setting a new milestone that you have commissioned the new facility. Hello.
Karan Agrawal
Thank you very much.
Unidentified Participant
Yeah, sure. Sir, I have a couple of questions. First is for how long was the shutdown in the facility?
Karan Agrawal
You may go ahead and ask all your questions, please.
Unidentified Participant
Okay.
Unidentified Participant
And the second is as we know that the metals prices are rising. So since our raw materials are zinc and now also aluminum, it is, so how will it impact our raw material prices? How will it impact our margins? And the third question is that since Now India, Europe, FTA has been done and I guess 50 to 60% of our revenue comes from Europe. So how are we going to benefit from this and what is the demand outlook from Europe?
Karan Agrawal
Thank you very much, Sameeraji. Very interesting questions. Firstly, the period of shutdown that we had to incur for the technology upgrade from galvanizing to alucing coating technology lasted for close to 35 days. And this shutdown allowed us to completely upgrade all parameters of the line, including some critical parameters, critical equipment and non critical equipment, including a general overhaul of the entire facility. And we were able to restart the line within the period of 35 days. I’m also happy to tell you that it was a very good achievement by our entire technical team to deliver the first coil, the first steel coil produced with excellent quality, where we did not face any losses of trials and yield losses and rejections, etc.
As far as your second question goes, you’re absolutely right. There is rise in metal prices across the board, including non ferrous and now even ferrous. So zinc and aluminium typically have been operating at levels of between 2,700 to $2,800 per ton over the last six to nine months. Whereas currently we are seeing a situation where both zinc and aluminium have touched levels of between 3200 to $3500 per ton. And this does have immediate and direct impact on our raw material cost. However, I think the product that we are selling, the finished product, which is alu, zinc coated steel and pre painted steel, are basically linked to raw material price increase and decrease.
Where we as a producer are able to pass on the cost increases of raw material to our OEM customers, export customers and other domestic customers almost immediately. When I say that, it means within the same month or maximum in the next month. So with this kind of short time lag, we don’t you know, we don’t face any kind of a hit on our books and our margins remain intact. Your third comment was regarding the India EU FTA which has recently been signed. It is being called the mother of all deals and surely we are quite bullish about the long term benefits that will accrue to our company as a large exporter of value added products to the eu.
So far the FTA has not outlined any specific incentives or direct benefits for steel product. But The Commerce Minister, Mr. Piyush Goel as well as the Trade Commissioner from EU both specifically commented during their interviews and during their speeches that steel is an integral part of the trade and it will have a preferential treatment for India when it comes to deciding quotas, when it comes to giving default values of CBAM and other incentives. So these things are yet to unfold and we will find out. I think between April to September everything will become clear. We are very hopeful.
Unidentified Participant
Okay sir, I had one more question that how is the demand outlook from Europe and as well as the domestic markets?
Karan Agrawal
Well, demand outlook from our traditional export market of European Union remains very strong. If you see our H1 numbers, we had touched an export of about 85% or over 80% if I’m right. And in Q3 as well, we have touched an export of over 65% for a whole of nine months. We are at 67% export revenue. So it talks about continued orders with long term customers and repetitive orders and for the next quarter and foreseeable quarters in the next fiscal as well we.
Karan Agrawal
Are having a strong export order book.
Karan Agrawal
With enough demand to service our, to take care of our capacities and continue this export momentum that we have as far as domestic demand is concerned. I think after a very long protracted period of dullness right from let’s say from June to November, the domestic market.
Karan Agrawal
Was quite dull in terms of demand.
Karan Agrawal
In terms of absorption, in terms of construction related activities which really picked up.
Karan Agrawal
From December onwards.
Karan Agrawal
After the, you know, the festival period. And we are seeing the, you know, sharp increase in demand in offtake by regular customers, by pre engineered building customers.
Karan Agrawal
By sandwich panel customers.
Karan Agrawal
And I think this demand kind of.
Karan Agrawal
Scenario, high demand kind of scenario will.
Karan Agrawal
Sustain in the domestic market strongly until.
Karan Agrawal
July for sure because it was already.
Karan Agrawal
On a back burner.
Karan Agrawal
So I’m very hopeful for domestic demand.
Karan Agrawal
And I think the export momentum will continue to sustain.
Unidentified Participant
Okay sir, that’s great. That was helpful. Thank you so much and all the best.
Karan Agrawal
Thank you.
operator
Thank you. The next question comes from the line of Ashwini Agarwal from Keres Capital. Please go ahead.
Unidentified Participant
Hello.
operator
Yes sir, you are audible. Please proceed with your question.
Karan Agrawal
Yes, good morning.
Unidentified Participant
Good morning. Firstly, I just wanted to understand what kind of disadvantage in duties or you know, any other restrictions do we currently have when compared to other competing countries, if we have any. And like the margins, the margins have increased very beautifully in this quarter. So is it more due to better price realization or due to better product mix as the non painted coil sales was, you know, very low in this quarter due to the shutdown?
Karan Agrawal
You’re absolutely right Ashwini ji. So I think your overall question, if you’re asking about for nine months, yes.
Karan Agrawal
The margins have improved considerably.
Karan Agrawal
If you compare numbers to the last fiscal. And I think the reason for this.
Karan Agrawal
Is a healthy combination of both factors.
Karan Agrawal
That you just mentioned. One is that we have been able.
Karan Agrawal
To fetch a much higher price realization because of our selling strategy of higher.
Karan Agrawal
Exports and lower domestic. So you know, getting entry into highly quality conscious and let’s say very conservative customers in Europe who don’t usually give entry very easily.
Karan Agrawal
This has been a journey for us over the last four to five years.
Karan Agrawal
Where we have been able to now achieve a position where we have relationships with very strong and large European customers.
Karan Agrawal
And all of them OEMs who demand very good quality products and we are able to deliver as per their expectation of quality, of consistency, of regular timely deliveries, etc. Ultimately fetching us a good price realization. So this has been one of the factors. And secondly, I think we have been able to utilize our capacities in a much healthier manner as compared to last year and this year our capacity utilizations have all been on the color coding line it has been upwards of 95% and on the galvanizing line it has been upwards of 80% at least for the first half of the year.
For the Q3, yes, capacity utilization dropped on the galvanizing line because of the planned shutdown. So yes, better product mix, better selling strategy in terms of geographies and healthier capacity utilization, all three have contributed to the margin expansion.
Unidentified Participant
Yeah.
Unidentified Participant
And the comment on the duty.
Karan Agrawal
Right.
Karan Agrawal
So your question was does India have, have any advantage over other competing exporting countries? Am I right?
Unidentified Participant
No, I was actually asking like right now do we have like any disadvantage or you know, any restrictions?
Karan Agrawal
No, no, no, no. So I think this, this question is basically, I would say it cannot be answered holistically. It has to be put in context to which exporting country you are referring to. I’m assuming that you are referring to the eu, right? Now because we are largely exporting to Europe and for Europe, India does not have any disadvantage when it comes to competing countries such as Korea, Japan or Vietnam or Turkey. These are pretty much the competing countries that India has to pitch its product against. China is definitely out of the race because they are having heavy anti dumping duties due to which their products don’t manage to reach European shores.
And I would say India has a level playing field amongst all of them. Rather I would say India has probably a few advantages such as capacity. The countries that I mentioned like Vietnam or Turkey, which are the biggest two competitors, have limited capacity to export. They are largely, you know, their capacities are largely created for indigenous consumption for their own markets. So India has good capacities which allow exports in a sizable manner.
Unidentified Participant
Okay, great. Just last question. The 35 days shutdown which you mentioned because the press Release was on the 7th of January, not wrong. So does it mean that 25 days approximate Q3 and 10 days were in Q4?
Karan Agrawal
No, no, no. I think the press release probably came a few days late because you know.
Karan Agrawal
We didn’t want to release anything to.
Karan Agrawal
The press or to the investor community before we achieved fully stable operations and things in project stages are always a little delicate.
Karan Agrawal
So.
Karan Agrawal
But to answer your question, I would say the entire shutdown period was in December itself in Q3. So Q1, sorry, Q4 of current fiscal would not have any impact of the shutdown.
Karan Agrawal
That’s.
Karan Agrawal
That’s like.
Karan Agrawal
Great to hear. Great to hear.
Unidentified Participant
Last question.
Unidentified Participant
The.
Unidentified Participant
You know, the Alu I mean in the current quarter at least because the pre painted capacity will go live in Q1. So do you think there will be some margin de growth? Because we’ll be selling a lot of. Even though we are selling, we will be selling instead of galvanized but the pre painted quantum will be a little less.
Karan Agrawal
I don’t think you have understood the capacity that we are adding basically Ashwiniji what we do is we are currently producing Alu zinc and then transferring the same Alu zinc coil to our color coating line to produce pre painted Alu zinc coil. This is the flow of material and currently our capacity of producing Alu zinc is more than our capacity of producing pre painted aluzinc. Hence we will actually be debottlenecking by adding our second color coding line in Q1 which will allow us to fully absorb the alucing production on the two color coating lines and produce ultimately the highest value added product in a much larger manner which is pre printed alucing.
Unidentified Participant
Yeah, I got that. My question was specifically regarding Q4 that because in Q4 the pre painting capacity is much lesser than the alucing capacity. So in Q4 will there be any impact on margins was the question or.
Unidentified Participant
Will it actually increase because of, you.
Unidentified Participant
Know, migrating from galvanized to aliasing?
Karan Agrawal
Right, right, correct. So I think if you are asking about Q4 performance, expected performance of Q4 versus the previous three quarters I can tell you that definitely the migration or transition from galvanized product to aleucine product naturally brings in its own advantages and margin expansion because alexink as a product and pre printed aleucinc as a product sells at a premium and costs us lesser to produce in terms of raw material cost. So in that context, yes, theoretically it should be a situation which allows us to command higher margins. It all depends on the market scenario.
Secondly, yes, in Q4 there will be a bottleneck where we will have more alucing capacity than pre printed alucing capacity. But you know, the reality is that this particular quarter which is Jan 3rd March is also the first quarter for our alucing line where we will be ramping up capacity utilization gradually. It will not be on like the first month itself. We have gone for 90%, 95% capacity utilization. So I don’t think that the bottleneck should be a very large problem to handle. It will be, yes, we will have to sell unpainted product which I don’t think should be a very large problem to tackle.
Unidentified Participant
Okay, thank you. Thank you.
operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. A reminder to all the participants that you may press Star and one to ask a question. The next question comes from the line of Nishita from Sapphire Capital. Please go ahead.
Nishita
Yes, hello.
operator
Yes Nishita, you are audible. Please proceed with your question.
Nishita
So earlier you had mentioned that post this using upgradation and the solar plant commercialization we can have EBITDA margin growth of about 40%. And you also mentioned that we can commission the solar power plant from QNFY27. So when do we like how do we see this margin upgradation happen? Is it going to be immediately or is it going to take time to ramp up?
Karan Agrawal
Hello Nishtaji. Yes, thank you for your question. Yes, the upgrade from galvanizing to alucing along with the benefits of solar power replacing grid power will lead to a strong expansion of margins because it is leading to reduction of cost and leading to putting us in value added product space. However, the margin expansion will not happen Immediately or instantly. It is a process of us being able to sell our new alum product to our customers effectively and successfully. It will be a process of trials, commercial orders and then followed by larger orders. So I think we have to go the whole cycle.
We cannot jump to the last stair. We have to climb the whole ladder. And definitely I’m very optimistic that it will happen in the course of the coming fiscal. We should be able to see the benefits of both Alu zinc and solar power kicking in effectively and in a large manner in the coming fiscal. For sure. Quarter over quarter.
Nishita
Right. And since we like just commercialized the I using capacity, how much revenue do we foresee from that capacity in Q4? FY26.
Karan Agrawal
See, technically our capacity has grown by 36% on the allusion client. However, I think it is at nascent stages of being commissioned. So I think Q4 of FY26 will involve a large portion of the quarter involved with stabilizing the line and ramping up capacity gradually. I think the complete benefit of this capacity increase would be felt again from Q1 onwards. For sure Q4 will have.
Karan Agrawal
The benefits.
Karan Agrawal
Of the capacity increase but not to the full extent. It can be anywhere between 25 to 35% of the total benefit of capacity increase can be felt potentially in Q4. This is again a number that I foresee. It is not something that I’m, you know, declaring as confirmed but this is something that we can foresee because we are in the process of ramping up capacity right now.
Nishita
Okay, that. Thank you so much. All the best.
Karan Agrawal
Thank you.
operator
Thank you. The next question comes from the line of Dhaval Chain from Sequin Investment. Please go ahead.
Dhaval Jain
Hello sir. So I just kind of missed out on the numbers that you gave on the plant shutdown. What was the revenue downside that we could do because of the 35 days of plant shutdown?
Karan Agrawal
Well Dhavalji, the exact revenue loss is difficult to quantify because it’s a combination of production and commodity price both. So I mean if we just talk about, you know, sales. We have dropped the sales when we were forced to drop the sales because of the outage of capacity and you know, the total quantity. If we are talking about. I will just give you some numbers. Hold on please.
Dhaval Jain
Yes.
Dhaval Jain
Mahendraji.
Dhaval Jain
Can you please confirm the total Quantity sold in Q3 versus total quantity sold in Q2?
Karan Agrawal
Yeah, the quantity sold total quantity sold in Q3 is 22,896 versus in Q2 it is 24,037. It put together galvanizing and color coding. Right. I think with this, what you know, what is visible is that we had made a buffer stock of some galvanized.
Karan Agrawal
Steel coil so that our color coating.
Karan Agrawal
Operations remain, you know, fully functional during the shutdown period which has led to a consistent. At least the sales of pre painted steel was remaining consistent without outage. And in terms of production also.
Dhaval Jain
Memberji, can you please comment?
Karan Agrawal
Yeah.
Karan Agrawal
Production of galvanizing line.
Karan Agrawal
Is 68% in.
Karan Agrawal
The Q3 whereas it was 81% in.
Karan Agrawal
The Q2 and color coated it was.
Karan Agrawal
96% in the Q3 and the color coded was 100%. Right. So I think if you see the capacity utilization for the whole quarter dropped down to 68% as compared to levels of upwards of 80%, 81, 82% in the prior quarters. So this was the impact of the, you know, shutdown.
Dhaval Jain
So just a couple of more questions. I just want to understand what is the difference between the realizations of when we sell alucing versus when we sell pre painted. Is it to a tune of 15, 20%.
Karan Agrawal
The realization per ton that we achieve in pre painted alucing? Well, it, if you consider both blended of domestic and export should be in the range of about 83 to 85,000 rupees a ton. And if we see the realization of just allusing product, it should be anywhere in the range of between 71 to 73,000 rupees a ton of. So I would say close to about. Yeah, you’re right. Close to about 13 to 14%.
Dhaval Jain
Understood. Just last one more question. Once our capacity increases of prepainted to 2:36 in a capacity utilization of around 65 to 70% achievable for FY27.
Karan Agrawal
I think theoretically and practically both it is possible. Absolutely. Because if we are at 65, 70%, we are still utilizing about let’s say close to 85 to 90% of our alluzing clients production.
Karan Agrawal
Right.
Karan Agrawal
Which is a fair estimate and a practical estimate to go by.
Dhaval Jain
Okay, sir. And the margins of course will keep on increasing because of the reason naturally.
Karan Agrawal
Because we sell more value added product, the margin should technically increase.
Dhaval Jain
Perfect, sir. That’s all from my side. Thank you so much.
Karan Agrawal
Thank you.
operator
Thank you. I reminded to all the participants that you may press Star and one to ask a question. Mr. Ronak, are you there on the call?
Unidentified Participant
Yes, I’m there.
operator
Just have a look into the Q and A chat. Yeah, okay, I’m looking a reminder to all the participants that you may press STAR and one to Ask a questions. A reminder to all the participants that you may press STAR and one to ask a question. The next question comes from the line of Ashwini Agarwal from cascapital. Please go ahead.
Unidentified Participant
Yeah, just wanted a comment on the current liquidity situation and the funding plans for the future expansions.
Karan Agrawal
Well on the current liquidity situation we have very strong liquidity position with working capital facilities largely unutilized. On the fund based side and on the long term funding plans I would say that we would like to keep a very good balance between debt and equity where the company would not leverage the balance sheet too much for any of the upcoming projects. So it would be a healthy balance of debt and equity largely supported by internal accruals, long term bank debt and you know, any external participation would be evaluated, need based.
Unidentified Participant
I mean more you know, in the sense of the upcoming prepayment line and the solar project which we are undertaking. So that is already I assume planned for and we don’t need to raise any capital for both of those. At least.
Karan Agrawal
The financial tie ups for both the second color coating line and the solar power plant have been already achieved. So there is no problem in both.
operator
Thank you. A reminder to all the participants that you may press STAR and one to ask a question. A reminder to all the participants that you may press STAR in one to ask a question. Ladies and gentlemen, as there are no further questions I would now like to hand the conference over to Mr. Karanagarwal for closing remarks.
Karan Agrawal
Well, I would like to thank you wholeheartedly to all the shareholders and participants and analysts who have participated in our earnings conference call for Q3 and nine months of FY26. We truly value the long term association and partnership for the growth journey of our company and would like to thank you once again for the support shown and looking forward to touch base once again in the next quarter. Thank you.
operator
Thank you on behalf of Kiran’s advisor, Private Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines.