Mishra Dhatu Nigam Ltd (NSE: MIDHANI) Q3 2026 Earnings Call dated Feb. 17, 2026
Corporate Participants:
S. V. S. Narayana Murty — Chairman and Managing Director
Unidentified Speaker
Padavittan Babu — Director (Production & Marketing)
Madhubala Kalluri — Chief Financial Officer
Analysts:
Vikas Singh — Analyst
Amit Dixit — Analyst
Henil Bagadia — Analyst
Shashi Ranjan — Analyst
Ravi Naredi — Analyst
Arya Shah — Analyst
Sujal Jhanwar — Analyst
Rushabh G. Shah — Analyst
Parimal Mithani — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Midhani Q3 FY26 Earning Conference Call hosted by ICICI Securities. As a reminder, all participant line will be in the listen-only mode. And there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Vikas Singh from ICICI Securities. Thank you. And over to you, sir.
Vikas Singh — Analyst
Thank you, Dhanish. Good morning, everyone. Welcome to Mishra Dhatu Nigam Q3 FY26 results conference call. We would like to thank the management to give us the opportunity to host them. From the management side, we have with us Dr. S. V. S. Narayana Murty, Chairman cum Managing Director; Mrs. Madhubala Kalluri, Director Finance; and Mr. P. Babu, Director Production and Marketing.
Without taking any much time, I’ll hand over the management for their opening remark. Over to you, sir.
S. V. S. Narayana Murty — Chairman and Managing Director
Okay. So, good morning, everyone. I, Dr. S. V. S. Narayana Murty, Chairman and Managing Director of Mishra Dhatu Nigam Limited extend a warm welcome to all of you who are joining online to our earnings conference call for the quarter and nine months ended 31st December 2025. We have with us Mrs. K. Madhubala, Director of Finance, and CFO; Sri P. Babu, Director Production and Marketing; Mr. Paul Antony, Company Secretary and Compliance Officer with me. We also have senior officials from Marketing and Finance function.
Since the quarter and nine months’ functional results have already been submitted, I will just go through the key aspects of quarter and nine months ended financial results of the company. The salient points are turnover for the third quarter stood at INR275.66 crore recording a robust 31.44% growth over second quarter turnover of INR209.72 crore. Second point, value of production for the third quarter was INR304.05 crore compared with INR256.37 crore during the second quarter of FY26 registering a growth of 18.6%.
Profit before tax for third quarter was INR39 crore compared with INR19.11 crore for second quarter. Fourth point, profit after tax for third quarter stood at INR27.46 crore compared with INR12.76 crore for the second quarter. For the nine month period that is, April to December 2025, our turnover was INR655.88 crore vis-a-vis INR663.54 crore last year. And value of production grew by INR8.86 crore to INR801.73 crore. PBT and PAT remained stable at INR77.1 crore and INR53.04 crore, respectively, despite the marginal moderation in top line performance. And our order book position as on 1st January 2026 is INR2,440 crore.
I want to highlight some very important achievements that MIDHANI has made in the last quarter. One of the significant contributions is the supply of titanium alloy windows for Ram Janmabhoomi at Ayodhya. So, we have supplied 31 titanium windows. Many of you would have seen it. And this is the first time that in India, titanium has been used for architectural purposes. Even though MIDHANI has been supplying titanium alloys for last 40 years to various customers like ISRO, DRDO, HAL, many other customers, India never this material has been used for architectural purpose. You can see the beautiful windows in Ayodhya Ram Mandir. 31 titanium jalis have been supplied. This is one important achievement.
Another achievement that we can be proud is that we have supplied around 90 tons of material for Presidential Dais for Republic Day. So, recent Republic Day many of you would have watched. One of the significant contributions is the material for the Presidential Dais has been made by MIDHANI. And third point, that is of interest to us technically is MIDHANI has been certified. MIDHANI produced alloys, very, very special alloys, particularly super alloys have been certified by CEMILAC, Centre for Military Airworthiness Certification has been received for 10 cast and rods super alloys. It only shows the capability of MIDHANI towards supply of super alloys. And also, we have a NADCAP certification. This is an international certification for heat treatment. We are going to receive it because audit is over. So, this is — I wanted to share with all of you these significant achievements technically.
I think with the above, I now request the moderator to invite questions from the analysts or investors who are there joining the conference call. Thank you so much.
Questions and Answers:
Operator
Thank you, sir. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] Our first question comes from the line of Amit Dixit from Goldman Sachs. Please go ahead.
Amit Dixit
Yeah. Hi, good morning, everyone, and thanks for the opportunity. Congratulations for a good set of numbers, sir. A couple of questions from my side. The first one is that in India, if we look at the recent developments, the aerospace, particularly Indian ecosystem, is kind of showing very good potential. Whether it is like the possible domestic manufacture of M88 engines or going ahead co-production of F414 or co-development of Safran for AMCA. So, just wanted to understand, how MIDHANI is geared up for this opportunity because we have this titanium capacity for a very long time. I just wanted to understand the kind of approvals we have in place, or we are looking at in the future. Also, if you could highlight the utilization of titanium capacity 1,000 tons as of now. That is the first question, sir.
S. V. S. Narayana Murty
Okay, thank you, Mr. Amit. It’s a very nice question. See, first of all, I think ever since MIDHANI has started 52 years back, we have been working on these very specialized kind of alloys. As you know that this whole organization has been put up with the purpose of indigenization of materials in 1973. And we have been making these alloys, the so-called alloys that are required for very critical alloys, performance critical alloys for fighter aircraft. So, we regularly supply the nickel-based alloys, the cobalt-based alloys, and even some of the iron-based alloys regularly to our customers. Okay. So, you told — you mentioned MI-18, F14, Safran, AMCA, all these things people are looking for these kind of alloys.
What goes into aero engine has to be manufactured to the utmost quality. And MIDHANI has been supplying because one of our major customers is ISRO. If you look at the — right from the solid rocket motor booster that gets ignited on the ground, when you look at a PSLV or a GSLV launch to the upper stage cryogenic engine MIDHANI’s materials are used everywhere, every stage. So, that is the kind of perfection that we are — we have been trained to do and supply to our customers. And not to say that our materials are there in the form of Chandrayaan 3, our materials are there on moon. So, here in manufacture of any aero engine, quality is the most important thing. And MIDHANI is known for quality.
So, over the last four decades, MIDHANI has supplied these materials not only — I am not mentioning our defense-related supplies since it is civilian, I could mention, but we have been supplying. And you asked about titanium. Titanium, MIDHANI-made titanium is used in all gas bottles and all propellant tanks of ISRO’s launch vehicle. Every satellite, propellant tank, or gas bottle, every launch vehicle stage they have several gas bottles. The raw material is supplied from MIDHANI, and it is used for these things. So, MIDHANI is known for super alloys and titanium alloys. And we are completely geared up for meeting the — whatever requirement. We are closely working with HAL. Yes, we are there, we are supplying to them both super alloys and titanium alloys. So, even future AMCA aero engine, whatever, whoever is the customer, we will be supplying the materials. And we are in talks with all foreign customers at very advanced stage. We are working with them including Safran, on the supply of materials. So, India is fully geared up, and we are fully geared up at MIDHANI to supply these critical — performance critical materials.
Amit Dixit
Okay. And what is the capacity utilization if I may ask of the 1,000 tons titanium plant as of now?
S. V. S. Narayana Murty
So, if you look at, we have a total order book for INR657 crores. And we have multiple titanium melting facilities. As you can see, we have multiple — this is made by vacuum or cream melting and we have multiple furnaces and about 27% of our order book is on titanium and we can meet the requirements. Our capacity utilization is almost near to the full established capacity. So, I can give you.
Unidentified Speaker
As on date order.
S. V. S. Narayana Murty
Yeah, as on date order around 29% or INR741 crore worth of titanium alloys are there. And we are fully operating our titanium plant.
Padavittan Babu
During this period last year and now actually last year 390 ton we melted, but this time 465 ton we melted, means at least 20% of titanium production has gone up.
Amit Dixit
[Indecipherable] considerably, particularly this quarter. So, is it due to the product mix or the contracts that you are executing at the moment? And also if you could just broadly highlight the revenue split by materials, titanium, super alloys, maraging steel, et cetera.
S. V. S. Narayana Murty
Probably little part of your question was not heard. Can you just repeat it?
Amit Dixit
Yeah, sure. So, the question is that this quarter we saw that margins improved considerably. So, could you also highlight the drivers behind that? Whether it was revenue mix or the kind of contract that we are executing that carry possibly higher margins. Also if you could highlight the — if you could mention the revenue mix in terms of products like titanium, what the percentage was titanium of revenue, super alloys, maraging steel, et cetera.
S. V. S. Narayana Murty
Okay, okay, fine. So, if you look at the alloy wise revenue in the third quarter and for the nine months, we have super alloy contribution is around 20% and titanium alloy is around 19%, maraging steel is about 15% and special steels is about 37% and remaining all other grades about 9%. So, predominantly super alloys and titanium alloys constitute about 40% of our total revenue. So, that is what we have been concentrating on currently.
Amit Dixit
And it is — this is for nine months, right?
S. V. S. Narayana Murty
Yeah, this is for nine months.
Amit Dixit
And what are the key margin drivers?
S. V. S. Narayana Murty
Key margin drivers, if you look at, okay, we have ultra high strength steels which are where margins are significantly higher.
Amit Dixit
And this is for what application, sir?
S. V. S. Narayana Murty
It is for all missiles and rockets.
Amit Dixit
Okay, okay. Okay. Got it, sir. Got it. Thank you so much and all the best.
S. V. S. Narayana Murty
Thank you. Thank you.
Operator
Thank you. Our next question come from the line of Henil Bagadia from Equicorp. Please go ahead.
Henil Bagadia
Thank you for the opportunity, sir, and congratulations on good set of results. Sir, I just wanted some clarification regarding the NADCAP certification. You said that the audit is done. So it is — it was actually due in Q4 of this year. Right? So, is it on place or do you expect some delays for that?
S. V. S. Narayana Murty
Okay. Actually the audit is over. Some minor queries we are answering. So, it should be — we should be getting it by end of Q4.
Henil Bagadia
Okay. Sir, coming to the aerospace side. So we have also, there has been a good breakthrough with GTRE and PTC. We had also tested the the Kaveri dry engine and we have actually got under the crystalline turbine blade and the PMD basis. And I think PTC has also started getting orders. So, how big can this opportunity be for us given that we’ll be RM suppliers for this particular project?
S. V. S. Narayana Murty
Okay. GTRE, we have been working for last almost 25 years for Kaveri engine program. And MIDHANI was there right from day one of the Kaveri engine program. MIDHANI has supplied and the Kaveri engine, whatever was flight tested all it contains only MIDHANI materials. Okay. So, we continue to work with GTRE and we continue to supply materials to Indian aero engine manufacturers.
Henil Bagadia
Okay. Sir, for this particular crystalline turbine blades and PMD dishes, how big can the orders be? Because PTC has also started getting orders, I think. So, they will start sourcing the RM from us.
S. V. S. Narayana Murty
Yes, there are multiple people who are doing this blades. The raw material that goes into the manufacture of single crystal blades is melted only in MIDHANI. So, whoever is the downstream, whoever wants to make the blades, yes, MIDHANI is — can supply the blades, blade material. Basically blade is coming after the cast stick. So, cast sticks are made by MIDHANI and blade is an outcome from the cast stick. So, raw material has to be melted to the precise chemical composition and it has to be made into the form of a blade. So, MIDHANI is geared up to meet any requirements whatever are required.
Henil Bagadia
Okay. So, sir, this utility will also be there in multiple programs like the Kaveri dry engine program for the UCAV program or the Manik STFE engine program or you don’t see these blades being utilized there?
S. V. S. Narayana Murty
Yes. Yeah. I mean, see, aero engines are picking up now. There are talks going on at multiple levels and all materials requirement whatever are required for any of these parties, MIDHANI is fully geared up to meet the metallic materials requirement. We will be there in the suppliers list.
Henil Bagadia
Okay. So, coming to the ABHED bulletproof jacket. I think so, we have — we do plan to apply for the big INR1,000 crore tender that is coming up. So, I mean what would be the possible win? Because there will be multiple players here. Also, there is also been another private company based out of Delhi which has also got the ToT from DRD and IIT for the ABHED jacket. So, what is the scope for MIDHANI versus what is the scope for them? I just want some more understanding out here.
S. V. S. Narayana Murty
Okay. See it is like this. MIDHANI already has a technology called Bhabha Kavach from BARC. It is a TOT. Last quarter we have taken a technology transfer from IIT Delhi, DRDO Combined center of Excellence. That is called ABHED what you have been mentioning. So, we have — we are having capability already we are under testing of the ABHED. Multiple testing needs to be done at the ballistic materials testing laboratory and we are conducting and we are ready to take the order now. Okay. We will be participating aggressively and we will be getting the order. And when such a big order comes definitely it will be multiple people it will be given. So, we are hoping that we will be in the race and we will work towards that.
Henil Bagadia
Okay. From the helical spring side, sir, what is the utilization there and how do you see the opportunity? Because I think so, we have supplied it for the Vande Bharat and we also do plan to supply it for the LHB coaches. So, how big can the opportunity be? I think so. We have got 60,000 springs per month if I’m not mistaken and about 250 springs for Vande Bharat, the train set is required.
S. V. S. Narayana Murty
See it is like this. Keeping in view of such a requirement MIDHANI has established a Spring plant and now we are going to operationalize it for the requirements of Vande Bharat and whatever requirements are there, now we are having plans to meet, participate in that and get the RDSO approval. And once that is there we will be supplying to them, that is the whole idea. This is a imported plant. It is a machinery is having very very sophisticated things. Not many people can supply this kind of sizes that are there in the requirement for Vande Bharat and all. So, we are in the race for that.
Henil Bagadia
So if I get it clear, we’ll have to first apply for the RDSO certification and then we’ll be doing the supplies. Right.
S. V. S. Narayana Murty
We are under the process of that. Once that certification is obtained, we’ll be participating in the tenders and we’ll be getting it.
Henil Bagadia
And lastly before I get into the queue, so, we also plan to supply to BEML so on the Metro coaches and we also expand or we plan to expand the scope to the Metro. So, we — have we supplied any test batch quantities to BEML or Alstom. Because I think so these guys also…
S. V. S. Narayana Murty
Yeah. We’ll be doing because for anything, because it is a passenger vehicle, RDSO certification is essential and we are in the process of going in that direction. So, we will be getting. Once our certification is given then will have continued supply of materials. It is yet to be done. Not yet done till now.
Henil Bagadia
Okay, thanks a lot for the answer, sir, I’ll get back into the queue.
S. V. S. Narayana Murty
Thank you.
Operator
Thank you. Next question come from the line of Shashi Ranjan from Anandan Capital. Please go ahead.
Shashi Ranjan
Good morning, sir. Thank you for the opportunity and congratulation on good set of numbers. The first question is can you get me the status on the metal bank that we were planning?
S. V. S. Narayana Murty
Okay. So, as you all know that keeping in view of the supply chain disruptions MIDHANI has established a metal bank. So, already that we are working with five of our customers to establish this metal bank in the premises of MIDHANI. And already the purchase procedures are ongoing and the civil works are also underway. So, maybe down the line within six months a fully full fledged metal bank of six important raw materials that are essential for all the defense and other customers will be in place inside MIDHANI. So, maybe you will see by end of Q1 ’26-27 we’ll be giving better information on the actual situation. Now currently things are underway.
Shashi Ranjan
Sir, my understanding that setting up this metal bank will help bring down the working capital days and the high inventory days that are plaguing the performance of MIDHANI.
S. V. S. Narayana Murty
No, this is a customer owned metal bank that is located inside MIDHANI.
Padavittan Babu
It won’t — it’s not having any impact on the working capital of the company. Because the inventory that is being like held in the metal bank is in the books of the customers, not in the books of MIDHANI.
Shashi Ranjan
Okay. So, what did…
Padavittan Babu
So as and when there is requirement and all, we just be drawing that material with the on a loan basis and we’ll be replenishing it.
Shashi Ranjan
Okay sir. So any steps that we are taking to bring down the working capital and the high inventory days as far as MIDHANI is concerned.
Padavittan Babu
Yeah, that we are continuously working like if we can also see the improvement from Q2 to Q3 wherein the scrap utilizations have improved. So, basically the inventory today when we look at the working capital the major contributor is inventories, WFP and scrap. So, we are taking all the steps that continuous work is going on that so effective utilization of the materials and remelting the things wherever the materials. So, scrap utilization has been increased and also the virgin and scrap composition mix also. But of course, again it depends on the product that we manufacture certain products requires the virgin. So there are certain restrictions. We cannot just use it. But otherwise we are putting all the efforts to reduce the inventory which will definitely have a positive impact on the working capital.
Shashi Ranjan
Thank you for the updates. Before I turn up in the queue the last question is I have about the Utkarsha Dhatu Nigam limited which is a JV between you and NALCO. So, and that this will get us aluminium alloy of high grades. So, are we looking into some grades like 2219 T6 grade used that can be used in Bharatiya Antariksh Station Company. The country is trying to get into space by 2028. So, are we going to contribute to that as well through this JV between NALCO and MIDHANI.
S. V. S. Narayana Murty
Yeah. So, your question is Utkarsha. So, with respect to that the due to the non — I mean viability of the project it has been recommended for closure. So, that is a very brief answer to your question. We are not going to pursue that project anymore. We are going to formally close down. We are continuously discussing with NALCO. Both of us are going to discuss on this and take the proposal for closure forward.
Then coming to the second one, yes, such alloys are required but the total requirement like you mentioned 2219 those alloys are required for ISRO but currently the total annual requirement is too small for anyone to have a dedicated plan. Because these are aerospace grade aluminum alloys and they need very very careful processing until last stage. So, because of the very small quantity and we will not be in a position to process them through Utkarsha.
Shashi Ranjan
Thank you so much for the update, sir. All the best to you and the team. Thank you. I’ll get back in the queue.
S. V. S. Narayana Murty
Thank you.
Operator
Thank you. Our next question come from the line of Ravi Naredi from Naredi Investments. Please go ahead.
Ravi Naredi
Thank you very much. Sir, basic raw material of titanium, from where we get? How many we import and how many we received from recycled product?
S. V. S. Narayana Murty
Okay. It is like this. Titanium alloy, as you know, India is having a titanium alloy production — sponge production plant at Chavara in Kerala. Okay. That is about 500 ton per annum. It makes titanium sponge. And the actual production is about 150 tons per annum. And the quality of the sponge that comes in different grades. So, it will not be able to meet the total requirement of the order book, whatever we, MIDHANI has. So, normally we import to meet the requirements. And we meet. Yeah. So, we import from our East European nations and — to meet our requirement. So, this is a short answer for you. We import this titanium sponge.
Ravi Naredi
Okay. Understand, sir. In Kerala, any mines is there or it is scrap material?
S. V. S. Narayana Murty
No, no, it is not scrap. Actually, if you look at titanium is processed from the beach sands of Kerala. The beach sides of Kerala, they have a mineral called ilmenite. So, the ilmenite is processed because they have — originally they were having a titanium dioxide pigment plant. Okay. So, white color pigment whatever you use in industries, it is called titanium dioxide. And because titanium dioxide is there, technology was available and within the defense lab, and it was used to make titanium sponge. So, there is no scrap or recycling and there is no — mineral is beach sand.
Ravi Naredi
So, it is only in Kerala or other Indian state?
S. V. S. Narayana Murty
No, not like that. It is there along the coast of — along the west coast of — East coast also you have in fact, Orissa has some of the beach sands. It only depends on the processability and the amount of titanium in that. Otherwise, the sands are available including Orissa, Andhra Pradesh, Tamil Nadu, Kerala. All the beach sands have this titanium content.
Ravi Naredi
Not in Goa and Mumbai site.
S. V. S. Narayana Murty
Goa beaches are, they’re silver beaches. They are not having. I do not know whether it is there in that. It all depends on the content.
Ravi Naredi
Understand. Sir, other than this sand content, titanium we cannot get from the mines?
S. V. S. Narayana Murty
It is — it depends on the ore you are talking about. So, titanium ore is what is important. Normally it is coming from beach sands, Ilmenite kind of thing, which is available in sand. Yeah.
Ravi Naredi
Okay. Okay, thank you.
Operator
Thank you. Our next question comes from the line of Arya Shah from Whitestone Pms. Please go ahead.
Arya Shah
Hi, thank you for the opportunity. So, my first question is, what is the order book timeline execution? Current order book?
S. V. S. Narayana Murty
Yeah. So, the current order book execution. Okay, as the maximum period. Yeah. Total order book is INR2,594 crore as on today. Okay, so we have a timeline of two years for execution.
Arya Shah
Okay. And the sustainable margin, the EBITDA margin.
Padavittan Babu
Around 23% on an average we can take.
Arya Shah
Okay. And I think, in the Q2 you are mentioning some capex plan which would be announced in Q3. So, could you talk about the capex plan for the next two years.
Padavittan Babu
That we are working on that. That projects are under evaluation. We are working on that. It’s not yet finalized. Probably by end of this Q4 we should be able to give a clarity on that.
Arya Shah
Okay. And the powder plant capex is the work ongoing and what would be the turnover estimated?
S. V. S. Narayana Murty
Yeah, we are in the process of procuring, some formalities are there which have to be completed because some export license, that procedure is going on in foreign country. So, once that is there then we will be able to set up the plant and do. Now currently equipment is yet to arrive.
Arya Shah
Okay, yeah, that’s it from my side. Thank you.
S. V. S. Narayana Murty
Thank you.
Operator
Thank you. Our next question come from the line of Sujal from Opportune Wealth. Please go ahead.
Sujal Jhanwar
Hello. Am I audible?
S. V. S. Narayana Murty
Yeah.
Operator
Yes, Sujal. You are.
Sujal Jhanwar
Congratulations on the good set of numbers, first of all, sir. Sir, I just want to understand that in you have guided in last quarter you have guided of INR13 crore revenue and also 23% of EBITDA margin. So, I want to understand what are the drivers for that and are we on the line or not?
S. V. S. Narayana Murty
Yeah, drivers for this Q3 performance. Yeah, basically the drivers are titanium and super alloys where we have executed whatever balance were there in Q2, we could liquidate them. And yeah, so basically they are the super alloys and titanium alloys.
Sujal Jhanwar
Sir, I just want to ask about like you are telling, according to your guidance you are telling to bring INR650 crore blocks corrode revenue incremental in quarter four. So, what are the growth drivers for that?
S. V. S. Narayana Murty
Yeah, growth driver. So, we are now currently manufacturing some of the aeronautical grades. Okay. So, some of the Aero grades that are to our Aero customers we are now currently processing. And then whatever are under processing from Q3, we are going to liquidate them. And some special steels are also there in that which will be booking them in the fourth quarter.
Sujal Jhanwar
So, can you tell me are we on properly in the line for again like able to get the INR650 crore of revenue and also can you please guide me on the upcoming capex for the year and order book?
S. V. S. Narayana Murty
Yeah, one point regarding capex. Yes it is under DPR stage. So, we are just looking for it. Okay. Once DPR is complete we will be able to share some more information and growth divers you asked. Yes. So, predominantly the super alloys and special steels we are looking for the revenue that we are for Q4 revenue. And third point is, yeah.
Sujal Jhanwar
Okay, sir, that’s from my side. Thank you.
S. V. S. Narayana Murty
Thank you.
Operator
Thank you. [Operator Instructions] Our next question come from the line of Rushabh from RBSA Investment manager. Please go ahead.
Rushabh G. Shah
Hi, sir. Just want to understand last quarter I think you said that we had some ambitious growth and maybe you’ll give some update on Q4. So, but I just want to understand because you are a INR1,000 crore company now suppose you want to become a INR2,000 crore company what would be the constraints of product gaps that we have to fill? Or are we fully just waiting for orders to come in and we are ready to execute them?
S. V. S. Narayana Murty
Yeah. One is capacity enhancements and effective utilization of some of the facilities. So, probably we can answer your question in two prongs. One is there are facilities which can be, I mean, like where we can effectively utilize more output from them with existing facilities. And second thing is if we can establish some capex that is the whole idea currently as you told we are INR1,000 plus crore company. If you want to take it to INR2,000 crore company in that direction that is the whole idea of management how to take the sales to the next level.
So, if you want to double the — our capacity, we need to put some infrastructure. So we are currently looking on that. As I told in the previous question, we are now currently working on what are the important equipment that we need to — facilities that we need to establish so that we can take it to that. So, as a part of that we are having some capex plan so that we will be able to share once DPR and other approvals, internal approvals are ready. Maybe by Q4, end of Q4 we will be able to give you more information, but idea is how to take into the growth path towards INR2,000 crores as you mentioned.
Rushabh G. Shah
Okay. And the capex will be mostly ground field or green field sir or you cannot share this?
S. V. S. Narayana Murty
Yeah, no we will be giving full details by probably once DPR is ready we’ll be able to give you full details.
Rushabh G. Shah
Hello. Yes, my second question was actually we have, the recently the FDA has been signed with the EU so how does that help you in terms of import of raw material for us?
S. V. S. Narayana Murty
Can you repeat?
Rushabh G. Shah
No. Recently the country has signed the trade agreement with EU. So, how does it help us in respect to the import of raw material since we import a lot of materials from the Eastern Europe you mentioned so how does it help us? Are we paying duty in that currently or how does it help us?
S. V. S. Narayana Murty
Yeah, if you look at it, yes, we are importing some of the raw materials. We are also trying parallelly how to indigenous them. So, that is plan B already we have and we are trying to work. But predominantly the metallic materials are imported. So, as a part of that we are already having an internal metal bank. So, to insulate MIDHANI from any supply chain constraint. Plan B, we are currently not having as on today any supply chain issue. So, we only hope that the whatever agreements have taken place will boost the supply and debottleneck only. So, we are not anticipating any major constraints in the supply of our import of raw materials.
Rushabh G. Shah
So whatever import you’re doing duty free or we pay some duty to it. I’m going to get that answer.
Padavittan Babu
It is duty paid only.
Rushabh G. Shah
Duty free only. Okay. Understood. And eventually about this metal land bank which will be owned by the customer. So, how does this agreement actually change the inventory days for us? Because we have to just, I think more or less an as an need basis for us currently as if we are holding three to five months of inventory now. So, now customer balance won’t be ownership with the customer. The inventory ownership.
Padavittan Babu
It won’t make any change in the inventory days. That’s what I mentioned that suppose if that inventory is in the books of the company then it will have an impact on the working capital as well the inventory days. Since that inventory is only like in the — we are only a custodian and the inventory will be in the books of customers. So, the materials whatever is required on need basis whatever based on the requirement just will be drawn on a loan. And as and when our materials comes which will get replenished basically in a net of that inventory remains same. So, because if I get my material then my raw material inventory will goes up. So, immediately the — once the MIDHANI’s material has come the same will be replenished. So, the next material impact is remain same. It will not have any impact on the inventory days of the company because of metal bank.
Rushabh G. Shah
Okay. Sir, just one data point if you could share. For example suppose we are supplying to the indigenously made supposedly light combat aircraft. So, in terms of kgs or metric tons what the total amount — total volume of which will be that MIDHANI is applying to say one light combat aircraft isn’t data point that you can share across the 10 number supervised or whatever products we supply to an aircraft.
S. V. S. Narayana Murty
So in aircraft what happened, there are a lot of materials. Not only MIDHANI manufactured items like super light item and special steel. There are aluminum composites and many other components are there. We are not very much sure what exactly the weight and…
Rushabh G. Shah
I’m asking only from the MIDHANI perspective. MISHANI supplies, how much do we supply in terms of kgmetric and whatever data point can we share other than is not the other materials Only MIDHANI perspective.
S. V. S. Narayana Murty
Yeah. Just to give you what will happen is they will take maybe say 10 aircraft, 20 aircraft and they put a common material requirement bill of material. So, what will happen is we will not be knowing for how many aircraft they are using. But the difficulty in answering your question is only that. We’ll only know what is the purchase order placed on that in that very small component they may be making or very big component. So, numbers for which the order is placed is unknown.
Rushabh G. Shah
Okay. Okay. Thank you.
S. V. S. Narayana Murty
Thank you.
Operator
Thank you. Our next question come from the line of Henil Bagadia from Equicorp. Please go ahead.
Henil Bagadia
Thank you for the opportunity again, sir. Sir, coming to the questions related to the vehicle spring, I had just one small question. So, if I mean the order start taking up after we get the certification. So, do we have plans to even supply to Alstom and Siemens given that they are also supplying orders out here and do you see large export opportunity in this particular area?
S. V. S. Narayana Murty
Okay. To answer your question, yes, we will supply — our plant is capable of supplying very high quality large size springs also because the capacity is in such a direction. So, we will be supplying to any customer whoever is meeting, I mean their specifications. We are ready and we are also open to exports. So, we’ll be trying everything to get orders for spring client.
Henil Bagadia
Okay. Sir, the Vande Bharat, we are also supplying specialty steel on the axle side, right? So, other than the springs, we will also be doing some RM supplies for the axle, right?
S. V. S. Narayana Murty
It is like this. See, one of the important things for MIDHANI is we are also raw material supplier and we also are doing this value added business. So, we can make our own material internally and make the spring. So, even there are some special springs even other than railway springs. Okay. There are many springs are used everywhere. Okay. So, any spring material also is available in-house and spring also can be made. So that specialty will be there with MIDHANI. Yes, we will be doing specialized springs also. And whatever composition is required for the spring from the manufacturer, even that also that raw material and that melting and that bar making also is within the capability of MIDHANI. So, we are looking at very high value products also from this. Okay, which are non-railway also we can do it.
Henil Bagadia
Are you looking on the vehicles or the light combat tanks or any such places where specialty springs is actually needed for multi-terrain use?
S. V. S. Narayana Murty
First we will start with railway, then we’ll expand into other areas. Because these special springs are used by only in western countries. I am to the best of our knowledge, minus railway springs or elevator springs or other carbon steel business, there are other grades of springs that are used by, I mean imported. So we are looking for value added materials rather than this carbon springs. We’ll see how it goes.
Henil Bagadia
Okay, on the rolling mill side, so are we supplying a rolling roll plate mill — rolled, sorry. The plates for NGC’s or any other big naval programs.
S. V. S. Narayana Murty
See these provide plate mill. Whatever product is coming, we are supplying it to, for example ISRO, for example shipyard. All white wide plates. Very large plates are used in ship construction and defense applications. Recently as I told you, Presidential Dais we have supplied. So multiple customers are there. That mill can do anything. Whatever material is loaded, it will roll and give a plate. So, depending on the customer orders we use predominantly it is used for ISRO.
Henil Bagadia
Okay. Sir, since we’ve got suboptimal utilization in the rolling plate mill facility, we also plan to do some contract manufacturing on the aluminium or the super specialty steel side for any of the industrial customers to just cover more of the fixed cost and also increase the utilization. So, any progress there?
S. V. S. Narayana Murty
Yeah, actually what happened, okay, your question may be related to some of the opportunities that we are exploring with the other aerospace companies who are requesting us for us to take up aluminum. Yes, there are orders within DPSUs and outside DPSUs for utilizing the rolling mill for aluminum. Yes, we are doing. Already we have done for your information, on a trial basis. The products are good and we are thinking of it, because it needs some additional facilities for setting up a full line. So, at least for white plate bill utilization for rolling to sheets and plates can be are being explored, currently we are doing it.
Henil Bagadia
Okay. Sir, the maraging steel side also what is the capacity utilization and are we supplying it just for the aerospace or are we supplying it for the missile schemes? And on the defense side also
S. V. S. Narayana Murty
Which one, white plate is it?
Henil Bagadia
No, no. Maraging steel.
S. V. S. Narayana Murty
Maraging steel. See, as you know, it is known to everyone that the PSLV, the GSLV and launch vehicle Mark 3, the booster case material that gets ignited when you see a launch vehicle launch of any of these launch vehicles from Sri Haricota, everything is made in MIDHANI plant. Okay. That maraging steel plant. So, our main customer, our biggest customer for maraging steel is ISRO. Yeah. Then second thing is the same grade is used in some of the missiles. Okay. Then third thing we are — there are other opportunities. The other grades of high strength steels we are also exporting. Okay, so maraging steel. Yes, it is a big very strategic thing and we also export some of these grades. Some of the non-cobalt containing grades are being exported also.
Henil Bagadia
Okay. Sir, lastly on the Gaganyaan part, so we have got about three Gaganyaan missions. That is G1, G2 and G3 this year also we’ve got the Mangalyan mission and the relaunch of the PSLV that was not successful last year. Sir, are you seeing any last minute orders flow or most of these orders have actually been booked and the supplies will be in progress to ISRO.
S. V. S. Narayana Murty
It is like this. MIDHANI is supplying material and these are raw materials basically. They are in the form of plate, sheets, bars, ring rolled rings. So, ISRO takes the materials and gives to subcontractors. Like there are many subcontractors for ISRO for making the — like solid rocket boosters, liquid engines and cryogenic engines. So, our raw materials go and the timeline is like the moment they receive material, they will be starting using these materials for fabrication of rocket boosters or the liquid engines or whatever they want. So, the orders for MIDHANI are put maybe at least two years in advance. It is not that the last minute they will come and give. Okay, so, it is a well planned calendar for them. So their projects are already well in advance and they will back calculate the lead times and they will put orders with us.
Henil Bagadia
Okay. Sir, just a small follow up yourself. When you said you plan to get into the value add side, I actually assumed you actually plan to get on the little bit on the forging side or probably on making some components here and there. So, what exactly would you mean by value added when we see these contracts where we are just applying RM suppliers.
S. V. S. Narayana Murty
Yeah. So, we can see for example spring. So, spring is a value added product. It is not a raw material. We are having fastener plant. For example a INR40 crore fastener plant is there in MIDHANI which will supply aerospace fastener to our customer. So, the fastener material is also available. Fastener plant is also available. So, our own raw material we’ll take, we’ll make fasteners and supply. So, these are the like for example castings. We have a raw material making, alloy making plant. We are also having casting plant so we can make so yeah. MIDHANI makes all the titanium alloy castings and super like castings for our customers.
We have a welding electrode plant. So, we have right from melting stage, we make the material, forge it, then roll it and then wire draw, extrude. I mean wire draw it and make a welding electrodes for some of our customers. So, we have a very large special welding plant. Okay. Welding electrode plant. So, these are all the value added products. So castings, fasteners, these welding electrodes, these are all the plants. And some like for example, that titanium windows for Ram Janmabhoomi. It is a fully fabricated one. So, just we made everything within the plant and we went and fixed it. So, we are looking at products where we can add value rather than give only raw materials. So, that is the whole idea of using that word, value added products.
Henil Bagadia
Okay. Okay. Thanks a lot for the answer, sir. And wish the team all the very best.
S. V. S. Narayana Murty
Thank you.
Operator
Thank you. Our next question come from the line of Arya Shah from Whitestone Pms. Please go ahead.
Arya Shah
Thank you for the opportunity again. I just wanted to know the bulletproof jacket. How much is the capacity per year for the bulletproof jacket? Hello.
S. V. S. Narayana Murty
Capacity for?
Arya Shah
Bulletproof jacket.
S. V. S. Narayana Murty
Bulletproof jackets. Okay. Okay. See, it is like this. So, we are currently making, I mean, numbers wise, if you want to give, we make process in that in terms of the batches. Okay. So, each batch contains maybe 50 jackets. Okay, 100 jackets depending on the order. So, the limitation is not really the equipment availability or the facilities that are available. So, we can ramp up by putting number of shifts. We can increase and we can jack up also. So, it all depends on orders. The facilities are available end to end, like from raw materials to products. And we also have a agreement for testing all these things, testing of jackets. So, we are looking forward for getting the order.
Arya Shah
Okay. And could you like say in the absolute terms, the defense factory contributes to the revenue currently the Rohtak plant. I think the plant, the defense plant.
S. V. S. Narayana Murty
Yeah, Defense, we have revenue from defense sector is 28% of the total revenue up to nine months December ’25.
Arya Shah
Okay. And any order book there?
S. V. S. Narayana Murty
Yeah, we have from defense order book. If you look at total, yeah, 72% of our order book is from defense. Because it includes, yeah, it includes all are there put together.
Arya Shah
Okay, thank you.
S. V. S. Narayana Murty
Thank you.
Operator
Thank you. Our next question comes from the line of Ravi Naredi from Naredi Investment. Please go ahead.
Ravi Naredi
Sir, I would like to ask what is our key factor to run our company? Shortage of raw material, shortage of capacity constraint or something else?
S. V. S. Narayana Murty
Yeah, raw material supply constraints are ever there. Okay. Now we are trying to inflate ourselves from this raw material uncertainty by establishing metal banker. So, unless there is a major geopolitical thing, we don’t expect a issue with respect to raw materials. And that is with respect capacity constraints. Point number two, what you have raised, we are working at full capacity of the downstream mill.
If required, we can melting wise we have sufficient capacity. Okay. So, wherever possible, there are opportunities for us to even go outside wherever it is permitted from the customer, we can use outside — we can outsource the downstream processing requirements. Only melting capability outside people may not have. Because the alloys that we are processing are very unique under I mean their proxying needs with special capabilities. Okay. So, there should not be issue with respect to capacity also by doing a good plan. So, that is what currently we are doing.
Ravi Naredi
So, what growth we are expecting for financial year ’27 and ’28?
S. V. S. Narayana Murty
Yeah, so. That is ’26-27 or ’27-28?
Ravi Naredi
Both.
Padavittan Babu
Okay. Maybe around 20% incremental revenues. We can expect it till the capex things are finalized. Once the capex clarity has come, then probably we will be able to revisit that figures. Otherwise, in the current capacities and current utilizations, we can expect a 20% increase year-on-year.
Ravi Naredi
And who gives you the capacity permission to increase the permission? Your board is not authorized to do all such thing.
S. V. S. Narayana Murty
No, it involves investment of money. So, we have to go to board and we have to take approval.
Madhubala Kalluri
It requests ministry approval. Majority projects are within the purview of board only. We are operating.
Ravi Naredi
Okay, but it is normal routine one or some specific need is required.
Madhubala Kalluri
No. We are planning some capex projects which are unique and which will enhance our capacity as well as top line. Those are in the DPR stage. Maybe by end of Q4 we can able to give correct picture how much it is going to happen.
Ravi Naredi
Okay, okay. Okay. Thank you. Thank you.
S. V. S. Narayana Murty
Thank you.
Operator
Thank you. Our next question come from the line of Parimal Mithani from Credential Investment. Please go ahead.
Parimal Mithani
Hello, can you hear me?
S. V. S. Narayana Murty
Yeah, we are able to hear you.
Parimal Mithani
Thank you, sir. Thank you for the opportunity. Sir, I have two questions. One is in your previous calls, you have mentioned that you have 500 grades of material of which 100 are aeronautical grades. So, how it is unique in India in terms of company like us compared to our competitors globally. And how does it enhance our strength if you can throw light on it? And sir, if you can give a guidance in terms of how do you see MIDHANI in next three to four years? Since the government is keen on having indigenous manufacturing and a lot of emphasis on given on being self sufficient in the defense and space and all that. If you have some roadmap, it’ll be much better for us.
S. V. S. Narayana Murty
Okay, yeah, thank you. So, you told first thing is our capability is to make alloys, okay, Novel alloys. And the whole idea of establishing the company also is again towards Atmanirbharta. Different platforms and different organizations have different requirements. The requirements of aerospace, for example, like ISRO and the examples like HAL are the materials requirement for say DRDO are different because it all depends on in which environment we are working. So, how do you see strength? For example, if a national program has to import material today, for example, aluminum alloys, white plates are being imported from outside the country. And that is how these — it becomes critical. Suppose there is an issue with respect to import of those things. It is a — it will crumble the whole program. So, recently we have seen also in the Ukrainian conflict or the COVID time, there was supply chain disruptions and there was large delays in obtaining materials.
And because of the growth of the industries, the mills in abroad are also booked. In fact, foreign customers come to us because our lead times are shorter sometimes. So, the strength is that our national programs are protected. If I say that 500 grades of alloys are there, out of which 100 aeronautical grades are there. There is no necessity for any of these 500 grades for any user within the country to go and import. So, we are fully protecting them. Any new grade of alloy technology is available in this bouquet of 500 raw materials. That is point number one.
And we consider it as a very great strength. Because national programs should not get suffered because of this, okay. Because of lack of materials and material is the first line of confrontation, okay. First line of defense is material. Material not available, there are many people who can machine and give components, okay. Because they can be used for — but material is the one thing that no one will give. And you are listening continuously this national critical minerals mission and all these things. So, everybody is trying to control through materials the strategic raw materials. So, that is point number one.
We are able to process the materials and give to our customers. You also told where you want to see MIDHANI in three to four years and roadmap. Yes, we have our own internal roadmap. A very strategic roadmap to develop alloys. And we want to increase our production. We want to take the production to new height so that by going for capex so that we can meet the increasing demand. Even today, there are hundreds of crores of materials worth are getting imported. Okay. So, how to meet the full requirement, how to stop this import of materials and if we can meet that requirement through upgradation of our facilities and plan in such a way that we can meet for the next 10 years the growth plan by installing some additional capacities wherever there are critical things. That is point number one.
Another point is some of the older equipment that are inside the plant which are nearing their end of life. I think if we can substitute with higher productivity machines that also will aid MIDHANI to grow at 20%. Whatever we were telling in the coming years that kind of growth plan if you want to have, we have to have certain capex plans. So currently we are working on that. And by installing additional capacity in critical areas MIDHANI will be able to achieve higher growth. And that three to five — we are looking at 10 years and beyond long term plan. So, that is what our — slowly we want to move towards a INR2,000 crore company in maybe coming 10 years. So, towards that, yes, we are doing a lot of things and this is capex is one of them. I hope this is what is required now currently.
Parimal Mithani
And yes, second thing is, since couple of con calls we have been mentioning in the calls, that lot of foreign vendors have shown interest and all that. But we have not seen any certification of in terms of deals or in terms of agreements with them. You think any in the next will 2 years can we see some certification with global vendors and how does it go? Some of them are setting shops in India and how will be in that supply chain with them?
S. V. S. Narayana Murty
If you look at MIDHANI, we are last year we have exported about INR90 crore worth of material. Okay. INR90 crore worth of — our export order was INR90 crores. And many of these people since the grades are aeronautical grades, the so-called super alloys and Titanium alloys they are obviously going to aeronautical customers. Now with respect to your question that we are not seeing the foreign parties. Yes, certification is a process. That is a process that takes significant amount of time. There are audits involved. In fact, there are multiple audits involved.
Their teams, their technical teams with it. It is a process basically. So we are negotiating with different customers. In fact, as I — as we talked there are some audits that are going on. So, essentially it is that once the audit teams are auditing our certifications, whatever we are having those things are in place. Obviously, we will get order and the effort is towards that to increase the export market. So, we are working on that.
Parimal Mithani
Any — in next two years any certification can you say in terms of because I understand the process, it’s a long thing. But any lightfully our next two years can you see in terms of in that.
S. V. S. Narayana Murty
Yes, certainly in next two years definitely we can — we’ll have significant understandings for supply of materials to some of the Aero customers outside whomever you are popularly you are listening. So, we’ll be in their suppliers list.
Parimal Mithani
Okay sir. Thank you.
S. V. S. Narayana Murty
Thank you.
Parimal Mithani
And all the best.
S. V. S. Narayana Murty
Thank you.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I would like to hand the conference over to the management for the closing comments. Thank you. And over to you team.
S. V. S. Narayana Murty
So, thank you so much. I think, we have had wonderful question. I think total 12 questions were asked by our members. We are very happy to answer. We only feel that there is enormous potential and we are working towards on improving our plans, growth plans and as I mentioned during our discussion. So, probably, we will see Q4 results time again with more interesting things from MIDHANI. So, thank you all.
Operator
Thank you. [Operator Closing Remarks]
S. V. S. Narayana Murty
Yeah, thank you.