Mishra Dhatu Nigam Ltd (NSE: MIDHANI) Q3 2026 Earnings Call dated Feb. 17, 2026
Corporate Participants:
Unidentified Speaker
S. V. S. Narayana Murty — Chairman & Managing Director
Analysts:
Unidentified Participant
Vikash Singh — Analyst
Amit Dixit — Analyst
Hanil Bagadia — Analyst
Shashi Ranjan — Analyst
Arya Shah — Analyst
Rusha — Analyst
Henil Bagadia — Analyst
Parimal Mithani — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Midhani Q3FY26 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. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vika Singh from ICIC Securities. Thank you. And over to you sir.
Vikash Singh — Analyst
Thank you. Dhanish. Good morning everyone. Welcome to Nusha Dhatu Nigam Q3FY26 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 Murthy, Chairman cum Managing Director. Mrs. Madhubala Kaluri, 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 & Managing Director
Okay. So good morning everyone. I, Dr. SBS Narayan Murthy, Chairman and Managing Director of Mishradato Nigam Ltd. 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 July 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.
Nine months ended financial results of the company. The salient points are Turnover for the third quarter stood at 275.66 crore recording a robust 31.44% growth over second quarter turnover of 209.72 crore. Second point value of production for the third quarter was 304.05 crore compared with 256.37 crore. During the second quarter of FY26 registering a growth of 18.6%. Profit before tax for third quarter was 39 crore compared with 19.11 crore for second quarter. Fourth point profit after tax for third quarter stood at 27.46 crore compared with 12.76 crore for the second quarter. For the nine month period I.e.
april to December 2025, our turnover was 655.88 crore vis a vis 663.54 crore last year and value of production grew by 8.86 to 801.73 crore. PBT and PAT remained stable at 77.1 crore and 53.04 crore respectively. Despite the marginal moderation in top line performance and our order book position as on 1st January 2026 is 2440 crore. I want to highlight some very important achievements that Midani has made in the last quarter. One of the significant contributions is the supply of titanium alloy windows for Ram Janma Bhoomi 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 Mizani 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 daisy has been made by Meidani. And third point that is of interest to us technically is Mehdani has been certified. Mehani produced alloys, very very special alloys, particularly super alloys have been certified by Semilac Centre for Military Airworthiness. Certification has been received for 10 cast and rot super allies is it only shows the capability of Mirani towards supply of super alloys. And also we have a NATCAP certification. This is an international certification for heat treatment. We are going to receive it because audit is over.
So 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. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. A first question come from the line of Amit Dixit from Goldman Sach. Please go ahead. Yeah.
Amit Dixit
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 of M88 engines or ahead co production of F414 or co development of Safran for AMCA. So just wanted to understand, you know how Midani 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 1000 tons as of now. That is the first question.
S. V. S. Narayana Murty
Okay, thank you Mr. Amit. It’s a very nice question. See first of all, I think ever since Midani 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 allies 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 MI18, F1 4, Safran, Imka, 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 Midani 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 Midhanis 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 Mehdani is known for quality. So over the last four decades Midani 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, Mizani 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 Medani and it is used for these things. So Medani 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, we are in talks with all foreign customers at very advanced stage. We are working with them including Saffron, on the supply of materials.
So India is fully geared up and we are fully geared up at Mizani to supply these critical performance critical materials.
Amit Dixit
Okay, and what is the capacity utilization if I may ask of the 1000 tons titanium plant as of now?
S. V. S. Narayana Murty
So if you, if you look at, we have a total order book for 657 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. Capacity utilization is almost near to the full established capacity. So I can give you, yeah, as on date order around 29% or 741crore worth of titanium alloys are there. And we are fully operating our titanium plant.
Unidentified Speaker
During this period last year. And now actually last year 390 ton we melted but this time 460 means at least 20% of titanium production has gone up.
Amit Dixit
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 pre revenue spread, you know, by materials, titanium, super alloys, steel, etc.
S. V. S. Narayana Murty
Probably little part of your question was not, not heard. Can you just repeat it?
Amit Dixit
Yeah, sure. So the question is that you know 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, you know, 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, margarine, steel, etc.
S. V. S. Narayana Murty
Okay, okay, fine. So if you look at the alloys revenue in the third quarter and for the nine months we have super alloy contribution is around 20% and titanium alloy is around 19% margin. Steel is about 15% and special steels is about 37% and remaining all other grades about 9%. So predominantly super alloys and Titan M alloys constitute about 40% of our total revenue. So that is what we have been concentrating on currently.
Amit Dixit
And 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, we have ultra high strength steels which are where margins are significantly higher.
Amit Dixit
And this is for what application?
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 Hanil Bagadia from Equicorp. Please go ahead.
Hanil Bagadia
Thank you for the opportunity sir and congratulations on good set of results. So I just wanted some clarification regarding the NAT Cap 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.
Hanil Bagadia
Okay. So 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 Cauvery dry engine and we have actually got under the crystalline turbine blade and the PMD dishes. 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 Cauvery engine program. And Midani was there right from day one of the Cauvery engine program. Megani has supplied. And the Cauvery engine, whatever was flight tested all it contains only Mizani materials. Okay. So we continue to work with GTREA and we continue to supply materials to Indian aero engine manufacturers.
Hanil Bagadia
Okay. So 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
Yeah, 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 Midani. So whoever is the downstream, whoever wants to make the blades. Yes, Midani is can supply the blades. Blade material basically blade is coming after the cast stick. So cast sticks are made by Midani 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 laid. So Bizani is geared up to meet any requirements whatever are required.
Hanil Bagadia
Okay. So so this utility will also be there in multiple programs like the Cauvery dry engine program for the UCAV program or the Manik STFE engine program or you don’t see these paid being utilized.
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 are required for any of these parties. Minani is fully geared up to meet the metallic materials requirement. We will be there in the the suppliers list.
Hanil Bagadia
Okay. So coming to the Abed bulletproof jacket? I think so. We have, we do plan to apply for the big 1,000 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 ABED jacket. So what is the scope for Medani 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. Madani already has a technology called Baba 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 Abhay what you have been mentioning. So we have, we are having capability already. We are under testing of the abase. 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.
Hanil Bagadia
Okay. From the helical spring side. So what is the utilization there and how do you see the opportunity? Because I think so. We have supplied it for the one day Bharat and we also do plan to supply it for the LFP 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 one day Bharat. The train set is required.
S. V. S. Narayana Murty
See it is like this. Keeping in view of such a requirement Midani has established a spring plan and now we are going to operationalize it for the requirements of Mande 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 one day Bharat and all.
So we are in the race for that.
Hanil Bagadia
So if I get it clear we’ll have to first apply for the RDSA 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 attendance and we’ll be getting it.
Hanil Bagadia
And lastly before I get into the queue, so we also plan to supply to BML 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 BML or Alstom Because I think so these guys also.
S. V. S. Narayana Murty
But yeah we’ll be. We’ll be doing because for anything. No, 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.
Hanil Bagadia
Okay, thanks a lot for the answer. So 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
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 middle 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 Mizani 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 Mizani. And already the purchase procedures are ongoing and the same wheel 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 Merani. So maybe you will see by end of Q1 26, 27 we’ll be will be giving better information on the actual situation.
Now currently things are underway.
Shashi Ranjan
My understanding that setting up this metal bank will help bring down the working capital days and the high intensity days that are plaguing the performance of Medani.
S. V. S. Narayana Murty
No, this is a customer owned metal bank that is located inside Maidani.
Unidentified Speaker
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 petrol bank is in the books of the customers not in the books of me.
Hanil Bagadia
Okay, so what is that requirement and all?
Unidentified Speaker
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 money is concerned.
S. V. S. Narayana Murty
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. 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 Utkarsh 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 T6 grade used that can be used in Bharat Ant 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.
Unidentified Speaker
NALO and your question is Utara. 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 22192219 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, last stage. So because of the very small quantity and we will not be in a position to process them through Utkarsh.
Shashi Ranjan
Thank you so much for the updates. All the best to you and the team. Thank you. I’ll get back. Thank you.
operator
Thank you. Our next question come from the line of Ravi Ni from Nari Investments. Please go ahead.
Unidentified Participant
Thank you very much. Sir, basic raw material of titanium. 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 Chawara in Canada. 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 Mizani has. So normally we import to meet the requirements. And we meet. 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.
Unidentified Participant
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 spongebob. So there is no scrap recycling and there is no mineral is beach sand.
Unidentified Participant
So it is only in Kerala 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 process below 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.
Unidentified Participant
Not in Goa and Mumbai site.
S. V. S. Narayana Murty
Goa beaches are silver beaches. No, they are not having. I do not know whether it is there in that. It all depends on the content.
Unidentified Participant
Understand? Sir, other than this sand content, titanium we cannot get from the mines.
S. V. S. Narayana Murty
It is the. It depends on the war 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.
Unidentified Participant
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 2594 crore. As on today two years. Okay, so we have a timeline of two years for execution.
Arya Shah
Okay. And the sustainable margin, the EBITDA margin.
Unidentified Speaker
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 Apex plan for the next two years.
Unidentified Speaker
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 set to arrive.
Arya Shah
Okay, yeah, that’s it from my side. Thank you.
S. V. S. Narayana Murty
Thank you.
operator
Thank you. Next question come from the line of Sual from Opportunity. Please go ahead.
Unidentified Participant
Hello. Am I audible?
operator
Yeah.
Unidentified Participant
Yes. 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 13 crore revenue and 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.
Unidentified Participant
Sir, I just want to ask about like you are telling, according to your guidance you are telling to bring 650 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.
Unidentified Participant
So can you tell me are we on properly in the line for again like able to get the 650 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, for the revenue that we are for Q4 revenue. And third point is. Yeah.
Unidentified Participant
Okay, that’s from my. Thank you, thank you.
operator
Thank you. Ladies and gentlemen. Anyone who wishes to ask a question may press star and one. The next question come from the line of Rusha from RBSA Investment manager. Please go ahead.
Rusha
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 thousand crore company now suppose you want to become a 2000 crore company what would be the constraints of product gaps that we have to fill? Or are we, you know fully, you know 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 thousand plus crore company. If you want to take it to 2000 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 2000 crores as you mentioned mentioned.
Rusha
OK and the capex will be mostly ground, ground, filler, green filter 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. Hello.
Rusha
Yes my second question was actually we have, you know the recently the FT 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?
Rusha
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. If you. If you look at it. 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 Gani 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. The whatever agreements have taken place will boost the supply and deporting only.
So we are not anticipating any major constraints in the supply of our import of raw materials.
Rusha
So whatever import you’re doing duty free or we pay some duty to it. I’m going to get that answer.
Unidentified Participant
It is duty paid only.
S. V. S. Narayana Murty
Duty friendly.
Rusha
Okay, understood. And eventually about this metal land bank which will be owned by the customer. So how does this agreement actually change the you know, inventory days for us? Because we have to just. You know, 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.
Unidentified Participant
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 that inventory is only like in the we are only a custodian and the inventory will be in the 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. If I get my material then my raw material inventory will goes up. So immediately the once the Midani 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.
Rusha
Okay, so 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. In terms of kgs or metric tons what the total amount total weight volume of which will be that Mizan 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 Madani 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, sure what exactly the weight and.
Rusha
I’m asking only I’m from the Midani perspective 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. Only Midani 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.
Rusha
Okay. Okay. Thank you.
S. V. S. Narayana Murty
Thank you.
operator
Thank you. Our next question come from the line of Hanil Bagadia from Equicob. Please go ahead.
Hanil Bagadia
Thank you for the opportunity. Again sir, coming to the question 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. So the one day Bharat, we are also supplying specialty steel on the axle side, right? So other than the springs, we will also be doing some RN supplies for the axle, right?
S. V. S. Narayana Murty
It is like this. See, one of the important things for Midani 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. Ok. There are many springs are used everywhere. So any spring material also is available in house and spring also can be made. So that specialty will be there with meidani. 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 Midani.
So we are looking at very high value products also from this. Ok. 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. Now very large plates are used in ship construction and defense applications. Recently as I told you, Presidential diaspora 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 Heathrow.
Hanil Bagadia
Okay, so 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 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.
Hanil Bagadia
Okay, so the margin 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, which.
S. V. S. Narayana Murty
One the white plate is there?
Hanil Bagadia
No, no. Margin steel.
S. V. S. Narayana Murty
Margin steel. See, as you know, it is known to everyone that the pslv, the GSLV and launch vehicle Mark three, 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 Midani plant. Okay. That margin steel plant. So our main customer, our biggest customer for malaging 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 margin steel. Yes, it is a big very strategic thing and we also export some of these grades. Some of the non cobalt containing grade grades are being exported also.
Hanil Bagadia
Okay. So 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 and the supplies will be in progress to isro.
S. V. S. Narayana Murty
It is like this. Midani is supplying material and these are raw mater. 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 Midani 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.
Hanil Bagadia
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 RN 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 40 crore fastener plant is there in Vidani which will supply aerospace square 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. Mezani 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 Ramjan. Boom. 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.
Hanil 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.
Arya Shah
Thank you for the opportunity again. I just wanted to know the bulletproof jacket. How much is the capacity for your. For the bulletproof jacket? Hello.
S. V. S. Narayana Murty
Jacket. Capacity for bulletproof jacket. Bulletproof jackets. Okay. Okay. See it is. It is like this. So we are currently making. I mean numbers wise, if you want to give. We make. 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 Rohata plan. 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 25th.
Arya Shah
Okay. And any, 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 Narendi from Nariti Investment.
Unidentified Participant
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 minimum, 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. So there should not be issue with respect to capacity also by doing a good plan. So that is what currently we are doing.
Unidentified Participant
So what growth we are expecting for financial year 27 and 28?
S. V. S. Narayana Murty
Yeah, so. That is 26, 27, 272627 or 27 28?
Unidentified Participant
Both. Both. Both.
Unidentified Speaker
Okay. Maybe around 20% incremental. 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 current capacities and current utilizations, we can expect a 20 increase year on year.
Unidentified Participant
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, no. It involves investment of money. So we have to go to board and we have to take approval. It requests ministry approval. Majority projects are within the purview of board only. We are operating.
Unidentified Participant
Okay, but it is normal routine one or some specific need is required.
Unidentified Speaker
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.
Unidentified Participant
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 it.
Parimal Mithani
Thank you. Thank you for the opportunity. Sir, I have two questions. One is in your previous calls you have mentioned that you have 500 gates of material for which 100 aeronautical grades. So how it is unique in India in terms of company like us compared to our competitors globally. And how, how does it enhance our strength if you can throw light on it? And so if you can give a, you know, guidance in terms of how do you see Midani in next three to four years? Since the government is keen on, you know, having indigenous manufacturing and you know, 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 us first thing is our capability is to make alloys, okay? Novel alloys. And the whole idea of establishing the company also is again towards atmarabhartha. You know, 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 program 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, ok? 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, ok? 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 me 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. 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 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 Midani 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 Midani 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 2000 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 I hope this is what is required now currently.
Parimal Mithani
And yes, second thing is, you know since couple of con calls we have been mentioning in the calls, you know that lot of foreign vendors have shown interest and all that. But we have not seen any certification of. You know in terms of deals or in terms of agreements with them. You think any in the next 4C 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 Midani, we are last year we have exported about 90 crore worth of material. 90 crore worth of our export order was 90 crores. And many of these people since the grades are aeronautical grades, the so called super Allies and Titanium Allis 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 is a process basically. So we are negotiating with different customers. In fact, 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 working on that.
Parimal Mithani
Any in next two years any certification can you say in terms. 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 supply players 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.
Unidentified Speaker
Thanks.
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. I think we have had one 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 me Thani. So thank you all.
operator
Thank you ladies and gentlemen on behalf of ICICI Securities. That concludes this conference. Thank you for joining us and you may now disconnect your lines.
S. V. S. Narayana Murty
Yeah, thank you.