Metal Coatings (India) Limited presented its 32nd Annual Report for the financial year ended March 31, 2026, reflecting a year marked by revenue pressure from challenging steel industry conditions, while profitability remained broadly stable supported by significant cost efficiencies. The Company, engaged in the manufacture and sale of Cold Rolled Steel Strips and Hot Rolled Pickled and Oiled (HRPO) Steel Strips and Coils, operates a manufacturing facility at Plot No. 113, HSIIDC Industrial Estate, Sector – 59, Faridabad – 121004, Haryana.

Financial Performance

The Company recorded revenue from operations of Rs. 14,897.55 Lakhs in FY 2025-26, compared to Rs. 16,025.02 Lakhs in FY 2024-25. The decline was attributed to challenging market conditions in the steel sector, including increased competition, volatility in raw material and steel prices, margin pressure, subdued demand from certain end-user sectors, and the impact of the ongoing conflict in the Middle East on global energy supply and freight costs. Despite these headwinds, the Company maintained profitability through cost optimisation and operational efficiency measures.

The following table summarises the key financial results for FY 2025-26 and FY 2024-25:

A notable feature of FY 2025-26 was the sharp decline in finance costs to Rs. 1.41 Lakhs from Rs. 237.41 Lakhs in the previous year, which significantly improved the Interest Coverage Ratio to 227.02 times from 2.30 times and the Debt Service Coverage Ratio to 211.18 times from 2.24 times. Basic and diluted earnings per share stood at Rs. 3.28 for FY 2025-26, compared to Rs. 3.23 in FY 2024-25.

Key Financial Ratios

The Management Discussion and Analysis Report disclosed the following key financial ratios for FY 2025-26:

Dividend and Capital Structure

The Board of Directors, at its meeting held on May 27, 2026, recommended a final dividend of Rs. 1 per equity share (10% on face value of Rs. 10 each) for FY 2025-26, subject to shareholder approval at the 32nd Annual General Meeting scheduled for August 20, 2026. The total dividend payout will be approximately Rs. 73.27 Lakhs, representing 30.53% of standalone profits after tax. The record date for determining dividend entitlement has been fixed as August 13, 2026.

The capital structure of the Company remained unchanged during the year. The Authorised Share Capital stood at Rs. 8,00,00,000/- (Rupees Eight Crores Only), divided into 80,00,000 equity shares of Rs. 10 each, while the Paid-up and Subscribed Equity Share Capital remained at Rs. 7,32,68,000/- comprising 73,26,800 equity shares of Rs. 10 each. As on March 31, 2026, promoters and the promoter group held 51,97,282 shares, representing 70.94% of the total equity share capital.

Credit Rating, Auditors and Governance

During FY 2025-26, Acuite Ratings & Research Limited reaffirmed the Company's long-term credit rating of 'ACUITE BBB' and short-term credit rating of 'ACUITE A3+' on its bank facilities, with the rating outlook maintained as 'Stable'. The rating reflects the Company's consistent operational performance and sound financial position.

M/s Mehra Goel & Co., Chartered Accountants (Firm Registration No. 000517N), served as Statutory Auditors during the year. The firm has since converted to a Limited Liability Partnership and is now known as Mehra Goel & Co LLP. The Board has recommended their re-appointment for a further term of five consecutive years, from the conclusion of the 32nd AGM until the conclusion of the 37th AGM in 2031, subject to member approval. The Statutory Auditors' Report for FY 2025-26 does not contain any qualification, reservation, adverse remark, or emphasis of matter.

During FY 2025-26, there was a change in Key Managerial Personnel: Mrs. Vidushi Srivastava resigned as Company Secretary and Compliance Officer with effect from December 1, 2025, and Mrs. Shimpy Goyal was appointed to the role with effect from December 2, 2025. The Company's permanent employee strength stood at 63 as on March 31, 2026, with the median remuneration of employees increasing by 7.34% during the year.

Industry Outlook and Related Party Transactions

The Company operates in the Iron and Steel sector and serves diverse industries including automotive components, consumer durables, electrical and electronics, and infrastructure. India's crude steel output increased by more than 10.7% year-on-year to around 168.4 MnT during April–March, while domestic finished steel consumption expanded by about 7–8% to 164 MnT. During the calendar year 2025, India retained its position as the world's second-largest producer of crude steel, according to provisional data released by the World Steel Association on 4 December 2025.

Material related party transactions during FY 2025-26 were primarily with M/s Khandelwal Busar Industries Private Limited, involving sales of Rs. 3,669.50 Lakhs, purchases of Rs. 29.69 Lakhs, rent received of Rs. 26.40 Lakhs, and cash discount of Rs. 70.72 Lakhs, all conducted at arm's length and in the ordinary course of business. The 32nd AGM agenda includes shareholder approval for continued material related party transactions with M/s Khandelwal Busar Industries Private Limited, with a proposed total transaction value not exceeding Rs. 95 crore, comprising Rs. 45 Crore from the 32nd AGM till the close of FY 2026–27, and Rs. 50 Crore from the commencement of FY 2027–28 till the 33rd AGM.

Metal Coatings (India) Limited has scheduled its 32nd Annual General Meeting for Thursday, August 20, 2026, to secure shareholder approval for a material related-party transaction worth ₹95 crore. The company will also seek ratification for a final dividend of ₹1 per equity share for the financial year ended March 31, 2026, alongside the re-appointment of its statutory auditor for a second five-year term.

The primary special business item involves approving transactions with Khandelwal Busar Industries Private Limited (KBIPL), a related party under Section 2(76) of the Companies Act, 2013. The proposed omnibus approval covers sales, purchases, job work, rent, and other arrangements totaling ₹95 crore in aggregate from the conclusion of the 32nd AGM until the 33rd AGM. This approval is mandated under Regulation 23(4) of the SEBI Listing Regulations and Section 188 of the Companies Act, 2013, as the transactions exceed the thresholds specified in Schedule XII of the SEBI Listing Regulations.

The Board of Directors has recommended the resolution, noting that the transactions are conducted at arm’s length and are commercially advantageous. Mr. Pramod Khandelwal, Managing Director, and Mr. Ramesh Chander Khandelwal, Whole Time Director, have substantial interest in KBIPL and have recused themselves from voting on this resolution. The estimated value of these transactions represents approximately 64% of the listed entity’s annual consolidated turnover for the immediately preceding financial year.

Auditor Re-Appointment and Cost Audit

Shareholders will also vote to re-appoint M/s. Mehra Goel & Co LLP, Chartered Accountants, as Statutory Auditors for a second term of five consecutive years, effective from the conclusion of the 32nd AGM until the 37th AGM. The firm’s remuneration is fixed at ₹9 lakh plus applicable taxes and out-of-pocket expenses. Additionally, the meeting will ratify the remuneration of Mr. Ramawatar Sunar, Cost Accountant, at ₹60,000 plus applicable taxes for the audit of cost records for the financial year ending March 31, 2027, as required under Section 148(3) of the Companies Act, 2013.

What the Numbers Show

The scale of the related-party transaction with KBIPL indicates a significant operational dependency between the two entities. With the proposed ₹95 crore cap representing roughly 64% of Metal Coatings’ prior-year consolidated turnover, the majority of the company’s business volume is tied to this single related party. While the Board asserts that pricing is determined based on market competitiveness, the concentration risk is notable. Shareholders must evaluate whether the arm’s length nature of these deals ensures fair value realization, given that KBIPL does not hold any equity in Metal Coatings but shares common promoter control.

The AGM will be held via Video Conferencing or Other Audio-Visual Means pursuant to Ministry of Corporate Affairs Circular No. 03/2025. Remote e-voting will be open from August 16, 2026, to August 19, 2026. The record date for determining dividend entitlement is August 13, 2026.