Morganite Crucible (India) Limited is set to undergo a significant ownership change as Foseco India Limited, a key player in the foundry industry, launches an open offer to acquire a controlling stake in the company.

Open Offer Details

Foseco India Limited, along with its promoters Foseco Overseas Limited, Vesuvius Holdings Limited, and Foseco (UK) Limited, has announced an open offer to acquire up to 1,400,000 equity shares, representing 25% of the voting share capital of Morganite Crucible (India) Limited. The offer is priced at ₹1,557.15 per share, with a total consideration of ₹218.00 crore, assuming full acceptance.

Transaction Structure

The open offer was triggered following a share purchase agreement where Foseco India agreed to acquire 4,200,000 equity shares (75% voting capital) from the existing promoters of Morganite Crucible India. This acquisition will be executed through a share swap arrangement, with Foseco India issuing 1,150,800 of its equity shares to the sellers via a preferential allotment. This issuance will constitute 15.27% of Foseco India's paid-up equity share capital post-allotment.

Strategic Implications

Upon completion of this transaction, Foseco India will gain control and become the promoter of Morganite Crucible India, while the current promoters will relinquish their promoter status. This move is expected to strengthen Foseco India's position in the foundry and crucible manufacturing sector.

Financial Highlights

Morganite Crucible (India) Limited reported a 4% increase in revenue from operations, totaling ₹17,419.00 lakhs. The company's operating profit (EBIDTA) stood at ₹4,860.00 lakhs, up from ₹4,458.00 lakhs in the previous period.

Future Outlook

The Indian foundry industry, being one of the largest globally, is expected to continue its growth trajectory. Foseco India's acquisition of Morganite Crucible India is likely to capitalize on this growth, particularly in sectors such as automotive, aerospace, and construction.

Regulatory Compliance

JM Financial Limited has been appointed as the manager to the offer. The acquirer has stated that it does not intend to delist the target company. The transaction is subject to necessary regulatory approvals and is being conducted in compliance with SEBI regulations.

This strategic move represents a significant consolidation in the foundry industry and is expected to have far-reaching implications for both companies involved.

Morganite Crucible (India) Limited , a leading manufacturer of crucibles, has released its unaudited financial results for the first quarter ended June 30, 2025. The company's performance shows a mixed picture with stable revenue but a significant decline in profitability compared to the same period last year.

Revenue Performance

The company reported revenue from operations of ₹4,232.09 lakhs for Q1 FY2026, showing a marginal decrease of 1.34% compared to ₹4,289.65 lakhs in Q1 FY2025. This also represents a slight decrease of 0.52% from the previous quarter's revenue of ₹4,254.34 lakhs.

Profit Analysis

Morganite Crucible's net profit for the quarter stood at ₹288.37 lakhs, marking a substantial decline of 50.04% from ₹577.22 lakhs in the corresponding quarter of the previous year. The profit also decreased by 63.48% compared to the preceding quarter's ₹789.71 lakhs.

Earnings Per Share

The company's basic and diluted earnings per share (EPS) for Q1 FY2026 were ₹5.15, down from ₹10.31 in the same quarter last year, reflecting the decrease in profitability.

Comprehensive Income

Total comprehensive income for the quarter was reported at ₹270.08 lakhs, which includes other comprehensive income items that will not be reclassified to profit or loss.

Operational Highlights

Morganite Crucible operates primarily in the manufacturing and sale of crucibles as a single business segment. The company's cost of materials consumed decreased to ₹1,390.39 lakhs in Q1 FY2026 from ₹1,550.74 lakhs in Q1 FY2025, while employee benefits expense saw a slight increase to ₹491.19 lakhs from ₹458.22 lakhs in the same period last year.

Corporate Governance

The financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors on August 6, 2025. Statutory auditors conducted a limited review of the quarterly financial results, as per regulatory requirements.

Financial Position

As of March 31, 2025, Morganite Crucible (India) Limited had a paid-up equity share capital of ₹280 lakhs and other equity (excluding revaluation reserves) of ₹12,897.06 lakhs.

The company's Board meeting for the quarter ended June 30, 2025, commenced at 8:56 a.m. and concluded at 11:10 a.m. on August 6, 2025.

While revenue has remained relatively stable, the significant decrease in profitability may warrant attention. The company's performance in the coming quarters will be crucial in determining whether this profit decline is a temporary setback or indicative of broader challenges in the crucible manufacturing sector.