Manaksia Coated Metals & Industries Limited , a leading manufacturer and exporter of coated metal products, has received a significant boost in its credit ratings from Acuité Ratings & Research. The company has also unveiled ambitious expansion plans, signaling a strong growth trajectory.

Credit Rating Upgrade

Acuité Ratings & Research has upgraded Manaksia Coated Metals & Industries' long-term rating from A(-) to A, while the short-term rating has been elevated from A2 to A1. This upgrade reflects the company's robust financial profile, consistent performance, and prudent financial management.

The rating agency cited several key factors supporting the improved ratings:

• Healthy balance sheet
• Strong operational metrics
• Sustained growth momentum across domestic and international markets

Strategic Growth Initiatives

Manaksia Coated Metals & Industries has announced several strategic initiatives to drive sustainable growth:

1. Capacity Expansion: The company plans to upgrade its Aluminium-Zinc technology and expand capacity to 180,000 MTPA.

2. Solar Project: A 7.0 MWp captive solar project is in the works, aimed at reducing energy costs.

3. New Color Coating Line: The company will commission Color Coating Line 2 in Q4 FY26, boosting high-margin production.

Financial Performance

Manaksia Coated Metals & Industries reported strong financial results:

Management Commentary

Mr. Karan Agrawal, Whole Time Director of Manaksia Coated Metals & Industries Limited, commented on the development: "The external credit rating upgrade by Acuité is a strong validation of our financial discipline, operational strength, and consistent growth performance. This development will provide the company with improved access to capital, greater financial flexibility, and the benefit of reduced borrowing costs, enabling us to strengthen our growth journey."

He further added, "Our future plans are anchored on expanding scale, improving efficiencies, and enhancing our presence in premium global markets. Exports remain a key growth driver, and a healthy pipeline of orders reinforces our confidence in sustained momentum."

Company Overview

Manaksia Coated Metals & Industries Limited specializes in manufacturing Pre-painted Galvanised Steel and Plain Galvanised Steel in both coil and sheet forms. The company's operational footprint includes:

• 2 manufacturing plants
• 4 branch offices
• 5 stock yards and service centers

The company's manufacturing facility in Kutch, Gujarat, is strategically located near Kandla and Mundra Ports, enhancing efficiency for imports, exports, and access to domestic coastal routes.

With these strategic initiatives and the recent credit rating upgrade, Manaksia Coated Metals & Industries appears well-positioned to strengthen its leadership in the coated metals industry and drive long-term growth.

Manaksia Coated Metals & Industries Limited , a leading manufacturer of premium coated steel products, has reported a stellar performance for the first quarter, with significant growth across key financial metrics and ambitious expansion plans on the horizon.

Financial Highlights

The company's consolidated total income surged by 29.97% year-on-year to INR 253.94 crores. More impressively, net profit skyrocketed by 359.70% to INR 14.01 crores, showcasing the company's ability to translate revenue growth into bottom-line results.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a substantial increase of 93.36% year-on-year, reaching INR 28.62 crores. The EBITDA margin expanded by 370 basis points to 11.27%, reflecting improved operational efficiency.

Export Performance

Manaksia Coated Metals demonstrated exceptional export performance during the quarter. Exports contributed a record 57% of total revenue, with export volumes growing by an impressive 166.14% year-on-year. This strong export growth has been attributed to the company's focus on developing quality-conscious customers in the European market over the past 5-7 years.

Capacity Expansion and Technology Upgrade

The company announced several strategic expansion initiatives:

1. Alu-Zinc Technology Upgrade: The existing galvanizing line will be upgraded to Alu-Zinc technology, increasing capacity to 180,000 metric tons per annum. This upgrade is expected to be completed by the end of Q2 FY26.

2. Second Color Coating Line: A new color coating line is planned, which will boost the company's color coating capacity. This line is expected to be commissioned in Q4 FY26.

3. Solar Power Plant: A 7-megawatt captive solar power plant is in the works, aimed at reducing grid dependency and enhancing cost efficiency.

Financial Strategy

Manaksia Coated Metals has successfully raised INR 174.87 crores in equity through preferential warrants, with INR 161.22 crores already infused into the company. This capital infusion is expected to strengthen the company's financial foundation and support its expansion plans.

Future Outlook

The company is targeting a peak revenue of INR 1,600 crores with full capacity utilization. Management expects the Alu-Zinc upgrade to result in an EBITDA margin expansion of 30%.

With its strategic location near major ports and a balanced approach to domestic and export markets, Manaksia Coated Metals is well-positioned to capitalize on the growing demand for Alu-Zinc coated steel products in India, particularly in infrastructure projects, warehousing, and the cold storage industry.

As the company moves forward with its expansion plans, it aims to become one of the top three players in India's value-added downstream steel products sector, with a targeted capacity of half a million tons in the medium term.