Manaksia Coated Metals & Ind , a leading player in the value-added coated steel segment, has reported robust financial results for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Financial Highlights

The company's performance for Q2 FY26 showcases substantial year-on-year improvements:

For the first half of FY26, the company reported:

Operational Performance

Manaksia Coated Metals has shown impressive operational metrics:

• Galvanized steel production increased by 8% YoY to 26,572 metric tons
• Pre-painted steel output rose by 18% to 21,653 metric tons
• Value-added products (pre-painted steel) contributed 92% of total sales
• Exports accounted for 85% of total sales, with export revenue up by 151% YoY

Balance Sheet Strengthening

The company's financial position has improved significantly:

• Debt-equity ratio improved to 1.19 from 1.81 at the end of FY25
• Total debt declined by 27% to Rs. 103.22 crores
• Interest coverage ratio improved to 3.62 from 1.89

Strategic Initiatives and Future Outlook

Manaksia Coated Metals is progressing on several strategic fronts:

1. Capacity Expansion: The company is converting its aluminum-zinc coating line, which is expected to enhance capacity by 36% to 180,000 tons per annum by the end of FY26.

2. New Color Coating Line: A second color coating line is planned for early FY27, which aims to expand coating capacity by 174% to 236,000 tons per annum.

3. Sustainable Energy: A 7-megawatt peak captive solar power plant is targeted for early FY27, aiming to offset 50-55% of grid power dependency.

4. Digital Transformation: Implementation of MES and CRM systems is underway to drive operational efficiency and customer engagement.

Market Position and Export Focus

The company has strengthened its position in the export market:

• Active presence in over 40 countries
• Strong focus on OEM customers in Europe, Latin America, and the Middle East
• Diversified customer base with no single customer accounting for more than 10% of export sales

Management Commentary

Karan Agrawal, Whole-Time Director, commented on the results: "The first half of FY26 has been an encouraging phase for us at Manaksia Coated Metals & Industries as we continue to strengthen our presence in the value-added coated steel segment with consistent performance and expanding capabilities."

He further added, "Our advanced manufacturing facility in Kutch, Gujarat, serves as a strategic hub connecting us seamlessly to both domestic and international markets."

Manaksia Coated Metals & Industries Limited's strong performance in Q2 FY26 reflects its strategic focus on value-added products and export markets. With ongoing capacity expansions and a robust order book of approximately Rs. 600.00 crores, the company appears well-positioned for continued growth in the coming quarters.

Manaksia Coated Metals & Industries Limited (MCMIL), a leading manufacturer and exporter of coated steel products, has announced a significant business development that promises to boost its export growth and strengthen its position in the global market.

Key Highlights

• MCMIL signs Memorandums of Understanding (MoUs) with European clients worth ₹500 crores
• Agreement to supply up to 50,000 metric tonnes of steel products over the next 12 months
• Export revenue contributed 70% of revenues from operations in H1FY26
• Credit rating upgrade from Acuite: long-term rating improved from A(-) to A, short-term rating from A2 to A1

Deal Details and Strategic Significance

Manaksia Coated Metals has entered into MoUs with certain European clients, committing to supply up to 50,000 metric tonnes of pre-painted steel coils, Alu-Zinc coated coils, and galvanized steel products over a 12-month period. This deal, valued at ₹500 crores, is expected to significantly enhance the company's production capacity utilization and further strengthen its global export portfolio.

The strategic importance of these agreements is multifaceted:

1. Expansion into European markets
2. Potential increase in export revenue contribution
3. Strengthening relationships with European clients, possibly leading to repeat orders
4. Leveraging upcoming technology upgrades and capacity expansions

Capacity Expansion and Technology Upgrade

MCMIL is currently in an expansion phase, with plans to increase its capacity and upgrade its technology:

• Expanding capacity to 180,000 MT with ALU-ZINC technology upgrade
• Adding a new Color Coating Line to reach a total capacity of 236,000 MT
• Advancing a 7.0 MW renewable energy project to reduce dependency on grid power and improve cost efficiency

Financial Performance

The company's financial performance for FY25 showcases its strong position in the market:

Management Commentary

Mr. Karan Agrawal, Whole Time Director of Manaksia Coated Metals & Industries Limited, commented on the development: "Signing these MoU's is a significant milestone for Manaksia Coated Metals and Industries. We believe that this partnership further strengthens our position in global markets. With upcoming capacity expansions and technology upgrades, we are entering an exciting growth phase that will enable us to scale and capture a larger share of the global coated metals industry."

Conclusion

The recent MoUs signed by Manaksia Coated Metals & Industries Limited represent a significant step forward in the company's export-driven growth strategy. With its focus on capacity expansion, technology upgrades, and strengthening relationships with European clients, MCMIL appears well-positioned to capitalize on opportunities in the global coated metals market. Investors and industry observers will likely be watching closely to see how these developments translate into financial performance in the coming quarters.