Manaksia Steels Limited (MSL), a prominent manufacturer of value-added steel products, has unveiled plans for a significant expansion of its color coating line capacity at its Haldia unit. The company's board has approved an investment of ₹40 crore to establish a second color coating line, which is expected to more than double its current capacity.

Expansion Details

The proposed expansion will add 90,000 MT per annum to MSL's existing color coating capacity of 48,000 MT per annum. This will bring the total capacity to an impressive 1,38,000 MT per annum once the project is completed. The company plans to finance this expansion entirely through internal accruals, demonstrating its strong financial position and confidence in future growth prospects.

According to the company's disclosure, the new line is scheduled to be commissioned by the fourth quarter of the financial year 2025-26. This strategic move aims to meet the increasing market demand for color-coated steel products both in domestic and international markets.

Q1 Financial Performance

Alongside its expansion announcement, Manaksia Steels has reported robust financial results for the first quarter:

The company has shown remarkable growth across all key financial metrics. Total income increased by 30.19% year-on-year, while EBITDA and PAT saw substantial jumps of 91.95% and 297.99% respectively.

Operational Highlights

• Total sales volume increased by 32% year-on-year in Q1.
• Production of galvanised coil and sheets grew by 25% YoY.
• Production of pre-painted coil and sheets surged by 81% YoY.
• The Haldia facility operated at near-peak capacity utilization, with the galvanised line at around 80% and the color-coated line at close to full utilization.

Management Commentary

Mr. Varun Agarwal, Managing Director of Manaksia Steels Limited, commented on the company's performance: "We have commenced the financial year on a strong footing, with our Q1 performance reaffirming the strength of our core business and the success of our strategic initiatives. The quarter delivered broad-based growth, driven by robust demand, efficient execution, and a relentless focus on customer satisfaction."

He further added, "With the successful commissioning of our new Aluzinc-Coated Steel Line during the quarter, funded entirely through internal accruals, we are poised to redefine our growth trajectory. This addition marks a key turning point and is expected to significantly contribute to volumes and margins starting Q2."

International Operations

The company's Nigerian subsidiary, Federated Steel Mills Ltd., reported an 85% year-on-year sales growth, reflecting a rebound in demand following the unprecedented devaluation of the Nigerian Naira. The management remains optimistic about the opportunities in Nigeria, citing its large population and consumption-led economy.

Future Outlook

With the approved expansion plan and strong Q1 performance, Manaksia Steels appears well-positioned for continued growth. The company's focus on expanding its product portfolio, enhancing cost efficiency, and leveraging opportunities in both domestic and international markets is expected to drive long-term value for stakeholders.

As the steel industry continues to evolve, Manaksia Steels' strategic investments and operational improvements demonstrate its commitment to maintaining a competitive edge in the value-added steel products segment.

Manaksia Steels Limited , a leading manufacturer of value-added steel products, has reported robust financial results for the first quarter, along with significant expansion plans and key appointments.

Financial Performance

The company's consolidated net profit for Q1 reached Rs 634.71 lacs, a substantial increase from Rs 232.59 lacs in the same period last year. This represents a growth of approximately 172.90% year-over-year.

Expansion Plans

Manaksia Steels' Board of Directors has approved a major capacity expansion plan, adding a second Colour Coating Line at its Haldia facility. This expansion will increase the manufacturing capacity from 48,000 MT to 138,000 MT per annum, a significant boost of 187.50%. The project requires an investment of approximately Rs 40.00 crores, which will be funded through internal accruals. The expansion is expected to be completed by the fourth quarter of FY 2025-26.

Corporate Developments

The Board has approved several key corporate decisions:

1. The 24th Annual General Meeting is scheduled for September 23, 2025, to be held via video conferencing.
2. Re-appointment of Mrs. Nidhi Baheti as an Independent Director for a five-year term starting June 16, 2026, subject to shareholder approval.
3. Appointment of M/s MKB & Associates as Secretarial Auditors for a five-year term from FY 2025-26 to 2029-30.
4. Adoption of a new company logo.

New Product Line

The company successfully commissioned a new Aluzinc Coated Steel Line on June 10, 2025. This new line is expected to contribute significantly to the company's production capabilities and potentially impact its financial performance in the coming quarters.

Manaksia Steels Limited continues to demonstrate strong growth and strategic expansion, positioning itself for future success in the value-added steel products market. The company's focus on capacity expansion and new product lines indicates a positive outlook for its operations and financial performance in the coming years.