Manaksia Steels Limited (MSL) has reported a robust performance for the second quarter of fiscal year 2026, with significant growth in sales volume and production across its key product lines. The company's strategic initiatives and international operations have contributed to its strong results, despite industry-wide challenges.

Key Highlights

• Total sales volume increased by 184% year-on-year
• Production of galvanized coils and sheets grew by 56% YoY
• Pre-painted products production up by 150% YoY
• Nigerian subsidiary achieved over 150% revenue growth
• New Aluzinc-coated steel line reached 75% capacity utilization

Financial Performance

Manaksia Steels demonstrated impressive growth in its financial metrics for Q2 FY26:

Operational Highlights

The company's production facilities have shown significant improvements:

1. Galvanized Products: Production of galvanized coils and sheets increased by 56% compared to the same quarter last year.
2. Pre-Painted Products: The production of pre-painted coils and sheets saw a substantial rise of 150% year-on-year.
3. Aluzinc-Coated Steel: The newly commissioned Aluzinc-coated steel line has reached approximately 75% capacity utilization, contributing to both volumes and profitability.

International Operations

Manaksia Steels' Nigerian subsidiary, Federated Steel Mills Ltd. (FSML), delivered exceptional results:

• Revenue growth exceeded 150% year-on-year
• Improved profitability
• Nigerian Naira appreciated from ₦1,529/$ to ₦1,474/$, supporting business stability

Future Outlook

Manaksia Steels remains optimistic about its growth trajectory:

1. Capacity Expansion: A new color-coating line at Haldia, with an investment of ₹40 crore, is on track for commissioning in Q4 FY26. This will enhance the company's color-coating capacity by nearly 200%.
2. Market Position: The company is well-positioned for sustained and profitable growth, supported by ongoing capacity expansion and growing international operations.

Management Commentary

Varun Agarwal, Managing Director of Manaksia Steels Limited, commented on the performance: "We are pleased to report yet another quarter of resilient performance, reflecting the strength of our business model and the growing trust in our products. Despite the industry-wide slowdown during the monsoon season, we achieved over 150% year-on-year growth in sales—a testament to our expanded capacity, stronger market outreach, and sustained customer confidence."

He further added, "As we enter the second half of FY 2025-26, we remain optimistic about the demand outlook and are focused on driving scale, efficiency, and financial discipline. With our ongoing capacity expansion, growing international operations, and a robust balance sheet, Manaksia Steels is well-positioned for sustained and profitable growth in the years ahead."

Manaksia Steels Limited continues to demonstrate its ability to navigate market challenges while capitalizing on growth opportunities, both domestically and internationally. The company's focus on expanding its value-added product portfolio and enhancing operational efficiencies positions it well for future success in the competitive steel industry.

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.