MIDHANI Reports Q2 FY26 Results: Revenue Dips but Strategic Initiatives Underway
Mishra Dhatu Nigam Limited (MIDHANI) reported Q2 FY26 turnover of INR 209.73 crores, down from INR 262.12 crores in Q2 FY25, but maintained profit after tax at INR 12.77 crores. H1 FY26 turnover was INR 380.22 crores. The company has a robust order book of INR 1,869.00 crores and targets FY26 revenue of INR 1,300.00 crores. Strategic initiatives include a metal bank MoU, ABHED bulletproof jacket technology agreement, pursuit of NADCAP certification for exports, and capacity expansion plans. MIDHANI faces raw material challenges but sees opportunities in import substitution and exports.
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Mishra Dhatu Nigam Limited (MIDHANI), a key player in the specialty metals and alloys sector, has released its financial results for the second quarter of fiscal year 2026, revealing a mixed performance with strategic initiatives aimed at future growth.
Financial Performance
MIDHANI reported a turnover of INR 209.73 crores for Q2 FY26, compared to INR 262.12 crores in the same period last year, marking a decrease in revenue. However, the company maintained its profit after tax at INR 12.77 crores. The value of production for Q2 FY26 stood at INR 256.38 crores, indicating ongoing production activities despite the revenue dip.
For the first half of FY26, MIDHANI achieved:
- Turnover: INR 380.22 crores (vs INR 425.57 crores in H1 FY25)
- Value of Production: INR 497.67 crores (3.9% growth from INR 479.01 crores in H1 FY25)
- Profit Before Tax: INR 38.12 crores
- Profit After Tax: INR 25.58 crores
Order Book and Future Outlook
The company maintains a robust order book of INR 1,869.00 crores as of October 1, 2025, providing visibility for FY26 and beyond. MIDHANI is targeting a revenue of INR 1,300.00 crores for FY26, with expected growth driven by its superalloys and titanium alloys business.
Strategic Initiatives
Metal Bank Initiative: MIDHANI has signed a Memorandum of Understanding to create a metal bank at its facility. This initiative aims to ensure uninterrupted production and supplies for projects of national importance by addressing raw material supply chain challenges.
ABHED Bulletproof Jacket Technology: The company has signed an MoU for ABHED bulletproof jacket technology, developed by DRDO and IIT Delhi. This is expected to boost future orders for bulletproof jackets.
Product Mix: MIDHANI's current revenue mix includes:
Product Percentage Super alloys 21.00% Titanium alloys 19.00% Maraging steel 15.00% Specialty steel 37.00% Other grades 8.00% Export Initiatives: The company is pursuing NADCAP certification, which is expected to be completed by Q4, potentially enhancing its ability to secure export orders.
Capacity Expansion Plans: MIDHANI is in discussions to install higher capacity equipment, particularly in the forging line, to support growth over the next 15-20 years.
Challenges and Opportunities
While MIDHANI faces some short-term challenges, including raw material constraints for certain alloys due to geopolitical situations, the company sees significant opportunities in import substitution and exports. The management estimates that about INR 8,000.00 crores worth of super alloys and titanium alloys are currently being imported into India, presenting a substantial market opportunity.
Dr. S.V.S. Narayana Murty, Chairman and Managing Director of MIDHANI, commented, "We are confident of meeting our targets. The super alloy and titanium alloy businesses will be key growth drivers as we move forward."
As MIDHANI navigates through the current fiscal year, its focus on strategic initiatives, export growth, and capacity expansion positions the company to capitalize on the growing demand for specialty metals and alloys in defense, aerospace, and energy sectors.
Historical Stock Returns for Mishra Dhatu Nigam
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.34% | -9.56% | -6.91% | -14.13% | +10.36% | +83.55% |
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