Mukand Limited , a prominent player in the steel industry, has reported strong financial results for the first quarter of fiscal year 2026, showcasing significant improvements in profitability and operational efficiency.

Financial Highlights

• Total income from operations reached Rs 1,102.39 crore, up 4.1% quarter-on-quarter (QoQ) but down 7.3% year-on-year (YoY)
• Profit before tax grew by 129.9% QoQ to Rs 44.11 crore
• Net profit after tax surged by 435.8% QoQ to Rs 35.47 crore
• EBITDA margin improved to 8.3% from 5.2% in the previous quarter
• Earnings per share increased to Rs 2.45 from Rs 0.46 in the previous quarter

Operational Performance

The company's impressive financial performance can be attributed to its focus on high-margin stainless steel production and effective utilization of its workforce of over 1,400 employees. This strategic approach has enabled Mukand Limited to enhance its operational efficiency and profitability.

Strategic Developments

Mukand Limited has recently completed two significant transactions:

1. Demerger of Stainless Steel Business: The company has finalized the demerger of its stainless steel cold finished bars and wires business, effective April 1, 2024. This strategic move is expected to streamline operations and potentially unlock value for shareholders.

2. Land Sale Agreement: Mukand Limited has signed an agreement to sell 17.77 acres of land for Rs 673.00 crore. This transaction could provide the company with additional liquidity to fund its growth initiatives or reduce debt.

Management Commentary

The management highlighted the company's successful transformation from a debt-laden entity to a profitable growth trajectory. They emphasized their focus on high-margin stainless steel production and leveraging the expertise of their workforce to drive operational excellence.

Outlook

With the recent strategic moves and improved financial performance, Mukand Limited appears to be well-positioned for sustained growth in the coming quarters. The company's ability to significantly improve its profitability despite a slight decline in year-on-year revenue demonstrates its operational resilience and effective cost management.

Note: The financial results mentioned are for the quarter ended June 30, 2025 (Q1 FY2026).

Mukand Ltd. , a leading specialty steel manufacturer, has reported a significant increase in profit for the first quarter, despite a slight decline in revenue compared to the previous quarter.

Financial Highlights

Standalone Performance

• Profit: Mukand's standalone profit after tax for the quarter rose to ₹35.47 crore, up from ₹27.47 crore in the previous quarter, marking a substantial 29.12% increase.
• Revenue: The company's standalone revenue from operations slightly decreased to ₹1,102.39 crore from ₹1,058.99 crore in the previous quarter.

Consolidated Performance

• Profit: The consolidated profit after tax increased to ₹29.03 crore from ₹10.90 crore in the previous quarter, representing a 166.33% jump.
• Revenue: Consolidated revenue from operations stood at ₹1,128.71 crore, up from ₹1,106.89 crore.

Strategic Developments

Land Sale Agreement

Mukand executed a land sale agreement for approximately ₹673.00 crore. The company has already received an advance of ₹110.00 crore from this transaction.

Business Restructuring

The board has approved the transfer of part of its Industrial Machinery Division to its wholly-owned subsidiary, Mukand Heavy Engineering Limited, through a slump sale arrangement.

Outlook

The substantial increase in both standalone and consolidated profits indicates that Mukand's strategic initiatives and operational efficiencies are yielding positive results. The land sale agreement and the restructuring of the Industrial Machinery Division suggest that the company is actively managing its assets and streamlining its operations.

The company's ability to maintain its revenue in a challenging economic environment is noteworthy. As Mukand continues to implement its strategic plans, investors and stakeholders will be watching closely to see how these moves translate into long-term value creation.