Manaksia Coated Metals Inks ₹500 Crore Deal with European Clients, Bolstering Export Growth

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:

Expansion into European markets
Potential increase in export revenue contribution
Strengthening relationships with European clients, possibly leading to repeat orders
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:

Metric	Amount (in ₹ Crores)
Consolidated Total Income	789.66
EBITDA	63.01
Net Profit	15.39

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+6.85%	-9.63%	+17.32%	+84.74%	+173.11%	+4,132.21%

Manaksia Coated Metals & Ind has reported a remarkable 491% year-on-year increase in net profit to ₹13.96 crore for the second quarter, showcasing strong operational performance and successful execution of strategic initiatives.

Financial Highlights

The company's financial results for Q2 demonstrate significant growth across key metrics:

Particulars (₹ Crore)	Q2 FY26	Q2 FY25	YoY Change
Total Income	223.68	176.60	+26.66%
EBITDA	29.45	13.83	+112.95%
EBITDA Margin	13.17%	7.83%	+534 bps
Net Profit	13.96	2.36	+490.68%
Net Profit Margin	6.24%	1.34%	+490 bps
Diluted EPS (₹)	1.43	0.32	+346.88%

Operational Performance

The company reported strong operational metrics:

Galvanized Steel production increased by 7.91% YoY to 26,572 MT
PPGI Steel production grew by 18.21% YoY to 21,653 MT
Value-added products (PPGI) contributed 92% of total sales volume
Exports reached an all-time high of 85.06% of total sales
Export revenue surged by 151% YoY

Strategic Initiatives and Future Outlook

Manaksia Coated Metals is making progress on key capital projects:

Aluminium-Zinc Coating Line upgrade set to begin transition phase
New Colour Coating Line expected to increase total colour coating capacity by over 170%, with commissioning targeted for FY 2027
7 MWp Solar Power Plant project initiated at Kutch, aiming to replace over 50% of grid dependency with renewable energy

Financial Strength

The company's focus on deleveraging and prudent financial management has yielded positive results:

Debt-to-Equity ratio improved to 1.19x
Total debt reduced by 27% since March 2025
Received credit rating upgrades from Acuité Ratings:
- Long-term Rating: Upgraded to A from A(-)
- Short-term Rating: Upgraded to A1 from A2

Management Commentary

Mr. Karan Agrawal, Whole Time Director of Manaksia Coated Metals & Industries Limited, commented on the performance, stating, "We are delighted to report another strong quarter for MCMIL, marked by robust operational performance, significant improvement in profitability, and continued execution of our strategic growth initiatives."

He further added, "With a sharper focus on premium product lines, exports, sustainability, and digital transformation, we remain confident of continuing our growth momentum in the coming quarters and creating lasting value for our stakeholders."

The company's strong performance, coupled with its strategic initiatives and focus on sustainability, positions Manaksia Coated Metals & Industries Limited for continued growth in the coated steel manufacturing and export market.