How Did Manaksia Coated Metals Perform in FY25?
Manaksia Coated Metals & Industries Limited (NSE: MANAKCOAT, BSE: 539046) closed FY25 with a significant uptick in profitability and operational output, posting a consolidated total income of ₹789.66 crore and a net profit of ₹15.39 crore. The company, a major Indian player in coated metal products including pre-painted and plain galvanised steel in coil and sheet form, reported robust growth across all major financial metrics for the fiscal year ending March 2025.
The company’s EBITDA climbed to ₹63.01 crore in FY25, reflecting a 10.79% year-on-year increase. Earnings per share (EPS) rose to ₹2.07, up 24.12% from the previous fiscal, while net profit grew by 36.97% year-on-year to ₹15.82 crore. Profit before tax jumped 38.13% to ₹20.59 crore.
From a capital structure perspective, Manaksia Coated Metals made notable strides in strengthening its balance sheet. The company’s debt-equity ratio improved to 1.81 from 2.48 a year earlier, signalling greater financial stability and improved investor confidence amid rising capex.
What Boosted the Company’s Revenue and Profitability in FY25?
Exports played a substantial role in Manaksia’s FY25 performance, contributing ₹306.39 crore, which represented 39% of total income and marked a 27% year-on-year increase. This was underpinned by robust global demand for value-added steel products and stronger geographic market penetration in export territories.
Operationally, production volumes surged significantly. The output of galvanised steel products rose by 20.62% year-on-year, while colour-coated steel coils saw a 21.99% increase in volume. These improvements suggest efficient capacity utilisation, better supply chain throughput, and strong demand pull from end-user industries.
Institutional analysts have taken note of these metrics, especially the export revenue mix and margin expansion through scale efficiency. The EBITDA margin for FY25 stood at 7.89%, while net margin was 2.00%. Though modest, these margins indicate resilience in a sector often challenged by price volatility in input materials and currency fluctuations.
What Were the Major Strategic Moves in FY25?
Manaksia Coated Metals executed two important capital-raising transactions in FY25 to fuel its expansion:
First, it allotted 2.07 crore fully convertible warrants on a preferential basis at ₹65 each, raising ₹134.55 crore from promoter and public investors. Subsequently, the company issued 52 lakh equity shares at the same price, converting warrants to equity and generating an additional ₹25.35 crore.
These inflows were earmarked for downstream and upstream enhancements across its steel manufacturing ecosystem. According to the company’s Whole-Time Director, Karan Agrawal, these moves were part of a deliberate strategy to “strengthen the balance sheet and fuel growth initiatives” through internal upgrades and green energy integration.
What Expansion Plans Are Underway for FY26?
FY26 is poised to be a transformational year for the company, with several major capex projects already in motion. A standout among them is the planned shift in technology to manufacture AluZinc-coated steel—a corrosion-resistant, premium alloy product that commands higher margins in industrial and infrastructure segments. Manaksia is betting on AluZinc as a margin-enhancing pivot, with Agrawal indicating that the benefits are expected to reflect from Q1 FY26.
The company is also in the process of setting up a captive solar power plant aimed at reducing dependency on the grid and improving long-term energy cost efficiency. With the steel sector being energy-intensive, this transition is expected to deliver tangible cost savings while bolstering the company’s ESG credentials.
In addition, Manaksia is ramping up its downstream capacity through the installation of a second colour-coating line. The expanded capacity will align the company’s processing strength with its upstream capabilities, enabling it to service growing domestic and international demand more efficiently.
What Does This Mean for Investors?
The stock of Manaksia Coated Metals has historically drawn interest from value-seeking investors due to its small-cap valuation, steady exports, and expanding infrastructure footprint. While recent fundraising has been equity-dilutive in the short term, institutional sentiment remains constructive, largely due to the visible improvement in debt metrics and profitability guidance for FY26.
As of mid-May 2025, shares of MANAKCOAT are trading with moderate volumes on both NSE and BSE. Post-results, the stock saw increased buying interest from retail and small institutional investors, aided by the company’s forward-looking commentary on AluZinc rollout and solar integration.
From a technical perspective, the support level near ₹60 has held firm after the preferential allotments at ₹65, signalling market acceptance of the valuation and pricing. Any near-term breakout would likely depend on Q1 FY26 results reflecting early gains from its capex cycle.
Brokerages and mid-cap analysts are divided on rating the stock a ‘Buy’ at current levels. While some cite thin margins and execution risk in AluZinc conversion, others highlight the improved debt profile and expanded export potential as signs of a turnaround story.
What Are the Sectoral Tailwinds Supporting Manaksia’s Growth?
The coated steel segment is benefiting from rising demand in construction, appliances, and infrastructure. With the Indian government’s continued push for affordable housing, logistics parks, and industrial corridors, coated steel demand is structurally supported. Moreover, the global trend towards pre-engineered buildings and modular infrastructure has opened up newer end-use applications.
Manaksia’s operational facility in Kutch, Gujarat—strategically close to Kandla and Mundra ports—gives it a locational advantage for exports, especially to Middle East, Southeast Asia, and African markets. This geographic strength enables smoother logistics, cost-effective outbound shipments, and timely customer deliveries.
The company’s focus on high-grade value-added products like colour-coated coils and AluZinc variants aligns with evolving customer preferences and premium market segments, offering scope for further realisation gains.
What is the Sentiment Outlook and Forward Guidance?
Investor sentiment for Manaksia Coated Metals appears positive but cautious. FY25 results have underscored stability in earnings, a meaningful export mix, and a successful deleveraging initiative. However, the FY26 outlook hinges heavily on the timely commissioning of new projects, especially the AluZinc line and solar plant, both of which carry execution and ramp-up risks.
That said, the company’s financial discipline in FY25, marked by prudent capital allocation and improved debt coverage, supports a sustainable growth narrative. Given its deep integration across the value chain—from galvanising to downstream colour-coating—Manaksia remains well-positioned to capture value across multiple segments.
The firm’s commentary indicates bullishness on both volume and margin expansion from Q1 FY26 onward. If early signs of AluZinc demand traction emerge in Q2, upside revisions to earnings forecasts could follow.
Manaksia Coated Metals & Industries Limited has demonstrated steady financial progress in FY25, backed by higher exports, expanded capacity, and a stronger balance sheet. With a transformational FY26 on the cards—driven by AluZinc production, solar power commissioning, and colour-coating expansion—the company is setting the stage for stronger earnings visibility and improved shareholder value creation.
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