Summary
MAN Industries India Limited - Q3 FY 2026 Earnings Call Summary Monday, February 09, 2026 16:00 PM
Event Participants
Executives 5 Dr. Ramesh Chandra Mansukhani (Chairman), Nikhil Mansukhani (Managing Director), Sandeep Kumar Garg (CFO), Rahul Rawat (Company Secretary), Vijay Gyanchandani (DGM, Investor Relations)
Analysts 8 Darshil Jhaveri, Disha, Divyansh Thakur, Fenil, Harsh Jain, Nikhil Singh, Punit Chokhani, Rohan Baranwal, Satyan Wadhwa, Viraj Mahadevia
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Income | ₹838.7 crores | +13.7% YoY, +2.9% QoQ; driven by strong export execution. |
| EBITDA | ₹136 crores | +61.4% YoY; highest ever quarterly EBITDA in company history. |
| EBITDA Margin | 16.2% | +480 bps YoY; driven by product mix optimization and value-added coatings. |
| Profit After Tax (PAT) | ₹55 crores | +61% YoY; improved margins offset higher freight costs. |
| Net Cash Position | ₹38 crores | Reflects strong liquidity despite ongoing CAPEX cycles. |
| Executable Order Book | ₹4,000 crores | Strong visibility for 6-12 months; 83% of orders are for exports. |
| Bid Pipeline | ₹11,500 crores | Robust global inquiry levels across MENA, SE Asia, and CIS regions. |
| Average Borrowing Cost | 8% - 8.5% | Management expects this range to sustain. |
Geographic & Segment Commentary
- Exports: Account for 83% of the current order book, with LSAW pipes constituting 80% of the mix. High demand is noted from MENA, Southeast Asia, and CIS countries, focusing on complex large-diameter solutions and specialized coatings.
- Domestic Market: Reflects selective order wins from oil/gas and EPC players. Management anticipates a meaningful recovery in FY27, bolstered by the ₹67,000 crore Jal Jeevan Mission allocation for drinking water and sanitation.
- Real Estate (Merino Shelters): Planned project launch in March 1st week via Paradise Group. Expected to generate ₹600-₹700 crores revenue (30% share) over 6-7 years with zero additional cost to the company.
Company-Specific & Strategic Commentary
- Margin Strategy: Upgraded FY26 margin guidance to 13%-14% (from 11%-12%) due to higher value-added components like specialized coatings and bends. Management aims to sustain 13%-15% EBITDA levels through FY27.
- Saudi Expansion: Facility construction is substantially complete, with trials expected in Q1 FY27. The plant has a target utilization of 50-60% in Year 1, with a revenue potential of ₹1,500-₹2,000 crores.
- Jammu Expansion: Progressing toward a Q1/Q2 FY27 completion despite slight delays due to weather and labor issues. Project benefits include a 6% interest subsidy and GST grants for 10 years (3x investment amount).
- Debt Management: Company plans to use free cash flows from operations and Real Estate inflows to retire debt by 2030, though Jammu-related debt will be serviced per schedule to utilize interest subsidies.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue (FY26) | ₹3,600 - ₹3,700 crores | Reiteration of original guidance following strong Q3 and Q4 expectations. |
| EBITDA Margin (FY26) | 13% - 14% | Upgraded from 11%-12% due to superior product mix. |
| Revenue Growth (FY27) | 25% - 55% | 30-35% is “realistic” guidance; 50-55% is internal target including Saudi/Jammu. |
| Saudi Utilization (Y1) | 50% - 60% | Targeted production start in Q1 FY27. |
Risks & Constraints
| Risk | Context |
|---|---|
| Commodity Prices | Volatility in steel prices impacts absolute revenue numbers and volume requirements to hit topline targets. |
| Execution Delays | Jammu facility delayed from Q4 FY26 to Q1/Q2 FY27 due to natural calamities and manpower disruptions. |
| Logistics Costs | Sharp increase in “Other Expenses” due to Delivered Duty Paid (DDP) terms on major export orders. |
Q&A Highlights
Revenue Visibility & Margins
- Question: What is driving the confidence for a strong Q4? (Riken)
- Answer: Execution of existing high-margin export orders and efficient internal systems. Q4 is expected to be one of the best in company history (Nikhil Mansukhani).
Strategic Expansion
- Question: What is the remaining CAPEX for Saudi and Jammu? (Viraj Mahadevia)
- Answer: Approximately 75% has been spent. Around ₹350-₹400 crores remains to be deployed (Nikhil Mansukhani).
Aramco Partnership
- Question: How does the Aramco approval benefit the company? (Riken)
- Answer: Provides “local player” preference in Saudi, off-take agreement potential once the plant is operational, and opportunities for new product development (Nikhil Mansukhani).
Real Estate Cash Flows
- Question: What are the margins on the Merino Shelters project? (Fenil)
- Answer: There is no cost affiliated with this segment now; the total topline of ₹600-₹700 crores effectively flows back as income (Nikhil Mansukhani).
Key Takeaway
MAN Industries delivered a record-breaking Q3 FY26, achieving its highest-ever quarterly EBITDA margin of 16.2% and a net profit growth of 61% YoY to ₹55 crores. Performance was underpinned by a strategic shift toward high-value export orders, which now comprise 83% of the ₹4,000 crore order book. Management upgraded FY26 margin guidance to 13-14% and projected an ambitious 50-55% consolidated revenue growth for FY27 as the Saudi Arabia and Jammu facilities come online. While the Jammu plant faced minor weather-related delays, the Saudi facility is on track for Q1 FY27 trials with a targeted Year 1 revenue contribution of up to ₹2,000 crores. Investors should monitor commodity price volatility and the pace of domestic Jal Jeevan Mission execution, although the company enters FY27 with a strong net-cash position and a roadmap to retire high-cost debt using real estate inflows and robust operational cash flows.
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