Summary
Monolithisch India Limited - Q3 FY26 Earnings Call Summary Friday, January 30, 2026 04:00 PM IST
Event Participants
Executives 3 Kritish Tekriwal (Executive Director), Harsh Tekriwal (Managing Director), Prabhat Tekriwal (Chairman & CFO)
Analysts 8 Ankur Gulati, Charchit (Individual), Darshan (HNI), Dhaval Pandya, Deepesh Sancheti, Jonathan Fernandes, Kushal, Rudraksh Kalra, Samarth (Individual), Swaraj Mehta, Vikas
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (Consolidated) | ₹37.36 crores | +43% YoY; Driven by capacity expansion and Mineral India Global acquisition. |
| EBITDA | ₹8.94 crores | +50% YoY; Margin expanded to 23.9% due to automation and lower labor costs. |
| PAT | ₹6.08 crores | +54% YoY; PAT margin improved to 16.3% on operational efficiencies. |
| Volume (Standalone) | 37,461 MT | ~20% increase over Q2; Capacity utilization at 80% on 2,56,000 MTPA base. |
| Average Selling Price | ~₹8,000 / MT | Pricing remained stable with a target of ₹1,000-₹1,500 premium for new product. |
| Net Debt/Equity | 0.3% | Negligible leverage; Balance sheet remains robust post-listing. |
| Cash & Bank Balance | ~₹39.50 crores | Includes ₹36 crores remaining from IPO proceeds for Greenfield expansion. |
| Working Capital Cycle | 51 days | Comprises 66 days debtors, 6 days inventory, and 21 days creditors. |
Geographic & Segment Commentary
- Domestic (Eastern India): 60% of India’s induction furnace steel production is concentrated in this region due to proximity to iron ore mines. Monolithisch holds a 17-18% regional market share and operates plants in Purulia and Ranchi to minimize high transportation costs.
- Exports: Currently serves Nepal (₹10-15 lakhs/month) and Bangladesh (via traders). Management is scouting for land near Mundra Port or Rajasthan (est. ₹2 crore land cost) to competitively serve African and Middle Eastern markets.
Company-Specific & Strategic Commentary
- Capacity Expansion: Brownfield expansion at Purulia increased capacity from 1,32,000 MTPA to 2,56,000 MTPA. The upcoming Greenfield project is on track for Q1 FY27, targeting a total global capacity of 5,74,000 MTPA.
- Product Innovation (SGB Limited): Transitioning customers from SGB-777 to SGB Limited, which offers 15-20% superior lifespan. This shift is expected to enhance premium realizations and customer retention.
- Acquisition: Completed 100% stake acquisition of Mineral India Global Private Limited (MIGPL) at book value (₹399.60 NAV) on Nov 8, 2025. This consolidates all ramming mass operations and adds 65,000 MTPA capacity.
- Operational Efficiency: Replaced Indian-made machinery with advanced Swedish Metso Outotec equipment. This move significantly reduced labor requirements by 20-30% and lowered electricity and consumable costs.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| FY26 Revenue | ₹140 - ₹150 crores | Supported by volume growth and consolidation of MIGPL for the full Q4. |
| FY26 EBITDA | ~₹32 crores | Driven by margin expansion from automation and new premium product adoption. |
| FY28 Revenue/EBITDA | 5x Growth vs FY25 | Strategy relies on achieving 25% market share post-Greenfield commissioning. |
| EBITDA Margin | 22.0% - 26.0% | Sustainable range expected; 22% is the conservative floor. |
Risks & Constraints
| Risk | Context |
|---|---|
| Logistics Costs | Freight costs range from ₹300 to ₹1,400 per ton; any expansion outside the East requires localized manufacturing to remain competitive. |
| Raw Material Volatility | Additives like Boric Acid and Boron Oxide are dollar-linked; company mitigates this by maintaining 2-3 months of inventory. |
| Customer Concentration | The top two client groups represent 24-25% of total revenue, creating dependency on large secondary steel players. |
Q&A Highlights
Capex Rationale
- Question: Why is the project-to-turnover ratio much higher than competitors? (Vikas)
- Answer: Monolithisch uses premier Metso Outotec machinery which is highly efficient; management invited stakeholders to visit the plant to see the technological gap (Harsh Tekriwal).
New Product Realization
- Question: How will SGB Limited impact realization? (Ankur Gulati)
- Answer: The product is currently in trial; it is expected to command a premium of ₹1,000 to ₹1,500 per ton over existing products (Harsh Tekriwal).
Expansion into Rajasthan
- Question: What is the status of the Western India expansion? (Vikas)
- Answer: Finalizing land near ports in Rajasthan/Gujarat within 2-3 months; plant setup will take 4-5 months using repurposed machinery from older lines (Harsh Tekriwal).
Working Capital Improvement
- Question: Do you expect improvement in receivable/inventory days? (Dhaval Pandya)
- Answer: Q4 typically sees a drastic reduction in inventory as the company de-stocks after the Q2-Q3 “bulking” period (Harsh Tekriwal).
Key Takeaway
Monolithisch India Limited delivered a milestone performance in Q3 FY26, with consolidated revenue reaching ₹37.36 crores and EBITDA margins expanding to 23.9%. The company successfully integrated its subsidiary, Mineral India Global, and completed a critical Brownfield expansion that doubled its production capacity. Strategically, the firm is transitioning from its legacy SGB-777 product to the higher-margin SGB Limited line while maintaining a debt-free balance sheet with ₹36 crores in IPO proceeds remaining. Management reiterated its FY26 revenue guidance of ₹140-150 crores and remains committed to a 5x growth target by FY28, underpinned by the commissioning of a world-class Greenfield facility in Q1 FY27. Investors should monitor the upcoming Rajasthan entry and the impact of dollar-linked raw material costs on margins.
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