MIDHANI - Mishra Dhatu Nigam Limited Share Price

During the Q1 FY26 earnings call, management provided an optimistic outlook for Mishra Dhatu Nigam Limited (MIDHANI). Key highlights include:

1. Revenue Growth: MIDHANI reported a turnover of Rs.170.5 crores, a 4.31% increase from Rs.163.45 crores in Q1 FY25. The value of production significantly rose by 14.47% to Rs.241.29 crores from Rs.210.79 crores year-on-year.

2. Profitability Improvement: The company achieved an EBITDA of Rs.41.28 crores, which is a 32.86% improvement over Rs.31.07 crores from the previous year. Profit before tax surged to Rs.19 crores, a remarkable growth of 112.5% from Rs.8.96 crores last year, while profit after tax reached Rs.12.8 crores, up 150.49% from Rs.5.11 crores.

3. Order Book Size: MIDHANI has a robust order book of Rs.1,827 crores as of July 1, 2025, providing strong visibility for future revenue growth.

4. Revenue Target for FY26: Management targets a minimum turnover of Rs.1,300 crores, with an aspirational goal of Rs.1,500 crores, compared to the Rs.1,074 crores achieved last year.

5. Margin Expectations: EBITDA margins in Q1 stood at 24.22%, and the management expects margins to remain stable between 23% to 25% throughout the fiscal year.

6. Expectations for Upcoming Orders: The company is anticipating new orders worth Rs.700 crores in Q2 FY26, with significant demand expected from defense and aerospace sectors, particularly for programs like AMCA and Kaveri engines.

7. Long-Term Vision: MIDHANI has set a goal to increase its turnover to Rs.2,000 crores over a five-year horizon, indicating confidence in capturing a larger share of the strategic materials market.

These optimistic projections reflect MIDHANI's commitment to support India's defense and aerospace sectors while enhancing shareholder value.

Major Questions and Answers from MIDHANI Q1 FY26 Earnings Call Transcript

1. Question: "What is the current utilization of your Titanium mill and the orders you have?"

   • Answer: We have an order book of Rs. 450 crores and are fully utilizing our facilities to execute existing orders. We also anticipate more orders from other customers.

2. Question: "What kind of opportunity do you see for MIDHANI in the domestic fighter jet engine development?"

   • Answer: We are involved in developing materials for the Kaveri engine and expect significant orders for future projects, especially regarding AMCA components, as our alloys are essential for high-strength applications.

3. Question: "What revenue growth do you expect this year, and are your margins sustainable?"

   • Answer: We expect revenues to grow from last year's Rs. 1,074 crores to a minimum of Rs. 1,300 crores, aiming for Rs. 1,500 crores. We anticipate EBITDA margins to remain in the 23% to 25% range.

4. Question: "Can you break down your order book by sector?"

   • Answer: Our order book of Rs. 1,827 crores includes Rs. 761 crores from the aerospace sector, Rs. 156 crores from the army, and Rs. 420 crores from naval projects, with roughly 80% of our orders related to Defence.

5. Question: "How do you plan to balance capital between capacity expansion and R&D?"

   • Answer: We evaluate all projects based on market potential and resource availability, prioritizing long-term goals to ensure both capacity expansion and R&D are adequately funded.

6. Question: "What are your expectations for new order acquisitions this year, specifically from the domestic market?"

   • Answer: We're negotiating Rs. 701 crores worth of new orders in Q2 and expect significant future orders from sectors like aerospace, space, and energy, particularly given increased international defense spending.

7. Question: "What types of raw materials do you import, and how much do you rely on imports?"

   • Answer: Approximately 75% to 80% of our raw materials, such as nickel, cobalt, and molybdenum, are imported as India lacks the mineral resources to produce them at the required quality.

8. Question: "What is the expected long-term growth for MIDHANI, and what are your targets?"

   • Answer: Over the next five years, we aim to increase our revenues from Rs. 1,100 crores to about Rs. 2,000 crores, guided by the growth in strategic sectors and our expansion plans.

9. Question: "What challenges do you face with global supply chain linkages?"

   • Answer: We depend on imported raw materials, and disruptions can impact production. Our strategy includes exploring domestic alternatives and improving recycling to mitigate these issues.

10. Question: "What is the status of your bulletproof jacket products?"

    • Answer: Our Kavach bulletproof jackets, developed through technology transfer from BARC, are in production. We expect to see increased orders as we establish our manufacturing capabilities and meet customer needs.