M & B Engineering Ltd

Financial performance

• Revenue from operations rose to ₹1,260 crore, up 27% YoY.
• EBITDA ₹157 crore, up 17%; EBITDA margin ~12.5%.
• PAT ₹93 crore, up 20%; PAT margin ~7.4%.
• Export revenue ₹165.6 crore, up 156%; exports ~13% of total.
• Orders on hand ₹1,083 crore; inflows ₹1,539 crore, up 28%.
• Phenix contributed ₹985 crore (78%); Proflex ₹275 crore (22%).
• Export orders outside India ₹279 crore to be executed FY27.
• Standalone net worth ₹65,596.11 Lacs; Consolidated ₹65,709.87 Lacs.
• Consolidated debt-to-equity negative; standalone also negative.

Segments and product mix

• Phenix division drives ~₹985 crore revenue (78% of total).
• Proflex division contributes ~₹275 crore (22%).
• Export markets underpin North America; 22 countries served.
• Phenix has strong in-house engineering and execution capabilities.
• Orders on hand skew ~Phenix 80% and Proflex ~20%.
• Phenix targets industrial, warehousing, infrastructure; Proflex focuses on rail, infrastructure.
• Export revenue supported by AISC and CWB certifications.

Capacity expansion and investments

• Sanand expansion: +20,000 MTPA; targeted Oct 2026.
• Cheyyar expansion: +20,000 MTPA; targeted FY28.
• Heavy structural steel line: +10,000 TPA; target Q1 FY28.
• Total PEB/structural steel capacity to ~154,000 TPA by FY28.
• Phenix combined capacity ~124,000 MTPA; sustained exports.
• Proflex capacity: two more mobile units; ~21 lakh sq m per annum.
• Sanand expansion increases capacity from 72,000 to 92,000 MTPA.
• Expects rising demand from manufacturing, warehousing, data centers, and logistics.

IPO and capital structure

• IPO completed Aug 6, 2025; fresh issue ₹275 cr; OFS ₹375 cr.
• Total paid-up capital rose to ₹57.15 cr from ₹50 cr.
• Net IPO proceeds ₹25,932 Lacs; utilisation track across defined objects.
• As of 31-Mar-2026, unutilised IPO proceeds ₹12,151.30 Lacs in fixed deposits/escrow.
• No material deviations reported in IPO proceeds utilization.

Dividend, ESOP and governance

• Final dividend proposed: ₹1.00 per share; record date 10-Sep-2026.
• ESOP 2024: 2,52,800 options granted; 2,35,950 outstanding.
• Loyalty exercise price ₹196.50; Performance ₹393.00; four-year vesting.
• Board comprises 12 directors; multiple independent directors; robust audit and nomination committees.
• Statutory auditors: Talati & Talati LLP; internal auditors: Manubhai & Shah LLP.

Risks and outlook

• Industry risks include steel price volatility and cyclical capex.
• Geopolitical risks and FX fluctuations could impact margins.
• Raw material supply and logistics costs remain key concerns.
• Management expects mid-to-long-term growth in India PEB demand; 25% revenue growth anticipated FY27.
• Export opportunities rise with North America exposure and global certifications.

Capital allocation and liquidity

• Consolidated net cash position reflected by negative debt-to-equity; healthy liquidity.
• Cash balances and fixed deposits support operations and capex.
• IPO proceeds enhanced balance sheet; ongoing capacity expansions funded through mix of debt and equity.

CSR and sustainability

• CSR expenditure for 2025-26: ₹143.00 Lacs; policy aligned with Schedule VII.
• CSR activities focused on education, healthcare, environment; governance and transparency maintained.

Voluntary disclosures and controls

• No material qualifications in statutory or secretarial audits.
• Robust internal financial controls and risk management framework in place.
• Management discussion includes forward-looking statements with usual caution on external factors.

Meeting Details

• Date: 25 August 2026; Time not disclosed.
• Type/Mode: Group investor/analyst meeting, in-person.
• Event/Organizer: Systematix Group – Recycled Materials & Steel Infrastructure Conference 2026.
• Purpose: Investor/analyst interaction to discuss publicly available documents.
• Participants: Company management representatives to attend.

Financial Performance

• Revenue from operations: INR291 crores, up 22.5% YoY.
• Phenix revenue: INR214 crores, 74% of total; +22% YoY.
• ProFlex revenue: INR77 crores, 26% of total; +25% YoY.
• Domestic revenue: INR263 crores (90%); Export: INR28 crores (10%).
• EBITDA: INR36 crores; Operating EBITDA: INR33 crores; margin 11.4%.
• PAT: INR22 crores, +22% YoY.
• IPO proceeds: INR259.32 crores; utilized INR146.69 crores (57%) as of 30 Jun 2026.
• During the quarter, INR8.88 crores was utilized from IPO proceeds.

Operational Update

• Sanand brownfield expansion: +20,000 tpa; capacity 72k to 92k; commissioning Oct 2026.
• Cheyyar: AISC certification; exports to West Coast from next financial year; ~60% utilization targeted in FY27.
• Heavy structural steel: Sanand expansion adds 20,000 tpa; total capacity ~154,000 tpa by Q3 FY28.
• New automated heavy structural line at Sanand: INR30 crores; +10,000 tpa; online by Q1 FY28.
• Phenix and Proflex: Proflex capacity up to 21 lakh sqm per annum after mobile-unit expansion.
• Data-center opportunity: USD12–14 bn addressable; USD60–70 bn of investments; 8–10% steel construction share.

Capex and Capacity

• Q1 FY27 capex: ~INR27 crores; Sanand expansion, Proflex mobile units, 2.5 MW solar plant.
• AISC Cheyyar certification enables exports; Cheyyar exports to US West Coast from next FY.
• Ongoing investments to stay ahead of market; additional capacity planned to support growth.

Outlook and Guidance

• FY27 revenue growth guidance: over 25%.
• Top-line target for FY27: ~INR1,600 crores.
• Margin guidance: not yet provided; preferred to wait for next quarter before giving specifics.
• US Section 232 duties reduced from 50% to 25%, supportive for exports.
• Sanand capacity expansion to aid H2 FY27 performance.

Q&A Highlights

• Q1 order inflow ~INR260 crores; pipeline ~INR4,000 crores (Phenix) and ~INR200 crores (Proflex).
• Large inquiries slow due to design freezes; conversions expected in Q2.
• Freight costs elevated; export margins around 15%; could be 16–17% if freight normalizes.
• Domestic margins ~11%; blended ~11–11.5%; exports higher; upside with volumes.
• Hit rate historically 12–15%; capacity expansion (Sanand +20k tpa; Cheyyar) to help reach ~20%.
• Repeat customers 60–70%; capacity constraints currently limit growth pace.

AGM date correction

• Corrects day of week for AGM: 17 September 2026 now Thursday, previously Tuesday; other contents unchanged.

AGM date correction

• Day of week corrected for the 44th AGM date to Thursday, the 17th September 2026; other disclosures unchanged.

Issue Overview

• Type: IPO of equity shares.
• Total issue size and net proceeds reported; no undersubscription indicated.
• Main use of proceeds: capex, IT upgrade, debt repayment, general corporate purposes.
• Procurement differed from Offer Document; under negotiation with suppliers.

Utilisation of Proceeds

• Utilisation is as per disclosures: Yes.
• Deviations/changes: procurement of equipment/vehicles differed from Offer Document; under negotiation.
• Object-wise status: 1 partial utilisation; 2 none; 3 full; 4 largely used with small unutilised.
• Total unutilised funds: 1,154.41 million.
• Unutilised funds held in fixed deposits and monitoring/escrow accounts.
• GCP utilisation in quarter: no utilisation.

Governance and Compliance

• Approvals: not explicitly stated; no material approvals pending.
• Material events: procurement deviation and capex/IT delays; negotiations ongoing; potential timing impact.
• Additional notes: no other material governance events reported.

General Corporate Purpose (GCP)

• GCP used: 641.84 million; unutilised: 6.07 million.
• Board approval for allocation: not explicitly stated.
• Unspent GCP expected to be utilised in a subsequent period per notes.
• Unutilised GCP funds held in fixed deposits / monitoring accounts.

Meeting Details

• Date of Earnings Conference Call: 10 August 2026.
• Time: not disclosed.
• Type: group earnings conference call.
• Mode: virtual.
• Event: Earnings Conference Call for quarter ended 30 June 2026.
• Organizer: M&B Engineering Ltd.

Participants

• Joint Managing Directors represented the company.
• Director attended the call.
• Chief Financial Officer attended the call.

Purpose

• Discuss unaudited quarterly results for quarter ended 30 June 2026.

Additional Notes

• Recording: Audio recording of the conference call is available on the company website.

Utilisation of IPO Proceeds

• No deviation in the use of IPO proceeds for quarter ended 30-06-2026.
• Annexure-1 details allocation and utilisation, including IT upgrade and loan repayments.