💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: manufacturing bright steel bars and wires. Revenue from operations for FY25 was INR 212.91 Cr, representing a 9.82% decline from INR 236.10 Cr in FY24, primarily due to adverse market conditions and lower steel prices. However, H1 FY26 saw a total income of INR 111.36 Cr with record sales volumes of 16,873 tons.

Geographic Revenue Split

Domestic sales account for the majority of revenue, while exports to high-value markets like the US and Europe contribute approximately 6-8% of total production. The company plans to expand this by establishing international warehousing.

Profitability Margins

Net profit margin for H1 FY26 was 1.88% (INR 2.1 Cr). For FY25, the net profit ratio was 2.84% (INR 6.05 Cr), a 30.99% decrease from 4.12% (INR 9.72 Cr) in FY24. Return on Net Worth decreased by 42.25% YoY to 8% in FY25 due to lower PAT and better working capital management.

EBITDA Margin

EBITDA margin for H1 FY26 stood at 6.05% (INR 6.74 Cr). The company is focusing on transitioning from commodity-like products to high-margin specialty steel to improve these margins.

Capital Expenditure

The company is investing in plant consolidation and a new solar plant, which is expected to generate annual operational cost savings of INR 2.5 Cr. Future capacity is planned to reach 62,000 MTPA, up from the current 53,000 MTPA.

Credit Rating & Borrowing

CARE Ratings and Infomerics withdrew ratings for Maiden Forgings in February 2025 as the company repaid its bank facilities in full. Previous lenders included Tata Capital, SBI, SIDBI, and HDFC Bank. Finance costs for FY25 were INR 7.32 Cr, up 23.8% from INR 5.91 Cr in FY24.

⚙️ Operational Drivers

Raw Materials

Key raw materials include stainless steel and alloy steel wire rods. Specific grades mentioned include 430F (raw material cost ~INR 125/kg) and other specialty steel alloys used for bright bars and pneumatic nails.

Import Sources

Not explicitly disclosed in the documents, though the company mentions global relationships with sellers across the globe for its 35+ years of operations.

Key Suppliers

The company received 'No Due Certificates' from various financial institutions like Tata Capital and SBI, but specific raw material supplier names are not disclosed in the provided text.

Capacity Expansion

Current installed capacity is 53,000 MTPA across 3 manufacturing units in Ghaziabad. The company plans to expand this to 62,000 MTPA, which management estimates could generate revenue of INR 700-800 Cr at full potential.

Raw Material Costs

Raw material costs are highly sensitive to global steel prices. In H1 FY26, steel prices reached 2016-17 levels, which pressured revenue despite record production volumes of nearly 17,000 tons.

Manufacturing Efficiency

Capacity utilization is improving, with H1 FY26 achieving the highest production in company history (16,873 tons). The company claims to be the fastest in the industry for delivery, often referred to as a 48-hour model.

Logistics & Distribution

The company operates 3 owned manufacturing plants in Ghaziabad, serving over 450 customers. Distribution is focused on high-speed delivery to maintain a competitive edge over industry peers.

📈 Strategic Growth

Expected Growth Rate

19%

Growth Strategy

The company aims to double revenues within 4 years (implying ~19% CAGR) by expanding capacity to 62,000 MTPA, targeting 10% revenue from the B2G segment (Defense/Railways), and launching new products like GI wires and stainless steel components by Q1 FY27.

Products & Services

Bright steel bars, stainless steel wires, pneumatic nails, GI wires, and specialized steel components for defense and infrastructure.

Brand Portfolio

Maiden Forgings Limited.

New Products/Services

Launching GI wire and stainless steel components by H1 FY27. These specialty products are expected to have higher margins than the current commodity-grade bright bars.

Market Expansion

Aggressive expansion into the B2G sector (Defense, Power, and Infrastructure) and increasing export presence in the US and Europe. The company added 40+ new clients in FY25.

Market Share & Ranking

Not disclosed as a specific percentage, but the company identifies as a pioneer with 35+ years of experience and one of India's most trusted manufacturers in the bright steel bar segment.

Strategic Alliances

The company has a relationship with a Fortune 500 company listed on NASDAQ and serves over 450 customers globally.

🌍 External Factors

Industry Trends

The industry is shifting toward specialized alloys and high-margin stainless steel. Maiden Forgings is positioning itself to capture this by moving from 100% commodity products to a mix including specialty B2G supplies.

Competitive Landscape

Competes with other bright bar manufacturers but differentiates through speed of delivery and the ability to handle small, specialized, 'tailored' orders for customers.

Competitive Moat

Moat is based on 35+ years of technical expertise, a 48-hour delivery model, and specialized manufacturing capabilities for grades like 430F that are difficult for competitors to produce.

Macro Economic Sensitivity

Highly sensitive to global steel price cycles and industrial demand in the automotive and infrastructure sectors. FY25 performance was impacted by 'adverse market conditions' leading to a 9.8% revenue drop.

Consumer Behavior

Increasing demand for specialized steel in the defense and renewable energy (power) sectors is driving the company's shift away from traditional automotive-heavy demand.

Geopolitical Risks

Global trade volatility affects the export segment (US/Europe). However, the company is leveraging the 'Make in India' trend to substitute imports in the defense sector.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with ISO and PED certifications. Operations are subject to industrial manufacturing standards and pollution norms in Ghaziabad, Uttar Pradesh.

Environmental Compliance

The company is installing a solar plant to improve its ESG profile and reduce its carbon footprint.

Taxation Policy Impact

Effective tax rate for FY25 was approximately 29.2% (INR 2.49 Cr tax on INR 8.54 Cr PBT).

Legal Contingencies

No major pending court cases or legal disputes were highlighted in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Fluctuations in raw material (steel) prices could impact margins by 2-5%. The success of the B2G expansion (targeting 10% revenue) is a key uncertainty for FY27.

Geographic Concentration Risk

Manufacturing is concentrated in Ghaziabad (3 units). Revenue is primarily domestic, though 6-8% is exported.

Third Party Dependencies

Dependency on Tier 1 automotive suppliers (Bajaj, Hero, Maruti) is being reduced through diversification into defense and power.

Technology Obsolescence Risk

The company is mitigating technology risks by upgrading to 'state-of-the-art' in-house testing, pickling, and annealing facilities.

Credit & Counterparty Risk

Trade receivables turnover ratio slowed from 9.99 to 8.20 in FY25 due to adverse market conditions, indicating a slight increase in credit risk or longer payment cycles.