💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment: manufacturing and trading of structural steel products. Revenue from operations for H1 FY26 (period ended September 30, 2025) was INR 9,253.10 Lakhs, representing a 14.15% decline compared to INR 10,777.92 Lakhs in H1 FY25. This contraction suggests a slowdown in volume or pricing pressure in the structural steel market during the first half of the fiscal year.

Geographic Revenue Split

Not explicitly disclosed in percentage terms; however, the company maintains a registered office in Kamrup, Assam, and a corporate office/manufacturing presence in Jaipur, Rajasthan, indicating a focus on the North and North-Eastern Indian markets.

Profitability Margins

Profitability saw a significant decline in H1 FY26. Net Profit Margin stood at 1.80% (INR 166.21 Lakhs) compared to 2.70% (INR 291.04 Lakhs) in H1 FY25. This margin compression is primarily driven by high raw material costs which consumed 88.6% of total revenue, leaving limited room for bottom-line growth.

EBITDA Margin

The estimated EBITDA margin for H1 FY26 was approximately 3.83% (calculated as PBT of INR 247.68 Lakhs + Finance Costs of INR 78.26 Lakhs + Depreciation of INR 28.88 Lakhs). This is a decrease from the H1 FY25 EBITDA margin of approximately 5.39%, reflecting reduced operational efficiency or higher procurement costs.

Capital Expenditure

Tangible assets (Property, Plant & Equipment) stood at INR 359.83 Lakhs as of September 30, 2025, a marginal increase from INR 355.23 Lakhs as of March 31, 2025, indicating minimal maintenance-level CapEx of approximately INR 4.6 Lakhs during the half-year period.

Credit Rating & Borrowing

Total borrowings as of September 30, 2025, included Long-Term Borrowings of INR 938.76 Lakhs and Short-Term Borrowings of INR 987.15 Lakhs. Finance costs for H1 FY26 were INR 78.26 Lakhs, which is approximately 0.85% of revenue, down slightly from INR 80.61 Lakhs in H1 FY25.

⚙️ Operational Drivers

Raw Materials

The primary raw materials are steel-related inputs for structural products, specifically M.S. (Mild Steel) billets or scrap. Cost of materials consumed was INR 8,202.22 Lakhs, representing 88.64% of the total revenue from operations.

Import Sources

Not specifically disclosed, but the company's operations are centered in Rajasthan and Assam, suggesting domestic sourcing from major steel hubs in India.

Key Suppliers

Not disclosed in the available financial statements.

Capacity Expansion

Current installed capacity is not specified in metric tonnes; however, the company is an ISO certified manufacturer of structural steel. No specific expansion timeline was provided in the H1 FY26 results, though the recent IPO (October 2025) raised INR 25.73 Cr, which is typically used for working capital or expansion.

Raw Material Costs

Raw material costs for H1 FY26 were INR 8,202.22 Lakhs. While absolute costs decreased by 18.88% YoY (from INR 10,112.03 Lakhs in H1 FY25), the cost as a percentage of revenue remains high at 88.6%, making the company highly sensitive to steel price volatility.

Manufacturing Efficiency

Depreciation and Amortization expenses were INR 28.88 Lakhs in H1 FY26, up 49% from INR 19.38 Lakhs in H1 FY25, suggesting recent additions to the plant and machinery are now being amortized.

Logistics & Distribution

Not disclosed; however, the company serves the structural steel market which involves high-volume, heavy-weight transport, making it sensitive to diesel price fluctuations.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

The company completed its IPO in October 2025, raising INR 25.73 Crores by allotting 32,57,600 shares at INR 79 each. This capital infusion is intended to strengthen the balance sheet, provide working capital for larger orders, and potentially fund the expansion of its structural steel product line (Channels, Beams, Angles). The listing on the BSE SME platform is expected to enhance brand visibility and creditworthiness.

Products & Services

M.S. Channels, Joists/Beams, Angles, Rounds, Squares, and Flats used in construction and infrastructure projects.

Brand Portfolio

MPK Steels

New Products/Services

Not disclosed in the current reporting period.

Market Expansion

The company is leveraging its dual presence in Rajasthan (Corporate Office) and Assam (Registered Office) to capture regional infrastructure demand in both Western and North-Eastern India.

Market Share & Ranking

Not disclosed; company identifies as a 'Leading Manufacturer of Structural Steel' in its corporate communications.

Strategic Alliances

Not disclosed.

🌍 External Factors

Industry Trends

The structural steel industry is shifting toward higher-grade alloys and standardized sections for pre-engineered buildings (PEB). MPK Steels is positioned as an ISO-certified manufacturer to benefit from this formalization of the construction sector.

Competitive Landscape

Competes with both large-scale integrated steel plants and numerous unorganized secondary steel players in the structural segment.

Competitive Moat

The company's moat is based on its established manufacturing setup in two distinct geographic regions (Assam and Rajasthan) and its recent transition to a listed entity, which provides a 'Strong Base' for future capital raises. However, the moat is narrow due to the commodity nature of the products.

Macro Economic Sensitivity

Highly sensitive to the construction and infrastructure sectors. A 1% change in GDP growth typically correlates with steel demand shifts in the structural segment.

Consumer Behavior

Increased preference for branded and certified structural steel (like ISO certified MPK products) over unbranded local scrap-based steel in infrastructure projects.

Geopolitical Risks

Minimal direct exposure, but global steel price fluctuations driven by China's production levels indirectly impact domestic pricing and competition.

⚖️ Regulatory & Governance

Industry Regulations

Subject to BIS standards for structural steel and environmental norms for steel rolling mills. The company is ISO certified, indicating compliance with international quality management standards.

Environmental Compliance

Not disclosed.

Taxation Policy Impact

The effective tax rate for H1 FY26 was approximately 32.8% (Tax expense of INR 81.47 Lakhs on PBT of INR 247.68 Lakhs).

Legal Contingencies

No material pending litigations were disclosed in the limited review report or the financial notes for the period ended September 30, 2025.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the volatility of raw material prices, which can swing the thin 1.8% net margin into a loss. Additionally, the 14% YoY revenue decline in H1 FY26 indicates cyclical risk.

Geographic Concentration Risk

Concentrated in the Indian domestic market, specifically the Rajasthan and Assam regions.

Third Party Dependencies

High dependency on steel billet suppliers; any disruption in the supply of raw steel would halt the production of channels and beams.

Technology Obsolescence Risk

Low risk for structural steel, but failure to adopt automated rolling technologies could lead to higher conversion costs compared to modernized competitors.

Credit & Counterparty Risk

Trade receivables stood at INR 2,285.55 Lakhs as of September 30, 2025, representing 24.7% of H1 revenue, indicating significant credit extension to customers.