MAHASTEEL - Mahamaya Steel

📊 NSE: MAHASTEEL 🏢 Steel - Medium / Small 📅 Last Updated: 12/14/2025 9:26

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single 'Steel Segment'. Revenue for Q1 FY25 was INR 211.03 Cr, representing a 4.16% decrease from INR 220.20 Cr in Q1 FY24 due to subdued demand.

Geographic Revenue Split

Not disclosed in available documents, though manufacturing is centralized in Raipur, Chhattisgarh.

Profitability Margins

Net Profit Ratio was 0.8% in FY25, a 26.50% decrease from 1.0% in FY24. However, consolidated total comprehensive income for H1 FY26 grew 229% YoY to INR 3.62 Cr from INR 1.10 Cr in H1 FY25.

EBITDA Margin

EBITDA margins are thin; credit rating sensitivity indicates a target above 5% for an upgrade and a risk of downgrade if margins fall below 2%.

Capital Expenditure

Standalone Property, Plant and Equipment (PPE) increased by INR 1.47 Cr to INR 71.78 Cr as of September 30, 2025, from INR 70.31 Cr on March 31, 2025.

Credit Rating & Borrowing

Rated BBB+/Stable by CRISIL. Interest expense for H1 FY26 was INR 2.35 Cr, a 13.5% increase from INR 2.07 Cr in H1 FY25.

⚙️ Operational Drivers

Raw Materials

Sponge iron, pig iron, and iron scrap are the primary raw materials.

Import Sources

Sourced locally from the Raipur, Chhattisgarh steel hub.

Key Suppliers

Local manufacturers of sponge iron, pig iron, and iron scrap in the Raipur region.

Capacity Expansion

Current installed capacity is 2,00,000 MTPA for billets/blooms and 205,500 MTPA for structural steel. No specific expansion timeline is disclosed.

Raw Material Costs

Profitability is highly susceptible to volatility in raw material prices (sponge iron/scrap), which directly impacts the company's thin 0.8% net profit margin.

Manufacturing Efficiency

Inventory turnover ratio was 7.63 in FY25, a 2.99% decrease from 7.87 in FY24.

Logistics & Distribution

Locational advantage in Raipur minimizes distribution and procurement costs for heavy structural steel products.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company aims to achieve growth by sustaining the scale of operations and improving EBITDA margins to above 5%. This is supported by its locational advantage in Raipur, ensuring raw material availability and lower logistics costs for its structural steel products.

Products & Services

Heavy and light steel structural products such as joists, angles, beams, and channels.

Brand Portfolio

MAHAMAYA

Strategic Alliances

The company has significant exposure to group and associate companies.

🌍 External Factors

Industry Trends

The steel industry is cyclical with a stable current outlook; growth is primarily driven by infrastructure demand for structural products.

Competitive Landscape

Intense competition from other steel manufacturers impacts pricing power and margins.

Competitive Moat

The primary moat is the locational advantage in Raipur, Chhattisgarh, which provides a durable cost benefit through proximity to raw material manufacturers and lower logistics costs.

Macro Economic Sensitivity

Sensitive to economic conditions affecting demand/supply and price conditions in domestic and international markets.

Consumer Behavior

Demand shifts are closely linked to infrastructure and construction sector activity.

Geopolitical Risks

Exposed to unfavourable changes in government policies regarding mining, allocation, and tariffs.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to pollution norms, government mining policies, and steel import/export tariffs.

Taxation Policy Impact

Provision for taxation is made based on a PBT of INR 4.17 Cr for H1 FY26.

Legal Contingencies

No modifications were reported in the Auditor's Limited Review Report for the period ended September 30, 2025. Specific case values are not disclosed.