MANAKSTEEL - Manaksia Steels

📊 NSE: MANAKSTEEL 🏢 Steel - Medium / Small 📅 Last Updated: 12/14/2025 9:31

💰 Financial Performance

Revenue Growth by Segment

Standalone revenue for FY 2024-25 was INR 584.18 Cr, representing an 8.17% decline from INR 631.96 Cr in FY 2023-24. The primary segment, colour-coated steel sheets and coils, contributed 33.44% of total income. The Nigerian subsidiary (FSML) delivered outstanding growth of over 150% YoY.

Geographic Revenue Split

Domestic operations (India) contributed the majority of revenue, while international operations are centered in Nigeria through Federated Steel Mills Ltd. (FSML), which saw revenue growth exceeding 150% YoY in FY26.

Profitability Margins

Profitability margins moderated in FY25 due to a sharp reduction in sales realization. However, FY24 showed a stable financial performance with an improvement in profitability margins compared to previous periods.

EBITDA Margin

Operating profit before working capital changes was INR 21.24 Cr for the half-year ended September 30, 2025, compared to a loss of INR 0.83 Cr in the previous year's corresponding period, showing a significant recovery in core profitability.

Capital Expenditure

The company successfully commissioned a Galvalume Plant in June 2025. A new project is underway to enhance colour-coating capacity by nearly 200%, with commissioning expected by Q4 FY26.

Credit Rating & Borrowing

CARE Ratings reaffirmed 'CARE A-; Stable' for long-term bank facilities (INR 60.00 Cr, enhanced from 45.00 Cr) and 'CARE A2+' for short-term bank facilities (INR 440.00 Cr, enhanced from 330.00 Cr) as of July 2025.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include steel coils and sheets used for galvanizing and colour-coating processes. Specific cost percentages for each material are not disclosed.

Capacity Expansion

Current capacity includes the newly commissioned Galvalume Plant (June 2025). Planned expansion will increase colour-coating capacity by nearly 200% by Q4 FY26 to strengthen the value-added segment.

Raw Material Costs

Raw material costs are a significant portion of the cost structure; margins were squeezed in FY25 as sales realizations fell faster than input costs.

Manufacturing Efficiency

The company focuses on driving scale and efficiency through its new Galvalume and expanded colour-coating lines to improve absorption of fixed costs.

📈 Strategic Growth

Expected Growth Rate

200%

Growth Strategy

Growth will be achieved through a 200% capacity expansion in the high-margin colour-coating segment by Q4 FY26, the ramp-up of the new Galvalume plant, and capitalizing on infrastructure demand in Nigeria where the subsidiary grew 150% YoY.

Products & Services

Colour-coated steel sheets and coils (33.44% of revenue), galvanized steel sheets, hot rolled steel sheets, and Galvalume products.

Brand Portfolio

Manaksia Steels

New Products/Services

Galvalume products from the newly commissioned plant (June 2025) are expected to contribute significantly to the value-added product mix.

Market Expansion

Expansion is focused on the Nigerian market through Federated Steel Mills Ltd. and increasing domestic presence in architectural segments like roofing and cladding.

🌍 External Factors

Industry Trends

The industry is shifting toward value-added products like colour-coated and Galvalume steel for architectural and infrastructure use. Manaksia is positioning itself by tripling its colour-coating capacity.

Competitive Landscape

The company competes in the fragmented steel processing and value-added products market against both large integrated players and smaller regional processors.

Competitive Moat

Moat is derived from 40 years of promoter experience in steel manufacturing and the strategic location of plants. Sustainability depends on maintaining a low-cost structure and high capacity utilization.

Macro Economic Sensitivity

Highly sensitive to global steel price cycles and infrastructure spending in India and Nigeria.

Consumer Behavior

Rising demand for durable and aesthetic roofing/cladding materials is driving the shift toward colour-coated steel sheets.

Geopolitical Risks

Operations in Nigeria carry risks related to currency volatility and local economic stability.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with SEBI Listing Obligations and Disclosure Requirements (LODR) 2015 and Indian Accounting Standards (Ind AS 34).

⚠️ Risk Analysis

Key Uncertainties

Currency risk in Nigeria (Naira devaluation) and cyclicality in steel prices are the primary uncertainties impacting margins by over 5-10% in volatile periods.