MCL - Madhav Copper

📊 NSE: MCL 🏢 Mining / Minerals / Metals 📅 Last Updated: 12/14/2025 9:24

💰 Financial Performance

Revenue Growth by Segment

Total revenue reached INR 124.59 Cr in FY25, representing a 250.9% increase from INR 35.50 Cr in FY24. Historical growth for the manufacturing and trading of enameled and submersible wires showed a CAGR of 72.66% leading up to FY19.

Geographic Revenue Split

The company has a strong presence in Gujarat, India, but has significantly expanded its international footprint. Export revenues increased by 174.31x in FY25, targeting high-demand markets in the Middle East, Europe, and Southeast Asia.

Profitability Margins

Net Profit Margin (NPM) was 3.76% in FY25 compared to 3.46% in FY24. For Q1FY26, NPM stood at 2.26%. Operating Profit Margin (OPM) improved from -3.49% in FY24 to 4.95% in FY25, though it slightly moderated to 4.36% in Q1FY26.

EBITDA Margin

EBITDA margin for FY19 was 4.25% (INR 9.06 Cr on INR 212.98 Cr revenue). Recent reports indicate EBITDA margin expansion driven by higher value addition and tighter cost control, though specific FY25 EBITDA percentage is not explicitly stated.

Capital Expenditure

The company allocated INR 6.48 Cr for the purchase of Plant & Machinery from its 2020 FPO proceeds. Recent strategic initiatives include expanding rolling mill and extrusion line capacities and upgrading furnace and casting technology.

Credit Rating & Borrowing

The company is currently rated 'CRISIL B-/Stable Issuer Not Cooperating' as of 2024 due to lack of information adequacy. Previously, it held a 'BB+/Stable' rating. Finance costs for FY19 were INR 1.26 Cr, representing approximately 0.59% of total revenue.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include Copper Concentrate and Copper Scrap. Copper material consumption accounted for INR 176.31 Cr in FY19, representing 82.7% of total revenue.

Import Sources

The company has a high dependence on imported copper concentrate, while also sourcing copper scrap domestically to promote circular usage and reduce import reliance.

Key Suppliers

Specific supplier names are not disclosed, but the company utilizes a mix of international copper concentrate providers and domestic scrap vendors.

Capacity Expansion

The manufacturing facility in Bhavnagar, Gujarat, covers 49,979 sq. Mts. Planned expansions include dedicated facilities for high-grade copper foils and rods to meet rising demand in the EV and renewable energy sectors.

Raw Material Costs

Raw material costs are highly sensitive to global copper price realizations. In FY19, cost of materials consumed was INR 176.31 Cr, a 22.9% increase YoY from INR 143.45 Cr in FY18.

Manufacturing Efficiency

Efficiency is driven by ISO 9001:2015, 14001:2015, and 45001:2018 certifications. The company is upgrading furnace technology to improve yield and reduce waste.

Logistics & Distribution

Distribution costs are being optimized through enhanced logistics networks to ensure faster delivery to export markets in the Middle East and Africa.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

Growth will be achieved through a 5% projected industry CAGR in copper demand, expansion of rolling mill and extrusion capacities, and aggressive penetration into export markets in Southeast Asia and Europe. The company is also focusing on high-value products like copper foils for the electric vehicle (EV) sector.

Products & Services

Enameled copper wires, submersible copper wires, high-grade copper foils, and copper rods.

Brand Portfolio

Madhav Copper, Madhav Group.

New Products/Services

New product induction includes high-grade copper foils and rods, targeting the renewable energy and EV sectors for higher value addition.

Market Expansion

Targeting expansion in the Middle East, Africa, and Southeast Asia to capitalize on rising infrastructure development.

Market Share & Ranking

The company is a significant player in the Gujarat copper wire market and is listed on the NSE EMERGE platform.

Strategic Alliances

The company is part of the Madhav Group, leveraging group-level synergies for procurement and market reach.

🌍 External Factors

Industry Trends

The copper industry is evolving toward supporting the global energy transition (EVs, renewables), with demand expected to grow at a 5% CAGR over the next decade despite potential supply deficits.

Competitive Landscape

Competes with both large-scale copper producers and specialized wire manufacturers in the domestic Gujarat market and international export hubs.

Competitive Moat

Moat is built on backward integration, a large 49,979 sq. Mts manufacturing base, and specialized ISO certifications which are sustainable due to high entry barriers in copper smelting and processing.

Macro Economic Sensitivity

Highly sensitive to global copper prices and industrial production growth, particularly in the power and infrastructure sectors.

Consumer Behavior

Shift toward sustainable and energy-efficient electrical components is driving demand for high-quality enameled wires.

Geopolitical Risks

Geopolitical tensions affecting trade routes to the Middle East and Europe could impact the company's 174x export growth trajectory.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to environmental and regulatory compliance regarding copper smelting and effluent discharge; the company conducts regular compliance audits.

Environmental Compliance

The company maintains ISO 14001:2015 certification and is investing in copper recycling and scrap processing to reduce its carbon footprint.

Taxation Policy Impact

Tax expense for FY19 was INR 1.82 Cr on a PBT of INR 6.04 Cr, reflecting an effective tax rate of approximately 30.1%.

⚠️ Risk Analysis

Key Uncertainties

The 'Issuer Not Cooperating' status by CRISIL (2024) represents a significant uncertainty regarding current credit quality and financial transparency.