MUKANDLTD - Mukand

📊 NSE: MUKANDLTD 🏢 Steel - Large 📅 Last Updated: 12/14/2025 10:06

💰 Financial Performance

Revenue Growth by Segment

Overall revenue from operations for FY 2024-25 was INR 4,911.16 Cr, representing a decline of 5.08% from INR 5,174.69 Cr in the previous year. The Industrial Machinery division grew 17.6% to INR 260 Cr from INR 221 Cr. Specialty Steel remains the primary segment with liabilities of INR 846.42 Cr as of September 2025.

Geographic Revenue Split

The company derives approximately 92-93% of its revenue from the domestic market and 7-8% from export markets. This split protects the business from localized slowdowns but exposes it to global trade tensions and freight cost volatility.

Profitability Margins

Profit After Tax (PAT) for FY 2024-25 was INR 86.95 Cr, up 16.4% from INR 74.69 Cr. However, the PAT margin in Q1 FY25 was 1.9%, down from 3.1% in FY23, reflecting pressure from low-priced imports and increased freight costs.

EBITDA Margin

The operating margin improved to 5.64% in FY24 from -3.23% in FY23. This recovery was driven by cost optimization and improved realizations despite a 5.08% decline in overall revenue during the subsequent fiscal year.

Capital Expenditure

The company is investing in downstream value-added products and niche applications for aerospace and defense. Specific historical and planned CapEx in INR Cr was not disclosed in the available documents.

Credit Rating & Borrowing

The company maintains a moderate financial risk profile with an interest coverage ratio of 2.76x in Q1 FY25. Promoters provided unsecured loans of INR 100 Cr as of March 31, 2025, to support liquidity.

⚙️ Operational Drivers

Raw Materials

Key raw materials include steel scrap and ferroalloys. These are susceptible to global price volatility, which directly impacts the operating margin of the specialty steel division.

Import Sources

Not disclosed in available documents, though the company notes susceptibility to global market fluctuations and supply chain disruptions in the Middle East.

Capacity Expansion

Current bloom production volume is 4,99,240 Metric Tonnes across the Kalwe and Hospet plants. The company plans to increase the scale of operations specifically in the industrial machinery segment.

Raw Material Costs

Raw material costs are a significant portion of the cost structure; a decline in raw material prices in FY24 affected the final price of finished products, impacting revenue by 5.08% in FY25.

Manufacturing Efficiency

The company achieved a bloom production volume of 4,99,240 MT. Efficiency is being driven by increasing capacity utilization at downstream rolling facilities to unlock operating leverage.

Logistics & Distribution

Increased freight costs and supply chain disruptions have adversely impacted export volumes and overall distribution efficiency.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth will be achieved by focusing on downstream value-added products, increasing capacity utilization in downstream facilities, and supplying over 650 grades of specialty steel to niche sectors like aerospace, defense, and power.

Products & Services

Alloy steel, stainless steel, industrial machinery, heavy engineering equipment, stainless steel cold finished bars, and wires.

Brand Portfolio

Bajaj Mukand

New Products/Services

Special steel grades tailored for niche applications in aerospace, defense, power, and precision engineering are expected to drive future value growth.

Market Expansion

The company is deepening its presence in the specialty steel domain, particularly catering to the evolving demands of the automotive, engineering, and oil & gas sectors.

Strategic Alliances

The company completed the demerger of the Stainless Steel Cold Finished Bars and Wires business from Mukand Sumi Metal Processing Limited (MSMPL) into Mukand Ltd, effective April 01, 2024.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward sustainable manufacturing and green production practices. Mukand is positioning itself by integrating renewable energy and focusing on high-tech specialty steel.

Competitive Landscape

Intense competition from low-priced steel imports and other domestic alloy steel manufacturers.

Competitive Moat

The company's moat is built on its established 'Bajaj Mukand' brand, 3.5 decades of promoter experience, and a vast product basket of 650 steel grades, which are difficult for new entrants to replicate.

Macro Economic Sensitivity

Highly sensitive to global steel demand and domestic industrial production. A surge in low-priced imports weighed heavily on market dynamics in FY 2024-25.

Consumer Behavior

Increasing demand for customized, high-performance engineering solutions in the automotive and aerospace sectors is driving the shift toward specialty steel.

Geopolitical Risks

The Russia-Ukraine conflict and Middle East supply chain disruptions pose risks to raw material procurement and export logistics.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to stringent regulations on water usage and effluent discharge. The company must also comply with NCLT orders regarding corporate restructuring.

Environmental Compliance

Water management is a key risk; the company is implementing water-efficient practices to mitigate the risk of production disruptions and elevated compliance costs.

Legal Contingencies

The National Company Law Tribunal (NCLT) approved the scheme of demerger for the stainless steel business on April 29, 2025. No other major pending litigation values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices and global trade tensions are the primary uncertainties, potentially impacting operating margins by several percentage points.