💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment of steel manufacturing and trading. Consolidated revenue from operations grew 29.61% YoY to INR 1,060.71 Cr in FY25 from INR 818.11 Cr in FY24. This growth was driven by higher sales volumes and an improved product mix, specifically the addition of value-added specialized steel products.

Geographic Revenue Split

MWL is primarily focused on the Indian market with manufacturing units located in Halol, Changodar, and Kapadvanj (Gujarat). While the company mentions having both domestic and export exposure to act as a natural hedge, the specific percentage contribution from each region is not disclosed in available documents.

Profitability Margins

Net Profit Margin improved to 2.76% in FY25 compared to 2.44% in FY24. Operating margins (EBITDA) expanded to 5.66% in FY25 from 5.20% in FY24. In H1FY26, the company reported a further improvement in PAT margins to 5.69% as capacity utilization of specialized product plants increased.

EBITDA Margin

EBITDA margin stood at 5.66% in FY25, up from 5.20% in FY24. Core profitability increased significantly as EBITDA grew 41.24% YoY to INR 60.06 Cr, driven by better operating efficiencies and the integration of higher-margin products like seamless pipes.

Capital Expenditure

Historical CAPEX includes the acquisition of the Stainless Seamless Pipes & Tubes and ERW Pipes Plant from H.M. Industrial Private Limited. While specific planned INR Cr values for future years are not disclosed, the company is focusing on utilizing the higher capacity of these acquired assets.

Credit Rating & Borrowing

Acuite assigned a long-term rating of 'ACUITE BBB+' (Stable) and a short-term rating of 'ACUITE A2' on INR 100.00 Cr bank facilities. Finance costs rose 60.6% YoY to INR 23.79 Cr in FY25 due to increased debt levels used to fund growth.

⚙️ Operational Drivers

Raw Materials

The primary raw materials are steel scrap and ferro alloys. Raw material expenses reached INR 837.23 Cr in FY25, representing 78.9% of total revenue, an increase from 77.6% in FY24.

Capacity Expansion

MWL operates integrated manufacturing units in Halol, Changodar, and Kapadvanj. Current strategy focuses on increasing the capacity utilization of the newly acquired specialized steel plant to capture higher market margins.

Raw Material Costs

Raw material costs increased 31.86% YoY to INR 837.23 Cr in FY25. The company employs a fully integrated infrastructure to allow for captive consumption of in-house manufactured stainless steel, which helps reduce overall procurement costs.

Manufacturing Efficiency

Capacity utilization is a primary efficiency metric; margins improved to 5.69% in H1FY25 from 4.79% in FY24 due to higher utilization of the acquired plant manufacturing specialized products.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Growth will be achieved by expanding the value-added product portfolio (Seamless Pipes, Bright Bars) and increasing capacity utilization of acquired assets. The company is also leveraging government initiatives like the PLI scheme for Specialty Steel (INR 6,322 Cr outlay) and its recent migration to the NSE Main Board (September 2025) to access broader capital markets.

Products & Services

Stainless Steel (SS) Billets, Ingots, Forged Roundbars, Forged Round Brightbars, SS Flat & Round Bars, Seamless Pipes & Tubes, U-Bend Tubes, and ERW Pipes.

Brand Portfolio

Mangalam

New Products/Services

Specialized steel products including Stainless Seamless Pipes & Tubes and ERW Pipes are expected to be major contributors; these products already helped drive a 52% YoY increase in PAT to INR 10.53 Cr in Q2 FY26.

Market Expansion

The company migrated from the SME Emerge platform to the Main Board of the National Stock Exchange (NSE) on September 18, 2025, to enhance visibility and liquidity.

Market Share & Ranking

Not disclosed, but the company's 29.61% revenue growth in FY25 significantly outpaced the broader Indian industry demand growth of approximately 8%.

Strategic Alliances

Strategic growth was supported by the acquisition of the Stainless Seamless Pipes & Tubes and ERW Pipes Plant from H. M. Industrial Private Limited.

🌍 External Factors

Industry Trends

The Indian steel industry is targeting 300 MT production by 2030. Current trends include the removal of export taxes and the introduction of the PLI scheme for 'Specialty Steel' to attract capital and technology upgrades.

Competitive Landscape

The industry is highly fragmented and dominated by unorganized players where price is the primary differentiator, constraining the pricing power of organized manufacturers.

Competitive Moat

MWL's moat is based on its fully integrated manufacturing infrastructure and 35+ years of management experience. This integration allows for cost-effective operations and captive consumption, though it faces constant pressure from unorganized competitors.

Macro Economic Sensitivity

The business is highly sensitive to GDP growth and political stability, as its primary end-users in construction and engineering are cyclical in nature.

Consumer Behavior

There is an increasing demand shift toward specialized and value-added stainless steel products in the domestic engineering and infrastructure sectors.

Geopolitical Risks

World economy stability and government trade policies (tariffs/trade remedies) are identified as key factors that could impact the competitiveness of domestic producers against imports.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the National Steel Policy 2017 and pollution norms. The company is also subject to government regulations regarding the Production Linked Incentive (PLI) scheme for specialty steel.

Environmental Compliance

MWL maintains ISO 14001:2015 (Environmental Management) and ISO 45001:2018 (Occupational Health and Safety) certifications to meet industry standards.

Taxation Policy Impact

The company had a negative effective tax rate in FY25 (INR -0.01 Cr) and FY24 (INR -2.52 Cr) due to significant deferred tax adjustments.

⚠️ Risk Analysis

Key Uncertainties

Key risks include the cyclical nature of end-user segments and volatility in raw material prices, which could impact operating margins by 2-3% during downturns.

Geographic Concentration Risk

Manufacturing is heavily concentrated in Gujarat, India, making the company dependent on the industrial and regulatory environment of that specific state.

Third Party Dependencies

The company is dependent on third-party suppliers for steel scrap and ferro alloys, though it has improved its working capital position by extending credit periods from these vendors.

Technology Obsolescence Risk

MWL is mitigating technology risks by investing in 'Specialty Steel' manufacturing capabilities through the PLI scheme to stay ahead of unorganized players.

Credit & Counterparty Risk

The company manages credit exposure through a professional management team and risk framework, though specific receivables aging or bad debt percentages are not provided.