Company Overview

M&B Engineering Limited (CIN: L45200GJ1981PLC004437) is a leading engineering and construction company specializing in Pre-Engineered Buildings (PEBs) and self-supported steel roofing solutions through its two divisions: Phenix Construction Technologies and Proflex.

Financial Performance FY2025-26

Consolidated Results:

  • Revenue from Operations: ₹1,260 crore (27.4% YoY growth from ₹989 crore in FY25)
  • EBITDA: ₹157 crore (16.7% YoY growth from ₹135 crore in FY25)
  • EBITDA Margin: 12.5% (compared to 13.6% in FY25)
  • Profit After Tax: ₹93 crore (20.2% YoY growth from ₹77 crore in FY25)
  • PAT Margin: 7.4% (compared to 7.8% in FY25)
  • EPS: ₹16.94 (compared to ₹15.41 in FY25)

Standalone Results:

  • Revenue from Operations: ₹1,084.78 crore (19.3% YoY growth)
  • Profit After Tax: ₹78.76 crore (6.4% YoY growth)
  • EPS: ₹14.40 (compared to ₹14.80 in FY25)
  • Exceptional Item: ₹(99.14) lakhs towards statutory impact of new Labour Codes

Operational Highlights

Order Book & Inflows:

  • Order Book as of March 31, 2026: ₹1,083 crore (35% YoY growth)
  • Order Inflows during FY26: ₹1,539 crore (28% YoY growth)
  • Order Mix: Phenix division (80%), Proflex division (20%)

Export Performance:

  • Export Revenue: ₹165.6 crore (156% YoY growth)
  • Contribution to Total Revenue: 13%
  • Export Order Book as of April 1, 2026: ₹279 crore (for execution in FY27)
  • Markets Served: USA, Canada, Brazil, South Africa, Qatar, Sri Lanka, Morocco, Nigeria, Kenya, Seychelles

Capacity & Manufacturing:

  • Total Installed Capacity: 1,24,000 MTPA across Sanand (Gujarat) and Cheyyar (Tamil Nadu) facilities
  • Sanand Facility: 72,000 MTPA capacity (AISC and CWB certified)
  • Cheyyar Facility: 52,000 MTPA capacity (received AISC certification in August 2026)
  • Proflex Mobile Manufacturing Units: 15 units with capacity of 21 lakh sq. meters per annum

IPO & Capital Structure

Initial Public Offering (Completed):

  • IPO Date: July 30 - August 1, 2025
  • Listing Date: August 6, 2025
  • Issue Size: ₹650 crore (Fresh Issue: ₹275 crore, Offer for Sale: ₹375 crore)
  • Price per Share: ₹385 (including premium of ₹375)
  • Shares Issued: 71,48,215 equity shares
  • Post-IPO Paid-up Capital: ₹57.15 crore (5,71,48,215 equity shares of ₹10 each)

IPO Proceeds Utilization (as of March 31, 2026):

  • Capital Expenditure: ₹148.74 lakhs utilized out of ₹1,305.79 lakhs allocated
  • IT Software Upgradation: ₹0 utilized out of ₹52 lakhs allocated
  • Term Loan Repayment: ₹587.50 lakhs fully utilized
  • General Corporate Purposes: ₹641.84 lakhs utilized out of ₹647.91 lakhs allocated
  • Issue Expenses: ₹128.74 lakhs utilized out of ₹156.80 lakhs allocated
  • Total Utilized: ₹1,506.82 lakhs out of ₹2,750 lakhs
  • Unutilized Balance: ₹12,151.30 lakhs (invested in Fixed Deposits ₹11,810.00 lakhs)

Auditor's Report Findings

Main Auditor's Report (Talati & Talati LLP):

  • Unqualified opinion on financial statements
  • Emphasis of Matter: Regarding statutory impact of new Labour Codes amounting to ₹99.14 lakhs disclosed as exceptional item

CARO 2020 Report Highlights:

  • Fixed Assets: Records maintained properly; physical verification conducted; no material discrepancies
  • Inventory: Physically verified by management; no discrepancies of 10% or more in aggregate
  • Loans to Subsidiaries: ₹7,876.08 lakhs given during year; outstanding ₹568.43 lakhs
  • Compliance with Sections 185 & 186: Company complied with provisions
  • Statutory Dues: Generally regular in depositing; no undisputed amounts outstanding for more than 6 months
  • Default in Borrowings: No defaults in repayment of loans or interest
  • IPO Proceeds: Applied for intended purposes; idle funds invested in fixed deposits
  • Fraud: No fraud noticed or reported
  • Internal Audit: Adequate internal audit system commensurate with size and nature of business
  • CSR Compliance: ₹143.00 lakhs spent on CSR activities; no unspent amounts

Corporate Governance & Compliance

Board Composition:

  • Total Directors: 12 (2 Joint Managing Directors, 3 Whole-Time Directors, 5 Independent Directors, 2 Non-Executive Directors)
  • Key Changes: Mr. Sanjay Shaileshbhai Majmudar ceased as Independent Director and appointed as Non-Executive Non-Independent Director

ESOP Scheme:

  • M&B Engineering Limited Employee Stock Option Plan 2024: Approved for up to 7,50,000 options
  • Options Granted: 2,52,800 options on July 15, 2025 (Loyalty Options at ₹196.50, Performance Options at ₹393.00)
  • Vesting Period: 4 years

Credit Rating:

  • Long Term Rating: CRISIL A/Stable (Upgraded from 'CRISIL A-/Stable')
  • Short Term Rating: CRISIL A1 (Upgraded from 'CRISIL A2+')

Dividend Declaration

  • Final Dividend Recommended: ₹1.00 per equity share (face value ₹10 each)
  • Total Dividend Amount: ₹571.48 lakhs
  • Record Date: September 10, 2026
  • Payment: Subject to shareholder approval at the 44th AGM

Future Outlook

  • Revenue Growth Guidance: ~25% expected in FY2027
  • Medium-term Target: Over 20% CAGR over next 3-4 years
  • Inquiry Pipeline: ₹4,000 crore in Phenix, ₹200 crore in Proflex
  • Target Sectors: Automobiles, Logistics, Renewable Energy, Data Centers, Defence, Aviation, Railways