Financial Performance Overview

Maiden Forgings Limited conducted its H2 FY26 and Full Year FY26 earnings conference call on June 02, 2026. The company reported strong financial results for both periods:

H2 FY26 Performance:

  • Revenue: ₹122.60 crores, representing 17.46% year-on-year growth
  • EBITDA: ₹10.49 crores, with 3.52% year-on-year growth
  • Net Profit: ₹2.93 crores, showing 46.37% year-on-year growth
  • Diluted EPS: ₹2.06, registering 46.10% year-on-year growth

Full Year FY26 Performance:

  • Revenue: ₹233.96 crores
  • EBITDA: ₹17.22 crores
  • Net Profit: ₹5.02 crores
  • Diluted EPS: ₹3.53

The company achieved its highest-ever production of 35,546 metric tons during FY26, supported by better throughput, continuous process optimization, and sustained demand across key industrial sectors.

Strategic Foundation and Growth Pillars

Management outlined four key strategic pillars established during FY26:

1. B2B Business Stability: The core B2B business provided stability through consistent demand from automotive, engineering, infrastructure, and manufacturing customers. The company maintained strong relationships with OEMs and industrial clients, serving over 450 customers across diverse industries.

2. B2G and Defense Expansion: The company expanded its presence in government and defense sectors through registrations with:

  • Ordnance Factory Board, Kolkata
  • Ordnance Factory, Murad Nagar
  • Terminal Ballistics Research Laboratory (TBRL DRDO), Chandigarh
  • Center for Military Airworthiness & Certification (CEMILAC DRDO), Bangalore

The company successfully executed and delivered orders for reputed institutions including HAL, BHEL, and NTPC.

3. International Warehousing: The company began groundwork in Dubai in February 2026 for overseas warehousing to improve delivery timelines and enhance competitiveness in export markets. This initiative was slightly postponed due to geopolitical circumstances but will resume once situations stabilize.

4. Operational Efficiency: The company made steady progress on developing a 4-acre integrated manufacturing facility at Modinagar that will consolidate two existing units. The facility is expected to generate annual cost savings while supporting higher production volumes and better throughput. The new facility includes solar installation to meet optimum portion of energy requirements and reduce carbon footprint.

Operational Updates

  • The new Modinagar facility is expected to be operational "very soon" with unit second shifting already in progress
  • No external capital was raised during FY26 - entire growth and capex funded through internal accruals
  • The company achieved more than 25% growth in the first two months of FY27 (April-May 2026) compared to corresponding months of previous year
  • The company is prepared for switch from BSE SME to main board, fulfilling all required criteria
  • Forward integration initiatives include introduction of new product lines: GI wires and stainless steel machine components post-shifting completion

Capacity and Utilization

  • Current installed capacity: 52,000-53,000 tons per annum
  • FY26 utilization: approximately 72-73%
  • Target utilization post-consolidation: 85%
  • Additional capacity from new products: 9,000-10,000 tons per annum (GI wires and stainless steel components)
  • Total capacity post-expansion: 62,000-63,000 tons per annum
  • Peak utilization potential: 85-90%

Margin Outlook and Product Mix

Management provided guidance on margin improvement:

  • Target: 1-2% increase in EBITDA margins during FY27
  • New products expected to contribute significantly to margin improvement:
  • GI wires: expected margins of 20-25%
  • Stainless steel components: higher margin profile
  • Approximately 20% of growth expected from enhanced volumes, remainder from product mix improvement

Raw Material Strategy

The company employs a back-to-back ordering strategy to hedge against steel price volatility:

  • Raw materials ordered against customer orders to maintain fixed margins
  • Inventory levels maintained at approximately 5% variation
  • Multiple vendor relationships (5+ options) ensure supply stability
  • Price changes passed through to customers with minimal lag

Future Outlook

Management expressed confidence in sustained growth momentum:

  • FY27 expected to show "phenomenal" growth
  • Target: 20-25% of sales from B2G segment in mid-term future
  • Focus on innovation-driven growth with potential expansion into defense technology
  • The company aims to transition from being perceived as a steel products company to potentially a defense technology company

Q&A Highlights

  • Other income increased significantly in FY26 (from ₹0.66 crores to approximately ₹2.5 crores), related to B2G segment
  • Export order book at highest level in company history as of June 2026
  • Company committed to providing more detailed operational metrics (capacity utilization, quantum sales) in future disclosures
  • Defense sector strategy focused on innovation and R&D, with more details expected in Q4 FY27