Turnover: ₹239.49 crore, registering a growth of 40.46% over Q1 FY26.
Value of Production: ₹260.36 crore, with a growth of 7.9% YoY.
Profit Before Tax (PBT): ₹23.92 crore, up 25.89% YoY.
Profit After Tax (PAT): ₹16.31 crore, up 27.42% YoY.
EBITDA: ₹46.6 crore, showing a growth of 12.89% YoY.
Order Book (as of July 1, 2026): ₹2,329 crore.
Operational and Strategic Highlights
S400 Certification: Received on August 13, 2026, from General Electric USA for mechanical, chemical, and metallography testing of specimens. This authorizes MIDHANI to test materials for all customers, including its own, and is expected to generate new revenue streams by preventing the need for overseas testing.
NAS410 Qualification: Nondestructive testing personnel qualified, which is a step towards obtaining the Nadcap certificate in non-destructive testing by the end of FY27.
Other Certifications: Pursuing ISO 27001 (Information Security Management) and ISO 50001 (Energy Management System) within FY27.
Isothermal Forging: Successfully isothermally forged a nickel-based super alloy for a fighter aircraft engine in its 6,000-ton press. Orders received for four grades of super alloys and three grades of titanium alloys for execution in FY27.
Aluminum Rolling: Successfully rolled 7000 series aluminum alloy for a PSU, marking its first commercial order for aluminum rolling using its wide plate mill.
ABHED Bulletproof Jackets: Fabricated jackets using technology from DRDO and IIT Delhi; jackets are under testing with certificates expected by next quarter. Sample order received from BEML.
Spring Plant: Operations started with a sample order from BEML; expecting more orders in FY27.
BAFA License: Preliminary German export license obtained for metal powder; equipment expected on campus by next year.
Metal Bank Initiative: Advanced stage of procurement for one customer; expected to mitigate raw material supply delays and cost volatility. Expected to be operational by Q2 FY27.
Margin Pressures and Mitigation
Gross Margin Compression: Attributed to a ₹13 crore adverse raw material price variance (nickel, moly, tungsten, cobalt) and a doubling of LPG prices due to geopolitical crises.
Impact: LPG price hike specifically affected reheating furnaces. Management expects the impact to continue into Q2 but normalize by Q3 FY27.
Scrap Inventory: Reduced by ₹17 crore in Q1. The company maintains an optimal scrap level as it is considered essential for melting processes, though it sold ₹75 crore worth last year.
Order Book Breakdown
Defense Sector: 66%
Space (ISRO): 21%
Energy: 9%
Others: 4%
Titanium-specific Orders: Approximately ₹600 crore within the total order book.
Capacity and Growth Outlook
Titanium Production: Capacity increased with a new melting facility. Produced 750 tons last year; expects significant growth with ₹600 crore in current orders.
Export Target: Aiming for exports to constitute 10% of total turnover. Q1 export sales were ₹33 crore with an open order book of ₹25 crore. Target is to grow exports by 10-15% annually to ₹100-120 crore in 3-4 years.
Growth Guidance: Management expects FY27 growth to be higher than FY26, despite current headwinds, though the 40% Q1 growth rate is not expected to be sustained for the full year.
Capital Expenditure (CapEx)
Modernization Plan: A ₹1,000 crore CapEx plan over 2-3 years is under evaluation by the board and ministry, aimed at replacing aging equipment to improve yield and productivity. The financial impact is expected to materialize from Year 4 post-stabilization.
FY27 CapEx: Expected to be maintenance-focused at approximately ₹50-60 crore, similar to the previous year.
JV Closure: The Utkarsha Aluminium Dhatu Nigam Limited JV with NALCO is recommended for closure and is awaiting formal ministry approval.
Raw Material Strategy
Sourcing: Titanium sponge is imported from East European countries and the former Russian Federation; no current supply chain issues or U.S. sanctions concerns were reported.
Scrap Usage: Depending on customer specifications, scrap can constitute 50-60% of melt for non-critical applications. For critical programs (e.g., Gaganyaan), 100% virgin material is required.
Market Opportunity and Strategy
Import Substitution: Management highlighted an ₹8,000 crore import market for titanium, super alloys, and special steels that MIDHANI is capable of addressing. The new certifications are strategic steps to capture this domestic demand.
Global OEMs: Actively working on certification processes with global OEMs (e.g., Rolls-Royce, Boeing, Airbus); approvals for exports are expected within a year.
Focus Areas: Primary growth focus is on super alloys and titanium for defense and aerospace programs like AMCA and various engine projects.
