Key Highlights of the 2QFY26 Result
Margin expansion in full flow; 2HFY26 to be stronger!
Man Industries (India) Ltd. during the quarter reported Revenue/EBITDA/PAT growth of 3.5%/90.0%/16.1% YoY to Rs 834 cr/Rs 121 cr/Rs 37 cr respectively. The company recorded a whooping 660-bps YoY expansion in EBITDA margin to 14.5%, marking its highest-ever quarterly margin. The company is expected to close the year with one of its strongest half-yearly performances in 2HFY26 on the back of a robust order book.
Saudi Arabia & Jammu plant expansion on track: The 3,00,000 MTPA HSAW pipe expansion project in Saudi Arabia and the 22,000 tonne Stainless Steel pipe project in Jammu are progressing well. Both these plants are expected to be commercialized in 4QFY26, and are key to the company’s growth prospects aiding in garnering better margins (12%-14% for Saudi, 18%-22% for Jammu) and thereby, improving the blended margin profile for the company.
Healthy order book & visibility: As of Sep’25, MAN’s aggregate executable order book stands at Rs 4,750 cr, providing revenue visibility for the next 6-9 months. Exports continue to be a primary growth engine for the company, constituting 90% of the current order book, with strong traction being witnessed from the Southeast Asia and GCC regions. Momentum in order flows is expected to sustain in the coming quarters, aided by a robust bid pipeline exceeding ~Rs 15,000 cr.
Estimates unchanged; focus on VAP share & efficiency: We keep our estimates largely unchanged with FY26E/FY27E/FY28E sales volumes of 4.7 lakh/6.3 lakh/6.8 lakh TPA. However, for FY26 we have accounted for higher depreciation due to higher capex leading to lower profitability. Revenue/EBITDA/PAT is forecasted to grow at a CAGR of 20.9%/35.0%/38.1% respectively over the FY25- FY28E period.
Maintain BUY- Target unchanged at Rs 660/- We believe, Man Industries has stellar growth potential on the back of (a) Foray into high margin Stainless Steel Pipe segment, (b) Strategic expansion in Saudi Arabia with a 3,00,000 MTPA HSAW Pipe plant, (c) Healthy business relations with marquee clients through API-certified operations and (d) Blended EBITDA margin to improve with change in product mix. We have valued the business at 15x P/E multiple based on its FY27E earnings and 12.0x EV/EBITDA (higher EV/EBITDA multiple assigned on back of transition from LSAW/HSAW pipes to Stainless Steel Seamless Pipes) with equal weightage and arrive at a target price of Rs.660, thus providing an upside potential of 43.5%.
