Robust margin expansion; 4QFY26 to be stronger!
Man Industries (India) Ltd. during the quarter reported Revenue/EBITDA/PAT growth of 13.4%/62.1%/61.3% YoY to Rs 830 cr/Rs 128 cr/Rs 55 cr respectively. The company recorded a healthy ~460-bps YoY/85-bps QoQ expansion in EBITDA margin to 15.4%, marking its highest-ever quarterly margin. The company is expected to close the year with one of its strongest quarterly performances in 4QFY26 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. The Saudi/Jammu plant is expected to be commercialized in 1QFY27/2QFY27, with both the plants being 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.
Healthy order book & visibility: As of Dec’25, MAN’s aggregate executable order book stands at ~Rs 4,000 cr, providing revenue visibility for the next 6-12 months. Exports continue to be a primary growth engine for the company, constituting ~80% 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 11,500 cr.
Maintain BUY- Target price hiked to Rs 694/-
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 keep our sales volumes estimates largely unchanged with FY26E/FY27E/FY28E sales volumes of 4.7 lakh/6.3 lakh/6.9 lakh TPA respectively. Revenue/EBITDA/PAT is forecasted to grow at a CAGR of 20.0%/38.4%/41.9% respectively over the FY25-FY28E period. We hike our FY26E/FY27E/FY28E EBITDA margin estimates upwards by 320 bps/195 bps/120 bps to 12.5%/12.5%/13.2% respectively, on the back of higher share of value-added products.
We value the business at 12x P/E multiple based on its FY28E earnings and 8.0x FY28E EV/EBITDA with equal weightage, and arrive at a target price of Rs.694, thus providing an upside potential of 80.7%.
