Key Highlights of the 1QFY27 Result
Core pipe business sustains growth momentum, contribution from NPC acquisition to be fully reflected from 2QFY27.
Man Industries (India) Ltd. during 1QFY27 reported Revenue/EBITDA/PAT growth of 41.9%/89.2%/122.4% YoY to Rs 1,053 cr/Rs 143 cr/Rs 61 cr, respectively. EBITDA margin expanded ~340 bps YoY to 13.6% during the quarter, led by optimized product and geographical mix, resulting in the highest-ever quarterly EBITDA for the company.
Project updates: Construction of the 22,000 MTPA greenfield Stainless-steel Seamless Pipe plant at Jammu is on track, and commissioning is expected by Mar’27. The company has incurred ~Rs 350 cr of capex till date for the plant against the total planned capex of ~Rs 600 cr. Similarly, the 4 million sq. meter Coating & Double Jointing plant at Dammam (Saudi Arabia) is expected to be commissioned by Mar’27, expanding the company’s value-added processing capabilities in Saudi Arabia.
Full impact of NPC acquisition to be reflected from 2QFY27: The company had completed the acquisition of National Pipe Company (NPC) on 21st May’26, and consequently, the quarter’s financials reflect only 40 days of contribution from the acquired entity (~Rs 43 cr). The full financial impact from NPC is expected to flow in from 2QFY27, with a quarterly run-rate of ~Rs 300 – 500 cr through the remainder of the year, as the plant continues to ramp-up. For FY27, management expects Rs 1,500 cr top-line from the business alongside EBITDA margin in the range of 15-18%. Additionally, post ramp-up of the Coating & Double Jointing facility at Dammam, management anticipates a 300-500 bps expansion in EBITDA margin for the Saudi operations.
Robust order book and bid pipeline: The company’s consolidated order book stands at ~Rs 3,600 cr across India (Rs 2,200 – 2,300 cr) and Saudi Arabia, with majority of the orders expected to be executed over the next 6 to 12 months providing strong revenue visibility for FY27. The share of export orders in the total order book is ~80%. Further, the combined bid pipeline stands at ~Rs 24,000 cr, of which ~70% of the bids are for orders in the MENA region.
Merino Shelters progress: The 20 lakh sq.ft. Merino Shelters real estate project has received full Commencement Certificate (CC) along with RERA registration, and the launch is expected by Mid-Sep’27. Accordingly, ~Rs 35-50 cr of inflow is expected for the company in FY27, with annual cash inflow of ~Rs 70-80 cr in the next 3-4 years. The total cash inflow from the asset is estimated to be ~Rs 800-900 cr, spread over 6- 7 years, flowing directly to the company’s consolidated bottom-line. However, do note, we have not pencilled in cash flows from the project in our estimates, as we await receipt of the first tranche.
Maintain BUY- Target Rs 750/-
We forecast Revenue/EBITDA/PAT to grow at a CAGR of 34.9%/41.7%/64.2% respectively over the FY26-FY28E period, on the back of higher share of value-added products and EPS accretive Saudi acquisition. 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. 750, thus providing an upside potential of 25.2%.
