Mishra Dhatu Nigam Ltd announced a 40.46% year-on-year increase in Q1 revenue driven by strong demand, despite margin pressures from soaring raw material prices and fuel costs. The company highlighted new growth avenues including certification initiatives and defence contracts, with a cautious outlook for sustained growth.
Mishra Dhatu Nigam Ltd said its first-quarter turnover climbed 40.46% year on year to ₹239.49 crore in the quarter ended June 2026, while profit after tax rose 27.42% to ₹16.31 crore, even as margin pressure weighed on the bottom line. The company also reported EBITDA of ₹46.6 crore, up 12.89%, and said value of production increased 7.9% to ₹260.36 crore. Management described the quarter as strong on demand but less comfortable on costs, with higher fuel and input prices taking some of the shine off the sales growth.
According to the earnings call, the main drag on gross margins was a sharp rise in LPG prices, which the company said had nearly doubled amid tensions in the Middle East, alongside abnormal increases in key raw materials such as nickel, molybdenum and tungsten. Management said the adverse price variance from materials alone was about 13% in the quarter and expects conditions to improve only from the September quarter onwards. The company also said the 40% growth rate seen in the first quarter is not likely to be sustained through the full year, though it still expects to outpace last year’s growth.
The order book stood at about ₹2,329 crore as of July 1, 2026, offering visibility for coming quarters, with defence accounting for the bulk of business and aerospace, space and energy making up much of the rest. MIDHANI said it has also received S400 certification from GE USA for mechanical, chemical and metallography testing, a development it says could create a new service revenue stream by allowing domestic and overseas customers to use its facilities without sending samples abroad. The company, however, declined to put a revenue figure on that opportunity.
Management also highlighted several longer-term growth drivers, including development work for the Advanced Medium Combat Aircraft programme, higher titanium production capacity and progress on a metal bank initiative designed to ease raw material shortages and price swings. The metal bank is being structured as a customer-owned, MIDHANI-operated facility, which the company said should limit pressure on its own working capital. MIDHANI also said it has obtained a preliminary licence from Germany’s BAFA for metal powder equipment, while certification work is under way on NADCAP, ISO 27001 and ISO 50001.
The company’s ₹1,000 crore capital expenditure plan remains under government review and is expected to be rolled out over two to three years, with benefits likely to take four to five years to filter through. Exports currently contribute about 10% of turnover, and management said it aims to grow that business by 10% to 15% a year. MIDHANI is also testing bulletproof jacket technology developed with DRDO and IIT Delhi, though it said commercial revenue will depend on successful trials and competitive bidding.
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