Synopsis:
Mishra Dhatu Nigam Ltd reported a 4% increase in Q1 revenue to ₹170 crore YoY, while its net profit grew 145% YoY to ₹12.96 crore.
The shares of the Miniratna PSU Defence company that specializes in the manufacturing of advanced metals and alloys, particularly for strategic sectors like defense, aerospace, and atomic energy, jumped by upto 2 percent following their Q1 Results with a 145 percent rise in Profit YoY.
With a market capitalization of 7,428.03 Crores on Thursday, the shares of Mishra Dhatu Nigam Ltd jumped upto 2.1 percent, making a high of Rs. 408.85 compared to its previous close of Rs. 400.30.
Mishra Dhatu Nigam Ltd, engaged in the manufacturing of advanced metals and alloys, particularly for strategic sectors like defense, aerospace, and atomic energy, has announced its Q1 results as follows:
Its Revenue from operations rose by 4 percent YoY from Rs. 163 Crores in Q1FY25 to Rs. 170 Crores in Q1FY26, and it declined by 59 percent QoQ from Rs. 411 Crores in Q4FY25 to Rs. 170 Crores in Q1FY26.
Its Net Profit YoY rose by 145 percent from Rs. 5.29 Crores in Q1FY25 to Rs. 12.96 Crores in Q1FY26, and it declined by 77 percent QoQ from Rs. 56.19 Crores in Q4FY25 to Rs. 12.96 Crores in Q1FY26. The earnings per share (EPS) for the quarter stood at Rs. 0.69, compared to Rs. 3.00 in the previous quarter.
The company has a low debt-to-equity ratio of 0.25, reflecting a good financial position with less debt. Its current assets exceed current liabilities, ensuring good liquidity. Additionally, promoter shareholding stands at over 65%, indicating strong control from the promoters.
Company Overview & Others
Mishra Dhatu Nigam Ltd (commonly known as MIDHANI) is a public sector metallurgical company established in 1973 and headquartered in Hyderabad, India. It operates under the administrative control of the Ministry of Defence and is recognized as a Schedule-B Mini-Ratna government enterprise.
It supplies critical materials for defense platforms, fighter jets, missiles, and space applications. The company’s product portfolio includes specialty alloys such as titanium, super alloys, and high-strength steels used in aerospace, defense, and nuclear energy industries. With a strong focus on R&D, the company is positioned to benefit from increased defense spending and the push for indigenization in India’s defense and aerospace sectors.
As of April 1, 2025, the company’s order book stands at Rs. 1,832 crore, offering strong revenue visibility. The order book is heavily concentrated in defence (84%), followed by space (8%), energy (2%), exports (2%), and other sectors (3%).
In FY25, the company’s revenue mix is diversified with 37% from defence, 37% from PSUs (including defence PSUs), 11% from space, 9% from exports, 1% from energy, and 5% from miscellaneous sources.
The management has provided guidance with an expected EBITDA margin range of 20–25%, aiming for a potential 25% margin by FY26. This margin expansion will be driven by increased scale, operational efficiency, higher use of scrap and indigenized master alloys, and ongoing process optimization with capital investments.
In terms of capital expenditure, the company plans an annual capex of ₹75–100 crore in the coming years, with ongoing discussions for a long-term project requiring higher investment over the next 4–5 years.
Along with it, the management anticipates continued growth, with the export order position currently at Rs. 35–40 crore. The target for exports is Rs. 100–120 crore in FY26, with a medium-term goal of ₹120–150 crore as international certifications, such as those from Safran and GE, are obtained.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Defence stock jumps after reporting 145% YoY increase in net profits appeared first on Trade Brains.