Manaksia Coated Metals: Can This Steel Stock Triple Its Revenue and EBITDA by FY29?

Synopsis: A Gujarat-based coated steel manufacturer is chasing an ambitious 3x growth target by FY29, backed by capacity expansion, backward integration, a booming export business, and a shift toward renewable energy. Here’s a look at the four pillars driving this transformation story.

For a mid-sized player in the coated steel space, growth rarely comes from a single lever. It usually takes a combination of scale, cost discipline, and market reach working together. That’s precisely the playbook this company seems to be following, with four distinct initiatives now running in parallel, each aimed at strengthening a different part of the business.

With a market capitalization of Rs. 1,312 crore, the shares of Manaksia Coated Metals & Industries Limited were trading at Rs. 123 per share, with a 52-week range of Rs. 182.82 to Rs. 94.20, and they are trading at a P/E of approximately 32x.

Capacity Expansion Sets the Base

The most visible push is on the manufacturing side. Pre-painted steel capacity is set to jump from 86,000 MTPA to 2,36,000 MTPA by Q2 FY27, a jump of over 2.7 times, through the addition of a second colour coating line. Alongside this, Alu-Zinc coating capacity, which was upgraded from galvanised technology and expanded to 180,000 MTPA in FY26, is planned to double to 3,60,000 MTPA by FY28 with a second coating line.

This isn’t capacity for its own sake. Manaksia Coated Metals & Industries has already been shifting its product mix toward higher-value Alu-Zinc and pre-painted steel, which now account for a growing share of what it sells. More installed capacity simply gives it room to keep pushing in that direction without hitting a ceiling.

Backward Integration Aims at the Cost Line

The second engine is about where the raw material comes from. Currently, Manaksia Coated Metals relies on externally sourced Cold Rolled Steel (CRC) as its primary input. A planned 3,60,000 MTPA Cold Rolling Mill (CRM) complex, targeted for FY28, would let it process Hot Rolled Steel (HRC) in-house instead.

On paper, this changes the supply chain in a meaningful way. Hot-rolled steel is generally easier to procure and less constrained than cold-rolled steel, so the shift should reduce dependence on external suppliers. It should also enable better inventory planning, tighter cost control, and more consistent quality, since Manaksia Coated Metals & Industries would manage an additional stage of production itself rather than relying on someone else’s output.

Exports Are Doing the Heavy Lifting

If there’s one number that stands out from the last year, it’s this: export volumes grew 110% year-on-year, and exports now make up 68% of total revenue, up sharply from 39% the year before. That’s not a one-off spike either.  Manaksia Coated Metals & Industries export share has climbed steadily over the past few years, from around 20-25% a few years back to where it stands today.

Part of this has to do with geography. The manufacturing plant sits roughly 50 km from the Kandla and Mundra ports, both known for strong vessel frequency and connectivity. That proximity keeps logistics costs down and transit times short, which matters a lot when competing for export orders against players based further inland. The company has also built a presence in more than 20 countries across Europe, Africa, and South America, giving it a footprint that isn’t overly dependent on any single region.

Solar Power to Trim Input Costs

The fourth piece is smaller in scale but still meaningful. A 7 MW captive solar power plant is expected to be commissioned by Q2 FY27, using dual-axis tracker technology to maximize power generation per megawatt. Management expects this to offset 50-55% of grid power dependency and cut effective power costs by up to 40%, translating into annual savings of roughly ₹7 – 7.5 crore against a capex of ₹30 crore.

It’s a straightforward calculation: lower power costs mean better margins, and a shorter payback period makes the investment easier to justify. There’s also an ESG angle here, with the project expected to lower the company’s carbon footprint as it leans more on renewable energy.

Why the Combination Matters

What makes this story a little different from a typical single-driver growth narrative is that these four pieces reinforce each other. More capacity means more volume to sell. Backward integration should keep costs in check as that volume grows. Export markets give the company somewhere to sell the incremental output at reasonable pricing. And cheaper power helps protect margins across the entire operation, not just on the new lines.

Financially, the base looks reasonably solid, too. FY26 revenue came in at ₹896.27 crore, with EBITDA of ₹92.21 crore and PAT of ₹40.69 crore, translating into an EBITDA CAGR of 34.23% and a PAT CAGR of 63.27% over FY23-26. Net debt has also come down from ₹162 crore in FY23 to ₹81 crore in FY26, giving the company some room to fund its expansion plans without stretching the balance sheet too far.

They expect to achieve the FY29 target of tripling output, revenue, and EBITDA exactly on schedule. Execution risk on four simultaneous projects is real, and factors like global commodity prices, freight costs, and demand cycles remain outside the company’s control, as seen in the margin pressure it faced during Q4 FY26 amid elevated input costs.

Still, the direction is clear. Rather than betting on one big lever, the company is spreading its bets across capacity, cost, exports, and energy. If even a few of these play out as planned, does this become a story worth tracking closely over the next few years?

Conclusion

At its core, this is a story about a mid-sized manufacturer trying to grow up rather than just grow bigger. The four initiatives capacity expansion, backward integration, export penetration, and renewable energy adoption aren’t isolated bets but parts of a single, connected strategy to build scale while protecting margins. The FY29 vision of tripling output, revenue, and EBITDA is ambitious, and execution across four projects simultaneously will test Manaksia Coated Metals & Industries’ operational discipline. 

But with deleveraging already underway and export momentum firmly in place, the groundwork appears to be there. Whether this translates into the scale management is targeting will likely become clearer as these projects move from the drawing board to the factory floor over the next two to three years.

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