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Steel Manufacturer Delivers Solid Top-Line Growth Amid Margin Pressures and Sectoral Headwinds
Mahamaya Steel Industries Ltd., a Chhattisgarh-based manufacturer of structural steel products, has reported its consolidated financial results for the quarter ended June 2025. The company posted revenue from operations of ₹2.07 billion and a net profit of ₹17.4 million, reflecting a strong top-line performance despite margin compression and rising input costs. The results underscore Mahamaya’s operational resilience and its ability to navigate a volatile steel market.
Key Financial Highlights
Consolidated revenue from operations for Q1 FY26 stood at ₹2.07 billion, marking a year-on-year growth of over 43 percent.
Net profit after tax reached ₹17.4 million, up 47.8 percent compared to the same quarter last year.
Earnings per share rose to ₹1.27, reflecting improved profitability and operational efficiency.
EBITDA for the quarter was ₹44.3 million, with an EBITDA margin of 2.14 percent, slightly lower than historical averages due to cost pressures.
Operational Performance and Segment Insights
Structural Steel Products Mahamaya Steel’s core business includes manufacturing of heavy structural steel such as beams, channels, and angles. The company benefited from strong demand in infrastructure and construction sectors, particularly in government-led projects.
Rolling Mill and Furnace Operations The company operates a rolling mill and induction furnace, contributing to its integrated production capabilities. These facilities helped maintain production volumes and reduce dependency on external suppliers.
Geographic Reach and Client Base Mahamaya serves clients across central and eastern India, with a growing footprint in export markets. Its customer base includes infrastructure developers, power companies, and industrial contractors.
Cost Structure and Margin Dynamics
Total expenses for the quarter rose in line with revenue, driven by higher raw material costs and energy prices.
Interest expenses increased by 88.75 percent year-on-year, reflecting higher working capital borrowings.
Depreciation costs rose 5.99 percent, consistent with asset additions and maintenance upgrades.
Other income declined sharply, impacting overall profitability.
Despite these pressures, Mahamaya managed to maintain a positive net margin of 0.84 percent, supported by volume growth and operational discipline.
Market Position and Valuation Metrics
Mahamaya Steel’s stock traded around ₹101.50, with a market capitalization of ₹167 crore.
The company’s price-to-earnings ratio stands at 25.77, indicating moderate valuation relative to sector peers.
Promoter holding remains strong at 73.41 percent, with minimal institutional ownership.
The company’s historical revenue CAGR over three years is 37.32 percent, while PAT CAGR stands at 96.45 percent, reflecting a turnaround in profitability.
Strategic Outlook and Growth Plans
Mahamaya is exploring capacity expansion and modernization of its rolling mill to improve yield and reduce energy consumption.
The company aims to diversify its product mix by adding value-added steel products such as customized profiles and fabricated components.
Management expects demand to remain robust in the second half of FY26, driven by infrastructure spending and industrial capex.
The company is also evaluating export opportunities in Southeast Asia and Africa, where demand for structural steel is rising.
Conclusion
Mahamaya Steel Industries Ltd. has delivered a strong Q1 FY26 performance with ₹2.07 billion in revenue and ₹17.4 million in net profit. While margin pressures persist, the company’s volume growth, operational efficiency, and strategic focus on infrastructure demand have helped sustain profitability. With plans for capacity expansion and product diversification, Mahamaya is well-positioned to capitalize on India’s steel-intensive growth trajectory.
Sources: Moneycontrol, Ratestar, Reuters.
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