M&B Engineering Q1 FY26 concall decoded: – Steel dreams, railway roofs, and export tariffs

Opening Hook

While Dalal Street kept guessing if Trump’s 50% steel tariff would crush Indian exporters, M&B Engineering turned up with hard hats and a grin. In Q1 FY26, the freshly listed company posted 69% revenue growth to ₹238 crore and PAT almost tripled to ₹18 crore (Concall, Aug ’25). Even with tariffs, their US exports are more profitable than domestic jobs, thanks to certifications no other Indian PEB player holds. Why it matters: M&B is positioning itself as India’s steel bridge between global infra and domestic railway/warehouse demand. Stick around—things get spicier two scrolls down.

At a Glance

• Revenue ₹238 cr (+69% YoY) – IPO hangover cured by steel shots
• EBITDA ₹33.7 cr (+107% YoY) – margins flexing like new gym members
• PAT ₹18 cr (+159% YoY) – profits racing faster than Vande Bharat
• Order book ₹843 cr (Jul ’25) – Phoenix (PEB) ₹634 cr, Proflex ₹209 cr
• Exports ₹65 cr in FY25 → targeting 3x in FY26 – tariffs? still cheaper than US peers
• EBITDA margins 14.2% vs 11.6% YoY – mix of US jobs & Proflex roofing
• Working capital cycle 55 days vs 32 (Mar ’25) – inventory buffer, creditor leverage

Management’s Key Commentary

On exports:
“Despite 50% tariffs, we’re still price-competitive in the US.”
→ Translation: Even Trump can’t wall us out.

On certifications:
“Sanand is India’s only PEB facility with AISC and Canadian Welding Bureau approvals.”
→ Translation: We’ve got the badges, others just have brochures.

On Proflex roofing:
“Approved by Railways for Vande Bharat sheds and underbridges.”
→ Translation: Your next train selfie might feature our roof.

On order inflows:
“Booked ₹278 cr new orders in Q1; aiming for ₹1,200 cr in FY26.”
→ Translation: Order pipeline fatter than our IPO prospectus.

On margins:
“US jobs deliver 25–27% EBITDA margins; India at 10–11%.”
→ Translation: Exports are our cheat meal.

On expansion:
“Sanand brownfield +20k tons by FY27; Cheyyar +20k by FY28.”
→ Translation: More steel, more deals.

Numbers Decoded

Analyst Questions

• On order inflows: Targeting ₹1,200 cr+ this year.
  → Translation: Run rate