1. At a Glance – Blink and You’ll Miss the Turnaround
Manaksia Steels Ltd (MSL), a ₹383 Cr market-cap secondary steel player, is suddenly behaving like it drank three cups of growth espresso. Q3 FY26 standalone revenue came in at ₹298 Cr, up 110% YoY, while PAT jumped 241% YoY to ₹9.1 Cr. The stock trades around ₹58, near 1.2× book value and ~16× earnings, which is neither dirt cheap nor outrageously delusional.
Margins? Still thin at ~4.8% OPM, because this is steel, not software. Returns? ROCE at ~4%, ROE at ~3.7% — basically jogging, not sprinting. Debt stands at ₹203 Cr, debt-to-equity ~0.63, which is manageable but not “sleep like a baby” territory.
So what’s happening here? Capacity kicking in, utilisation improving, and Manaksia finally remembering it owns colour-coating lines that actually make money. Is this a genuine cyclical upturn or just one good steel season? Let’s open the balance sheet and interrogate it politely… then rudely.
2. Introduction – A Steel Company with an Identity Crisis
Manaksia Steels is part of the larger Manaksia Group, which has fingers in multiple metal pies. This entity, however, is focused on value-added secondary steel — cold-rolled, galvanised, and colour-coated products. Translation: it doesn’t dig iron ore, it adds finishing touches and hopes customers pay extra for them.
For years, MSL behaved like a classic small steel laggard — inconsistent growth, weak returns, and long stretches of “nothing exciting here, move on.” Then FY25–FY26 happened. Volumes picked up, colour-coating ran near full tilt, and suddenly quarterly numbers started popping up on screeners like an unexpected IPL debutant.
But steel is cyclical, brutal, and unforgiving. One good quarter doesn’t make a structural story. The real
question is whether MSL is graduating from “low-margin commodity processor” to “steady value-added steel supplier.” Or is this just steel prices flirting before ghosting again?
3. Business Model – WTF Do They Even Do?
Manaksia Steels buys steel, processes it, coats it, paints it, shapes it, and sells it to people who make houses, warehouses, appliances, and industrial sheds. Simple.
Its product stack includes:
- Cold Rolled (CR) Steel – used in automobiles and appliances
- Hot-Dip Galvanised Steel (GI) – rust-resistant, construction-friendly
- Pre-Painted Colour-Coated Sheets – where margins actually live
The real hero here is colour coating, sold under the 5 Star Super Colour brand. Thickness ranges from 0.18 mm to 0.60 mm — thin enough to look premium, thick enough to not fly away in a storm.
This is a volume + utilisation game. When plants run at 30%, profits disappear. At 90%+, suddenly everyone starts talking about operating leverage like they discovered fire.
4. Financials Overview – Numbers, No Poetry
Q3 FY26 Performance (Standalone, ₹ Cr)
| Metric | Latest Qtr (Dec-25) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 298.34 | 142.30 | 243.79 | +109.7% | +22.4% |
| EBITDA | 14.47 | 5.24 | 11.15 | +176% | +29.8% |
| PAT | 9.10 | 2.67 | 4.01 | +241% | +127% |
| EPS (₹) | 1.39 | 0.41 | 0.61 | +239% | +128% |
Yes, the growth looks insane. But remember — base was terrible. Steel companies don’t do
