Magnus Steel & Infra Ltd Q4 FY26: From Zombie IT Shell to Steel Dynamo? Revenue Jumps 608% as Management Flips the Script

At a Glance – A Resurrection in the Making

If you had looked at Magnus Steel & Infra Ltd (formerly known as Savant Infocomm) a couple of years ago, you would have found a corporate ghost town. This was a company that literally closed its IT operations in FY24 because it was basically going nowhere fast. But fast forward to the present, and we are witnessing a transformation that looks less like a pivot and more like a rebirth. The company has ditched the “bits and bytes” of IT for the “fire and brimstone” of Iron and Steel trading.

The numbers are starting to scream. We are looking at a Market Cap of ₹756 Crore for a company that was effectively reporting zero sales just a few quarters ago. In FY26, the company clocked ₹22.58 Crore in sales, a massive jump from the measly ₹3.19 Crore in FY25. Even more aggressive is the quarterly trajectory—Q4 FY26 saw revenue hit ₹7.14 Crore, marking a 386% YoY growth.

But here is where it gets spicy: the stock price has absolutely decoupled from reality or is pricing in a massive future that we are only starting to see. With a Return over 1 year of 2,988%, this isn’t just a bull run; it’s a vertical takeoff. The valuation is sitting at a P/E of 168, which usually suggests the company is either the next big thing in infrastructure or investors are high on hopium. With the recent name change to Magnus Steel & Infra and a fresh infusion of capital via a ₹45 Crore preferential issue, the management is clearly betting the house on this new direction.

Introduction

Magnus Steel & Infra Ltd is the ultimate “phoenix” story of the Indian small-cap space. Incorporated in 1978, it spent decades as a minor player in IT and BPO services. By FY24, the management realized the IT dream was dead and pulled the plug. Most companies would have liquidated and called it a day, but Magnus decided to swap keyboards for blast furnaces.

The company has undergone a total identity overhaul. It moved its registered office from Chennai to Nashik and finally to Pune. It changed its name. It changed its main objects to include everything from ferro alloys and refractories to industrial gases and ingot casting. This is a complete structural reset.

The stock is currently trading at ₹144, with a 52-week high of ₹186. What makes it intriguing is the ROE of 465% and ROCE of 171%. While these numbers are skewed because the equity base was eroded for years, they signal that the new business model is hitting the ground running. The company is now a “detective” case for any investor—trying to figure out if the recent profitability is a flash in the pan or the beginning of a steel empire.

Business Model – WTF Do They Even Do?

For a long time, the answer was “nothing.” After shutting down the IT wing, they briefly flirted with agro products. But the real meat is in the Iron and Steel segment added in FY25.

They are essentially positioning themselves as a multi-utility player in the metal space. Their mandate now covers:

• Manufacturing and Exporting: Various grades of iron, steel, and minerals.
• Metal Processing: Heat and cold treatment, forging, and rolling.
• Intermediary Services: Acting as agents, brokers, and consultants for the industry.

Think of them as the new middleman-turned-processor in the steel supply chain. They are leveraging relationships with entities like Bajaj Tubular Products and Bajaj Infrasteels (related parties) to create a captive ecosystem. It’s a smart way to bypass the “startup” phase of a new business—just plug into an existing industrial group’s workflow and start booking revenue. It’s not exactly “innovative,” but in the steel business, volume and relationships are king.

Financials Overview

The shift from “Zero” to “Hero” is visible in the quarterly performance. The company is finally making money consistently.

Witty Commentary:

Management literally “walked the talk” by pivoting. They said they would enter steel, and the revenue jumped from zero to ₹22 Crore in a year. The Operating Profit Margin (OPM) is hovering around 20.6%, which is surprisingly high for a trading-heavy business. Usually, traders eat crumbs, but Magnus is eating steak. Is this sustainable, or are these “related party” transactions providing a temporary margin cushion?

Valuation Discussion – Fair Value Range

We need to be careful here. A P/E of 168 is normally “nosebleed” territory.

1. P/E Method

• Annualised EPS (FY26): ₹0.86 (based on full-year actuals).
• Industry P/E: 29.8.
• Magnus P/E: 167.5.
• At an industry-standard 30x P/E, the stock would be valued at ₹25.80. The current price is pricing in massive growth that hasn’t arrived yet.

2. EV/EBITDA Method

• EBITDA (FY26): ₹4.66 Cr.
• Enterprise Value (EV): ₹757 Cr.
• EV/EBITDA: 162.4x.
• Most steel companies trade between 8x and 12x EV/EBITDA.

3. DCF (Back of the Envelope)

Given the rapid growth from a low base, if we assume the company can maintain 50% CAGR in earnings for 5 years (a tall order), the fair value starts approaching the ₹60-₹85 range.

Fair Value Range: ₹35 – ₹90

Disclaimer: This fair value range is for educational purposes only and is not investment advice. The current market price reflects high speculative interest.

What’s Cooking – News, Triggers, Drama

There is more drama here than a daily soap opera.

1. The Great Rights Issue Fail: In late 2025, the company tried to raise ₹49 Crore via a rights issue. It failed miserably due to “insufficient subscriptions.” Investors basically swiped left.
2. The Preferential Pivot: Undeterred, the board came back in early 2026 and approved a ₹45 Crore preferential