1.At a Glance
MIDHANI just dropped a Q1 FY26 result that looks like it drank three Red Bulls before facing the markets —150% YoY PAT growthon the back of a defence metals business that screams “strategic importance” louder than a DRDO scientist at Aero India. But before you start saluting the stock, remember — the Government still owns74%, so it’s as free-spirited as an army mess menu.
2.Introduction
Once upon a time (1973), the Government of India realised importing superalloys from abroad was like buying milk from a tiger — expensive, risky, and with a high chance of losing your hand. Thus was born Mishra Dhatu Nigam Ltd in Hyderabad — the country’s very own factory for defence metals, space-grade alloys, and that sweet, sweet titanium that makes fighter jets lighter and wallets heavier.
Fast forward to FY26, MIDHANI is still theonly manufacturer of titanium alloys in India. You want titanium for space? Special steels for nuclear reactors? Defence-grade alloys? You talk to MIDHANI… or you don’t get it at all. That monopoly is the good news. The bad news? Defence contracts have more delays than Mumbai metro projects.
3.Business Model (WTF Do They Even Do?)
MIDHANI’s recipe is simple:
- Take exotic metals like titanium, cobalt, and nickel.
- Heat, hammer, and forge them into alloys that survive in fighter jets, rockets, submarines, and nuclear reactors.
- Sell to Defence, Space, and Energy sectors — and sometimes export to foreign buyers if the babus say yes.
Main products:
- Superalloys– think materials that laugh in the face of 1,000°C.
- Special purpose steel– used in missiles, ships, and tanks.
- Titanium alloys– critical for aerospace & submarine applications.
No consumer business, no fancy D2C ads — just long-cycle, government-driven orders that make the revenue graph look like a staircase: flat steps, sudden jumps.
4.Financials Overview
| Metric | Latest Qtr (Q1 FY26) | YoY Qtr (Q1 FY25) | Prev Qtr (Q4 FY25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 170.5 | 163.0 | 411.0 | 4.6% | -58.5% |
| EBITDA (₹ Cr) | 34.0 | 23.0 | 93.0 | 47.8% | -63.4% |
| PAT (₹ Cr) | 12.8 | 5.1 | 56.0 | 150.5% | -77.1% |
| EPS (₹) | 0.68 | 0.27 | 3.00 | 151.9% | -77.3% |
Annualised EPS = ₹0.68 × 4 = ₹2.72 → P/E ~147(yeah… defence monopoly, but priced like a tech IPO in 2021).
Commentary: Revenue’s basically doing a lazy dog stretch YoY, but PAT exploded because costs behaved for once. QoQ drop is huge — but that’s seasonal; defence contracts aren’t Netflix subscriptions.
5.Valuation (Fair Value RANGE only)
Method 1: P/E
- Historical stable P/E for defence PSU niche ~35–40.
- Annualised EPS = ₹2.72 → FV range by P/E = ₹95 – ₹109.
Method 2: EV/EBITDA
- TTM EBITDA ~₹229 Cr, EV/EBITDA sector average ~14–16×.
- EV range = ₹3,206 – ₹3,664 Cr → Per share FV range ≈ ₹171 – ₹195.
Method 3: DCF (10% discount rate, 6% growth)
- Implies FV ~₹180 – ₹200.
Educational FV Range:₹95 – ₹200(For educational purposes only; not investment advice. If you quote this at a chai stall, we take no responsibility for flying cups.)
6.What’s Cooking – News, Triggers, Drama
- Q1 FY26 results– PAT up 150%, new CFO (Madhubala Kalluri) appointed.
- Strategic relevance– Govt pushing “Atmanirbhar Bharat” in defence
