M&B Engineering (MBEL) has posted stellar Q1 FY26 numbers, with revenues and profits surging sharply on the back of a robust order book, margin expansion, and an aggressive export strategy. M&B Engineering Q1 FY26 results highlight the company’s strengthening position in India’s pre-engineered building (PEB) and self-supported roofing industry, while also pointing to challenges in working capital and seasonality.

📊 M&B Engineering Q1 FY26 Financials: Strong YoY Momentum

• Revenue: INR 237.6 Cr (↑69.5% YoY)
• EBITDA: INR 33.7 Cr (↑107% YoY), margin improved to 14.17% from 11.62%
• PAT: INR 17.95 Cr (↑159% YoY), margin expanded to 7.55% from 4.95%
• EPS: INR 3.59 (vs. INR 1.39 Q1 FY25)

Sequentially, both revenue and profit dipped from Q4 FY25 — but management clarified that MBEL is a second-half heavy business (60% H2 contribution), making Q4 the seasonal peak.

📌 Important Note: Q1 revenue understates actual business momentum — ~INR 28.6 Cr worth of dispatches (INR 12.77 Cr domestic, INR 15.79 Cr exports) were not booked due to INDAS accounting norms. This will be recognised in Q2 FY26.

📦 Order Book: INR 843 Cr of Revenue Visibility

As of 1 July 2025, MBEL held a consolidated order book of INR 843 Cr, split as:

• Phenix Division (PEBs & structural steel): INR 634 Cr (Exports: INR 123 Cr 🌍, Domestic: INR 510 Cr)
• Proflex Division (Roofing systems): INR 209 Cr

Execution cycle: 7–8 months for Phenix, 4–5 months for Proflex.

Sector mix:

• Phenix: Industry (43%), Infrastructure (30%), Others (17%)
• Proflex: Warehousing (54%), Industry (45%), Others (1%)

📊 M&B Engineering Q1 FY26: Segmental Performance

• Phenix (PEBs): INR 176.2 Cr (↑87% YoY) – driving the bulk of growth
• Proflex (Roofing): INR 61.4 Cr (↑34% YoY) – steady contribution

Clearly, PEB remains the growth engine, supported by strong demand from industrial and infrastructure sectors.

⚙️ Key Operational Highlights

• Debt & Finance Cost: Long-term debt largely prepaid, expected annual finance cost savings of INR 22–23 Cr going forward.
• Capex:
  • Sanand (Gujarat): 20,000 TPA PEB expansion to go live in Q1 FY27
  • Cheyyar (Tamil Nadu): Another 20,000 TPA PEB expansion to commission in Q1 FY28
  • FY26 capex of INR 6.27 Cr already incurred; balance ~INR 45 Cr planned. Additional INR 25–30 Cr earmarked ahead.
• Exports: FY25 exports stood at INR 65 Cr; the company aims to triple exports in FY26 and reach 20% of topline by FY27. Despite 50% US tariffs, MBEL products remain cost-competitive vs. US suppliers, with superior margins.

🏦 Balance Sheet & Working Capital

• Net Working Capital Cycle: 55 days (vs. 18 days LY, 32 days FY25).
• Receivables: 80 days; Payables: 98 days.
• Inventories: Raw material days at 85, finished goods at 10.

📌 While growth remains strong, the working capital stretch is worth tracking closely for investors.

💰 IPO Proceeds Utilisation

Out of the net IPO proceeds of INR 259 Cr, only INR 105 Cr has been utilised so far.

• Capex Utilisation: Minimal till Q1, leaving INR 135 Cr largely unutilised, which will fuel future expansions.
• Loan Prepayment: INR 40 Cr used (vs. INR 58.75 Cr planned).

This indicates ample growth firepower still available.

Industry Context

• India PEB market: Expected to grow at 9.5–10.5% CAGR till FY30, reaching INR 33,000–34,500 crore.
• Global PEB market: Projected to hit USD 32–35 billion by 2029.
• Drivers: Warehousing, infrastructure push, industrial capex, and new-age roofing systems.

MBEL, with its dual model (PEBs + Roofing), is strategically positioned to ride this wave.

📌 Guidance & Analyst View

• FY26 Guidance: INR 1,247 Cr topline.
• PAT Estimate: ~INR 115 Cr, aided by finance cost savings.
• Valuation: Stock trades at ~23x FY26E earnings – attractive for a company with 67% PAT CAGR (FY22–FY24) and strong industry tailwinds.

💡 MBEL combines high growth, improving margins, a debt-light balance sheet, and export opportunities. Risks remain around working capital stretch and execution of large capex, but the trajectory suggests MBEL could emerge as a mid-cap industrial growth leader.

Bottomline

M&B Engineering Q1 FY26 results aren’t just strong – they reveal a company firing on multiple cylinders. With exports as the new frontier, capacity expansions in the pipeline, and sectoral tailwinds, MBEL is positioning itself as a serious contender in India’s infra-driven growth story. For investors, this is one stock to keep on the radar as it gears up for a transformative two years.

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