Madhur Iron and Steel- FY26 Performance Review

Author

Ansh Singla

Financial Analyst Intern

Business Economics undergraduate at Shivaji College, University of Delhi, and a CFA Level III candidate.

Publish Date11 August 2026

Reading time3 Min

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Madhur Iron and Steel is in the business of manufacturing and trading of a wide range of structural steel products, including Angles, Channels, Mild Steel (MS) Sections, and Flats & Rods. The Company primarily operates under a business-to-business (B2B), order-based model, supplying products to institutional customers. The Company is engaged in the manufacture of re-rolled structural steel products, including Angles, Channels and other similar products. Upon manufacture, such structural steel products are either sold directly to customers or, depending on customer specifications, further processed through fabrication to convert them into finished, application ready products. Its products cater to diverse end-use industries, such as railway electrification, state electricity boards, power and energy infrastructure, telecom tower manufacturing, automotive and ancillary units, offshore structure fabrication, construction and real estate, general engineering, auto body manufacturing, and other related industries.

1. Revenue, EBITDA, Net Profit & EPS Summary (₹in Cr)

Particulars	FY26	FY25	YoY Change
Revenue	445	341	30.6%
EBITDA	53	39	36.7%
EBITDA Margin	11.9%	11.4%	-
Net Profit (NP)	24	18	31.7%
NP Margin (NPM)	5.4%	5.3%	-
EPS (Basic & Diluted, Rs)	8	7	19.5%

Revenue grew 301% YoY, and EBITDA grew faster, pointing to modest operating leverage. Net profit rose 32%, slightly ahead of revenue growth, while EPS grew a slower 19% because the equity share capital base itself nearly doubled during the year. Company has issued 1,48,92,273 bonus shares in FY26.

2. Common-Size Statement

Particulars	FY25 (Rs Cr)	FY25 (% of Rev)	FY26 (Rs Cr)	FY26 (% of Rev)
Revenue (Total Income)	341	100.0%	445	100.0%
Cost of Materials Consumed	194	56.8%	212	47.6%
Purchases of Stock-in-Trade	136	39.8%	182	40.8%
Changes in Inventories (FG & WIP)	(44)	-13.0%	(32)	-7.2%
Total Cost of Goods Sold	285	83.6%	362	81.3%
Employee Benefit Expense	3	0.9%	7	1.5%
Finance Costs	12	3.6%	18	4.2%
Depreciation & Amortisation	2	0.5%	2	0.5%
Other Expenses	14	4.1%	24	5.3%
Total Expenses	316	92.7%	413	92.7%

3. Key Balance Sheet Items

Particulars	FY26 (₹ Cr)	FY25 (₹ Cr)
Property, Plant and Equipment	19	17
Inventories	173	150
Trade Receivables	80	42
Cash and Cash Equivalents	0.22	0.70
Current Borrowings	127	81
Non-Current Borrowings	9	3
Trade Payables (Total)	69	53
Total Equity	117.90	93.99

4. Key Ratio Analysis

Ratio	FY26	FY25	YoY Change
Net Profit Margin	5.4%	5.3%	-
Return on Equity (ROE)	20.3%	19.3%	-
Fixed Asset Turnover Ratio	24x	20x	+4x
Debt-to-Equity Ratio	1.15x	0.90x	+0.26x

ROE improved as profit growth (32%) outpaced the 26% growth in the equity base from retained earnings and bonus issue. The Debt-to-Equity ratio rose as borrowings were drawn up faster than equity to fund working capital requirements. Fixed asset turnover improved, consistent with revenue growing faster than the property, plant and equipment base.