M & B Engineering LimitedInfrastructure & ConstructionMBEL
Q1 FY27 concall · earnings callM & B Engineering Limited
The quarter was about strong top-line growth of 22.5% and a robust order book, but margins were pressured by geopolitical freight costs.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue from operations | ₹291 Cr | 22.5% | |
| Order Book | ₹1,053 Cr | 25% | |
| Operating EBITDA margin | 11.4% | — | |
| Profit After Tax | ₹22 Cr | 22% |
TL;DR
- Revenue grew 22.5% YoY to Rs 291 Cr with strong performance in both PEB and Proflex divisions.
- Order book stood at Rs 1,053 Cr, up 25% YoY.
- EBITDA margin was 11.4%, impacted by a sharp increase in freight costs, particularly for exports.
- Management maintains FY27 revenue growth guidance of over 25% but withheld specific margin guidance due to cost uncertainty.
- Capacity expansions are on track, with Sanand's 20,000 TPA brownfield addition expected in October 2026.
- The company is investing in automated heavy structural steel capacity to capitalize on data center and high-rise opportunities.
Said on the call
“We do not think war will continue forever, we do not think the freight can sustain at these prices forever.”
From the Q&A
| Topic | What management said |
|---|---|
| Order Inflow and Margins | Analysts noted weak Q1 order inflow (~Rs 260 Cr) and margin pressure from high freight costs. Management attributed the inflow timing to large inquiries and said, at peak freight costs, export margins are still around 15% EBITDA, with a 4-5% delta over domestic (11%). |
| Pricing Realization | Analysts questioned the dip in Phenix realization per ton QoQ. Management explained it's due to the project mix (exports, bought-out materials) and said the spike from recent steel price increases will be seen in subsequent quarters as new orders are booked at higher prices. |
| Hit Rate vs. Peers | Analysts asked why the company's hit rate (12-15%) is lower than some peers (~20%). Management said they prioritize margins over top-line fill rate, are capacity-constrained, and will not chase orders that compromise profitability. Hit rate will go up with new capacity. |
| Full-Year Margin Guidance | Analysts pressed for FY27 EBITDA margin guidance. Management declined to give a specific range, citing volatile freight and raw material costs, but said the endeavor is to improve from the current 11-11.5% and they will provide guidance after one more quarter. |
| Demand Drivers | Management highlighted robust demand inquiries from automobiles, high-rise buildings, logistics, defense, aviation, data centers, and renewable energy for PEB, and from railways and agri-warehousing for Proflex. |
| Raw Material Hedging | Management detailed that 80-85% of raw material is booked at order intake, with 15-20% open to variation, and they incorporate price movement forecasts from large mills into new order pricing to protect margins. |
Guidance
- Revenue growth of over 25% in FY27.
- Expect gradual margin improvement in H2 FY27, becoming more visible in second half.
- Target overall capacity utilization of ~60% at Cheyyar plant in current fiscal.
- Confident of achieving over 20% CAGR over the next three to four years, along with progressive improvement in profitability.
Source
Summary written from the transcript filed by M & B Engineering Limited for the call held on 10 Aug 2026; published 18 Aug 2026, 20:41 IST.
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