MIDHANI
Micro CapMishra Dhatu Nigam Limited
Industrials
Mishra Dhatu Nigam Limited (MIDHANI) is an Indian state-owned enterprise manufacturing superalloys, titanium alloys, special steels, and other performance-critical materials. It serves defense, space, and strategic sectors, focusing on indigenization and value-added products for national programs.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Good · 62/100Rev +35% YoY · PAT +39% YoY · +100% QoQ · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹553 Cr | +34.5% | +100.4% |
| EBITDA | ₹116 Cr | +24.7% | +110.9% |
| Operating margin | 21.0% | -200 bps | +100 bps |
| PAT | ₹78 Cr | +39.3% | +178.6% |
| PAT margin | 14.1% | +47 bps | +396 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q3 FY26 turnover grew 31.44% QoQ to INR275.66 crores, with PBT more than doubling to INR39 crores. 9M FY26 turnover was INR655.88 crores (down 1.15% YoY), while value of production grew 8.86% YoY. Order book stands at INR2,594 crores, providing 2-year revenue cover.
MIDHANI delivered strong sequential Q3 performance driven by superalloys and titanium. The robust order book and focus on strategic sectors like aerospace and defense support long-term growth. However, delays in new projects (powder plant, JV closure) and continued raw material import dependence warrant close monitoring.
9M FY26 Revenue by Material Type
Latest issuer-disclosed distribution across 5 reported categories.
Indian Aerospace Ecosystem
MIDHANI is geared up for opportunities in domestic aerospace manufacturing (M88, F414, AMCA) and is in advanced talks with foreign customers like Safran.
High-Strength Steels
Ultrahigh-strength steels, used for missiles and rockets, carry significantly higher margins and are a key driver.
Helical Springs
New spring plant established for Vande Bharat and LHB coaches, with plans to expand to metro coaches and explore export opportunities for specialized springs.
Value-Added Products
Focus on value-added products like castings, aerospace fasteners, welding electrodes, and fabricated items (e.g., titanium windows for Ram Mandir) beyond raw material supply.
Spring Plant Operationalization
A new, sophisticated spring plant has been established and is being operationalized to meet Vande Bharat requirements, pending RDSO approval.
Powder Plant
Procurement formalities for the powder plant are ongoing, but equipment is yet to arrive due to export license procedures in a foreign country.
Future Capex Plans
Capex plans to double capacity to INR2,000 crores are in the DPR stage, with full details expected by the end of Q4 FY26.
Growing Domestic Demand
The Indian aerospace and defense ecosystem is showing good potential, driving demand for specialized materials.
Government Indigenization Push
Government's emphasis on 'Atmanirbhar Bharat' in defense and space protects national programs from import reliance.
Shorter Lead Times
MIDHANI's lead times are sometimes shorter than foreign mills, attracting international customers.
Raw Material Import Dependence
MIDHANI imports titanium sponge from East European nations as domestic production (Chavara) is insufficient and of varying grades.
Limited Domestic Market for Niche Alloys
Total annual requirement for certain aerospace-grade aluminum alloys (e.g., 2219) is too small for a dedicated plant, making processing unviable.
JV Project Closure
The Utkarsha Dhatu Nigam Limited JV with NALCO, intended for high-grade aluminum alloys, is recommended for closure due to non-viability.
Supply Chain Disruptions
Geopolitical events could impact the import of metallic raw materials, though a customer-owned metal bank is being established to mitigate this.
Certification Delays
Obtaining RDSO certification for new products (e.g., springs for railways) and international certifications for exports is a lengthy process with potential delays.
Competition in Tenders
For large tenders like the INR1,000 crores bulletproof jacket order, multiple players will participate, requiring aggressive competition.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Q3 FY26 results show significant sequential growth in turnover, value of production, PBT, and PAT, indicating strong quarterly momentum. 9M FY26 results are compared year-on-year to assess overall performance against the previous fiscal period.
Order Book
Order book position as on February 17, 2026, is INR2,594 crores.
Order Book Revenue Cover
The current order book of INR2,594 crores has a time line of 2 years for execution.
Q3 Turnover
Turnover for Q3 FY26 stood at INR275.66 crores, recording a 31.44% growth over Q2 FY26 turnover of INR209.72 crores.
9M Turnover
For the 9-month period, turnover was INR655.88 crores vis-a-vis INR663.54 crores last year.
Long-Term Growth Target
Management aims to grow MIDHANI into a INR2,000 crores company in the coming 10 years.
Near-Term Revenue Growth
Expects around 20% incremental revenues year-over-year until capex plans are finalized.
Capex for Capacity Enhancement
Planning capex to enhance capacity, replace older equipment with higher productivity machines, and install additional capacity in critical areas.
Export Market Expansion
Actively working to increase export market share and expects significant understanding/supplier list inclusion with popular aero customers outside India within 2 years.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| RDSO Certification for Springs | Under process for railway applications (Vande Bharat, LHB). | Successful certification and subsequent order participation/wins for the new spring plant. |
| Powder Plant Commissioning | Equipment yet to arrive due to foreign export license issues. | Resolution of export license issues and commencement of plant setup and operations. |
| Capex Plan Details | DPR stage, internal approvals ongoing. | Announcement of finalized capex plans and timelines by end of Q4 FY26. |
| International Certifications & Export Orders | Audits ongoing, negotiations with different customers. | Securing international certifications and significant export orders, particularly from aero customers. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
56NeutralSMA20 +22.3% / mo · near 52W high
Technical chart
MIDHANIdaily · 6M+50.9%Technical trend read
Bullish setupTrend is constructive — long-term trend unclear. RSI 65.
- SMA20 rising (~6.7% over last month) — short-term momentum positive.
- RSI(14) at 65 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- Within 3% of 52-week high — testing resistance.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 7/9.
- Balance sheet contributes 10/15 to the score.
- Cash flow contributes 4/10 to the score.
Main drags
- Penalty bucket subtracts 1 points.
- Fair-value margin of safety is negative at -1088.0%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 70th percentile of the scored universe and 68th percentile within Industrials. Main check: results consistency is weak at 41/100.
Healthy Trust Lite: Promoter holding is 74%. Key concern: 3 recent quarters had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 68th pctile, median 68 · Micro: 56th pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 74%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1.6%.
- ▸5 years of positive FCF.
Trust risks
- ▸3 recent quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 64.10
- P/B
- 5.50
- EV/EBITDA
- 29.08
- Market Cap
- 8432.00Cr
Profitability
- ROE
- 8.92%
- ROCE
- 11.30%
- ROA
- 4.07%
- Dividend Y
- 0.19%
Growth (CAGR)
- Revenue 5Y
- 8.00%
- EPS 5Y
- -5.00%
- Revenue 3Y
- 12.00%
- EPS 3Y
- -6.00%
Balance Sheet
- Debt/Equity
- 0.27
- Interest Coverage
- 9.52×
- Altman Z
- 4.37
- Book Value
- 81.80
Cash Flow
- FCF Yield
- 0.06%
- FCF Positive Y
- 6/5
- OCF
- 155.00 Cr
- EPS TTM
- 7.02
Shareholding
- Promoter Hold
- 74.00%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 91%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.