M P Steel (India) IPO

Strengths · 7

• 01Revenue from operations was Rs 413.41 crore in FY2026, against Rs 325.44 crore in FY2025 and Rs 360.05 crore in FY2024.
• 02Profit after tax rose to Rs 15.81 crore in FY2026 from Rs 6.61 crore in FY2025 and Rs 4.02 crore in FY2024.
• 03EBITDA margin was 8.17% in FY2026, against 5.42% in FY2025 and 4.27% in FY2024.
• 04ROCE was 20.10% in FY2026, up from 12.59% in FY2025 and 10.70% in FY2024.
• 05Debt to equity eased to 0.82 in FY2026 from 0.97 in FY2025 and 1.13 in FY2024.
• 06Installed capacity is 19,151 MTPA for melting, 63,030 MTPA for rolling and 27,500 MTPA for bright bars at one integrated site.
• 07EBITDA per tonne was Rs 22,116.73 in FY2026, against Rs 13,524.89 in FY2025 and Rs 9,619.39 in FY2024.

Risks · 10

• 01All production comes from a single plant in Vijapur, Gujarat, so a shutdown or slowdown there would hit the whole business.
• 02Gujarat gave 39.27% and Maharashtra 33.97% of revenue from operations in FY2026.
• 03The company says its business is high volume and low margin. PAT margin was 3.82% in FY2026 and 1.12% in FY2024.
• 04Operating cash flow was Rs 9.82 crore in FY2026 against profit after tax of Rs 15.81 crore, and Rs 22.53 crore in FY2025.
• 05Total borrowings were Rs 85.78 crore at 31 March 2026, against net worth of Rs 104.17 crore. Working capital days were 99.
• 06Top 5 customers gave 21.33% of revenue from operations in FY2026, up from 12.12% in FY2025.
• 07Exports were 11.50% of revenue from operations in FY2026 and 18.28% in FY2025, so the company carries foreign exchange and overseas market risk.
• 08The company relies on its top 10 suppliers for raw materials and on third-party traders for sales, and delays in either could hurt cash flows.
• 09Six tax proceedings are pending against the company, with Rs 23.40 crore involved. One tax proceeding against the promoters involves Rs 0.91 crore.
• 10The offer includes 23,07,290 shares sold by promoters and promoter group members, and that money goes to them and not to the company. The abridged prospectus gives no object-wise split of the Rs 95.00 crore fresh issue.

M P Steel (India) Limited makes stainless steel products. It has two product lines. Black stainless steel products include round, hexagonal, square and angle bars, flat bars (pattis) and forging ingots. Bright stainless steel products include round, hexagonal, square and angle bars, flat bars, channels and fasteners. The main grades are 17.4PH, 304 and 316, along with other grades in the 200, 300 and 400 series.

The company sells mainly to traders and manufacturers, so it is a B2B business. Its products go into defence, pharmaceuticals, infrastructure, automotive, hardware, shipbuilding, ports, power plants and refineries, as per the CARE report cited in the document.

All manufacturing happens at one facility at Ranasan, Vijapur, Mehsana in Gujarat. The site is about 80,374 sq. m, of which about 32,492 sq. m is unused land. The installed capacity is 19,151 MTPA for melting, 63,030 MTPA for rolling and 27,500 MTPA for bright bars. The number of manufacturing units was one in each of FY2024, FY2025 and FY2026.

In FY2026, domestic sales were Rs 348.43 crore, or 84.28% of revenue from operations. Gujarat gave 39.27% and Maharashtra 33.97%. Exports were Rs 47.53 crore, or 11.50%, with Germany, UAE, Brazil, Egypt and Poland among the buyers.

The company plans to backward integrate into billet manufacturing and expand melting capacity. It also wants to widen its customer base across geographies and cut operating costs. The promoters are Kushalkumar V Bhansali, Vansraj Rikhabchand Bhansali and Santosh Vansraj Bhansali.

The industry

The CARE report says the Indian stainless steel industry has moved from consumer-led demand to infrastructure- and industry-led demand, with use in construction, transport, manufacturing and utilities. The market size, by value, is projected to grow at a CAGR of 10.1% from CY25 to CY30 and reach USD 18,533 million by CY30.

Customer concentration: Top 5 customers gave 21.33% of revenue from operations in FY2026 (12.12% in FY2025 and 18.15% in FY2024).