Mishra Dhatu Nigam Ltd (MIDHANI) is strengthening its position in defence and aerospace materials as it looks to move towards the ₹2,000 crore revenue mark over the medium term.
The company manufactures superalloys, titanium alloys and special steels used in strategic sectors. With a market capitalisation of around ₹8,100 crore, the stock was trading at ₹436. It trades at a price-to-earnings ratio of 62, compared with the industry’s PE of 65. The shares have gained more than 100% over the last five years.
FY26 delivers record revenue and profit
MIDHANI reported its highest-ever turnover in FY26.
Key numbers for the year included:
- Revenue of ₹1,208.63 crore, up 12.52% from FY25.
- Profit after tax of ₹130.79 crore, a rise of 18.82%.
The March quarter was stronger.
- Quarterly turnover rose 34.63% to ₹552.7 crore.
- Profit after tax increased nearly 38.5% to ₹77.75 crore.
Management said one of the achievements during FY26 was improving the conversion of production into sales, an issue that had been highlighted in earlier quarters.
₹2,290 crore order book offers visibility
MIDHANI started FY27 with an order book of around ₹2,290 crore, equivalent to nearly 1.9 times FY26 revenue.
Defence remains the largest segment.
Order book mix
- Defence: about 79%
- Balance: aerospace, titanium alloys, superalloys and speciality steel applications
Management expects fresh orders worth around ₹1,500 crore during FY27.
The existing backlog and new opportunities are expected to support growth in the coming years.
Titanium business gains momentum
Titanium has emerged as one of the company’s key growth areas.
Production reached 700 tonnes in FY26, higher than previous years. Titanium-related orders have already crossed ₹660 crore.
Management said the company has enough capacity to increase output through its vacuum arc remelting technology.
Titanium is used in:
- Aerospace
- Defence
- Naval applications
- Strategic industries
Growing domestic aircraft and defence manufacturing could create additional demand.
Metal Bank project aims to secure raw materials
MIDHANI relies on imported raw materials such as:
- Nickel
- Cobalt
- Molybdenum
- Tungsten
- Vanadium
- Chromium
- Rhenium
- Titanium sponge
These materials are sourced from Europe, Central Asia and former Soviet republics.
To reduce supply-chain risks, the company is working on a Metal Bank project.
According to management, the initiative is intended to create a reserve of critical raw materials. The stockpile can be used during shortages and replenished when supply conditions improve.
Aerospace certifications expand opportunities
During FY26, MIDHANI received airworthiness certificates for 10 superalloys and steels from the Centre for Military Airworthiness and Certification.
The company also secured NADCAP certification for heat treatment, a widely recognised standard in the aerospace industry.
Management said these certifications could help expand supplies to international original equipment manufacturers.
Focus on aero-engine materials
MIDHANI said it has successfully produced a single-crystal blade material made from cast superalloys.
Such materials are used in aero engines because they can withstand high temperatures and mechanical stress.
Management said the material has been qualified by customers after undergoing various tests.
The company also manufactured more than 700 ring-rolled rings made from superalloys and titanium alloys for aero-engine applications.
Defence programmes offer another growth avenue
MIDHANI said it has already started development work linked to the Advanced Medium Combat Aircraft (AMCA) programme.
The company is currently supplying superalloys and titanium alloys for the project. It expects to play a larger role when the programme moves into the production phase.
Apart from AMCA, MIDHANI is also developing:
- Armour-grade steel
- Bullet-proof jackets
- Aerospace fasteners
- Other strategic materials
Import substitution remains a large opportunity
Management said India still imports nearly ₹8,000 crore worth of titanium alloys, superalloys and specialised steel.
MIDHANI believes it can manufacture part of these products domestically.
Capturing even a small portion of these imports could expand the company’s addressable market.
₹1,000 crore capex planned over three years
The company plans capital expenditure of around ₹1,000 crore over the next three years.
Most of the spending will go towards modernising existing facilities rather than setting up new plants.
Management expects the upgrades to improve efficiency and productivity.
Exports are also increasing.
- FY26 exports stood at around ₹85 crore.
- Management expects exports to touch ₹100 crore in FY27.
Global audits by aerospace and engine manufacturers could create further opportunities.
Can revenue reach ₹2,000 crore?
Management believes annual growth of 15-20% could help MIDHANI achieve the ₹2,000 crore revenue milestone.
Several factors support that ambition:
- A ₹2,290 crore order book.
- Rising titanium demand.
- Opportunities in aerospace and defence.
- Growing exports.
- Import substitution potential.
- The Metal Bank initiative.
- Capacity modernisation plans.
Raw material availability, energy costs and geopolitical uncertainties remain challenges. However, management believes the company’s technological capabilities and presence in strategic sectors provide a platform for long-term growth.
TL;DR:
MIDHANI is targeting long-term revenue growth through a ₹2,290 crore order book, rising titanium demand, aerospace certifications, defence opportunities and its proposed Metal Bank project. Management believes annual growth of 15-20% could help the company move towards ₹2,000 crore revenue.
AI Summary
- MIDHANI reported record FY26 revenue of ₹1,208.63 crore.
- The company entered FY27 with a ₹2,290 crore order book.
- Titanium orders have crossed ₹660 crore.
- A Metal Bank project is being developed to secure critical raw materials.
- Management believes 15-20% annual growth can help achieve ₹2,000 crore revenue.
