Mishra Dhatu Nigam Limited
Know the Company
Mishra Dhatu Nigam Ltd (MIDHANI), established in 1973, is a Mini-Ratna public sector enterprise under India’s Ministry of Defence. The company specializes in advanced metallurgical technologies and the production of superalloys, titanium alloys, soft magnet alloys and special steels. MIDHANI was founded to achieve self-reliance in the production and supply of these critical metals and materials. Company’s products primarily for the defense sector, as well as other strategic industries such as energy, space, aeronautics, and nuclear.
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Product Portfolio:
The company’s diverse product portfolio includes Special Alloys like Ferritic, Austenitic, Martensitic, Maraging, and Armour Steel. Its products also include superalloys including with Iron-based, Cobalt-based, and Nickel-based alloys. Titanium Alloys are available in melted, forged, rolled, and drawn forms Special steels and titanium alloy grades form a significant portion of MIDHANI’s production, alongside specialty steels such as alloy steels, stainless steels, and tool steels. The company also produces high-performance superalloys like Inconel, Monel, and Hastelloy, which are essential in demanding applications across various industries. Furthermore, MIDHANI manufactures refractory metals like tungsten, molybdenum, and cobalt, reinforcing its expertise in advanced materials for critical applications in defense, aerospace, energy, and other high-tech sectors.
Manufacturing Facilities:
MIDHANI operates two state-of-the-art manufacturing facilities, one in Kanchanbagh, Hyderabad (Telangana), and the other in Rohtak (Haryana). The Telangana facility is equipped with advanced technologies to produce both standard and customized materials, catering to diverse client requirements. The Rohtak facility specializes in armor manufacturing, producing a range of defense products such as bulletproof vests, vehicle armoring, helicopter armoring, and the lightweight, bullet-resistant jacket branded as ‘MIDHANI Kavach’.
Strengths
The company delivers high-strength, lightweight alloys composed of two or more metals, designed for advanced engineering needs. Its product portfolio includes specialty materials such as nickel alloys, cobalt alloys, and titanium alloys, renowned for their exceptional strength, heat resistance, and corrosion resistance. MIDHANI’s core focus is on the defense sector, where it supplies critical alloys and special steels for applications such as tank bodies, armored vehicles, and ammunition. Apart from defense, these specialty alloys serve diverse industries, including aerospace, electronics, automotive, and healthcare, demonstrating their versatility and importance in modern engineering solutions. Over its five decades history, MIDHANI has established itself as a leading supplier of advanced materials as well as it working towards securing development certification from a US Aerospace company to ensure international recognition of its high-quality products. MIDHANI’s expertise in producing these advanced materials positions and its rich history turns the Company as a leader in the specialized metals and alloys market.
The company boasts highly integrated and flexible manufacturing capabilities, enabling the production of special metals and alloys in various forms, such as forged bars, flats, rings, near-net shapes, closed-die forgings, hot-rolled bars, sheets, cold-rolled sheets, strips, foils, wires, castings, tubes, and fasteners.
MIDHANI plays a pivotal role in advancing India’s self-reliance in critical materials and technologies, closely aligning with the nation’s strategic objectives. With robust technical expertise, diversified product portfolio, and strategic partnerships, the company is well-positioned for sustained growth in the specialized metals and alloys market. As a key contributor to India’s defense and space programs, MIDHANI collaborates extensively with organizations such as DRDO and ISRO.
Over the past year, MIDHANI has supplied nickel-based alloys to British aerospace firm, providing critical international exposure for indigenous defense manufacturers. This milestone coincides with India’s advancing negotiations with U.S.-based GE Aerospace to domestically produce F414 fighter jet engines, a significant step toward achieving Aatmanirbharta in aero engine manufacturing. Additionally, MIDHANI has signed a Memorandum of Understanding (MoU) with a private Indian defense player to explore opportunities for manufacturing critical materials, reducing reliance on imports.
The company’s success is bolstered by a highly skilled team of engineers, who play a critical role in maintaining and enhancing its competitive edge. Furthermore, its dedicated R&D team drives product development and innovation, reinforcing MIDHANI’s position as a leader in the market.
The company is well-positioned to capitalize on significant opportunities created by the Government of India’s emphasis on developing the manufacturing sector through progressive policy initiatives. These policies providing full support for MIDHANI’s growth.
The company has been undertaking capital expenditures to expand and modernize its production facilities. This includes commissioning new facilities, which are nearing completion and are expected to enhance production capacity and operational efficiency. MIDHANI has also made significant progress in expanding its international footprint, particularly in the aerospace sector. Over the past few years, the company has achieved a threefold increase in exports, establishing a strong presence in key markets such as Europe, the Middle East, and the United States.
MIDHANI’s growth is driven by rising demand from the defense, oil & gas, and aerospace sectors, along with entry into new markets, product diversification, consistent R&D investments, and strategic partnerships. Its focus on innovation and quality has solidified its strong market position, equipping the company to address emerging challenges and maintain competitiveness in high-value sectors.
Financial Results
MIDHANI reported revenue growth of 15.2% (YoY) and 60.4% (QoQ) to Rs 262 crore for the Q2FY25. At the same time The EBITDA margin improved by 272 basis points (bps) and 442 bps QoQ to 18.7%. As a result, EBITDA surged by 34.9% YoY and 110% QoQ to Rs 49 crore. Profit after tax rose significantly by 70.3% YoY and 348.4% QoQ to Rs 23.7 crore.
For the H1FY25, revenue increased by 2.5% (YoY) to Rs 425.6 crore. However, the EBITDA margin stood at 17%, compared to 18.7% in H1FY24. PAT declined by 11% to Rs 29 crore during the same period.
Industry Structure
This growth for the MIDHANI’s products is supported by technological advancements and increased investment in research and development, particularly in the United States and Canada. In India, the aerospace, defense, and automotive sectors have been key contributors to the alloy industry’s growth.
The global defense industry is projected to grow at a CAGR of 4.0% from 2026 to 2031 (source: company AR), reaching a market size of USD 838.03 billion by 2031. This growth is driven by technological advancements and supportive government policies aimed at bolstering national security. Similarly, the Indian government has taken significant steps to strengthen its defense sector. These include enhancing transparency, framing supportive policies, deregulating and de-licensing certain areas, and promoting exports.
In aerospace, superalloys are used to manufacture jet engines, while in defense, they are utilized in gas turbine engines for tanks and ships. The oil and gas industry leverages their high-pressure and corrosion resistance capabilities, and the energy sector uses them for heat exchangers and turbines. India’s defense manufacturing capabilities are expanding, encompassing advanced mechanisms and arms such as protective gear, military vehicles, anti-drone systems, and other high-tech military products. The Union Budget allocating huge amount for the modernization and infrastructural development of the defense services. The aerospace and defense sector in India is rapidly evolving, forming an integral part of the country’s long-term strategic goals. Government initiatives like “Make in India” and the Defense Testing Infrastructure Scheme are expected to accelerate the production and sales of aerospace and defense equipment, with the northern region of India playing a significant role in driving this growth.
In the last financial year, MIDHANI invested approximately Rs 79 crores in capital expenditure, commissioning new facilities, and expanding capacity. These investments are expected to enhance future production capabilities and drive growth. The company achieved significant volume growth, with titanium alloys contributing substantially to revenue. Additionally, increased exports underscored MIDHANI’s expanding international presence, further solidifying its position in the global market.
Outlook
The high-performance alloy industry is poised for robust growth driven by rising government spending in key sectors such as Defense and Space centers. The expanding requirements in the defense and aerospace industries across the developed countries are also set to further fuel the demand for high-performance alloys. For FY25, MIDHANI’s management has provided optimistic guidance, anticipating revenue growth of 20-25%. The company’s order backlog remains strong at approximately Rs 1,820 crore, representing 1.7 times its trailing twelve-month (TTM) revenues. This is supported by healthy order inflows of around Rs 500 crore during the first half of FY25, alone. Looking ahead, sustained execution momentum and margin expansion will be critical growth drivers for MIDHANI in the coming quarters. With a strong order pipeline and favorable industry tailwinds, the company is well-positioned to capitalize on the rising demand for high-performance alloys in its key markets.
Challenges
MIDHANI relies heavily on government organisations orders, particularly in the Defense and Space sectors. This dependency affects its operational efficiency and scalability. The company is also significantly reliant on imports for its supply of key raw materials, including rare metals such as titanium, nickel, cobalt, tungsten, and zirconium which all are critical to its operations. This dependency on external sources exposes MIDHANI to risks arising from global supply chain disruptions and price volatility, potentially impacting production and profitability.
Sector: Capital Goods
Market Price: Rs. 310.85 as on today
FV: Rs 10/-
Stock Name: Mishra Dhatu Nigam Ltd
BSE Code: 541195, NSE Code: MIDHANI
Market Cap.: ₹5967 Crore
Book Value: Rs. 72
Segment: Metals/ Special Alloys
Incorporation: 1973
Headquarters: Hyderabad
