According to reports from The Financial Express, M&B Engineering has secured an order book of ₹1,053 crore as of June 2026, representing a 25% increase from the previous year. The company's Phenix division accounts for ₹837 crore while Proflex contributes ₹216 crore of the total order book. Management is targeting revenue growth of over 25% in FY27 and compound annual growth of over 20% in the next three to four years, alongside improving profitability. In Q1FY27, Phenix generated ₹214 crore in revenue, up 22% year-on-year, while Proflex contributed ₹77 crore, up 25%, with Phenix accounting for roughly 74% of quarterly revenue.
As reported by The Financial Express, the company's financial performance shows mixed results with strong revenue growth but declining margins. Consolidated revenue rose 27.4% in FY26, but operating profit margin fell from 12.8% in FY25 to 11.3% in FY26. In Q1FY27, revenue grew 22.5% year-on-year while operating EBITDA margin declined to 11.4% from 14.2% a year earlier. Management attributed margin pressure partly to higher freight costs on US shipments and increased inland transportation costs, with geopolitical uncertainty in West Asia adding to strain. The company expects lower US Section 232 duties, higher export revenue and additional capacity to support a gradual margin recovery, particularly in the second half of FY27.
According to The Financial Express, M&B Engineering is investing significantly in capacity expansion to capitalize on the data centre boom. The company approved ₹30 crore in August 2026 for a fully automated heavy structural steel processing line at Sanand, increasing annual capacity from 12,000 tonnes to 22,000 tonnes with operations expected to begin in Q1FY28. Additionally, the company is adding 20,000 tonnes of annual PEB capacity at Sanand, taking total capacity to 92,000 tonnes after commissioning in October 2026, with a further 20,000-tonne expansion at Cheyyar targeted for Q3FY28. For a company of M&B's size, these are significant additions that will take total PEB and structural steel capacity to approximately 1,54,000 tonnes annually.
As reported by The Financial Express, management estimates that steel-intensive construction could represent a US$12-14 billion opportunity in India's data centre market over the next five years. Steel construction accounts for only around 8-10% of a data centre's total investment, with civil works and mechanical, electrical and plumbing requirements accounting for the rest. The company operates in 23 countries with repeat customers contributing approximately 54% of consolidated operating revenue in FY26. Management expects shipments from Cheyyar to the west coast of the United States to begin in FY28, using the Pacific route, with the company targeting approximately 60% utilization at Cheyyar in FY27.
According to The Financial Express, while the company's balance sheet improved with borrowings falling from ₹191 crore to ₹84 crore in FY26, cash flow remains a concern. Cash flow from operating activities turned negative against a positive ₹33 crore in FY25, with free cash flow at negative ₹62 crore. The company reported a return on capital employed (ROCE) of 22.9% and return on equity (ROE) of 19.4% in FY26. Currently, M&B Engineering trades at approximately 14.8 times earnings, below its five-year average multiple of 19.9 times, reflecting market concerns about margin pressures and cash generation challenges. The inquiry pipeline stood at approximately ₹4,000 crore for Phenix and ₹200 crore for Proflex, though order inflows in Q1FY27 were ₹262 crore against ₹278 crore a year earlier.
