MIDHANI Secures ₹306 Crore Order Amid Rising Demand in Defence and Aerospace
Mishra Dhatu Nigam Limited (MIDHANI), the government-run maker of specialty metals and alloys, has secured a fresh order worth about ₹306 crore. The new contract takes its total order book to roughly ₹2,212 crore, underscoring the steady demand for its advanced materials used in defence, aerospace, and high-technology industries.
The company disclosed the development to the exchanges in line with SEBI’s reporting norms. On Tuesday, MIDHANI’s shares closed slightly lower at ₹377.95 on the NSE after opening at ₹380. The stock moved within a narrow band during the day, touching a high of ₹382.75 and a low of ₹375. (Business UpTurn)
The question now is whether this momentum will translate into lasting growth and stronger profitability in the months ahead.
What Is Powering MIDHANI’s Growing Order Book?
The new order adds to a series of steady wins that have lifted the company’s pending orders beyond the ₹2,200 crore mark. Chairman and Managing Director N. Gowri Sankara Rao has said that FY26 could be a turning point, led by naval and aerospace projects that continue to drive most of the company’s revenue.
MIDHANI’s progress mirrors India’s broader focus on defence indigenisation under the ‘Make in India’ initiative. It produces complex alloys, superalloys, and titanium-based materials used in missiles, aircraft engines, and armoured systems. Key clients include the Defence Research and Development Organisation (DRDO) and Hindustan Aeronautics Limited (HAL).
Exports, once a small contributor, are also beginning to gain ground. The company now supplies materials to Boeing, Airbus, and General Electric, strengthening its presence in the global aerospace supply chain. With Western manufacturers seeking to diversify their sourcing, MIDHANI’s technical expertise has helped it become a credible alternative supplier.
Financial Performance Highlights
Financially, the trend has been encouraging. In the first quarter of FY26, profit after tax rose 145% year-on-year to ₹12.96 crore. Revenue climbed to ₹170.5 crore, and operating profit grew 46% to ₹34.18 crore. Margins widened slightly above 20%, supported by tight cost control and a 10% cut in finance expenses. (CNBC TV18)
For the January–March 2025 quarter, the company reported a net profit of ₹56.19 crore, up 21% from a year earlier. Revenue touched ₹410.56 crore, while total expenses fell 2% to ₹341 crore, suggesting that operational efficiency has improved even with modest revenue growth. (Mint)
Can MIDHANI Keep the Momentum Going?
Since the start of 2025, the stock has gained about 13%, although it still trades below its June peak of ₹469. Market analysts see the new order as a vote of confidence in the company’s capabilities but caution that execution will be key as the order book grows. (moneycontrol)
MIDHANI’s strength lies in its materials science expertise and its ability to manufacture small batches of highly specialised metals. Expanding that capability to larger production volumes will require more investment in technology and plant capacity. India’s rising defence spending offers a favourable backdrop, yet competition is intensifying as private and public sector firms chase the same projects.
The management remains confident. It expects more contracts from both defence and civil aviation customers, supported by long-term supply deals. With an order book that already covers more than a year’s revenue, MIDHANI enters FY26 on a firm footing.
Opportunities Beyond Defence
The opportunity is widening beyond defence as well. Demand for advanced alloys is increasing in clean energy, hydrogen storage, and electric mobility - areas where lightweight, high-strength materials are essential. Industry observers believe MIDHANI’s experience gives it an early advantage if it chooses to scale into these sectors.
What are the Headwinds MIDHANI Faces?
Still, the company faces familiar challenges. Volatile input costs, shifting export demand, and working capital pressures can affect margins. Investors will be watching how efficiently MIDHANI manages its capital expenditure and cash flow while meeting growing delivery commitments.
Even so, the company has emerged as one of the few Indian firms capable of competing globally in niche materials. Backed by government support, strong technical know-how, and improving financial performance, MIDHANI seems well-positioned for the next phase of growth. The key question now is not whether the company will get orders, but how effectively the company can turn them into lasting leadership in advanced materials.
Sources:
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed SEBI prescribed limit. The securities are quoted as an example and not as a recommendation. SEBI Registration No-INZ000200137 Member Id NSE-08081; BSE-673; MSE-1024, MCX-56285, NCDEX-1262.