M&B Engineering grows profit, but costs keep margin below sector median
Revenue momentum improved sequentially, but year-on-year cost growth outpaced sales; the company also reported capacity expansion and a larger order book.
Filed 05 Nov 2026, 13:11 IST · M & B Engineering Ltd (MBEL)
Key takeaways
- Consolidated net profit rose 32.84% year on year as lower interest and a 4.91-percentage-point fall in the tax rate offset weaker operating leverage.
- Revenue grew 25.36% year on year, but expenses rose faster at 26.26%, narrowing operating margin by 0.64 percentage points to 10.60%.
- Q2FY27 order inflows rose 69% quarter on quarter to Rs 441 cr, while orders on hand increased 19% year on year to Rs 1,109 cr.
Price around the results
Revenue momentum improved in Q2FY27
Consolidated revenue grew 25.36% year on year and 32.14% quarter on quarter, with operating profit growth slower than sales year on year but faster sequentially. Management said Q2FY27 order inflows reached Rs 441 cr, up 12% year on year and 69% quarter on quarter, while orders on hand rose 19% year on year to Rs 1,109 cr. The company also said Phase I of its Sanand brownfield expansion started commercial production, adding 20,000 MTPA and taking total PEB capacity to approximately 124,000 MTPA.
Year-on-year cost pressure kept margins below peers
Expenses grew 26.26% year on year against 25.36% revenue growth, reducing operating margin by 0.64 percentage points; sequentially, expense growth was nearly in line with revenue growth and margin improved by 0.06 percentage points. The 10.60% operating margin was 1.64 percentage points below the 12.24% median for 149 Industrials peers that had reported the quarter. Margin has recovered modestly from 10.41% in Q4FY26 through 10.54% in Q1FY27, but remains below 11.24% in Q2FY26.
Lower tax and interest lifted reported profit
Net profit grew faster than operating profit year on year because interest expense fell 28.21% and the tax rate declined by 4.91 percentage points to 17.93%. Other income contributed 6.98% of pre-tax profit, so the quarter's earnings growth was not entirely operating-led. Sequentially, the tax rate fell 7.24 percentage points, helping net profit rise 34.66% even as interest expense increased 11.79%.
Management flags capacity and new end markets
Management said it expects over 25% revenue growth in FY27, supported by its pipeline, order book, capacity expansion and domestic and international opportunities. The company said Sanand received CE certification from TÜV NORD for European PEB and structural-steel opportunities, and that it secured large orders for a data centre and a high-rise building. Management also said it targets over 20% CAGR over the next three to four years with progressive profitability improvement.
Recent post-results trading has usually been negative
The stock's last five post-results moves were negative on four occasions, with a median absolute move of 2.36%; the recorded moves ranged from -10.32% to +0.29%. The current results were filed on 05 Nov 2026 at 13:11 IST, and no post-results market reaction is recorded yet.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹385 cr | ₹291 cr | +32.14% | +25.36% |
| Other income | ₹3 cr | ₹5 cr | -50.59% | +7.73% |
| Expenses | ₹344 cr | ₹260 cr | +32.05% | +26.26% |
| Operating profit | ₹41 cr | ₹31 cr | +32.92% | +18.24% |
| Operating margin (%) | 10.60% | 10.54% | — | — |
| Interest | ₹3 cr | ₹3 cr | +11.79% | -28.21% |
| Depreciation | ₹4 cr | ₹4 cr | +14.36% | +14.67% |
| Profit before tax | ₹36 cr | ₹29 cr | +22.79% | +24.92% |
| Tax | ₹6 cr | ₹7 cr | -12.62% | -1.98% |
| Net profit | ₹29 cr | ₹22 cr | +34.66% | +32.84% |
| EPS (₹) | ₹5.12 | ₹3.75 | +36.53% | +25.80% |
Operating margin of 10.60% compares with a Industrials sector median of 12.24% across 149 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q2FY27 order inflows were ₹441 crore, up 12% year on year and 69% quarter on quarter.
- Orders on hand reached ₹1,109 crore, increasing 19% year on year.
Guidance & outlook
- The company expects to deliver over 25% revenue growth in FY27, supported by its pipeline, order book, capacity expansion and market opportunities.
- Over the medium term, the company targets over 20% CAGR for the next three to four years with progressive profitability improvement.
Expansion
- Phase I of the Sanand brownfield expansion commenced commercial production, adding 20,000 MTPA and taking total PEB capacity to approximately 124,000 MTPA.
New orders
- The company secured a large order for a data centre.
- The company secured a large order for a high-rise building.
New initiatives
- The Sanand facility received CE certification from TÜV NORD to address European PEB and structural steel opportunities.
Competition
- M&B Engineering is described as the largest player by revenue in manufacturing and installation of self-supported steel roofing solutions in India.
What to watch
- Whether operating margin sustains its recovery from 10.41% in Q4FY26 to 10.60% in Q2FY27.
- Whether orders on hand continue to build from Rs 1,109 cr after Q2FY27 order inflows of Rs 441 cr.
- Whether the Sanand expansion lifts capacity utilisation from the approximately 124,000 MTPA total reported by management.