M P Steel(India) Limited IPO

01At a glance

What the company does: makes stainless-steel long products, black bars and ingots, and machined bright bars, channels and fasteners, at one plant in Mehsana district, Gujarat (AP p.3, DRHP p.40).

Who pays it: traders and manufacturers, mostly in Gujarat and Maharashtra; exports were 11.50% of FY26 revenue (AP p.3, AP p.8). The top ten customers were 29.29% of revenue (DRHP p.375).

Why it is raising money: to set up a billet-making unit costing ₹273.53 million as backward integration, and ₹550 million for working capital, plus general purposes (DRHP p.40, AP p.6).

How fast it has grown: revenue fell from ₹3,600 million in FY24 to ₹3,254 million in FY25, then rose to ₹4,134 million in FY26; profit rose from ₹40 million to ₹158 million (AP p.7).

The one thing to understand: a thin-margin metals processor whose profit jumped on better realisations. EBITDA per tonne more than doubled from ₹9,619 in FY24 to ₹22,117 in FY26, while revenue per tonne rose 20% (AP p.8).

02The business, in plain words

A bar maker buys stainless-steel scrap and billets, melts some into ingots, rolls them into bars, and machines some into precise "bright" bars. It earns the spread between the metal it buys and the bars it sells, per tonne.

An engineering firm or trader needs stainless bars in a given grade and size → it orders from M P Steel → the company melts or buys billets, rolls and finishes the bars at its Gujarat plant → it ships them and is paid per tonne.

The company makes grades such as 17-4PH, 304 and 316 (AP p.3). Installed capacity is 19,151 tonnes a year of melting, 63,030 of rolling and 27,500 of bright bars (AP p.8).

Earnings equation: Profit ≈ tonnes × (realisation − metal cost − conversion cost). Realisation was ₹270,566 a tonne and EBITDA ₹22,117 a tonne in FY26 (AP p.8).

03Where the money comes from

Source: AP p.3. Export black and bright combined.

Black products rose from 21.63% of revenue in FY24 to 37.19% in FY26, while bright products fell from 61.91% to 47.09% (AP p.3). Top ten customers were 28.56%, 21.41% and 29.29% of revenue over the three years (DRHP p.375). The company relies substantially on its top ten suppliers for raw material (AP p.8).

04The growth record

Source: AP p.7.

Trade receivables were held for 31 days in FY24, 26 days in FY25 and 21 days in FY26 (DRHP p.349).

Source: AP p.8.

05What the growth is made of

Tonnes sold were about 16,000 in FY24, 13,000 in FY25 and 15,300 in FY26 to our arithmetic, dividing revenue by realisation per tonne (AP p.7, AP p.8). So FY26 revenue growth came from both more tonnes and higher prices per tonne, and profit growth mostly from margin per tonne. The shift towards black products in FY26 is part of the mix change (AP p.3).

06Earnings quality

Operating cash flow fell to ₹98.15 million in FY26 as profit rose to ₹158.11 million (AP p.7). Working capital was 99 days of revenue (AP p.7). Contingent liabilities at March 2026 include ₹191.85 million of income-tax matters, ₹5 million of excise, and GST matters (DRHP p.78).

07The balance sheet

Source: AP p.7.

Share capital rose from ₹149.20 million to ₹233.75 million in FY26, including a rights issue approved in February 2026 (AP p.7).

08What the money is for

Source: DRHP p.40, AP p.6.

The billet unit is part of a plan to raise melting capacity from 19,151 to about 54,000 tonnes a year (DRHP p.40). The objects have not been appraised by an independent agency (DRHP p.57).

09Who is selling

The offer for sale is up to 2,307,290 shares by promoter and promoter-group sellers, including 288,000 by Kushalkumar V Bhansali, whose average cost is ₹6.67 a share (AP p.1).

By seller, the offer is up to 288,000 shares by Kushalkumar V Bhansali and 671,645 by Vansraj Rikhabchand Bhansali, both promoters, and 579,645 by Madhu Kushalkumar Bhansali, 480,000 by Mainasundari Santosh Bhansali and 288,000 by Samveg Bhansali, all promoter group (DRHP p.1).

10Promoters

The promoters are Kushalkumar V Bhansali, managing director; Vansraj Rikhabchand Bhansali, chairman; and Santosh Vansraj Bhansali, whole-time director (AP p.1, AP p.10). The CFO, Pradeep Randhirmal Lodha, is also a whole-time director (AP p.10).

Remuneration to the promoters was nil in FY24; in FY26 Kushalkumar V Bhansali and Santosh Vansraj Bhansali were paid ₹1.20 million each, ₹2.40 million in total (our arithmetic, DRHP p.79).

11Who already owns it

The Bhansali family holds the company. Vansraj Rikhabchand Bhansali holds 7,028,356 shares; Kushalkumar V Bhansali 2,250,000; Madhu Kushalkumar Bhansali 2,190,348; four other family members 1,800,000 each (AP p.10). Average costs range from ₹3.33 to ₹9.57 a share, except Santosh Vansraj Bhansali's 150,000 shares at ₹80 (AP p.10).

12What changed just before the IPO

• Rights issue: approved by the board on 23 February 2026 (AP p.7).
• Mix shift: black products rose to 37% of revenue in FY26 (AP p.3).
• Margins: EBITDA per tonne up 64% in FY26 (AP p.8).
• Bonus issue: one bonus share for every two held, allotted on 28 February 2026, the last allotment in the share capital history (DRHP p.104).
• Auditor: there has been no change in the statutory auditor in the three years before the draft (DRHP p.87).
• Public company: the company converted to a public limited company, with a fresh certificate of incorporation issued on 6 October 2025 (DRHP p.255).

13Capacity and expansion

Source: AP p.8, DRHP p.40.

The document warns that the enlarged melting capacity may not be fully used (DRHP p.36).

14Market size and industry structure

The CARE report cited in the offer document describes Indian stainless-steel demand shifting from consumer uses to infrastructure and industry, railways, automotive, power, oil and gas, and machinery (AP p.5). Steel prices swing with capacity and demand cycles (DRHP p.38).

15Competitive position

What the document claims, and what it rests on:

• A range of grades and shapes for industrial buyers (AP p.3).
• Export presence, at 11 to 18% of revenue (AP p.3).
• Backward integration planned through billet-making (DRHP p.40).

Against that: one plant, one state, thin margins and cyclical prices (AP p.8, DRHP p.38).

16Peers the company named

The document names listed stainless-steel peers including Rajputana Stainless, with the highest P/E of 21.33, and Mangalam Worldwide, the lowest at 2.49; the average is 11.91 (DRHP p.135). For M P Steel it gives FY26 earnings per share of ₹7.03, net asset value per share of ₹44.57 and return on net worth of 15.18% (AP p.7). No P/E is possible for the company until a price band is set.

17Risks, in plain words

• Suppliers. Raw material comes largely from ten suppliers (AP p.8).
• Regional concentration. One plant in Gujarat; domestic sales mostly in Gujarat and Maharashtra (AP p.8).
• Metal prices. Stainless-steel prices are cyclical (DRHP p.38).
• Expansion. The new melting capacity may be under-used (DRHP p.36).
• Hazardous operations. Melting and rolling carry safety risks (DRHP p.41).

18Litigation and regulatory matters

The litigation summary was not read in detail for this study. Contingent liabilities at March 2026 include income-tax, GST and excise matters (DRHP p.78).

19Related-party transactions

The document summarises related-party transactions on page 79 (DRHP p.41); they were not read in detail for this study.

20What the offer document does not say

In the sections read for this study, the document does not give:

• Tonnes sold, which here are inferred from revenue and realisation.
• How much of the ₹273.53 million project cost the proceeds will fund.
• Why operating cash flow fell in FY26.
• Current capacity utilisation, in the pages read.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. How many tonnes did the company ship in each year, and what was utilisation of rolling and bright-bar capacity?
2. What drove EBITDA per tonne from ₹13,525 to ₹22,117 in FY26, and how much of that is metal-price timing?
3. What will making billets in-house save per tonne?
4. Why did operating cash flow fall to ₹98 million in FY26?
5. Why did Santosh Vansraj Bhansali acquire shares at ₹80 when other family members' cost is under ₹10?

2Sources and cited facts

This study was read from 2 documents the company filed. The 66 figures it cites are listed under the document each came from, with the page and the sentence as printed.