3 weeks ago
MIDHANI could ride India's Rs 1.25 lakh crore defence push
MIDHANI is a company in India that makes special metals, like titanium, used in airplanes and defence equipment.
The Indian government recently gave its military more powers to buy equipment made in India.
This could create more work for MIDHANI and other Indian companies.
The company already has a big pile of orders worth about Rs 2,290 crore to complete.
Last year, it made about 700 tonnes of titanium, almost twice as much as the year before.
It also earned more money than ever before in a single year.
MIDHANI wants to buy new machines because some of its current equipment is from the 1980s.
The company hopes to grow its earnings by at least 15% next year.
But it still needs to import raw materials from other countries, which can sometimes be a problem.
MIDHANI holds a Rs 2,290-crore order book, with defence accounting for about 79% and titanium orders exceeding Rs 660 crore.
DFPDS-2026, released by Defence Minister Rajnath Singh on June 4, gives the Armed Forces financial powers for more than Rs 1.25 lakh crore of procurement and doubles indigenisation powers.
FY26 turnover rose 12.52% to Rs 1,208.63 crore with profit after tax of Rs 130.79 crore; Q4FY26 revenue grew 34.6% year-on-year to Rs 552.7 crore.
MIDHANI produced about 700 tonnes of titanium in FY26, nearly double the previous year, and plans about Rs 1,000 crore of capex over three years.
Management targets at least 15% revenue growth in FY27, EBITDA margins of 23-25%, and near-term revenue of Rs 2,000 crore, with a long-term ambition of Rs 5,000 crore.
- Who
- Mishra Dhatu Nigam (MIDHANI), a Government of India enterprise under the Ministry of Defence, with Defence Minister Rajnath Singh releasing the DFPDS-2026 policy.
- What
- MIDHANI is entering a larger defence procurement cycle backed by a Rs 2,290-crore order book, more than Rs 660 crore of titanium orders and a Rs 1,000-crore capex programme.
- Where
- India.
- When
- DFPDS-2026 was released on June 4, 2026; MIDHANI held its Q4FY26 earnings call on June 3 and its stock closed at Rs 426 on August 11, 2026.
- Why
- The government's DFPDS-2026 doubles financial powers for indigenisation and R&D, aiming to reduce dependence on foreign equipment manufacturers and boost domestic defence suppliers.
Optimistic View
Cautious View
Benefit from defence policy
Optimistic View
DFPDS-2026 enables more than Rs 1.25 lakh crore of procurement and doubles financial powers for indigenisation and R&D, improving the setting for domestic suppliers like MIDHANI.
Cautious View
The policy does not guarantee MIDHANI any orders; success depends on execution, imported raw-material availability and lengthy aerospace qualification cycles.
FY27 growth target
Optimistic View
Management targets 20% revenue growth in FY27 with EBITDA margins improving to 23-25% as revenue and product mix improve.
Cautious View
The 20% target depends on raw-material availability and supply-chain constraints; management says the supply chain will determine how much of it can be delivered.
Key facts
- Company
- Mishra Dhatu Nigam (MIDHANI)
- Order book
- Rs 2,290 crore as of April 1, 2026
- FY26 turnover
- Rs 1,208.63 crore
- FY26 profit after tax
- Rs 130.79 crore
- Titanium production (FY26)
- About 700 tonnes
- Titanium order pipeline
- More than Rs 660 crore
- Planned capex
- About Rs 1,000 crore over three years
- Share price (Aug 11, 2026)
- Rs 426, up 10.05% in one year
Quotes
Dr SVS Narayana Murty
Chairman and Managing Director of MIDHANI
“"Whatever we have made, not only that we have had the highest turnover, we could convert everything into sales."”
financialexpress.com
Sources
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