M&B Engineering IPO

Incorporated in 1981, M&B Engineering Limited is a leading Indian company specializing in Pre-Engineered Buildings (PEBs) and self-supported steel roofing solutions. With a strong focus on design-led manufacturing, the company provides integrated services that encompass design, engineering, manufacturing, and testing to deliver safe, high-performance structures. M&B serves a wide range of sectors including general engineering, food and beverages, logistics, power, and textiles. It operates two manufacturing units: one in Sanand, Gujarat, which has been operational since 2008, and the other in Cheyyar, Tamil Nadu, which started in 2024. Together, they have a combined annual PEB production capacity of 103,800 metric tons. Since 2010, M&B has exported PEBs and structural components to 22 countries around the world, including the USA, South Africa, Qatar, and Brazil.

The company operates through two key divisions: Phenix and Proflex. The Phenix Division offers comprehensive PEB solutions using advanced technology and software to ensure efficiency, quality, and cost-effectiveness. It produces structural elements like frames, columns, purlins, claddings, and standing seam roofs. The Proflex Division focuses on the manufacture and installation of self-supported steel roofing systems, often produced directly at customer sites using mobile units. These roofing solutions are adaptable to both RCC and steel structures. Collectively, the company has executed over 9,500 projects by Fiscal 2025 under both divisions.

M&B Engineering IPO Strengths

• M&B Engineering is a well-established player in pre-engineered buildings (PEBs) and self-supported steel roofing systems, serving a wide range of industries like engineering, manufacturing, warehousing, power, textiles, and railways.
• The company reported strong revenue growth of over 24 percent in FY25, reaching nearly ₹989 crore, demonstrating solid demand for its products and expanding operations.
• With an annual PEB production capacity of 103,800 metric tonnes and 1.8 million square metres per annum for steel roofing, the company is well-equipped to handle large-scale and complex projects.
• Operating under its ‘Phenix’ and ‘Proflex’ divisions, the company is led by seasoned promoters and professional managers, helping to build brand equity and ensure reliable execution.
• Net profit surged by about 69 percent to ₹77 crore for the year ended March 2025, highlighting effective cost management and operating leverage.

M&B Engineering IPO Risks

• A substantial portion of the company’s revenue is derived from the PEB business. Overdependence on this segment makes M&B Engineering vulnerable to sector-specific downturns and cyclical fluctuations.
• Low capacity utilization at the Cheyyar manufacturing facility and potential underutilization at other plants can negatively affect profitability and return on capital.
• The business model is working capital intensive, requiring significant funds for inventory, receivables, and project execution. Inefficient working capital management may strain liquidity and increase borrowing needs.
• Revenue concentration from key clients or large projects can create volatility in income. Delays, cancellations, or non-renewal of major contracts could adversely impact business performance.
• Fluctuation in prices or shortage of steel and other critical inputs can impact production costs and profitability, especially if unable to swiftly pass on increased costs to customers.
• Operations are subject to various construction, environmental, and labor regulations. Non-compliance or more stringent future norms could increase operating costs or restrict certain business activities.