ETMarkets Management Talk| MAN Industries eyes bigger Saudi footprint; region could contribute 35–40% of revenue in 3 years: Nikhil Mansukhani

India’s pipeline and infrastructure opportunity is opening up a new growth chapter for MAN Industries, with the company increasingly looking beyond its traditional manufacturing base to build a more diversified and globally integrated pipeline solutions platform.

After a strong Q1FY27, the company is banking on its Saudi Arabia expansion, the upcoming Dammam coating and double-jointing facility, and the Jammu stainless-steel seamless pipe plant to drive the next phase of growth.

In this edition of ETMarkets Management Talk, Nikhil Mansukhani, Managing Director, MAN Industries, discusses the company’s Saudi strategy and why the region could become a significantly larger contributor to its business.


With Saudi Arabia expected to contribute around ₹1,200–1,500 crore to FY27 revenue, Mansukhani says the region could account for 35–40% of consolidated revenue over the next three years as NPC, the Dammam facility and the broader GCC, MENA and Africa footprint scale up. Edited Excerpts -

Q) This was a very strong quarter, with consolidated EBITDA rising 92.6% YoY and margins expanding to 14.6%. How sustainable are these margins, and what should investors expect for the next 2-3 quarters?

A) Q1FY27 was a strong quarter, with consolidated EBITDA reaching ₹155 crore and EBITDA margins expanding to 14.6%. This performance was supported by a strategically optimised product and geographic mix, along with the operating momentum created by the strong execution environment.

That said, we would look at margins over a full-year period rather than extrapolating any single quarter. Our FY27 EBITDA margin guidance remains at 13-15%, which reflects our confidence in sustaining a healthy profitability profile while also accounting for the normal variations in project mix and execution across quarters.

Over the next two to three quarters, the focus will be on executing the existing order book efficiently, ramping up the Saudi operations from Q2FY27 and continuing to strengthen the contribution from higher-value products and markets.

We would expect margins to broadly track within our 13-15% guided range through the remaining quarters of the year, though individual quarters may see some variation depending on project mix, the timing of large deliveries, and the pace of the Saudi ramp-up.

Q1's print came in toward the upper end of that range, aided by a particularly favourable mix; as NPC's contribution normalises to a full quarter from Q2FY27, and before Jammu and Dammam come on stream, we would encourage investors to view the full-year range as the more meaningful benchmark than any single quarter's number.

Q) You have retained the FY27 revenue guidance of around ₹5,000 crore and EBITDA margin guidance of 13-15%. Given the strong Q1 performance, is there scope for an upward revision to either guidance?

A) We have made a strong start to FY27 and remain on track to achieve our revenue guidance of approximately ₹5,000 crore, with EBITDA margins in the range of 13-15%. The current guidance already reflects our expectations from the existing order book, the ramp-up in Saudi Arabia and the broader execution pipeline during the year.

At this stage, we believe it is prudent to maintain the guidance and focus on execution. We have a consolidated order book of around ₹3,600 crore and a substantial bid pipeline, which gives us strong visibility. As the year progresses and we gain greater clarity on execution, order inflows and the contribution from our Saudi platform, we will evaluate the outlook accordingly.

Based on the visibility we have today, we are confident our ₹5,000 crore revenue guidance holds, and we will revisit it only if execution meaningfully outperforms these assumptions as the year progresses

Q) What were the biggest drivers of the sharp improvement in profitability in Q1—product mix, geographic mix, operating leverage or pricing?

A) The improvement in Q1 profitability was driven primarily by a combination of product mix and geographic mix. We have been consciously optimising our portfolio towards higher-value applications while also deepening our presence across international markets.

The strong revenue growth also contributed to better operating leverage, supporting the significant improvement in EBITDA. Rather than attributing the performance to any one factor, we would view the Q1 margin expansion as the outcome of a more favourable mix, disciplined execution and improved operating leverage.

Q) Your consolidated order book stands at around ₹3,600 crore, with most of it executable over the next 6-12 months. How much of this order book can translate into revenue in FY27?

A) Our consolidated order book stands at approximately ₹3,600 crore across India and Saudi Arabia, with the majority of it executable over the next 6-12 months. This provides us with strong revenue visibility as we move through FY27.

The exact revenue conversion in a particular financial year will depend on project schedules, customer requirements and the pace of execution. However, the current order book, along with the expected contribution from Saudi Arabia and other business opportunities, gives us confidence in achieving our FY27 revenue guidance of approximately ₹5,000 crore.

Q) You have indicated that Saudi operations should ramp up meaningfully from Q2FY27 following the NPC acquisition. What kind of revenue and EBITDA contribution can Saudi Arabia make in FY27?

A) We have guided to for NPC approximately ₹300-400 crore of revenue per quarter from Q2FY27 onwards, Saudi Arabia could contribute to the region of ₹1,200-1,500 crore of revenue to our FY27 numbers.

Q) After a brief period of consolidation, Man Industries stock hit fresh record highs on 12th August 2026. What are the key milestones that investors should watch over the next 12-18 months to justify the current valuation?

A) From an operational perspective, investors should track the Company's ability to execute its strong order book and deliver on the FY27 guidance of approximately ₹5,000 crore in revenue while maintaining EBITDA margins in the 13-15% range.

A second important milestone will be the ramp-up of the Saudi operations following the NPC acquisition and the progress towards commissioning the Dammam coating and double jointing facility, which is targeted for March 2027.

The Jammu greenfield stainless steel seamless pipe plant, where production is expected by March 2027, will also be an important strategic development as it marks our entry into a high-value, import-substitution segment.

Beyond these operational milestones, investors can also watch for progress in converting our approximately ₹24,000 crore bid pipeline into new order inflows, as well as the execution of the Merino Shelters project, which is expected to contribute ₹35-50 crore of cash flows to MAN in FY27 and ₹80-120 crores from FY28 onwards.

Q) You are entering a major investment phase with the Saudi expansion and Jammu plant. Can you give us a sense of the current net debt position, the remaining capex commitment, and whether you expect to fund this growth largely through internal accruals or additional debt?

A) We are currently investing in strategic capabilities that will strengthen our product portfolio and international footprint. The Jammu greenfield stainless steel seamless pipe plant is progressing as planned, with production expected by March 2027, while the Dammam coating and double jointing facility is also targeted to commence operations by March 2027.

These investments are part of our broader strategy to build a more diversified and integrated platform. As of March 31, 2026, our consolidated balance sheet was in a broadly net-cash position, with cash and bank balances of ₹657 crore against total borrowings of ₹500 crore; we will share the specific consolidated net debt position as of June 30, 2026 shortly, which will also reflect NPC's consolidation from the acquisition date.

On capex, our Jammu project carries a total planned outlay of approximately ₹600 crore, of which around ₹350 crore has already been spent as of Q1FY27, leaving a remaining commitment of roughly ₹250 crore to complete the project through to commercial production.

For the Dammam Coating & Double Jointing Facility, total capex is approximately USD 50 million, to be funded in an even 50:50 split between debt and internal accruals.

In terms of funding, our approach has been capital-efficient by design. The NPC acquisition was funded through USD 70 million of debt raised at the KSA subsidiary level, ring-fenced and serviced independently through NPC's own cash flows, with no recourse to our standalone balance sheet and USD 32 million of equity.

Importantly, NPC came to us with zero debt on its own balance sheet, a net worth of USD 158.6 million, and USD 83 million of cash and liquid assets, underscoring the quality and financial strength of the platform we acquired.

The Jammu project, in turn, is being funded through a combination of internal accruals and the J&K state incentive package, which includes an 18% upfront GST benefit and a 6% interest subsidy under the NCSS scheme.

At this stage, we do not anticipate a need to raise external equity capital for our current growth investments, and our approach will be to maintain an appropriate, disciplined capital structure as we fund this next phase of growth.

Overall, we expect gross debt including both long-term and short-term borrowings to peak at approximately ₹1,700-1,800 crore by FY27, which we see as the peak debt level for this investment phase.

On capex, we expect to incur approximately ₹700-800 crore in FY27, covering the pending capex for both the Jammu project and the Dammam Coating & Double Jointing Facility.

Q) You have described FY27 as an “inflection point” for Man Industries. If we look three years ahead, what will be the biggest change in the company's revenue mix, margins and international footprint

A) We see FY27 as an inflection point because several strategic initiatives are coming together. We have strengthened our presence in Saudi Arabia through the NPC acquisition, are building an integrated coating and double jointing capability in Dammam and are entering the stainless-steel seamless pipe segment through our Jammu greenfield facility.

Over the next three years, the biggest transformation is expected to be the evolution of MAN into a more diversified and globally integrated pipeline solutions platform. Our objective is to increase the contribution from international markets, expand our presence in higher-value applications and strengthen our portfolio beyond our existing manufacturing capabilities.

These investments should help create a more balanced revenue mix and support a stronger, more resilient earnings profile over time. However, the exact revenue mix, margin trajectory and contribution from international markets will depend on the pace of ramp-up, project execution and market opportunities.

Man has always been an export-led company, with exports historically representing 75-80% of our overall revenue mix, and we expect that to continue. Within that, we expect Saudi Arabia specifically to scale up meaningfully as NPC, the Dammam facility and our broader footprint across the GCC, wider MENA and Africa grow to the point where we would expect Saudi Arabia to contribute approximately 35-40% of our consolidated revenue mix over the next three years.

Jammu's contribution, by contrast, will build more gradually, with its share of the mix increasing over a three-to-five-year horizon as the stainless-steel segment matures.

Beyond this geographic shift, we also expect our overall product mix to skew further toward higher-value segments and geographies with better economics, supporting a more resilient margin profile over time. We will provide more specific milestones as these initiatives progress.

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