Benefits derived from experience management
MRL is being promoted by Mr. Ambalal Mohanlal Porwal, Mr. Vijay Mohanlal Porwal, Mr. Shernikkumar Ranjitmalji Shah, Mr. Ratan Lal Narayan Jain, and Mrs. Nirmala Vijay Porwal who possess over 3 decades of experience in the industry. The extensive experience of the promoters and the established presence of the company have helped in maintaining healthy relations with reputed customers and suppliers. Acuite believes that the company will benefit from its experienced management and strong relation with its customers and suppliers.

Steady scale of operations
The operating income stood at Rs. 460.84 crore in FY2025 as against Rs. 431.40 crore in FY2024. This is mainly due to marginal increase in sales volume with better price realizations. Further, MRL achieved Rs.312.00 Cr. till November 2025. The outstanding order book stood at Rs.96.55 Cr. as of November 2025 with a rolling pipeline of new orders. The total time for processing scrap into finished products takes around 2 months.
The operating margin of the company remained at similar levels which stood at 3.23 percent in FY2025 as against 3.18 percent in FY2024. Forex fluctuations would remain a key monitorable factor as 90% of the raw materials are imported. The employee costs have decreased in FY25 as company is moving towards automation process, reducing reliance on manual labour. This shift is expected to continue, leading to further cost efficiencies in the coming years. The PAT margins stood at 1.00 percent in FY2025 as against 1.19 percent in FY2024 mainly due to increase in interest costs by 3% post removal of interest subvention on Export Packing Credit facility. Further, EBITDA and PAT margins stood at 3.70% and 1.06% respectively in H1FY26. Acuite believes the scale of operations will improve over the medium term backed by order inflow, merger plan and expansion in capacity plans.

Moderate Financial Risk profile

MRL has moderate financial risk profile marked by steady networth, high gearing and moderate debt protection metrics. The tangible net worth stood at Rs. 66.08 crore as on FY2025 as against Rs. 61.50 crore as on FY2024 due to small accretion of reserves. Gearing levels (debt-to-equity) weakened slightly and stood at 1.40 times in FY2025 as against 1.34 times in FY2024 due to higher short-term borrowings and debt undertaken for capex plans. The Total outside liabilities to total net worth (TOL/TNW) stood at 1.71 times as on FY2025 compared to 1.82 times as on FY2024.  The debt protection metrics of the company stood moderate as indicated from the interest coverage ratio at 2.15 times for FY2025 as against 2.77 times in FY2024 and Debt Service Coverage Ratio stood at 1.42 times in FY2025 as compared to 1.49 times in FY2024. Acuite believes that going forward, the financial risk profile is expected to improve backed by merger plans.

Intensive working capital cycle

The working capital cycle was intensive as reflected from GCA days of 128 days in FY2025 as against 135 days in FY2024. Inventory days stood at 78 days in FY2025 as against 88 days in FY2024, due to mixed scrap usage. Debtor days improved to 18 days in FY2025 as compared to 30 days in FY2024. The credit terms with customers are ~15-30 days. Further, Creditor days stood at 11 days in FY2025 as compared to 21 days in FY2024. The credit terms are 30 days. Acuite believes that the working capital cycle is likely to remain at similar levels over the medium term.