Maan Aluminium Limited

Maan Aluminium reported a revenue of ₹191 crores, an operating profit of ₹7.96 crores, and a PBT of ₹7.77 crores for Q2 FY26. Management noted that these 'September numbers' indicate a pickup after a significant slowdown over the past 1.5 years. The company's EBITDA margins currently stand at 10%, down from a previous 18%, primarily due to the impact on export business and value-added product sales.

The company is aggressively pivoting towards manufacturing, focusing 100% on this segment, distinct from its legacy trading business. This shift is driven by the 'Make in India' initiative and increasing domestic demand for quality products. Maan Aluminium specializes in niche applications for OEMs, high-end solar, defense, aerospace, and EV sectors, providing precision profiles and special alloys with better margins, rather than mass-market extrusions.

Maan Aluminium has significantly expanded its extrusion capacity from 12,000 to 24,000 tons per annum. Current capacities include 12,000 tons for foundry, 3,600 tons for anodizing, and 1,400 tons for machining. A new Italian technology press, costing ₹40 crores and funded through internal accruals, has been installed. Additionally, a strategic plant in Dewas, with an initial CAPEX of ₹21 crores, is being set up for 100% import substitute precision manufacturing, expected to be online by Q1 or Q2 FY27. An additional CAPEX of ₹25 crores is planned for this year and next year for value addition products, land, and building.

The company's performance over the last two years was significantly affected by US anti-dumping duties, which caused export revenue to drop from over 70% to lower levels and reduced overall volumes. This necessitated a strategic shift to focus more on the domestic market. While the US market has seen a slowdown in consumption due to tariffs, management believes it will bounce back. Current capacity utilization is temporarily low at 27%-28% due to new capacity coming online, but a ramp-up to 80% is targeted within the next three years.

Management is highly optimistic about future growth, projecting a 5x increase in numbers within the next 3-5 years. They aim to restore EBITDA margins to 15%-18% within 2-3 years through enhanced value addition. The 24,000 tons capacity is expected to be fully operational by March of the next financial year, and precision tubing production is slated to begin within 6-8 months. The company emphasizes its commitment to operational excellence and strategic investments to drive long-term growth.