Maan Aluminium Limited — Q2 FY26 earnings call

Call held 17 Nov 2025

Management summary

Maan Aluminium reported Q2 FY26 revenue of ₹191 crores and operating profit of ₹7.96 crores, showing signs of recovery after a slowdown. The company has significantly expanded its extrusion capacity to 24,000 tons per annum and is investing heavily in value-added products and precision manufacturing, including a new strategic plant in Dewas. Despite a temporary drop in utilization to 27-28% and reduced EBITDA margins, management is highly optimistic about future growth, targeting 5x numbers and 15-18% EBITDA margins within 3-5 years.

Highlights

  • Revenue for Q2 FY26 was ₹191 crores, indicating a pickup from previous slowdowns.

  • Operating profit for Q2 FY26 was ₹7.96 crores, and PBT was ₹7.77 crores.

  • Extrusion capacity has doubled from 12,000 to 24,000 tons per annum, with anodizing capacity at 3,600 tons and machining at 1,400 tons.

  • A new strategic plant in Dewas with ₹21 crores CAPEX for precision manufacturing is expected online by Q1/Q2 FY27, aiming for 100% import substitution.

  • Management is bullish on achieving 5x growth in numbers within 3-5 years and recovering EBITDA margins to 15-18% within 2-3 years.

Concerns

  • The company experienced a significant slowdown in the past 1.5 years due to US anti-dumping duties, impacting volumes and margins.

  • Current capacity utilization has dropped significantly to 27%-28% due to new capacity coming online, though ramp-up is expected.

  • EBITDA margins have come down from 18% to 10% due to the dip in export business and value-addition.

Key financials

  1. Revenue ₹191 Cr
  2. Operating Profit ₹7.96 Cr
  3. PBT ₹7.77 Cr
  4. EBITDA Margin 10%
  5. Processed Volume H1 FY26 4,000 MT

What they filed

Q1 FY27: revenue up 9.8%, net profit up 13.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue205 182 246 211 191 −7%152 −17%255 +4%232 +10%
EBITDA8 5 8 5 8 +5%6 +15%2 −79%5 +9%
Net profit5 3 4 3 6 +12%3 −7%2 −57%3 +14%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex ₹25 Cr Italian press totally through internal accruals. Additional funds for value addition business.
    • New Italian technology press ₹40 Cr
    • Dewas unit for precision manufacturing (import substitute) ₹21 Cr
    • Additional CAPEX for value addition products, land and building ₹25 Cr
    We have put a new Italian press, which has cost us close to Rs. 40 crores. We have done that totally through internal accruals. MAAN has generated that much cash flow where we have invested. We continue to do maintenance CAPEX and basic CAPEX through the revenues of the company that we're generating. The additional funds that we are raising, we are looking to add value addition products, land and building. We are not currently focused on enhancing the extrusion capacity because we believe that, as I said, we are a little bit hopeful that once we are close to hitting the 3-year ramp up, that is when we will add additional capacity. Though we are not restricting ourselves to that. But as I said, we see better realization numbers in the value addition. So, most of the funds are going to go towards the land and building and additional CAPEX for the value addition business.
  • Debt Debt disclosed
    Today, we don't have a lot of debt. Post this also, we will not have a lot of debt.

Guidance & targets

Capacity

  • Extrusion Capacity Capacity · Current · High confidence 24,000 tons per annum

    From 12,000 tons per annum today

    MAAN has moved from a production capacity of 12,000 tons to now 24,000 tons per annum.

    — Ashish Jain

  • Foundry Capacity Capacity · Current · High confidence 12,000 tons per annum
    We have a foundry capacity of about 12,000 tons per annum

    — Ashish Jain

  • Anodizing Capacity Capacity · Current · High confidence 3,600 tons per annum
    an anodizing capacity of 3,600 tons per annum

    — Ashish Jain

  • Machining Capability Capacity · Current · High confidence 1,400 tons per annum
    and a machining capability of 1,400 tons per annum.

    — Ashish Jain

  • Completion of 24,000 tons capacity Capacity · by next financial year, closing March · High confidence complete
    by the next financial year, closing March, we will definitely complete this 24,000 tons.

    — Ravinder Nath Jain

Capex

  • Additional CAPEX for value addition Capex · this year and next year · High confidence ₹25 crores
    We are doing an additional CAPEX of Rs. 25 crores which we are going to do this year and next year.

    — Ashish Jain

Project Timeline

  • Dewas unit online Project Timeline · Q1/Q2 FY27 · High confidence Q1 or Q2 of next year
    Hopefully, we can have it online by Q1 or Q2 of next year.

    — Ashish Jain

  • Precision tubing start Project Timeline · within 6 or 8 months · High confidence start
    Also, within 6 or 8 months, we will start that precision tubing

    — Ravinder Nath Jain

Growth

  • Numbers growth Growth · 3-5 years · Medium confidence at least 5x
    And we have a 3-5 year forecast where you are going to see numbers at least 5x as to where we are today.

    — Ashish Jain

Profitability

  • EBITDA Margin Profitability · next 2-3 years · Medium confidence 15%-18%

    From 10% today

    we believe that we should be able to get back within the next 2-3 years.

    — Ashish Jain

Capacity Utilization

  • Extrusion Capacity Utilization Capacity Utilization · next 3 years · High confidence 80%

    From 27%-28% today

    we have a strategy to ramp up in the next 3 years and hit 80% of our capacity.

    — Ashish Jain

What to watch in Q3 FY26

Dewas unit operational status

Q1 or Q2 FY27
Current In installation phase, machinery landed last week
Target Online and operational

Why it matters

This strategic plant for 100% import substitute precision manufacturing is a key growth driver and will contribute to value addition.

Hopefully, we can have it online by Q1 or Q2 of next year.

Risks & concerns

  • Impact of US anti-dumping duties

    high

    US anti-dumping duties significantly impacted export revenue (from 70-73% to lower) and overall volumes in the last 2 years, leading to a strategy shift to domestic markets.

    Management acknowledged

  • Temporary drop in capacity utilization

    medium

    Current capacity utilization has dropped to 27%-28% due to new capacity coming online, but a ramp-up is expected.

    Management acknowledged

  • EBITDA margin compression

    medium

    EBITDA margins have reduced from 18% to 10% due to the dip in export business and value-added product sales.

    Management acknowledged

  • US market slowdown due to tariffs

    medium

    The US market has seen a slowdown in consumption due to tariffs, impacting all downstream players, though management believes it will improve.

    Management acknowledged

  • Teething issues with new Italian press

    low

    The newly installed Italian technology press is experiencing initial teething issues, but is expected to propel future growth.

    Management acknowledged

Q&A highlights

5 direct, 2 evasive
Shift in revenue focus from trading to manufacturing Direct
the management's focus is 100% on manufacturing. Trading is something where obviously our Chairman and Managing Director has a relationship with Hindalco since the last 40 years. So, we are traders of Hindalco primary metal that is ingots, billets, rods only since as I said 40 plus years.

Clarifies the strategic shift towards higher-margin manufacturing, while explaining the continued presence of the trading business as a legacy relationship.

Asked by Pranav Jain

Translation of CAPEX plan to P&L impact Evasive
So, again, Pranav that would mean that I have to give out a lot of guidance. So, I am not going to be very easily able to answer that question.

Management declined to provide specific financial guidance on the P&L impact of their extensive CAPEX plans, indicating uncertainty or unwillingness to commit to numbers.

Asked by Pranav Jain

Rationale for aggressive CAPEX and manufacturing push Direct
the shift what we saw in the market... a lot of people were like, we are not getting it in India, buy it from China. But now the look is like, why can't we do it in India? Why can't we push the manufacturers? No, you do it. Let us see if you are importing something at X, maybe the domestic players are ready to pay a little bit more premium and ready to buy it from an Indian manufacturer.

Explains the strategic pivot driven by 'Make in India' initiatives and increasing domestic demand for quality products, justifying the significant investments.

Asked by Pranav Jain

Differentiation of niche products and applications Direct
we are only into OEMs. If you want to do your house and you want to get extrusion, you want to make a door window or any other profiles, you will not find MAAN material in the market. So, we are not a mass manufacturer where we sell our product in the market. So, for us, customers who come to us, they want to understand the chemical composition of the material.

Highlights the company's focus on high-quality, niche applications (OEMs, high-end solar, aerospace, defense, EV) with better margins, rather than mass-market products.

Asked by Pranav Jain

Reasons for performance drop in last 2 years Direct
if you see the last 2 years from 2023 to today... we were hitting about 73% to 70% plus of export revenue, which dropped because the US anti-dumping duties came into place. Therefore, we had to change our strategy where we were 70% plus export-oriented. We had to start to claw back some of the domestic market because a lot of that business, as I said in my earlier comments, our customers have not moved but the volumes have dropped.

Provides a clear explanation for the recent financial underperformance, attributing it to US anti-dumping duties and the subsequent strategic shift towards the domestic market.

Asked by Pranav Jain

Operating profit per kg and margin structure Direct
MAAN Aluminium is a converter. So, we buy raw material from the primary manufacturers... So, being a converter, our margins are fixed. The fluctuation in the metal is, we cover the fluctuation via MCX or LME. So, we are 95%-98% hedged on the commodities. Our margins are fixed once we have a conversion fixed with the customer.

Clarifies the company's business model as a converter with fixed margins and high hedging, reducing exposure to commodity price volatility.

Asked by Ishpreet Kaur

Difference in margins between exports and India Partial
Yes, the margins are not similar. On the international market side, they are much better. So, they are not that great. But we will get to the scale in terms of overall costs coming down. So, the margins will be good, but they are not as good as the international market, 30%-40% off.

Reveals that international margins are significantly better (30-40% higher) than domestic, but the domestic market offers scale benefits.

Asked by Jatinder

Asset turns on new CAPEX Evasive
So, most of the revenue generation depends on the different value addition mix that we are going to do. But as I said, I won't be able to give you a guided number as such. Asset turns, we are looking at least 5 years and we are hopeful that we can get back the EBITDA kind of numbers where we are between 15%-18% with the additional value addition.

Management did not provide specific asset turn guidance for the new CAPEX, linking it instead to the value-addition mix and long-term EBITDA margin targets.

Asked by Vijay Pandey

2 min read 5 chapters

Detailed narrative

Q2 FY26 Financial Performance and Market Recovery

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.

Strategic Shift Towards Value-Added Manufacturing

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.

Capacity Expansion and New Projects

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.

Impact of US Anti-Dumping Duties and Market Dynamics

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.

Future Outlook and Growth Targets

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.

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