Maan Aluminium Limited

Maan Aluminium reported Q3 FY26 revenue from operations at INR152 crores, marking a 16% year-on-year decline, primarily due to a strategic reduction in lower-margin trading volumes and muted export demand. Despite the revenue dip, EBITDA grew 16% YoY to INR7 crores, supported by an improved manufacturing mix and cost optimization, though the EBITDA margin was approximately 5% due to operating leverage and ramp-up costs. For the nine months ended December 2025, revenue was INR554 crores (marginally lower by 2% YoY), while EBITDA increased 19% YoY to INR25 crores, and PAT remained stable at INR11 crores, indicating improved profitability from value-added manufacturing despite moderated top-line growth.

The company is actively pursuing a strategic transformation from a commodity extrusion model to a technology-driven, high-value-added aluminum converter. As part of this, extrusion capacity has been significantly expanded from 10,000 to 24,000 metric tons per annum. This expansion includes advanced capabilities such as 300mm wide profiles and 7 series alloy, enabling the company to target high-growth sectors like automotive, defense, and aerospace. Management anticipates a 12-18 month stabilization period for the newly expanded capacity, with gradual sequential improvement expected from FY27 onwards.

The transformational capex at Pithampur Unit 1 is now live, with the Italian extrusion press commissioned in March 2025 stabilizing and expected to progressively improve utilization. The Dewas facility, acquired in March 2025 for INR8.75 crores, is undergoing modernization, with commercial commissioning projected within 8-10 months. This facility will focus on precision tubing and high-value downstream products, with an existing tubing capacity of approximately 900 metric tons per annum. However, the Dewas project faces an 8-9 month delay in raw material supply from a Korean vendor, impacting its immediate ramp-up.

Maan Aluminium is aggressively investing to shift its product mix towards higher-margin, application-specific products. The company expects significant premiums from value-added processes, such as INR15,000-INR20,000 per ton for anodizing and INR10-INR12 per kg for powder coating. The aerospace segment is targeted to yield INR80 per kg margins, with an expected share of 100-150 tons per month from the Indian market. Management projects normalized EBITDA margins of approximately 8% over the medium term^⏳ (post FY27), driven by operating leverage and an increased contribution from these higher-value-added products.

While the company sees strong opportunities in import substitution, particularly in defense and aerospace, it acknowledges near-term challenges from global demand and trade policies. A significant US order of 450 tons, which would have contributed INR5-6 crores in fabrication profit, was cancelled due to anti-dumping duties imposed on India. However, the company has secured a contract with Tata for 500 tons per month, effectively booking 6,000 tons of capacity, with samples under trial and a conversion margin of INR30 per kg. Management remains cautiously optimistic^💬 about a positive outcome regarding US tariffs.

Over the next three years, Maan Aluminium plans a cumulative capital expenditure of approximately INR190+ crores. This capex is strategically allocated to further enhance the Pithampur facility, including the development of an anodizing and powder coating segment on two acres of acquired land. Additionally, investments are planned for the ongoing expansion and modernization of the Dewas facility, which will include new machining, bending, tooling, and infrastructure. These investments are aimed at solidifying the company's transition to a technology-driven, high-margin aluminum converter.