Maan Aluminium Limited — Q3 FY26 earnings call

Call held 17 Feb 2026

Management summary

Maan Aluminium reported a mixed Q3 FY26, with revenue declining 16% YoY to INR152 crores due to lower trading and muted exports, while EBITDA grew 16% to INR7 crores, supported by an improved manufacturing mix. The company is undergoing a strategic transformation towards high-value-added products, expanding capacity to 24,000 MT, and investing over INR190 crores in capex over the next three years. Despite near-term challenges from ramp-up costs and under-utilization, management expects normalized EBITDA margins of ~8% in the medium term, driven by value-added products and operating leverage.

Highlights

  • EBITDA grew 16% YoY to INR7 crores in Q3 FY26, supported by improved manufacturing mix and cost optimization initiatives.

  • 9M FY26 EBITDA increased 19% YoY to INR25 crores, reflecting better value-added contribution.

  • Manufacturing revenue grew 10% YoY in Q3 and almost 13% on a nine-month basis, driven by higher extrusion volumes and increased value-added sales.

  • Expanded extrusion capacity from 10,000 to 24,000 metric tons, with new capabilities for 300mm wide profiles and 7 series alloy.

  • Secured a contract with Tata for 500 tons per month, booking 6,000 tons of capacity, with a conversion margin of INR30 per kg.

Concerns

  • Q3 FY26 revenue declined 16% YoY to INR152 crores, primarily due to lower trading volumes and muted export demand.

  • EBITDA margin for Q3 was approximately 5%, impacted by operating leverage and ongoing ramp-up costs at new facilities.

  • Capacity utilization in Q3 FY26 was low at ~25% of the expanded capacity.

  • A US order for 450 tons, impacting INR5-6 crores in profit, was cancelled due to anti-dumping duties.

  • Delay of 8-9 months in raw material for precision tubing at Dewas facility due to Korean supplier issues.

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹152 Cr
    YoY -16%
  • EBITDA
    ₹7 Cr
    YoY +16%
  • PAT
    ₹3 Cr
    YoY 0%
  • EBITDA Margin
    5%
  • Depreciation
    ₹2 Cr
  • Capacity Utilization
    25%

9M FY26

  • Revenue
    ₹554 Cr
    YoY -2%
  • EBITDA
    ₹25 Cr
    YoY +19%
  • PAT
    ₹11 Cr
    YoY 0%
  • Manufacturing Volume
    6,000 metric tons

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 ₹190 Cr
    • Further enhancement at Pithampur, including anodizing and powder coating segment on 2 acres of acquired land
    • Dewas expansion, including new machining, bending, tooling, and infrastructure
    • Investment in new machines for Tata contract ₹4 Cr
    To move towards the capex roadmap, basically over the next 3 years, we have planned cumulative capex of approximately INR190 plus crores, which will have a split between our further enhancement at Pithampur, where we have already acquired two acres of land where we are planning our anodizing and powder coating segment. Dewas is already under expansion, and new machining, bending, tooling, and infrastructure will contribute another of our capex plans.
  • M&A Dewas facility Acquisition · Closed · Consideration ₹[object Object] (cash)

    Strengthening product portfolio with precision tubing and high-value downstream products

    Further, we acquired the Dewas facility in March 2025 via slump sale at INR8.75 crores, where the plant modernization is underway.

Guidance & targets

Capacity

  • Extrusion Capacity Capacity · achieved · High confidence 24,000 MT

    From 10,000 MT today

    We have expanded our extrusion capacity from 10,000 tons per metric annum to 24,000 MT.

    — Umesh Chandra Pant

Operational

  • Stabilization of Italian Extrusion Press Operational · coming quarters · High confidence Stabilizing
    The Italian extrusion press commissioned in March '25 is stabilizing and we expect progressive utilization improvement over the coming quarters.

    — Umesh Chandra Pant

  • Commercial Commissioning of Dewas Facility Operational · next 8 to 10 months · High confidence 8-10 months
    Commercial commissioning is expected over the next 8 to 10 months.

    — Umesh Chandra Pant

  • Clearance of Aerospace Audit Discrepancies Operational · within 2.5 months · High confidence within 2.5 months
    I think so within 2.5 months, we will clear this all discrepancy with the aerospace.

    — Ravinder Nath Jain

  • Tata Contract Booking Operational · booked · High confidence 6,000 tons
    So, we are tied up with the Tata for 500 tons per month. So, 6,000-ton capacity will be booked by Tata now. They have signed with us.

    — Ravinder Nath Jain

  • Ramp-up of Expanded Capacity Operational · to stabilize · High confidence 12-18 months
    So, see, that whatever capacity expansion that we have recently done, basically it was almost 140% in one phase. So, that is, you know, it typically takes 12 to 18 months to stabilize.

    — Umesh Chandra Pant

Revenue

  • Dewas Annual Revenue at Optimal Utilization Revenue · FY28 onwards · High confidence INR100+ crores
    From FY28 onwards, Dewas can generate around INR100-plus-crores of annual revenue at optimal utilization.

    — Umesh Chandra Pant

  • Manufacturing Revenue Revenue · next year (FY27) · High confidence INR500 crores
    So, I can tell you 18,000 -- it's round about INR500 crores for the manufacturing side by next year.

    — Ravinder Nath Jain

Profitability

  • Normalized EBITDA Margins Profitability · medium term (post FY27) · High confidence ~8%
    So, normalized EBITDA margins around 8% over the medium term we can see.

    — Umesh Chandra Pant

  • EBITDA per ton (Anodizing) Profitability · ongoing · High confidence INR15,000-INR20,000
    We will get round about INR15,000 per ton to INR20,000-ton margin. Our facility is coming for 1000 ton per anodizing.

    — Ravinder Nath Jain

  • EBITDA per kg (Powder Coating) Profitability · ongoing · High confidence INR10-INR12
    And INR10 to INR12 in powder coating.

    — Ravinder Nath Jain

  • EBITDA per kg (Aerospace Segment) Profitability · ongoing · High confidence INR80
    I can say round about INR80 per kg margins.

    — Ravinder Nath Jain

  • EBITDA per ton (Extrusion only) Profitability · ongoing · High confidence INR10,000-INR12,000
    Okay. INR30,000 extrusion. Okay. So, sir, only extrusion would be closer to INR10,000 per metric ton? INR10,000 to INR12,000.

    — Ravinder Nath Jain

  • EBITDA per ton (Total Mill Finish, Anodizing, Powder Coating) Profitability · ongoing · High confidence INR30,000
    The extrusion if I say total mill finish, then anodizing, then powder coating, I can say round about INR30,000 per ton approximately. After extrusion and anodizing.

    — Ravinder Nath Jain

Volume

  • Total Volume Volume · next year (FY27) · High confidence 18,000 tons
    I think we will achieve more than 18,000 tons.

    — Ravinder Nath Jain

  • Aerospace Share Volume · per month · High confidence 100-150 tons
    And the aerospace consumption in India is round about 2,500 tons per month. And we expect we can get round about 100-150 tons in our share. Not more than that.

    — Ravinder Nath Jain

What to watch in Q4 FY26

Utilization of Italian Extrusion Press

next quarter
Current Stabilizing, progressive improvement expected
Target Improved utilization and contribution to volumes

Why it matters

Improved utilization of this key asset is crucial for overall capacity ramp-up and margin improvement.

The Italian extrusion press commissioned in March '25 is stabilizing and we expect progressive utilization improvement over the coming quarters.

Risks & concerns

  • Delay in Raw Material Supply for Dewas Precision Tubing Project

    high

    The precision tubing project at Dewas is delayed by 8-9 months due to issues with a Korean supplier for a critical, 100% imported raw material.

    Management acknowledged

  • US Anti-Dumping Duties Leading to Order Cancellation

    high

    A significant US order of 450 tons, representing INR5-6 crores in fabrication profit, was cancelled due to anti-dumping duties imposed on India, impacting Q3 performance.

    Management acknowledged

  • Revenue Decline due to Lower Trading Volumes and Muted Export Demand

    medium

    Q3 FY26 revenue declined 16% YoY to INR152 crores, attributed to a conscious strategic decision to reduce low-margin trading business and general muted export demand.

    Management acknowledged

  • EBITDA Margin Compression from Ramp-up Costs and Under-utilization

    medium

    Q3 EBITDA margin was ~5%, impacted by operating leverage, ongoing ramp-up costs at newly added facilities, under-utilization of the Italian press, and higher depreciation and finance costs post-capex.

    Management acknowledged

  • Discrepancies in Aerospace Audit Delaying Market Entry

    medium

    Ongoing audit discrepancies need to be cleared before full engagement in the aerospace segment, though management expects resolution within 2.5 months.

    Management acknowledged

Q&A highlights

8 direct
Capacity Utilization and Ramp-up of New Capacity Direct
It was almost 45% utilization -- 25% utilization. So, see, that whatever capacity expansion that we have recently done, basically it was almost 140% in one phase. So, that is, you know, it typically takes 12 to 18 months to stabilize. So, there will be additional time for complex profile customer approvals. So, we are doing that basically. So, we are already onboarding new customers in automotive, defence, and infrastructure. So, we expect gradual sequential improvement from FY27 onwards rather than an overnight jump, basically.

Clarifies the current low utilization rate of 25% for the expanded capacity and the expected timeline for stabilization and ramp-up, indicating that full benefits will be seen from FY27.

Asked by Jatin Damania

Product Mix Change and Profitability with Dewas and Anodizing Direct
See, definitely it will increase. So, our basically commodity extrusion from commodity extrusion, we are expanding to high-value aluminum solutions. Dewas unit basically, its modernization and refurbishment is underway and trial runs have started beginning. So, we expect commercial commissioning within the next six months. Initially, our Dewas unit basically will focus on precision tubing and downstream value-added products.

Highlights the strategic shift towards high-value products from Dewas and anodizing, confirming expectations for higher margins and a focus on specialized products.

Asked by Jatin Damania

EBITDA per Ton Targets with Dewas and Anodizing Direct
See, gradual improvements can be seen starting FY '27. So, normalized EBITDA margins around 8% over the medium term we can see. Basically, the key driver will be our operating leverage on fixed costs combined with our higher value-added share. Because as of now our current margins, if you will see, these reflect three transitional factors basically.

Provides a clear target for normalized EBITDA margins (8% post-FY27) and explains the current margin pressure due to transitional factors like under-utilization and higher costs.

Asked by Jatin Damania

US Order Cancellation Quantum and Impact Direct
It's round about 450 tons. Because in this there is a good revenue, round about 200 ton is a fabrication. Fabrication is our really core and hard profit, very good profit in fabrication in US. So I can say we are round about INR5 crores to INR6 crores.

Quantifies the impact of the cancelled US order (450 tons, INR5-6 crores in profit), explaining a key reason for Q3's muted performance.

Asked by Jigar Jani

Tata Contract Details and Execution Direct
Number three, we have contract with Tata now, we have signed already. The sample for the big press is almost 50% booked. But the samples and everything for the machining and cutting, there are lot of machine will come, so samples are ready under trial. I hope by this month or starting of the first week, we get the total order for the press. So, we are tied up with the Tata for 500 tons per month. So, 6,000-ton capacity will be booked by Tata now. They have signed with us.

Confirms a significant new contract with Tata, providing visibility for 6,000 tons of capacity and a clear margin structure, which is a positive for future volumes and profitability.

Asked by Madhur Rathi

Raw Material Delay for Dewas Precision Tubing Direct
Yes. So first of all, this project is delayed round about eight to nine months because of -- there are two parts of this project. One is finished; one is raw material. Now finished is ready, this is under trial. But for the raw material, Korean supplier will be delayed for approximately eight to nine months, which I am going next week to Korea to discuss with this.

Reveals a significant delay (8-9 months) for a key raw material for the high-value Dewas precision tubing project, impacting its commercialization timeline.

Asked by Madhur Rathi

Aerospace Approvals and Market Potential Direct
No, no. There are two things. One is the vendor of the aerospace; they are already trial with us. We have already applied, there are lot of compliance with the aerospace, lot of audit they are going on. Still, there are some discrepancy in the audit. Now we have to clear. I think so within 2.5 months, we will clear this all discrepancy with the aerospace. We are not much interested in architect. Our main focus is aerospace and defense.

Outlines the progress and remaining hurdles (audit discrepancies) for entering the high-margin aerospace segment, with a clear timeline for resolution.

Asked by Madhur Rathi

Overall FY27 Volume and Manufacturing Revenue Targets Direct
Next year -- I can't say for the trading. Trading is opportunity business. The last quarter is very low. I think so this quarter is going good. I hope so. So, I can tell you 18,000 -- it's round about INR500 crores for the manufacturing side by next year.

Provides specific volume (18,000 tons) and manufacturing revenue (INR500 crores) targets for FY27, offering forward visibility for the core business.

Asked by Jigar Jani

3 min read 6 chapters

Detailed narrative

Q3 & 9M FY26 Financial Performance Overview

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.

Strategic Transformation and Capacity Expansion

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.

Operational Updates on New Facilities (Dewas & Pithampur)

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.

Product Mix Shift and Margin Improvement Strategy

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.

Market Outlook and Export Challenges

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.

Capital Expenditure Plans and Funding

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.

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