MMP Industries Limited — Q4 FY26 earnings call

Call held 25 May 2026

Management summary

MMP Industries delivered its highest-ever quarterly and full-year revenue in Q4 FY26 and FY26, respectively, driven by strong momentum in aluminum powder and foil segments. Despite operational disruptions and exceptional losses impacting full-year PAT, the company saw EBITDA margin improvement in Q4. Strategic investments in polymer insulators, LT cables, and backward integration are progressing, positioning MMP for future growth in the power infrastructure ecosystem, though near-term demand moderation is anticipated in some segments.

Highlights

  • Consolidated Revenue for Q4 FY26 grew 12% YoY to INR 249.6 crores, and 23% QoQ.

  • Full-year FY26 Consolidated Revenue reached INR 825.3 crores, a 19% YoY increase, marking the highest ever revenue performance.

  • Q4 FY26 EBITDA grew 17% YoY to INR 21.5 crores, with margin improving to 8.6% from 8.3% in Q4 FY25.

  • Aluminum Foil business revenue grew 39% YoY in FY26 to INR 215 crores, driven by healthy volume growth and improved capacity utilization.

  • Polymer Insulator business successfully completed multiple product validations and is expected to see meaningful revenue ramp-up from Q3 FY27 onwards.

Concerns

  • Full-year FY26 PAT declined to INR 31 crores from INR 38.9 crores in FY25, impacted by Q1 FY26 operational disruption and exceptional losses.

  • FY26 revenue loss of INR 45-50 crores and EBITDA impact of INR 7-8 crores due to the April 2025 incident at the Umred facility.

  • Near-term demand moderation expected in H1 FY27 for aluminum powder due to elevated aluminum prices, inflation, and macroeconomic uncertainty.

  • Conductor and Cable business performance remained impacted by elevated aluminum prices, prolonged payment cycles, and slower project execution.

Key financials

2 periods

Headline

  • Consolidated Revenue
    ₹249.6 Cr
    YoY +12% QoQ +23%
  • Consolidated EBITDA
    ₹21.5 Cr
    YoY +17%
  • Consolidated EBITDA Margin
    8.6%
  • Consolidated PAT
    ₹18 Cr
    YoY +65.1%

FY26

  • Consolidated Revenue
    ₹825.3 Cr
    YoY +19%
  • Consolidated EBITDA
    ₹66.3 Cr
  • Consolidated EBITDA Margin
    8%
  • Consolidated PAT
    ₹31 Cr
    YoY -20.3%

What they filed

Q1 FY27: revenue up 27.3%, net profit up 380.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue145 168 223 183 188 +30%203 +21%250 +12%233 +27%
EBITDA11 17 18 13 13 +18%18 +6%22 +22%21 +62%
Net profit6 11 11 -5 7 +17%11 +0%18 +64%14 +380%
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.

Segment breakdown

Share of Revenue (FY26)
₹821.3 Cr Total
  • Aluminum Powder ₹504 Cr 61.4%
  • Aluminum Foil ₹215 Cr 26.2%
  • Conductor & Cable ₹100 Cr 12.2%
  • Polymer Insulator ₹2.3 Cr 0.3%

Capital allocation

high confidence
  • Capex Capex disclosed
    • LT power cables and Covered conductors expansion (Conductor & Cable segment) ₹85 Cr
    • Backward integration into aluminum wire rods ₹13 Cr
    • Polymer Insulators business (over last 2 years) ₹35 Cr
    • Group captive solar power (7-megawatt) ₹30 Cr
    • Balancing equipment and additional moulds for Polymer Insulator division (for full ramp-up) ₹8 Cr
    With a planned investment of around INR85 crores to INR90 crores over the next 2 years to 2.5 years with the first phase expected to commence gradually from FY27 onwards. In addition, we are also planning backward integration into aluminum wire rods with an estimated investment of around INR13 crores to INR15 crores... The company has invested around INR35 crores to INR40 crores in this business over the last 2 years... with an estimated investment of around INR30 crores... that will be around INR8 to INR10 crores for balancing equipment and additional moulds.

Guidance & targets

Profitability

  • Polymer Insulator EBITDA Margin Profitability · High confidence 20%
    we are estimating that this business will give around 20% EBITDA margin.

    — Sharad Khandelwal

  • ROCE Profitability · FY27 · High confidence 13-14%
    the ROCE will be around in the range of 13%- 14% and in FY27-28, it will be around, it will be more than 15%.

    — Sharad Khandelwal

  • ROCE Profitability · FY27-28 · High confidence >15%

    — Sharad Khandelwal

Revenue

  • Polymer Insulator Revenue Revenue · FY26-27 · High confidence INR 18-20 crores
    we are estimating around INR18 crores to INR20 crores revenue from polymer insulator division in FY26-27

    — Sharad Khandelwal

  • Polymer Insulator Revenue Revenue · FY27-28 · High confidence INR 45-50 crores
    and around INR45 crores to INR50 crores in the 27-28 financial year.

    — Sharad Khandelwal

  • Polymer Insulator Revenue (full ramp-up) Revenue · High confidence INR 130-140 crores
    At full ramp up capacity utilization, it will give around INR130 crores to INR140 crores.

    — Sharad Khandelwal

  • Aluminum Powder Revenue Growth Revenue · FY27 · High confidence 13-15%
    In the aluminium powder segment, we expect revenue growth of around 13% to 15% during FY27

    — Sharad Khandelwal

  • Aluminum Foil Revenue Growth Revenue · FY27 · High confidence 15%
    Overall, the foil business is expected to deliver around 15% year-on-year growth during FY27

    — Sharad Khandelwal

  • Polymer Insulator Revenue Ramp-up Revenue · Q3 FY27 onwards · Medium confidence Meaningful ramp-up
    we expect meaningful revenue ramp-up from Q3 FY27 onwards.

    — Arun Bhandari

  • Overall Consolidated Revenue Growth Revenue · Medium confidence 20-25%
    management reiterates that the 20-25% growth refers to overall consolidated revenue growth, considering contributions from all existing as well as new business verticals, including Wire Rods, Poly Insulators, and LT Cables.

    — Sharad Khandelwal

Other

  • Conductor & Cable Segment Traction Other · H1 FY27 onwards · Medium confidence Meaningful traction
    we expect meaningful traction in this segment beginning H1 FY27.

    — Arun Bhandari

  • LT Cable Product Launch Other · June 2026 · High confidence Launch
    LT Cable initiative at the Bhandara facility remains on track, with product launch expected during June 2026.

    — Arun Bhandari

  • Solar Project Full Roll-out Other · Q3 FY27 · High confidence Fully rolled out
    this is expected to be fully rolled out during Q3 FY27.

    — Arun Bhandari

  • Polymer Insulator Approvals (PGCIL) Other · Q2 FY27 · High confidence Approval
    approvals from major EPC contractors, state utilities and Power Grid Corporation of India Limited for the transmission sectors are progressing and expected during Q2 FY27.

    — Arun Bhandari

Margin

  • LT Cable EBITDA Margin Margin · High confidence 14-15%
    See, for low tension cable, we are estimating that around it will be 14% to 15% EBITDA margin business.

    — Sharad Khandelwal

  • Conductor Division EBITDA per ton (post backward integration) Margin · High confidence INR 15,000-18,000
    we are estimating that in conductor division, the EBITDA margin per ton will be in the range of around INR15,000 to INR18,000 per ton

    — Sharad Khandelwal

  • Wire Rod Standalone Segment EBITDA per ton Margin · High confidence INR 10,000-12,000
    from the wire rod standalone segment, because it will be also sold in the open market, so that will give around INR10,000 to INR12,000 per ton.

    — Sharad Khandelwal

  • Powder EBITDA per metric ton Margin · High confidence INR 37,000-42,000
    Powder will give us around 37,000 to 42,000 per metric ton.

    — Sharad Khandelwal

  • Foil EBITDA per metric ton Margin · High confidence INR 12,000-15,000
    And the foil business we are estimating around 12,000 to 15,000 per ton.

    — Sharad Khandelwal

  • Conductors and Cable EBITDA per metric ton Margin · High confidence INR 15,000-18,000
    And the conductors and cable business will give around 15,000 to 18,000 per ton.

    — Sharad Khandelwal

Market Share

  • Polymer Insulator Export Mix Market Share · medium term · Medium confidence 1/3 exports, 2/3 India
    As far as our own strategic plan is concerned, we would like to be maybe one third in exports and two thirds in India in the medium term.

    — Arun Bhandari

What to watch in Q1 FY27

Polymer Insulator Approvals & Revenue Ramp-up

Q3 FY27 onwards
Current Approvals progressing, commercial supplies to Nepal commenced, PGCIL approval expected Q2 FY27.
Target Significant vendor approvals (state electricity boards, EPC contractors, PGCIL) and meaningful revenue ramp-up.

Why it matters

Key to realizing the potential of this new, high-margin business and achieving revenue targets of INR 18-20 crores for FY27.

As vendor registrations and approvals continue to progress, we expect meaningful revenue ramp-up from Q3 FY27 onwards.

Risks & concerns

  • Near-term demand moderation for Aluminum Powder

    medium

    Expected in H1 FY27 due to elevated aluminum prices, inflationary pressure across key raw materials, and continued global macroeconomic uncertainty impacting customer buying sentiments.

    Management acknowledged

  • Challenges in Conductor & Cable business

    medium

    Performance impacted by elevated aluminum prices, prolonged payment cycles across certain government-linked projects, and lower contribution from higher margin AB cables due to slower project execution.

    Management acknowledged

  • Raw material price volatility and geopolitical developments

    medium

    May continue to create some near-term volatility, impacting the company's growth outlook across businesses.

    Management acknowledged

Q&A highlights

7 direct
Polymer Insulator Realization and Margins Direct
Actually, depending on the grade that we make 11 KV, 33 KV, 66, 132, 220, 400, 765, the price range presently in the market is ranging from maybe INR150 per piece to INR9,000 a piece. ... we are estimating that this business will give around 20% EBITDA margin.

Provides specific price ranges and target profitability for the new polymer insulator business, crucial for valuation.

Asked by Meet Katrodiya

Rationale for Polymer Insulators over Porcelain Direct
One is the weight that is a benefit. Second, they perform very well in polluted areas. Third, they are easy to transport especially to hilly areas... Fourth, the kind of manpower which you need to string these on the lines is much lesser... Fifth, there is a lot of technical points like they are hydrophobic...

Clarifies the strategic decision to focus on polymer insulators, highlighting key competitive advantages and market drivers.

Asked by Meet Katrodiya

Competition from Chinese Players in Insulators Direct
the Chinese are not validated by the state utilities nor by the power grid corporation of India. What imports we are seeing in India, very little from China are largely for the 11 kV and 33 kV distribution insulators which is not going to be our focus area. I don't think the Indian government will in the very near future even permit validation of Chinese insulators.

Addresses a key competitive risk, indicating high entry barriers for Chinese players in the Indian market due to validation requirements.

Asked by Naman Parmar

Approval Cycle for Polymer Insulators Direct
So approval cycles take their own process, anywhere between 6 months, 8 months for utilities and power grid, power grid is even more. But the stumbling block there is they want performance. ... Validation of any insulator at the minimum finally will take 1.5 years to 2 years.

Provides a realistic timeline for product approvals, especially for critical entities like PGCIL, which impacts revenue ramp-up expectations.

Asked by Naman Parmar

Foil Conversion Section Underutilization Direct
earlier there was a challenge in getting the bulk order from the pharma company. Now our director Rohini is giving full attention to this business and she is rigorously working to increase the printing volume and the conversion volume both. So hopefully in this year we will be able to achieve around 60%, 65% capacity utilization in the foil section.

Explains the reason for low utilization in a key value-added segment and outlines specific steps being taken to improve it, with a clear target for the current year.

Asked by Aryan Bhatia

Conductor Division Demand Shift and AL59 Conductors Direct
there is a demand shift from our regular AAC, AAAC conductor to an AL59 grade of conductors. So most of the people are asking for that grade of conductors. So recently, we have got a BIS approval for that conductor also. So going forward, we will be selling more AL59 conductors.

Highlights a critical shift in market demand within the conductor segment and MMP's readiness to capitalize on it with recent BIS approval for AL59 conductors.

Asked by Aryan Bhatia

Discrepancy in Overall Revenue Growth Guidance Partial
If there is some 25% you have mentioned in the presentation, that we will relook at it and come back to you. Thank you. Thank you for pointing out*

Identifies a potential inconsistency in management's growth projections (segment-wise vs. consolidated), requiring further clarification for investors.

Asked by Dilip Sahu

Polymer Insulator Export Strategy Direct
As far as our own strategic plan is concerned, we would like to be maybe one third in exports and two thirds in India in the medium term.

Outlines the company's medium-term strategy for geographical diversification and export contribution for the new polymer insulator business.

Asked by Harsh Singhal

2 min read 5 chapters

Detailed narrative

Strong Revenue Performance Despite Headwinds

MMP Industries achieved its highest-ever quarterly and full-year revenue in Q4 FY26 and FY26, respectively. Consolidated revenue for Q4 FY26 grew 12% YoY to INR 249.6 crores, while full-year FY26 revenue reached INR 825.3 crores, a 19% YoY increase. This growth was primarily driven by healthy momentum in the aluminum powder and foil businesses, with the foil segment showing a robust 39% YoY growth in FY26 to INR 215 crores.

Profitability Impacted by One-off Events and New Ventures

While Q4 FY26 EBITDA grew 17% YoY to INR 21.5 crores, with margins improving to 8.6%, full-year FY26 PAT declined to INR 31 crores from INR 38.9 crores in FY25. This was attributed to a temporary operational disruption in Q1 FY26, a net exceptional loss of INR 7 crores post-tax, and initial EBITDA losses of INR 3.5 crores from newly incorporated subsidiaries during their ramp-up phase. The April 2025 incident alone resulted in an estimated revenue loss of INR 45-50 crores and an EBITDA impact of INR 7-8 crores for FY26.

Strategic Expansion into Power Infrastructure

The company is making significant investments to expand its presence in the power infrastructure ecosystem. This includes INR 85-90 crores for LT power cables and covered conductors, INR 13-15 crores for aluminum wire rod backward integration, and INR 35-40 crores already invested in polymer insulators. The polymer insulator business, which generated INR 2.3 crores in FY26, is transitioning from validation to commercialization, with meaningful revenue ramp-up expected from Q3 FY27.

Focus on Value-Added Products and Operational Efficiency

MMP is shifting towards higher-margin, value-added products across its segments. In aluminum foils, the focus is on increasing contribution from printed and security printing foils. The company is also investing INR 30 crores in a 7-megawatt captive solar power project, expected to be fully operational by Q3 FY27, to reduce power costs and improve operational efficiencies.

Near-Term Outlook and Growth Drivers

For FY27, MMP expects aluminum powder revenue growth of 13-15% and aluminum foil growth of ~15%. The polymer insulator business is projected to achieve INR 18-20 crores in FY27 and INR 45-50 crores in FY28, with a long-term EBITDA margin target of 20%. Overall consolidated revenue growth is targeted at 20-25%, with ROCE expected to improve to 13-14% in FY27 and over 15% in FY27-28. However, near-term demand moderation is anticipated in H1 FY27 for aluminum powder due to elevated prices and macroeconomic uncertainties.

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