Maan Aluminium (MAANALU) Q2 FY27 Profit Crashes 85% Despite 46% Revenue Jump
The aluminium extruder's September quarter saw a severe margin squeeze as input costs surged far faster than sales, leaving net profit at just ₹0.89 crore.
Maan Aluminium's Q2 FY27 revenue surged 46% year-on-year to ₹279.48 crore, but net profit collapsed 85% to ₹0.89 crore. The dramatic margin squeeze was driven by a massive rise in purchases of stock-in-trade, which outpaced revenue growth.
For an aluminium extruder building a high-value manufacturing business, the September quarter was a test of whether sales growth could outrun costs. Maan Aluminium posted a 46% revenue jump, but profit fell 85% as costs surged even faster.
The numbers tell a story of top-line momentum and bottom-line collapse. Revenue rose to ₹279.48 crore, a 20.5% sequential increase. Yet net profit shrank to just ₹0.89 crore, down 71% from the June quarter. The net profit margin was a wafer-thin 0.3%.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ2 FY27 (Sep 2026) | PreviousQ1 FY27 (Jun 2026) |
|---|---|---|
| Revenue (₹ Cr) | 279.48 | 231.86 |
| Profit (₹ Cr) | 0.89 | 3.10 |
| Net Profit Margin | 0.3% | 1.3% |
The Cost That Ate the Profit
The story is in the expenses. Total costs rose 50.3% year-on-year, outpacing the 44.9% rise in total income. According to a report by Multibagg.ai, purchases of stock-in-trade soared by ₹84.43 crore to ₹182.46 crore. This was the largest driver of the margin squeeze.
Interest expense also jumped 53% sequentially, though it remained below last year's level. Management has projected capital expenditure of ₹40-50 crore for FY27, which may explain the higher borrowing costs.
A Pivot Under Pressure
The company is pivoting from commodity extrusion to high-value conversion, a strategy highlighted by MarketPing. It has a contract with Tata and is ramping up a precision tubing facility in Dewas. This transition requires heavy investment before the promised margin benefits arrive.
Current capacity utilisation is low, around 25% of its expanded 24,000-tonne capacity. The promised ramp-up to 75-80% over three years is critical for absorbing fixed costs and improving profitability.
The Market's Read
There were no formal analyst estimates to beat or miss. The stock closed at ₹102.06 the day before the results, down 24% over the past year. One technical rating service, MarketsMojo, recently upgraded the stock from 'Strong Sell' to 'Sell' based on price momentum, not fundamentals.
The valuation reflects deep skepticism. The stock trades at a P/E of 2.4, an 83% discount to the industry average of 13.6. Investors are clearly pricing in the persistent margin weakness.
Key Points
- Revenue grew 46% year-on-year to ₹279.48 crore, but net profit collapsed 85% to ₹0.89 crore due to a severe cost surge.
- The primary driver was a massive ₹84.43 crore increase in purchases of stock-in-trade, which far outpaced sales growth.
- The company's strategic pivot to high-value manufacturing is ongoing, but current capacity utilisation remains low at around 25%.
- The stock trades at a significant discount to the sector, reflecting deep investor concern over profitability.
Hexa Perspective
The quarter exposes the raw tension in Maan Aluminium's transition. Revenue growth is strong, confirming demand for its products. But the cost structure is volatile and currently overwhelming.
The path forward hinges on two factors: stabilising input costs and successfully ramping up high-margin capacity. Until the Dewas facility and other value-added projects contribute meaningfully, profits will remain under severe pressure from commodity price swings and low utilisation. The market's deep discount suggests it is waiting for proof that the pivot can actually deliver earnings.
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