MMP - MMP Industries

📊 NSE: MMP 🏢 Aluminium and Aluminium Products 📅 Last Updated: 12/14/2025 9:55

💰 Financial Performance

Revenue Growth by Segment

The Foil segment delivered a robust 44% YoY revenue growth in Q2FY26, driven by sustained demand in bare and food-grade foil categories. Overall consolidated revenue grew 29% YoY to INR 188.2 Cr in Q2FY26 and 24% YoY to INR 371.9 Cr for H1FY26.

Geographic Revenue Split

Not explicitly disclosed by region, however, the company reported record export orders secured in Q2FY26 for execution in H2FY26, with a strategic focus on European partners expecting demand surges by 2027.

Profitability Margins

Gross Margin stood at 20.7% in Q2FY26, down 309 bps YoY from 23.8%. PAT Margin for Q2FY26 was 3.72%, a slight decline of 28 bps YoY from 4.01%. H1FY26 PAT margin dropped significantly to 0.43% from 5.70% due to a fire-related exceptional loss.

EBITDA Margin

Consolidated EBITDA margin was 7.12% in Q2FY26, a decrease of 107 bps YoY from 8.18%. EBITDA grew 13% YoY to INR 13.4 Cr, but margins were squeezed by a INR 0.68 Cr loss in the new MMP Electricals subsidiary and higher raw material costs.

Capital Expenditure

The company has planned an investment of INR 45 Cr for fiscal 2026, which will be partly debt-funded to support capacity expansions including the Composite Insulators Phase II project.

Credit Rating & Borrowing

Crisil ratings are currently 'BBB+/Watch Developing' (placed on watch following a fire incident). Previous ratings were 'BBB+/Positive'. Interest coverage ratio was healthy at 6.43 times as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

Aluminium ingots and aluminium foils are the primary raw materials, accounting for 75-80% of the total cost of sales.

Import Sources

Not specifically disclosed, though the company maintains strategic supply ties with domestic majors like Hindalco for foil stock.

Key Suppliers

Hindalco is specifically identified as a key supplier for foil stock, ensuring availability for higher capacity utilization.

Capacity Expansion

Composite Insulators Phase II expansion is currently underway and is expected to be commissioned in Q4FY26 to drive future revenue growth.

Raw Material Costs

Raw material costs (Cost of Material Consumed) rose to INR 158.4 Cr in Q2FY26 compared to INR 126.4 Cr in Q2FY25, representing approximately 84% of revenue. The company manages volatility with a 3-4 month price pass-through lag.

Manufacturing Efficiency

The company targets higher capacity utilization in H2FY26 following the resolution of manpower shortages caused by the fire incident which lasted until mid-August 2025.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

24-29%

Growth Strategy

Growth will be achieved through the commissioning of the Composite Insulators Phase II expansion in Q4FY26, ramping up the new MMP Electricals subsidiary, and executing record export orders. The company is also shifting focus toward high-margin value-added products like lidding and tagger foils.

Products & Services

Pyro and flake aluminium powder, atomised aluminium powder, aluminium paste, aluminium conductors, bare foil, food-grade foil, and composite insulators.

Brand Portfolio

MMP

New Products/Services

Lidding foil and tagger foil are new value-added launches expected to improve the product mix and margins in H2FY26.

Market Expansion

Strategic focus on the European market with partnerships expected to yield significant demand increases starting in 2027.

Market Share & Ranking

Not disclosed as a specific percentage, but identified as a 'leading manufacturer' in the aluminium powder and foil segments.

Strategic Alliances

Joint ventures and associates include Toyal MMP India Private Limited (26% stake) and Star Circlips & Engineering Limited (26.06% stake).

🌍 External Factors

Industry Trends

The industry is shifting toward specialized aluminium applications in food packaging and power infrastructure. MMP is positioning itself by expanding into composite insulators and high-end pharmaceutical foils.

Competitive Landscape

Competes with other aluminium product manufacturers, maintaining an edge through diversified segments (powder, foil, and conductors).

Competitive Moat

Moat is built on 30+ years of promoter experience, established relationships with blue-chip clients like UltraTech and Torrent Pharma, and technical expertise in atomised powder manufacturing.

Macro Economic Sensitivity

Highly sensitive to global aluminium price volatility (LME) and domestic demand in the construction (cement) and pharmaceutical sectors.

Consumer Behavior

Increasing demand for food-grade packaging and pharmaceutical foils is driving the 44% growth in the foil division.

Geopolitical Risks

Potential trade barriers or shipping disruptions affecting the growing export business to Europe.

⚖️ Regulatory & Governance

Industry Regulations

Complies with the Companies Act 2013, Secretarial Standards, and SEBI Listing Obligations (LODR) for transparency and governance.

Environmental Compliance

The company has adopted a formal CSR policy and is investing in a Solar Park to meet sustainability goals.

Taxation Policy Impact

Effective tax expense for Q2FY26 was INR 1.9 Cr on a PBT of INR 8.9 Cr (approx. 21%).

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the full recovery and insurance settlement from the fire incident in the Powder division, which resulted in a INR 17.3 Cr exceptional loss in H1FY26.