The December 2025 quarter marked a notable setback for Maan Aluminium, with net sales plunging to ₹151.87 crores, representing the lowest quarterly revenue in recent periods. This 20.52% sequential decline from ₹191.08 crores in Q2 FY26 signals significant demand headwinds in the aluminium extrusion industry. The company's profitability metrics deteriorated across the board, with operating margin contracting to 3.65% from 4.17% in the previous quarter, whilst PAT margin compressed sharply to 1.86% from 3.02%.
Financial Performance: Revenue Contraction Drives Profit Decline
Maan Aluminium's Q3 FY26 performance reveals a concerning sequential deterioration in both topline and bottom-line metrics. Net sales of ₹151.87 crores represent a 20.52% quarter-on-quarter decline, marking the weakest quarterly revenue performance in the recent trailing period. The year-on-year comparison shows a 16.60% decline, indicating persistent demand challenges in the aluminium extrusion market.
| Quarter | Net Sales (₹ Cr) | QoQ Growth | Net Profit (₹ Cr) | QoQ Growth | Operating Margin | PAT Margin |
|---|---|---|---|---|---|---|
| Dec'25 | 151.87 | -20.52% | 2.83 | -50.95% | 3.65% | 1.86% |
| Sep'25 | 191.08 | -9.52% | 5.77 | +111.36% | 4.17% | 3.02% |
| Jun'25 | 211.19 | -14.10% | 2.73 | -30.71% | 2.34% | 1.29% |
| Mar'25 | 245.86 | +35.02% | 3.94 | +29.18% | 3.13% | 1.60% |
| Dec'24 | 182.09 | -11.37% | 3.05 | -40.55% | 2.65% | 1.67% |
| Sep'24 | 205.44 | +16.21% | 5.13 | +51.33% | 3.70% | 2.50% |
| Jun'24 | 176.78 | — | 3.39 | — | 2.81% | 1.92% |
Operating profit before depreciation, interest, tax, and other income stood at ₹5.55 crores in Q3 FY26, down 30.28% from ₹7.96 crores in the previous quarter. The operating margin (excluding other income) compressed to 3.65% from 4.17%, reflecting both volume deleverage and potential raw material cost pressures. Employee costs remained relatively stable at ₹4.38 crores, though as a percentage of revenue, they increased to 2.88% from 2.21% in Q2 FY26, indicating fixed cost absorption challenges.
Interest expenses declined marginally to ₹1.47 crores from ₹1.69 crores quarter-on-quarter, whilst depreciation increased slightly to ₹1.89 crores from ₹1.85 crores. The effective tax rate for Q3 FY26 stood at 25.53%, consistent with the previous quarter's 25.74%. However, profit after tax plummeted to ₹2.83 crores, translating to a PAT margin of just 1.86%, down sharply from 3.02% in Q2 FY26.
Concerning Trend: Other Income Dependency
A notable red flag in Q3 FY26 is the elevated contribution of non-operating income to profitability. Other income of ₹1.61 crores represented 42.37% of profit before tax, indicating that operational profitability remains under significant pressure. This dependency on non-core income sources raises questions about the sustainability of earnings quality.
Operational Challenges: Volume Decline and Margin Compression
The sharp 20.52% sequential revenue decline suggests significant volume headwinds in Maan Aluminium's core aluminium extrusion business. The non-ferrous metals sector has faced challenging conditions, with the company's performance reflecting broader industry pressures including subdued construction activity, inventory corrections, and competitive intensity.
The company's return on equity (latest) stands at 8.28%, down from the five-year average of 22.42%, indicating deteriorating capital efficiency. Return on capital employed (latest) has similarly declined to 7.16% from the historical average of 19.90%, reflecting both lower profitability and potentially suboptimal asset utilisation. These metrics underscore the operational challenges facing the business in the current environment.
Balance sheet quality remains a relative strength, with average net debt to equity at 0.40 and debt to EBITDA at 1.90, indicating manageable leverage levels. The company's average EBIT to interest coverage stands at 8.38 times, providing adequate cushion for debt servicing despite the recent profitability decline. However, the inventory turnover ratio for H1 FY26 fell to its lowest level at 12.88 times, suggesting potential working capital inefficiencies or inventory build-up.
Quality Metrics: Mixed Signals
Maan Aluminium maintains a "Average" quality grade based on long-term financial performance. The company demonstrates strong historical return ratios (average ROE of 22.42%, average ROCE of 19.90%) and healthy long-term sales growth of 17.69% CAGR over five years. However, recent operational deterioration and negative financial trends have prevented an upgrade to "Good" quality status. Positively, the company has zero promoter pledging and maintains a clean balance sheet with low leverage.
Industry Context: Non-Ferrous Metals Under Pressure
The aluminium extrusion industry has faced headwinds from multiple fronts, including fluctuating aluminium prices, subdued demand from key end-user segments such as construction and infrastructure, and intense competition. Maan Aluminium's 16.60% year-on-year revenue decline in Q3 FY26 reflects these broader industry challenges, though the magnitude of decline suggests company-specific issues may also be at play.
The company's stock has significantly outperformed the broader market over longer time horizons, delivering 46.59% returns over one year compared to the Sensex's 8.77%, generating an alpha of 37.82%. Over three years, the stock has delivered spectacular returns of 194.50% versus the Sensex's 37.04%, demonstrating strong long-term wealth creation despite recent operational challenges. However, the stock has underperformed its sector over the past year, with the Non-Ferrous Metals sector delivering 58.98% returns, indicating relative weakness within the peer group.
Peer Comparison: Premium Valuation Despite Operational Weakness
Maan Aluminium trades at a significant premium to its peer group across most valuation metrics, despite the recent operational deterioration. The company's P/E ratio of 58.18x compares to the industry average of 12x, representing a substantial valuation premium. This elevated multiple appears difficult to justify given the negative financial trends and margin compression.
| Company | P/E (TTM) | P/BV | ROE (%) | Debt/Equity | Div Yield |
|---|---|---|---|---|---|
| Maan Aluminium | 58.18 | 4.82 | 22.42% | 0.40 | — |
| Lloyds Enterprises | 28.39 | 2.19 | 7.91% | 0.04 | 0.42% |
| Pondy Oxides | 33.65 | 5.44 | 13.05% | -0.10 | 0.29% |
| Dec. Gold Mines | NA (Loss Making) | 12.72 | 0.00% | 1.09 | — |
| Arfin India | 150.14 | 8.13 | 8.53% | 0.71 | 0.15% |
Whilst Maan Aluminium demonstrates superior return on equity (22.42% average) compared to most peers, this historical strength is not reflected in current performance, with latest ROE at just 8.28%. The company's price-to-book ratio of 4.82x sits in the middle of the peer range, though it appears elevated given the deteriorating operational metrics. The absence of dividend payments further questions the valuation premium, as investors receive no income whilst waiting for operational recovery.
Valuation Analysis: Expensive Rating Limits Appeal
Maan Aluminium carries an "Expensive" valuation grade, having traded between "Fair" and "Expensive" ratings over the past year. At a P/E ratio of 58.18x, the stock trades at nearly five times the industry average of 12x, demanding significant growth and margin expansion to justify the premium. The EV/EBITDA multiple of 38.41x similarly indicates rich valuation, particularly concerning given the current negative financial trends.
The stock currently trades at ₹148.50, approximately 20.33% below its 52-week high of ₹186.40 but 96.66% above its 52-week low of ₹75.51. This wide trading range reflects the volatility characteristic of micro-cap stocks and the shifting investor sentiment around the company's prospects. The company's beta of 1.50 indicates higher volatility than the broader market, with risk-adjusted returns over one year at 0.96 compared to the Sensex's 0.77.
Valuation Dashboard
P/E Ratio (TTM): 58.18x (vs Industry: 12x)
P/BV Ratio: 4.82x
EV/EBITDA: 38.41x
Dividend Yield: Not Available
Mojo Score: 44/100 (SELL category)
Valuation Grade: EXPENSIVE
Shareholding Pattern: Promoter Stake Reduction Raises Concerns
The shareholding pattern reveals a notable 3.05% reduction in promoter holding during Q4 FY26 (as of December 2025), with promoter stake declining from 58.87% to 55.82%. This reduction, though not dramatic, signals potential concerns about business prospects from those with the most intimate knowledge of operations. The timing of this reduction, coinciding with deteriorating financial performance, warrants attention from investors.
| Quarter | Promoter % | QoQ Change | FII % | MF % | Other DII % | Non-Inst % |
|---|---|---|---|---|---|---|
| Jan'26 | 55.82% | 0.00% | 0.01% | 0.00% | 1.42% | 42.76% |
| Dec'25 | 55.82% | -3.05% | 0.01% | 0.00% | 1.42% | 42.76% |
| Sep'25 | 58.87% | 0.00% | 0.39% | 0.00% | 0.00% | 40.75% |
| Jun'25 | 58.87% | 0.00% | 0.37% | 0.00% | 0.00% | 40.76% |
| Mar'25 | 58.87% | — | 0.41% | 0.00% | 0.00% | 40.72% |
Institutional participation remains minimal, with total institutional holdings at just 1.42%, comprising entirely of other domestic institutional investors (DIIs). Foreign institutional investors hold a negligible 0.01%, whilst mutual funds and insurance companies have zero exposure. This absence of institutional interest reflects the micro-cap nature of the stock and potentially concerns about liquidity, governance, or growth prospects. The December 2025 quarter did see a 1.42% entry by other DIIs, providing a modest positive signal.
Stock Performance: Long-Term Strength, Recent Weakness
Maan Aluminium's stock has delivered exceptional long-term returns despite recent volatility. Over five years, the stock has generated returns of 835.43% compared to the Sensex's 60.67%, creating substantial wealth for long-term holders. The three-year return of 194.50% versus the Sensex's 37.04% demonstrates consistent outperformance over extended periods.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | -1.56% | -0.91% | -0.65% |
| 1 Month | -0.67% | -0.97% | +0.30% |
| 3 Months | +8.67% | -1.96% | +10.63% |
| 6 Months | +32.24% | +2.83% | +29.41% |
| YTD | -7.85% | -2.82% | -5.03% |
| 1 Year | +46.59% | +8.77% | +37.82% |
| 3 Years | +194.50% | +37.04% | +157.46% |
| 5 Years | +835.43% | +60.67% | +774.76% |
However, recent performance has deteriorated, with the stock declining 7.85% year-to-date and underperforming the Sensex by 5.03%. The stock trades below its 5-day, 20-day, and 50-day moving averages, indicating negative near-term momentum. Technical indicators present a mixed picture, with the overall trend classified as "Mildly Bullish" but showing signs of weakening, having changed from "Bullish" to "Mildly Bullish" in recent months.
Investment Thesis: Negative Trends Outweigh Historical Strengths
Maan Aluminium's investment case faces significant headwinds despite its historical track record. The company's Mojo Score of 44/100 places it firmly in "SELL" territory, reflecting concerns across multiple parameters. The financial trend is classified as "Negative," with quarterly PAT falling 26.90% below the previous four-quarter average and net sales hitting their lowest quarterly level.
Mojo 4 Dots Analysis
1. Near-Term Drivers: MIXED - Negative financial trend offset partially by mildly bullish technicals
2. Quality: AVERAGE - Decent historical metrics but recent deterioration
3. Valuation: EXPENSIVE - Trading at 58x P/E versus industry 12x
4. Overall Assessment: SELL - Negative trends and expensive valuation create unfavourable risk-reward
Key Strengths & Risk Factors
KEY STRENGTHS
- Exceptional Long-Term Returns: 835% returns over five years demonstrate strong wealth creation for patient investors
- Strong Historical ROE: Average ROE of 22.42% indicates superior capital efficiency during normal operating conditions
- Clean Balance Sheet: Low leverage with debt-to-equity of 0.40 and adequate interest coverage of 8.38x
- Zero Promoter Pledging: Demonstrates financial discipline and confidence, though recent stake reduction is concerning
- Established Market Position: Operating since 1988 with experience in aluminium extrusion manufacturing
KEY CONCERNS
- Sharp Revenue Decline: Q3 FY26 sales down 20.52% QoQ and 16.60% YoY, marking lowest quarterly revenue
- Margin Compression: Operating margin fell to 3.65% and PAT margin to 1.86%, both significantly below recent levels
- Expensive Valuation: P/E of 58x versus industry 12x appears unjustified given negative trends
- High Other Income Dependency: Non-operating income at 42.37% of PBT raises earnings quality concerns
- Promoter Stake Reduction: 3.05% decline in promoter holding during period of operational weakness
- Minimal Institutional Interest: Just 1.42% institutional holding indicates limited professional investor confidence
- Negative Financial Trend: Classified as "Negative" with multiple red flags including lowest sales and inventory concerns
Outlook: What to Watch
POSITIVE CATALYSTS
- Revenue stabilisation and sequential growth in Q4 FY26
- Operating margin recovery above 4% levels
- Reduction in other income dependency below 30% of PBT
- Improved inventory turnover indicating better working capital management
- Stabilisation of promoter holding without further dilution
RED FLAGS
- Continued sequential revenue decline in Q4 FY26
- Further margin compression below 3% operating margin
- Additional promoter stake reduction
- Increasing debt levels or deteriorating interest coverage
- Sustained high volatility with stock trading below ₹130
The path forward for Maan Aluminium depends critically on its ability to arrest the revenue decline and restore margin stability. The company needs to demonstrate that Q3 FY26 represents a cyclical trough rather than the beginning of a structural deterioration. Management commentary on order book, capacity utilisation, and demand outlook will be crucial for assessing recovery prospects.
For the stock to justify its premium valuation, Maan Aluminium must deliver consistent double-digit revenue growth and expand operating margins back towards 5-6% levels. The current expensive valuation leaves little room for disappointment, making near-term operational execution paramount. Investors should monitor quarterly results closely for signs of stabilisation before considering fresh positions.
The Verdict: Operational Weakness and Expensive Valuation Warrant Caution
Score: 44/100
For Fresh Investors: Avoid initiating positions at current levels. The combination of deteriorating financial trends, sharp margin compression, and expensive valuation (58x P/E) creates an unfavourable risk-reward profile. Wait for clear signs of operational stabilisation and valuation correction before considering entry.
For Existing Holders: Consider reducing exposure, particularly for those sitting on substantial long-term gains. The 51% sequential profit decline and negative financial trend classification suggest operational challenges that may persist. Book partial profits and reassess after Q4 FY26 results demonstrate stabilisation. Long-term holders with high conviction may hold a reduced position but should set strict stop-losses.
Fair Value Estimate: ₹105-115 per share (29-23% downside from current levels), based on normalised earnings and peer valuation multiples of 25-30x P/E, assuming operational recovery.
Note- ROCE= (EBIT - Other income)/(Capital Employed - Cash - Current Investments)
⚠️ Investment Disclaimer
This article is for educational and informational purposes only and should not be construed as financial advice. Investors should conduct their own due diligence, consider their risk tolerance and investment objectives, and consult with a qualified financial advisor before making any investment decisions. Past performance does not guarantee future results. Stock investments carry risks including potential loss of principal.
