MMP Industries Ltd (MMP) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to MMP Industries Limited Q2 and H1 FY '27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing "*" then "0" on your touch-tone phone. Please note, this conference is being recorded. I now hand the conference over to Mr. Akhilesh Gandhi from Stellar Investor Relations. Thank you, and over to you, Mr. Gandhi.
Akhilesh Gandhi (Stellar Investor Relations): Thank you, Nazneen. Good afternoon, everyone. I, Akhilesh Gandhi, on behalf of Stellar Investor Relations, welcome you all to MMP Industries Q2 and H1 FY '27 earnings conference call. We shall be sharing the key operating and financial highlights for the second quarter and half year ended on September 30th, 2026. Today, we have with us the management team of MM- MMP Industries. Mainly, we have Mr. Arunji Bhandari. He's the Managing Director. With him, we have Mr. Mayankji Bhandari. He is the Director. And along with them, we also have Mr. Sharadji Khandelwal. He's our Chief Financial Officer. But before we begin, I would like to state that this call may contain some of the forward-looking statements which are completely based upon the company's beliefs, opinion, expectations as of today. The statements made in today's call are not a guarantee of future performance and also involve unforeseen risk and uncertainties. The company also undertakes no obligation to update any forward-looking statements to reflect development that occur after the statement is made. Documents relating to the company's financial performance, including the investor presentation, have already been uploaded on the stock exchanges. With that, I now invite Mr. Arunji Bhandari to state his opening remarks on the company's performance for the second quarter. And after that, once the opening remarks are completed, we'll open the floor for Q&A session. Thank you, and over to you, sir.
Arun Bhandari (MMP Industries Ltd): Thank you, Akhilesh. Thank you very much for arranging this earnings call on behalf of MMP Industries Limited, the Q2 as well as the H1 F- FY '27 earnings conference call. Good afternoon, everyone. Welcome to this earnings call. We're pleased to connect with our investors, analysts, and stakeholders once again. Today, I will share an overview of our business performance, key operational developments, and growth priorities, following which, our CFO, Mr. Sharad Khandelwal, will take you through the financial performance. Over the last four decades, MMPIL has evolved from an aluminum powder manufacturer into a diversified business, spanning aluminum powders, aluminum foils, conductors, and cables. We are now diversifying into polymer insulators. Our focus remains on strengthening our core businesses, increasing value addition, and expanding our presence across the industrial and power transmission infrastructure sectors. The first half of FY '27 has been encouraging, with strong performance across our core businesses, supported by healthy demand, robust exports, and improved plant utilization. Let me take you through the key developments across our businesses. Beginning with aluminum powders, which continues to be the foundation of our business, we witnessed strong performance during H1 FY '27, supported by healthy domestic demand, robust exports, and improved plant capacity working. During Q2 FY '27, we successfully executed export orders at a very high scale, despite the quarter traditionally witnessing seasonal moderation in this--
Arun Bhandari (MMP Industries Ltd): activity due to the monsoons. Building on this momentum, we expect exports to further strength further strengthen in H2 FY '27. Our continued focus on higher value-added products, an optimized product mix and economies of scale is expected to support improved realizations and margins. Moving to aluminum foils, the business also delivered strong growth, supported by sustained demand across bare and printed foil categories. I can safely say that we are now one of the leading foil suppliers to the pharma sector in India. Despite pricing pressures, we maintain a positive EBITDA margin through continued operational efficiency and cost management. An important development has been the progress in our lidding foil initiative. The manufacturing line is ready. Initial trials have been successfully completed. Product samples are currently undergoing evaluation by leading dairy companies, including Amul, Mother Dairy, Dinshaws and a host of other companies in Maharashtra. With the lidding foil season commencing in January, we are well positioned to pursue commercial opportunities subject to customer approvals, which we are confident of achieving fairly shortly, and this will further strengthen our value-added product portfolio. Turning to the Conductors and Cables business, performance remains subdued during H1 FY '27, primarily due to the monsoon-related slowdown in infrastructure project execution. However, with execution expected to improve, we anticipate a recovery in H2 FY '27, with revenue projected to grow by approximately 40% to 50% compared to H1 FY '27. Alongside this recovery, we continue to strengthen our manufacturing capabilities and product portfolio. We have received the BIS certification for LT power cables, while utility approvals are progressing. Initial production has commenced at our Bhandara facility, and we expect commercial sales to gain momentum from Q4 FY '27 subject to the necessary approvals. Our larger 6,000-metric-tonnes-per-annum LTPC expansion at Umred is also progressing, with trials targeted for Q4 FY '28. Another important initiative is our 18,000-metric-tonnes-per-annum aluminum wire rod facility, where construction and machinery installation are at a very advanced stage. Commercial production is targeted for early Q4 FY '27. Once operational, this facility will strengthen backward integration, reduce external sourcing requirements and support operating efficiencies along with margin improvements and smoothing out the supply chain. On the international front, we have received export orders worth approximately $100,000 from Latin America, covering conductors, aluminum triplex cables and polymer insulators, marking progress in expanding our power sector business internationally. Alongside conductors and cables, polymer insulators represent represent a very important growth opportunity within our power infrastructure portfolio. Through our wholly owned subsidiary, MMP Electricals Private Limited, we have developed a complete range of distribution and transmission insulators up to 765 kV. During H1 FY '27, factory inspections were completed. Registration and approval processes with major utilities, including PGCIL, that's Power Grid; GETCO, that's Gujarat transmission; MP transmission; and Karnataka transmission progressed to a very advanced stage. We had also secured export orders from Latin America and South Asia, supporting our efforts to establish an early and a broader international presence. As product approvals translate into commercial orders,
Arun Bhandari (MMP Industries Ltd): We expect this business to scale gradually and contribute meaningfully towards long term growth and additional improved margins. Beyond our operating businesses, our associate companies Star Circlips and Engineering Limited and Toyal MMP India Private Limited continue to compliment our product portfolio and provide opportunities across the automotive and specialized aluminium applications. We are also progressing with initiatives to improve cost competitiveness. Our approximately 7 MW group captive solar park, with a planned investment of Rs 30 crores, is almost ready at site with all major equipment in place. However commissioning is original which was originally targeted for Q3 FY27 has been delayed due to pending regulatory approvals and this is likely to be arranged sometime by January, February next year. We hope that this will add meaningfully in reducing power costs and support long term margin improvements. To summarize, our priorities remain clear. Sustained growth across our established businesses, strengthen export momentum, increase value addition, and progressively scale up to our newer businesses. With several growth initiatives underway, we remain focused on disciplined execution, operating efficiencies, and sustainable long term value creation. With these business updates, I'd like to hand over the call to our CFO, Sharad Khandelwal, who will take you through our financial performance for Q2 FY27 and H1 FY27. Thank you very much.
Sharad Khandelwal (MMP Industries Ltd): Thank you Arun sir, and good afternoon everyone, and thank you for joining us today. As outlined by Arun sir, the first half of FY27 has been marked by strong business momentum, improved operating performance, and continued progress across our growth initiatives. I will not take you through our consolidated financial performance, followed by a brief overview of segment wise results. Beginning with H1 FY27, the company achieved its highest ever half yearly total income of Rs 485.7 crores, registering strong growth of 31% year-on-year, compared to Rs 371.9 crores in H1 FY26. EBITDA grew by 52% year-on-year to 40.3 crores, with EBITDA margins improving by 117 basis points to 8.3% compared to 7.13% in H1 FY26. Profit after tax stood at 25.8 crores compared to 1.6 crores in H1 FY26. This significant improvement is should also be viewed in the context of the lower base in H1 FY26, which was impacted by an exceptional charge related to the Umred fire incident. Coming to Q2 FY27, the company achieved its highest ever quarterly total income of 252.9 crores, registering growth of 34% year-on-year. EBITDA increased by 44% year-on-year to 19.3 crores while EBITDA margins improved by 53 basis points to 7.65%. PAT grew by 73% year-on-year to 1 12.1 crores. This performance was supported by a robust exports and improved plant plant utilisation despite a fluctuated metal prices and inventory valuation related losses, and higher consumable cost due to geopolitical situation. However on a sequent sequential basis, EBITDA margin moderated from 9.01% in Q1 FY27 to 7.65% in Q2 FY27, primarily due to inventory valuation related losses. This quarter also included a combined EBITDA loss of approximately 1.5 crores from the two
Sharad Khandelwal (MMP Industries Ltd): wholly owned subsidiary which are in the initial stages of operations, and apart from that, there is an incremental sales from the foil business, which was a low margin as compared to our core business. Despite this pressure, our YoY profitability improved, reflecting the underlying strength of our core business. On the cash flow front, we generated positive operating cash flow of approximately 22.8 crores during H1 FY '27, while continuing to invest in our expansion initiatives. Moving to the segmental performance, I will briefly highlight the revenue trends across our key businesses. Starting with aluminium powders, revenue stood at ₹315 crores in H1 FY '27, registering a growth of 41% YoY. For Q2 FY '27, the revenue grew by 37% YoY to ₹161 crores, supported by healthy domestic demand and strong export performance. Moving to aluminium foil, revenue increased by 38% YoY to 135, ₹135 crores in H1 FY '27. Q2 FY '27 revenue grew by 47% YoY to ₹75 crores, driven by sustained demand across bare and printed foils. Coming to conductors and cables, revenue stood at ₹33 crores in H1 FY '27, reflecting a decline of 32% YoY. Q2 FY '27 revenue stood at ₹16 crores, down 16% YoY, primarily due to the monsoon-related slowdown in project execution. As mentioned earlier, we anticipate a recovery in H2 FY '27. Moving to polymer insulators, the business recorded revenue of approximately ₹1.1 crore in H1 FY '27, with Q2 FY '27 contributing around 61 lakh. The business remains in its initial stages, with future growth expected as customer approvals and order execution progress. Turning to our associate companies, Star Circlips and Engineering Limited recorded revenue of ₹60.5 crores and PAT of ₹10 crores in Q2 FY '27, supported by higher sales volume and improved operating efficiency. Similarly, Toyo MMP India Private Limited recorded revenue of ₹23.1 crores and PAT of ₹0.4 crore during the quarter. Both companies continued to strengthen our diversified business portfolio with their contribution reflected through our share of profits from associates. Overall, H1 FY '27 reflects strong revenue growth, improved YoY operating profitability, and continued investment in our future growth platforms. Looking ahead, our focus remains on sustaining business momentum, improving product mix, maintaining cost discipline, and gradually scaling up our new businesses. With this, we conclude our prepared remarks and would now like to open the floor for questions and answers. Thank you.
Moderator: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press "*" and "1" on their touchtone telephone. If you wish to remove yourself from the question queue, you may press "*" and "2". Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
Moderator: The first question is from the line of Varun Shivram from Choice Equities. Please go ahead.
Varun Shivram (Choice Equities): Hi sir. I hope I'm audible. Hello?
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