MMP targets 35% foil growth in FY27, but its own raw-material warning looms
The aluminum products maker outlined ₹130-150 crore in capex to push ROCE above 15% by FY28. The headwind it named: the price of its own main input.
What's new
- FY26 revenue grew 19% to ₹825.3 crore, driven by aluminum powder and foil demand.
- FY27 guidance: 35% growth for foil, 13-15% for powders, with aluminum price risk flagged.
- Capex pipeline of ₹130-150 crore includes a greenfield LT cable plant and captive solar.
Why this matters
MMP is committing significant capital to backward integration and new capacity. The 35% foil growth target is aggressive, and the company's own acknowledgment of aluminum price headwinds creates a tension: the expansion is timed just as its key input cost is elevated.
What we're watching
- Whether aluminum price pressures compress foil margins before new capacity comes online.
- Execution timeline and cost discipline on the greenfield LT cable facility.
- Polymer insulator business hitting the ₹18-20 crore target.
The full read
MMP Industries grew revenue 19% to ₹825.3 crore in FY26. For FY27, it's guiding 35% growth in aluminum foil and 13-15% in powders. It also flagged elevated aluminum prices as a near-term drag. On the capital side, MMP outlined ₹130-150 crore in capex. That includes a greenfield LT cable plant and captive solar. The goal is to push ROCE above 15% by FY28. The polymer insulator business is expected to hit ₹18-20 crore this year. For a ₹730 crore market-cap company, that capex commitment is material. The risk is that raw material inflation eats into margins before the new capacity starts paying back.
Questions answered
- What drove MMP's FY26 revenue growth?
- Strong demand in its two core segments: aluminum powders and aluminum foils. The company does not disclose a regional or customer breakdown.
- What is the capex plan and what does it target?
- MMP outlined ₹130-150 crore in planned capital expenditure for a greenfield LT cable facility and a captive solar project, aimed at backward integration and cost control.
- How does MMP plan to improve its ROCE?
- The target is above 15% by FY28. The levers are backward integration to control input costs and shifting the product mix toward higher-margin offerings.
- Why is the foil growth guidance for FY27 risky?
- The 35% growth target is aggressive. Management itself flagged elevated aluminum prices as a near-term headwind that could constrain both volume growth and margins.