Maan Aluminium Ltd Management Discussions

Economic Scenario and Clobal Economic Outlook

The global economy proued resilient through FY26, euen as growth remained modest and unevenly distributed. The International Monetary Fund projects world output to grow 3.0% in 2026 and 3.4% in 2027, following an estimated outturn of 3.3% in 2025. Aduanced economies continued to expand at a measured pace, while momentum in emerging market and deueloping economies is expected to ease to about 3.8% in 2026 before recouering. The disinflation of recent years has stalled, with global headline inflation projected to rise from 4.1% in 2025 to 4.7% in 2026 before easing again in 2027. Two forces defined the year.

The outbreak of conflict in the Middle East weighed on energy importers and lifted commodity prices, while accelerating investment in the global technology cycle, led by artificial intelligence, supported activity in economies positioned within the technology value chain. Trade policy shifts, elevated geopolitical tension and higher-for-longer interest rates remained the principal risks to the outlook.

[Image: Photograph of aluminium tubes/pipes stacked in a warehouse]

Industry Structure & Development

Aluminium is a metal of significant strategic importance to India, critical to almost all sectors of significance to modern life and essential to build a sustainable tomorrow. By virtue of its unusual properties like high strength-to-weight ratio, exceptional design flexibility, superior thermal & electrical properties, 100% recyclability over and over again, Aluminiums demand in space exploration, aviation, electric vehicles, renewable energy production, electricity transmission, construction, consumer goods, and more, is only slated to increase.

India is a leading player in the global Aluminium industry with the second largest Aluminium production capacity of about 4 million tonnes per annum (MTPA)

Indias Aluminium demand is estimated to double again by the year 2027 with current resilient GDP growth rate driven by increasing urbanization and push for boosting domestic infrastructure, automotive, aviation, defence, and power sectors.

Indian Economy

India is poised to lead the global economy once again, with the International Monetary Fund (IMF) India retained its position among the fastest-growing major economies. Real gross domestic product is estimated to have grown 7.7% in FY 2025-26, up from 7.1% in the previous year, with nominal GDP growth of 8.9%. Growth was supported by a broad-based recovery in domestic demand, with private final consumption expenditure rising 7.7% and gross fixed capital formation, the principal measure of investment activity, growing 8.2%. Retail inflation moderated to among its lowest levels in years, averaging 1.7% between April and December 2025, the softest reading since the current consumer price index series began, allowing the Reserve Bank of India to reduce the policy repo rate through the year.

Indias combined merchandise and services exports reached a record of about US$863 billion in FY 2025-26, led by an 8.7% rise in services exports, while the Government sustained its infrastructure push with a capital expenditure outlay of 11.21 lakh crore for the year and a further increase to 12.2 lakh crore budgeted for FY 2026-27. These gains, underpinned by macroeconomic stability, continued structural reform and favourable demographics, reinforced Indias standing as a rising global economic force.

Opportunities and Threats

The aluminium business continues to be affected to a large extent by the volatility in the aluminium raw material prices, foreign exchange fluctuations and low-quality aluminium products being dumped by neighbouring countries.

[Image: Infographic with photograph of worker grinding metal]

Business Performance

During FY 2025-2026, the Company has achieved production of 8124.37 MT as compared to 7653.16 MT during the previous year. Considering the latest installed capacity of 24,000 MT p.a., we have spare capacity to increase production and sales level. Accordingly your company has geared-up marketing activities and production, so as to achieve Production and sale of 24,000 MT in coming years.

Aluminium Market Analysis

? Market Growth and Size: The market is witnessing moderate growth on account of the increasing adoption of aluminium due to its lightweight properties, along with the rising demand for recyclable materials.

? Technological Advancements: Innovations in aluminium production, recycling, and applications assist in improving efficiency, reducing costs, and expanding the range of industry applications.

? Industry Applications: Aluminium finds diverse applications across industries, including construction, automotive, aerospace, and packaging.

? Geographical Trends: Asia Pacific leads the market, driven by the rising number of infrastructure projects. However, North America is emerging as a fast-growing market due to the increasing adoption of aluminum in aircraft manufacturing.

? Competitive Landscape: Key players are investing in research and development (R&D) activities to develop new alloys and enhance manufacturing processes.

? Challenges and Opportunities: While the market faces challenges, such as volatility in raw material prices, it also encounters opportunities in the growing focus on sustainable practices.

? Future Outlook: The future of the aluminium market looks promising, with the rising need to reduce carbon emissions. In addition, the introduction of various recycling technologies is expected to positively influence the aluminium market forecast.

Prospects

Rise in infrastructure development is expected to drive growth in the aluminium sector. Demand for aluminium is expected to pick up as the scenario improves for user industries like power, infrastructure and transportation.

The Government of Indias National Mineral Policy is expected to bring more transparency, better regulation and enforcement, balanced socio-economic growth along with sustainable mining practices in the aluminium sector.

Domestic demand is likely to remain robust driven by construction and packaging.

The increasing share of imports of aluminium products, including scrap, will continue to be a major concern for domestic aluminium producers. Over the last few years, the domestic rolled products industry has been witnessing an increase in dumping of imports especially from China, at unfair prices leading to the pricing pressure.

The adoption of strong, lightweight and formable aluminium sheets in vehicle parts and structures is driving growth in the automotive body sheet segment. This market is expected to record growth, despite some recent softening in European and Chinese demand.

The Indian government has plans to invest over US$ 1 billion in its Make in India initiative. The aluminium industry will benefit from this as there is great demand to build new production facilities.

Risk and Concern

The Company has well defined structure which enable and empower management to identify, assess and leverage business opportunities and manage risk exposure in the organization effectively.

As per Risk Management framework and procedures, management treat various category of risks and take appropriate actions for its mitigation. For example, for higher priority risks, the Company has developed and implemented specific risk management plans that supports management in strategic decisions and funding considerations, if any. Lower priority risks are also monitored as per plan. Company has the process of communication, consultation, monitoring and periodical review of the risks and effectiveness of the mitigation plan.

The aluminium (metals) sector has provided investors healthy returns in certain time periods during the past decade but overall, the performance of the sector has been underwhelming.

Supply of primary aluminium is in excess as India is one of the largest producers of primary aluminium. However, due to limited scope of value addition within the country, primary aluminium producers export large quantities of primary aluminium products and companies import a sizeable quantity of downstream products.

Aluminum consumption in India at 3.10 kg per capita is much below the global average of 12 kg per capita. Demand for the metal is expected to pick up as the scenario improves for user industries, like power, infrastructure and transportation.

Most domestic players operate integrated plants. Bargaining power is limited in case of power purchase, as Government is the only supplier. However, increasing usage of captive power plants (CPP) will help to rationalize power costs to a certain extent in the long-term.

The company also has an internal risk committee that reviews the risk management process on a periodic basis.

QUALITY CONTROL

Your Company continues to focus on sustained quality control and has build a strong brand image among competition. The Companys manufacturing facility is accredited with the prestigious ISO-9001:2015, 14001:2015, IATF 8 CE Marking certification endorsing its strong quality systems. Your Company continues to focus on sustained quality control and has build a strong Brand image among competition.

Internal Control Systems and Their Adequacy

The Company is following a proper and adequate system of internal controls in respect of all its activities including safeguarding and protecting its assets against loss from unauthorized use of disposition. Further, all transactions entered into by the Company are duly authorized and recorded correctly. The Internal Auditors are submitting reports to the Company on a Quarterly basis.

The internal audit process is designed to review the adequacy of internal control checks and covers all significant areas of the companys global operations.

The company has an Audit Committee of the Board of Directors, the details of which have been provided in the corporate governance report.

Review of Companys Operation

During the year under review, earnings before interest, tax and depreciation (EBITDA) of the Company recorded Rs. 3,060.47 Lakhs as compared to Rs. 3041.98 Lakhs in previous year.

Due to reduction in value added product orders and exports in current year EBITDA has declined however your company is geared up and looking forward to have good long term prospects.

The demand for aluminium may continue to be driven further by the pick-up in the infrastructure projects viz. bridges, roads, ports, metro rails and low budget housing segment, bringing opportunities for growth in this sector. The long-term outlook for aluminium is expected to be positive.

SUMMARY OF KEY FINANCIAL METRICS AND KEY RATIO

The Summary of Key Financial metrics and Key Ratio has been mentioned in the Note No. 35 of Audited Financial.

Statutory Compliance

All the statutory compliance with respect to Securities and Exchange Board of India (Listing obligations and Disclosure Requirements) Regulations, 2015, Income Tax Act, Sales Tax Act, GST Act, Companies Act, 2013 and all other applicable Acts, and Rules 8 Regulations are complied with.

Industrial Relations & Human Resource Management

The Company continued with efforts to ensure that its pool of human resources is future ready through its robust processes of learning & development, capability building and its development programmes. Efforts were taken to develop leadership lines as well as to enhance technical and functional capabilities with special focus on nurturing young talent, in order to face future challenges that may arise. The Company organized several training, awareness and coaching programs to develop the leadership, technical and management skills of employees. Employee engagement programs were organized to create openness and sharing ideas by employees. This learning journey includes formal, informal and highly interactive components that would help in honing their leadership, and coaching skills. It will ensure that the development initiatives result not just in better skills but in enhanced performance and higher engagement.

The total number of employees on the rolls of the Company as on 31st March, 2026 was 262 (Previous year as on 31st March, 2025, number was 221.

Industrial relations during the year under report remained cordial.

Health & Safety

The Company continuously focuses on the health and safety of all its workers and staff. Adequate safety measures have been taken at the plant for the prevention of accidents or other untoward incident. The necessary medical facilities are available for the workers and staff to maintain good health. During the pandemic worldwide, the Company ensures proper sanitisation and safety measures. During the worldwide pandemic situation the Company followed all the norms and advisory issued by the Government of India/State Government.

Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable laws or regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and domestic demand-supply conditions finished goods prices, raw materials costs and availability, fluctuations in exchange rates, changes in Government regulations, tax laws, natural calamities litigation and industrial relations, monsoon, economic developments within the country and other factors.