MMP targets early Q4 FY27 wire-rod output to cut sourcing

MMP Industries Limited is targeting commercial production in early Q4 FY27 from its 18,000-metric-tonne annual aluminium wire-rod facility, which management says will reduce external sourcing and smooth supply for conductors and cables. Construction and machinery installation were at a very advanced stage on the November 3, 2026 earnings call.

What is MMP building at the wire-rod facility?

MMP is building an aluminium wire-rod facility with annual capacity of 18,000 metric tonnes and has targeted commercial production for early Q4 FY27. Management said on November 3, 2026 that construction and machinery installation had reached a very advanced stage, though it did not disclose a project cost or a specific commissioning date within the quarter.

The project is part of MMP’s conductors and cables expansion rather than its larger aluminium powders and foil businesses. In H1 FY27, aluminium powders produced revenue of Rs 315 crore and aluminium foil generated Rs 135 crore, compared with Rs 33 crore from conductors and cables, placing the wire-rod investment within a smaller but developing power-products segment.

MMP has also started initial production of low-tension power cables at its Bhandara facility after receiving Bureau of Indian Standards certification for the product. Management expects commercial cable sales to gain momentum from Q4 FY27, subject to required approvals, while the separate Umred expansion has a later Q4 FY28 trial target.

How will the plant reduce MMP’s external sourcing?

MMP said the wire-rod plant will strengthen backward integration by reducing external sourcing requirements for its conductor and cable activities. The facility is intended to bring a key aluminium input into MMP’s manufacturing chain, rather than purchasing the same volume from outside suppliers once the plant is operating.

Management linked the 18,000-metric-tonne capacity to operating efficiencies, margin improvement and supply-chain smoothing. Those are intended outcomes rather than reported results: conductors and cables revenue was Rs 16 crore in Q2 FY27, down 16% year on year, as monsoon conditions slowed infrastructure-project execution.

The sourcing objective is relevant because the conductors and cables business fell 32% year on year to Rs 33 crore in H1 FY27. Management expects project execution to improve in H2 FY27 and projected segment revenue could grow by about 40% to 50% compared with H1 FY27, but it did not quantify the wire-rod plant’s expected purchase savings.

MMP is also pursuing export demand in power products. It received export orders worth about US$100,000 from Latin America for conductors, aluminium triplex cables and polymer insulators, showing that its power-products expansion includes international orders as well as domestic utility approvals.

When will MMP's wire-rod facility start contributing?

MMP’s stated operational target is early Q4 FY27, while the chief financial officer said on the same call that the wire-rod business would start contributing from Q1 of the next year. The comments distinguish the target for commercial production from management’s expectation of when the project may make a meaningful business contribution.

Management did not provide projected revenue, capacity utilisation, wire-rod realisations or a timeline for reaching full production. As a result, the disclosed 18,000-metric-tonne annual capacity identifies the plant’s scale, but does not establish its likely output or financial contribution in FY27.

Approvals remain a factor across MMP’s newer power-products operations. Bhandara’s low-tension cable line had begun initial production, but commercial sales depend on further approvals; similarly, MMP said its polymer insulator facilities were ready while registrations and approvals with utilities were still progressing.

MMP has developed polymer insulators for distribution and transmission applications up to 765 kilovolts through wholly owned MMP Electricals Private Limited. Factory inspections were completed during FY27, and approval processes with Power Grid, Gujarat Transmission, MP Transmission and Karnataka Transmission had reached a very advanced stage, according to management.

How does wire rod fit MMP's H1 FY27 performance?

MMP reported its highest half-yearly total income of Rs 485.7 crore in H1 FY27, up 31% from Rs 371.9 crore in H1 FY26. Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 52% to Rs 40.3 crore, while the EBITDA margin increased by 117 basis points to 8.3% from 7.13%.

The period’s growth came primarily from the established aluminium segments rather than conductors and cables. Aluminium powders revenue increased 41% year on year to Rs 315 crore in H1 FY27, while foil revenue rose 38% to Rs 135 crore; conductors and cables declined 32% to Rs 33 crore over the same comparison.

In Q2 FY27, MMP recorded total income of Rs 252.9 crore, up 34% year on year, and EBITDA of Rs 19.3 crore, up 44%. However, its EBITDA margin fell sequentially to 7.65% from 9.01% in Q1 FY27, mainly because of inventory valuation losses, lower-margin foil sales and about Rs 1.5 crore of combined EBITDA losses at two early-stage wholly owned subsidiaries.

MMP generated operating cash flow of about Rs 22.8 crore in H1 FY27 while investing in expansion projects. Alongside wire rod, it is developing polymer insulators and a roughly 7-megawatt group-captive solar park with planned investment of Rs 30 crore, although the solar project’s commissioning has been delayed by regulatory approvals.

What milestones should readers track after commissioning?

The first milestone is whether MMP begins commercial wire-rod production in early Q4 FY27 as targeted. The next disclosed indicator is whether the business begins contributing from Q1 of the next year, followed by any future reporting on internal supply volumes, capacity utilisation or changes in external wire-rod purchases.

The recovery forecast for conductors and cables is another measure of execution. Management projected H2 FY27 segment revenue growth of about 40% to 50% over H1 FY27’s Rs 33 crore, while Bhandara cable sales are expected to gain momentum from Q4 FY27 only after necessary approvals.

The solar project provides an example of timing risk in the expansion programme. MMP had originally targeted commissioning of its roughly 7-megawatt solar park in Q3 FY27, but management said pending regulatory approvals had shifted the expected timing to January or February of the following calendar year.

MMP’s lidding-foil initiative also remains subject to customer validation. Its manufacturing line is ready and initial trials are complete, but samples were being evaluated by dairy companies including Amul, Mother Dairy and Dinshaw’s; management expected commercial opportunities from the January season if customer approvals are received.

Conclusion

MMP is using its 18,000-metric-tonne wire-rod project to increase integration in power products while conductors and cables lag its powders and foil segments. The facility’s proposed reduction in outside purchases is tied to supply reliability, operating efficiency and margin improvement, but management has not disclosed expected savings, utilisation or revenue from the project.

The next disclosed events are the early Q4 FY27 production target, management’s expectation of contribution from Q1 of the next year and the approvals needed for Bhandara cable sales. Readers should also track the projected 40% to 50% H2 FY27 conductors and cables revenue increase and the Q4 FY28 trial target for the 6,000-metric-tonne Umred cable expansion.