Manaksia Aluminium FY26 Profit Jumps 25% to ₹7.56 Cr; Board Recommends 5% Dividend

Manaksia Aluminium Company Ltd reported standalone revenue of ₹564.73 crore for FY26, with a net profit after tax reaching ₹7.56 crore. This represents a 25% increase in net profit compared to ₹6.05 crore in the previous fiscal year.

FY26 Financial Results

The company's Board of Directors has approved the audited standalone financial results for the fiscal year ending March 31, 2026. Total revenues were reported at ₹564.73 crore, with a net profit after tax of ₹7.56 crore. This profit figure is a notable increase from ₹6.05 crore in FY25.

The board has recommended a final dividend of ₹0.05 per share, equivalent to 5% of the face value. This payout is subject to shareholder approval at the upcoming Annual General Meeting. Standard corporate governance procedures were followed with the appointment of M/s S. Bhalotia & Associates as the Internal Auditor and M/s S. Chhaparia & Associates as the Cost Auditor for the fiscal year 2026-27.

Why This Matters

The release of audited financial results gives shareholders a clear view of the company's performance in FY26. The recommended dividend offers shareholders a potential return on investment, pending formal approval. The appointment of auditors ensures continued financial oversight and compliance.

Company Background

Manaksia Aluminium operates in the downstream aluminium sector, focusing on manufacturing rolled products and extrusions. The company has shown profit growth, with its FY26 net profit up 25% year-on-year. Plans are underway to establish new entities in the USA and UAE to broaden operations, alongside preparations for consolidated financial statements.

Impact on Investors

Shareholders will have a clear understanding of Manaksia Aluminium's financial standing for FY26. A dividend of ₹0.05 per share may be distributed if shareholders approve it. The company has also secured its audit partners for the next fiscal year, confirming its operational continuity.

Risks to Watch

A significant financial risk remains: the company is contesting a Goods and Services Tax (GST) demand order totaling ₹38.80 crore. This demand includes a ₹3.88 crore penalty and applicable interest. The period under review for the GST demand is from October 2018 to March 2022. Management expressed confidence that the demand is unsustainable, but an unfavorable outcome could negatively affect the company's financials.

Peer Comparison

Manaksia Aluminium operates within a segment that includes much larger, integrated competitors such as Vedanta Ltd and Hindalco Industries Ltd. Hindalco, notably through its global division Novelis, is a leader in aluminium rolled products. Vedanta maintains substantial integrated aluminium operations. These larger players have revenues in the tens of thousands of crores, underscoring Manaksia Aluminium's presence in a more specialized or smaller market segment.

Key Financial Figures

• FY26 Total Revenue (Standalone): ₹564.73 crore
• FY26 Net Profit After Tax (Standalone): ₹7.56 crore
• FY25 Net Profit After Tax (Standalone): ₹6.05 crore
• Q4 FY26 Net Profit After Tax (Standalone): ₹3.24 crore
• GST Demand: ₹38.80 crore (principal), ₹3.88 crore (penalty), plus interest, for October 2018 – March 2022.

What to Track Next

Investors should monitor shareholder approval for the recommended final dividend of ₹0.05 per share. Key developments to watch include the outcome of the ongoing appeals against the GST demand order, progress on establishing new entities in the USA and UAE, and the preparation of consolidated financial statements. The company will also be evaluating the implications of the new Labour Codes on its business operations.