Q2FY17 Revenues/EBITDA at Rs 1.89 bn/Rs 224mn were below our respective estimates of Rs 2.19bn/Rs 430mn on account of lower volumes and higher costs. EBITDA/t improved to Rs 438/t (from -Rs 18/t in Q2FY16) led by lower costs on YoY basis. H1FY17 volume is down by 4% YoY due to muted demand. However, we expect volumes in 2HFY17 to pick-up led by demand pick-up and ramp-up of Aligarh plant. We increase our FY17E EBITDA estimates by 27% to factor in better realisation & lower fixed costs. Operational performance is expected to improve significantly during FY17-18E led by increase in volumes & margin expansion. FY18E EBITDA is expected to be at Rs 1.78bn (5x of FY16 EBITDA) implying to 124% CAGR. We upgrade Mangalam to Buy as valuation appears attractive.