Midwest Limited: Forging a Future in Minerals with Strong Q2 FY26 Performance

Midwest Limited, a prominent player in India's mineral sector, has reported an impressive financial performance for the second quarter and first half of fiscal year 2026. The company, recently listed on India's premier stock exchanges, is not only solidifying its leadership in granite and quartz processing but also strategically diversifying into high-demand segments like Heavy Mineral Sands and Rare Earth Elements. This quarter's results underscore the company's robust operational efficiencies and a clear vision for sustainable growth.

For Q2 FY26, Midwest Limited's consolidated revenue stood at INR 158.69 crore. The company's EBITDA surged by 51.91% year-on-year to INR 46.53 crore, with the EBITDA margin expanding to 29.32%. Profit After Tax (PAT) witnessed an even more significant jump, growing by 79.54% year-on-year to INR 27.71 crore, reflecting a PAT margin of 17.46%. For the first half of FY26, consolidated revenue reached INR 300.96 crore, marking a 7.92% increase from H1 FY25. EBITDA for H1 FY26 grew by 15.93% to INR 85.50 crore, and the adjusted PAT (excluding an exceptional item in H1 FY25) increased by 16.95% to INR 52.09 crore. These figures highlight consistent growth and effective cost management across operations.

Strategic Diversification and Capacity Expansion

Midwest Limited is executing a multi-pronged growth strategy, expanding beyond its traditional granite business. The company has successfully commissioned Phase I of its quartz processing plant in September 2025, with an installed capacity of 303,600 MTPA. This facility caters to the solar glass and engineered stone industries, addressing India's significant import reliance on solar glass. Plans are already underway to double this capacity in Phase II to 606,600 MTPA, which will also enable the production of ultra-high purity quartz (HPQ) crucial for semiconductor and crucible applications. This expansion, partly funded by IPO proceeds, is expected to meet 11-13% of India's solar glass raw material demand by 2030.

Further demonstrating its strategic foresight, Midwest is diversifying into Heavy Mineral Sands (HMS) and Rare Earth Materials (REE). The company has secured four HMS exploration licenses in Sri Lanka and is pursuing a pilot project for monazite cracking and value addition in Kerala with KMML. These initiatives aim to produce titanium feedstock and rare earth oxides, catering to high-growth sectors like aerospace, chemicals, automotive, electronics, defense, and medical devices, with operations expected to commence in FY2027.

Operational Excellence and Sustainability Initiatives

Midwest Limited's commitment to operational efficiency and sustainability is a cornerstone of its strategy. The company has implemented electric dump trucks in its mines, which, combined with on-site solar power installations, are significantly reducing operational expenses and carbon footprint. A 1.10 MW solar plant is already operational at Arpanapally, with plans for additional capacity. These efforts are projected to reduce energy consumption and carbon footprint by 15-20% and save approximately INR 20 lakhs per truck per annum.

The company's working capital efficiency has notably improved, with days reducing from 120 in FY25 to 99 in H1 FY26. This improvement is attributed to better credit terms with overseas customers and the implementation of non-recourse bill discounting. The management also highlighted the divestment of a loss-making subsidiary in the past, demonstrating a proactive approach to portfolio optimization. The company's robust financial health was further affirmed by CRISIL Ratings, which upgraded Midwest's credit rating from CRISIL A minus to CRISIL A stable.

Outlook and Investor Confidence

Midwest Limited's management expressed confidence in achieving its long-term vision of becoming a world-class integrated materials processing company. The company aims to achieve a 35% average ROCE and deliver 2.5 times revenue and over three times profitability in the next three to four years, using FY 2025 as a baseline. The successful IPO listing, attracting marquee anchor investors, reflects strong investor trust in the company's strategic direction and execution capabilities. With a diversified portfolio, strong resource base, and a focus on innovation and sustainability, Midwest Limited is well-positioned for sustained growth in the evolving mineral industry.