Midwest Q2 revenue rises 15% as quartz segment returns to profit

Midwest Limited reported consolidated revenue from operations of Rs 182.54 crore for the quarter ended September 30, 2026, 15% above the year-earlier quarter, while its quartz processing segment posted Rs 3.85 crore of profit before interest and tax after a Rs 4.86 crore loss in the preceding quarter. Consolidated profit after tax was Rs 30.24 crore.

How did Midwest perform in the September 2026 quarter?

Midwest increased revenue from operations to Rs 182.54 crore in the quarter ended September 30, 2026, from Rs 158.69 crore in the quarter ended September 30, 2025. Total income, which includes other income, rose to Rs 189.48 crore from Rs 160.75 crore, as other income increased to Rs 6.93 crore from Rs 2.06 crore.

Profit before tax was Rs 40.80 crore, compared with Rs 37.64 crore a year earlier, and profit after tax rose to Rs 30.24 crore from Rs 27.71 crore. Total expenses increased to Rs 148.68 crore from Rs 123.11 crore, while tax expense was Rs 10.55 crore against Rs 9.93 crore in the September 2025 quarter.

The quarter-on-quarter comparison was lower on the main consolidated measures. Revenue from operations declined from Rs 191.84 crore in the quarter ended June 30, 2026 to Rs 182.54 crore in the September quarter, while profit before tax declined from Rs 42.05 crore to Rs 40.80 crore and profit after tax fell from Rs 31.04 crore to Rs 30.24 crore.

For the half year ended September 30, 2026, Midwest reported revenue from operations of Rs 374.38 crore, compared with Rs 300.96 crore in the corresponding six months of 2025. Half-year profit before tax increased to Rs 82.85 crore from Rs 70.51 crore, and profit after tax rose to Rs 61.29 crore from Rs 52.09 crore.

What changed in Midwest's quartz processing business?

Midwest's quartz processing segment returned to a profit before interest and tax of Rs 3.85 crore in the September 2026 quarter, compared with a loss of Rs 4.86 crore in the June 2026 quarter. The segment had reported profit before interest and tax of Rs 33.10 lakh in the September 2025 quarter, according to the consolidated segment statement.

Quartz-processing gross segment revenue increased to Rs 13.45 crore in the September quarter from Rs 3.74 crore in the preceding June quarter. No quartz-processing revenue was reported for the September 2025 quarter, while the segment generated Rs 17.20 crore of gross revenue in the half year ended September 30, 2026.

Mining and processing remained Midwest's largest segment, with gross revenue of Rs 165.23 crore and profit before interest and tax of Rs 43.72 crore in the September quarter. Its revenue was higher than Rs 154.62 crore a year earlier but below Rs 184.43 crore in June 2026; its segment profit likewise exceeded Rs 41.23 crore a year earlier but was below Rs 52.19 crore sequentially.

Total segment profit before interest and tax was Rs 45.40 crore in the September quarter, compared with Rs 45.92 crore in June 2026 and Rs 41.19 crore in the year-earlier quarter. Interest expense rose to Rs 4.61 crore from Rs 3.55 crore a year earlier, leaving reported profit before tax of Rs 40.80 crore.

How did Midwest's balance sheet and cash flows change?

Midwest's total assets were Rs 1,436.47 crore at September 30, 2026, compared with Rs 1,366.77 crore at March 31, 2026. Non-current assets increased to Rs 851.64 crore from Rs 768.96 crore, while current assets declined to Rs 577.68 crore from Rs 590.66 crore.

Property, plant and equipment increased to Rs 458.89 crore at September 30 from Rs 386.26 crore at the March year-end. Intangible assets under development rose to Rs 125.38 crore from Rs 123.35 crore, while capital work-in-progress decreased to Rs 52.93 crore from Rs 90.37 crore.

Total equity increased to Rs 1,040.29 crore from Rs 978.52 crore over the same period. Non-current borrowings were Rs 143.96 crore at September 30, compared with Rs 129.92 crore at March 31, and current borrowings were Rs 61.21 crore, compared with Rs 41.90 crore.

Midwest reported net cash used in operating activities of Rs 6.73 crore for the half year ended September 30, 2026, compared with net cash generated from operations of Rs 124.66 crore in the prior-year half. Cash generated from operations was Rs 20.61 crore, versus Rs 136.30 crore a year earlier, and income taxes paid were Rs 27.34 crore.

Cash and cash equivalents decreased to Rs 34.20 crore at September 30, 2026 from Rs 63.37 crore at the start of the half year. The group recorded a net decrease of Rs 29.17 crore in cash and cash equivalents, compared with a Rs 20.88 crore increase in the six months ended September 30, 2025, while financing activities generated Rs 24.67 crore of cash.

What plans and operating risks did Midwest disclose?

Midwest disclosed net initial public offering proceeds of Rs 229.63 crore, of which Rs 95.06 crore had been utilised and Rs 134.56 crore remained unutilised as at September 30, 2026. The company said the unutilised proceeds were temporarily invested in short-term deposits with a scheduled commercial bank.

The largest disclosed allocation was Rs 130.30 crore for a loan to wholly owned subsidiary Midwest Neostone Private Limited to fund capital expenditure for the Quartz Processing Plant. Midwest had utilised Rs 3.50 crore for that purpose by September 30, leaving Rs 126.80 crore unutilised under the stated allocation.

Midwest had also allocated Rs 25.76 crore for electric dump trucks, including investment in Andhra Pradesh Granite (Midwest) Private Limited for dump-truck purchases. It had utilised Rs 21.25 crore under that allocation, while Rs 3.26 crore earmarked for solar-energy integration at certain mines had not been utilised as of September 30.

The filing disclosed that the Director of Mines Safety, Hyderabad Region No. 3, prohibited granite extraction at Midwest's Chimakurthy Mine. The prohibition followed stability, operational and safety concerns arising from the collapse of the mine's northern portion, which the company said originated from an adjoining mine, and will remain in effect until withdrawn.

Conclusion

Midwest's September 2026 quarter combined year-on-year increases in revenue and profit with a sequential decline from the June quarter. Quartz processing moved from a Rs 4.86 crore quarterly loss to Rs 3.85 crore of profit before interest and tax, while mining and processing remained the principal contributor with Rs 165.23 crore of gross segment revenue.

The next disclosed points to watch are deployment of the Rs 126.80 crore unutilised allocation for the Quartz Processing Plant, use of the Rs 3.26 crore solar-integration allocation and the status of the Chimakurthy Mine extraction prohibition. Midwest's filing does not state when the prohibition will be withdrawn.