Sandur Manganese Q2 profit rises 88% on steel and mining

The Sandur Manganese & Iron Ores Limited reported consolidated net profit of Rs 261.25 crore for the quarter ended 30 September 2026, up 88% from Rs 138.87 crore a year earlier, as mining segment result rose to Rs 246.68 crore and steel segment result reached Rs 103.74 crore.

How did Sandur Manganese perform in Q2 2026?

Sandur Manganese delivered higher revenue and profit in the September 2026 quarter. Revenue from operations increased 22% year on year to Rs 1,506.13 crore from Rs 1,232.34 crore, while profit before tax rose to Rs 320.32 crore from Rs 174.70 crore. Net profit after tax and share of associate profit was Rs 261.25 crore, compared with Rs 138.87 crore, and earnings per share rose to Rs 5.35 from Rs 2.85.

The Q2 result included a Rs 9.32 crore exceptional-item reversal. Sandur Manganese said it revised its wage structure with effect from 1 April 2026, resulting in a reversal of estimated gratuity liability. Before exceptional items and tax, profit was Rs 311.00 crore, compared with Rs 174.70 crore in the quarter ended 30 September 2025.

Which businesses drove Sandur Manganese’s quarterly earnings?

Mining was Sandur Manganese’s largest reported segment contributor to Q2 earnings. Mining segment result increased to Rs 246.68 crore from Rs 195.99 crore a year earlier, while mining revenue rose 36% to Rs 476.20 crore from Rs 349.07 crore. Mining segment assets stood at Rs 464.89 crore as of 30 September 2026.

Steel recorded the largest percentage increase among the two main earnings contributors. Its segment result rose to Rs 103.74 crore from Rs 40.22 crore in Q2 2025, while steel revenue increased to Rs 948.40 crore from Rs 815.90 crore. Steel segment finance costs were Rs 17.85 crore in Q2 2026, lower than Rs 26.72 crore a year earlier.

What changed in Sandur Manganese’s first-half results?

Sandur Manganese’s first-half profit and revenue both increased from the prior-year period. Net profit was Rs 489.10 crore for the half year ended 30 September 2026, compared with Rs 305.96 crore a year earlier, while revenue from operations rose to Rs 2,880.91 crore from Rs 2,367.72 crore. Profit before tax increased to Rs 601.39 crore from Rs 384.06 crore.

Mining contributed Rs 461.88 crore of segment result in the first half, up from Rs 394.83 crore, and steel contributed Rs 188.58 crore, compared with Rs 113.35 crore. Ferroalloys segment result rose to Rs 8.23 crore from Rs 2.30 crore, while coke and energy result increased to Rs 21.06 crore from Rs 0.51 crore. Group finance costs declined to Rs 51.69 crore from Rs 110.73 crore.

Tax expense for the six months was Rs 111.50 crore, compared with Rs 78.17 crore in the corresponding prior-year period. The group recorded a Rs 0.79 crore share of loss from its associate, against a Rs 0.07 crore share of profit a year earlier. Total comprehensive income was Rs 487.95 crore, compared with Rs 310.13 crore.

What do Sandur Manganese’s balance sheet and cash flows show?

Sandur Manganese’s consolidated assets increased while liabilities declined between 31 March and 30 September 2026. Total assets were Rs 5,859.30 crore at 30 September 2026, compared with Rs 5,527.07 crore at 31 March 2026. Total equity rose to Rs 3,733.43 crore from Rs 3,269.79 crore, while total liabilities fell to Rs 2,125.87 crore from Rs 2,257.28 crore.

Trade receivables increased to Rs 570.90 crore at 30 September from Rs 437.91 crore at the March year-end, while inventories decreased to Rs 861.74 crore from Rs 872.48 crore. Cash and cash equivalents fell to Rs 31.43 crore from Rs 52.99 crore after the group generated Rs 490.80 crore from operating activities, used Rs 342.13 crore in investing activities and used Rs 170.23 crore in financing activities during the half year.

Sandur Manganese spent Rs 181.96 crore on property, plant, equipment, intangible assets and capital work-in-progress during the first half, compared with Rs 116.81 crore a year earlier. It also paid Rs 24.31 crore in dividends during the period, based on the Rs 0.50 per equity share dividend approved for the year ended 31 March 2026.

What compliance and corporate changes should Sandur Manganese investors track?

Sandur Manganese faces a revised compensatory-afforestation demand of Rs 139.05 crore from Karnataka’s Deputy Conservator of Forest for extension of forest-lease validity beyond December 2026. The demand also covers 714.9 hectares of land. The company had registered 281.53 hectares with the Forest Department by 30 September 2026 after its Special Leave Petition was dismissed by the Supreme Court on 21 May 2026.

After the quarter end, Sandur Manganese registered another 51.58 hectares and obtained suitability certificates for a further 381.79 hectares, which it said was being registered. During the quarter, Arjas Steel Private Limited was renamed Royal Sandur Metals Private Limited and Arjas Modern Steel Private Limited was renamed Royal Sandur Green Steel Private Limited, with both changes effective from 27 August 2026.

Sandur Manganese also incorporated Royal Sandur Academy Private Limited, Royal Sandur Hospitality Private Limited and Royal Sandur MedTech Private Limited during the quarter ended 30 September 2026. Subsequent to the quarter end, it paid Rs 1 crore each as equity-share subscription money to the three wholly owned subsidiaries.

Conclusion

Sandur Manganese’s September-quarter performance reflected higher contributions from both mining and steel rather than reliance on one operation. Consolidated net profit increased to Rs 261.25 crore, with mining segment result rising by Rs 50.69 crore year on year and steel segment result increasing by Rs 63.52 crore.

The key disclosed matter to watch is completion of the forest-lease compliance process beyond December 2026. Sandur Manganese had registered 333.11 hectares after the quarter end and secured suitability certificates for a further 381.79 hectares, while it said it was taking steps to register the remaining land and pay the Rs 139.05 crore compensatory-afforestation charge within the prescribed period.