Financial Performance Highlights

  • Q1 FY27 revenue growth of 35% Year-over-Year (YoY)
  • Q1 FY27 EBITDA growth of 25% YoY
  • Q1 FY27 PAT growth of 27% YoY
  • Diesel cost represents approximately 13% of total costs, with prices increasing from ₹85 to ₹125-130 per liter
  • EBITDA margins declined by 190 basis points due to diesel price volatility

Business Segment Performance

Granite Business

  • Achieved over 30% growth (excluding quartz contribution)
  • Volume growth of approximately 10% across both Absolute Black and Black Galaxy products
  • Implemented price increases of approximately 3-5% to mitigate cost pressures
  • Fleet electrification and solar integration reducing diesel dependency

Quartz Business

  • Q1 FY27 revenue: ₹5 crores
  • Q1 FY27 volume: Approximately 5,000 tons
  • Average realization: ₹10,000 per ton
  • Target run rate: 15,000 tons per month by year-end
  • Current utilization: Targeting 10,000 tons monthly by end of current quarter
  • Break-even expected at 10,000 tons monthly production

Strategic Developments

Indonesia MoU with PERMINAS

  • Signed MoU with Indonesia's state-owned company PERMINAS for critical minerals exploration
  • Focus on rare earths, particularly heavy rare earths (dysprosium and terbium) from ionic clay deposits
  • First private company to secure such agreement with PERMINAS
  • Expected to convert MoU to formal agreement and form JV in current quarter
  • JV structure: PERMINAS and Midwest Limited to contribute capital
  • Target: 12-15 months for plant build-out and operations commencement

Sri Lanka Project

  • Policy finalization and ratification completed after 12-month delay
  • Received government communication to confirm production, investment, and timelines
  • Expected licensing during current quarter
  • Ground-breaking targeted for October 2026
  • Plant build-out period: 12-15 months from commencement
  • Project capex: Approximately ₹120 crores

Kerala Government JV

  • No significant progress due to new government formation and pending MD appointment at KMML
  • Project remains in pilot plant stage with minimal expenditure

Sierra Leone Subsidiary

  • No material updates this quarter
  • Minimal expenditure, still evaluating concessions

Capital Expenditure and Guidance

FY27 Guidance

  • Total revenue: ₹840 crores (vs. ₹645 crores in FY26)
  • Granite revenue: ₹720 crores
  • Quartz revenue: ₹100-120 crores
  • EBITDA margins: Expected to maintain 26-27% range (granite business)

Capex Plans

  • Quartz Phase 2 expansion: ₹125 crores (split between current and next fiscal year)
  • ₹60-70 crores expected outflow in next two quarters
  • Sri Lanka project: ₹120 crores
  • Current gearing ratio: 0.2 times

Future Projections

  • FY28 quartz revenue target: ₹180-200 crores from Phase 1
  • Additional ₹40-50 crores expected from Phase 2 in FY28
  • Granite business: Conservative 10-12% growth expectation
  • FY28 total revenue target: Approximately ₹950 crores

Operational Updates

Quartz Plant Status

  • Phase 1: Commercial operations commenced, teething issues resolved
  • Phase 2: Machinery sourcing challenges from China, exploring alternatives
  • Phase 2 commissioning expected within 10-12 months

Fuel Cost Management

  • Diesel prices rationalized in current quarter but remain elevated
  • Electrification expenditure largely completed this year
  • Continued fleet electrification to reduce diesel impact

Corporate Structure

  • Promoter holding: 77% (3-year timeline to reduce to 75%)
  • No near-term plans for equity fundraising
  • Midwest Advanced Materials focused on permanent magnet production (oxide to magnet)
  • Midwest Energy to partner separately for magnet production in Indonesia JV