Midwest Limited reported a 20.12% year-on-year decline in consolidated net profit to ₹106.48 crore for the financial year ended March 31, 2026. Revenue from operations rose 3.1% to ₹645.62 crore for the same period, while EBITDA stood at ₹174.37 crore with a margin of 27.01%. The board approved the audited standalone and consolidated financial results at a meeting held on May 26, 2026. In compliance with Regulation 30 and 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company subsequently published its audited financial results in the Financial Express (English, all editions) and Nava Telangana (Telugu, Hyderabad edition) on May 28, 2026, with the submission signed by Whole-time Director Kollareddy Ramachandra.

Annual Financial Performance

The company's full-year consolidated financial results reflected a contraction in profitability despite revenue growth. Total expenses increased to ₹471.25 crore from ₹454.40 crore in the previous year. Profit before tax (PBT) declined by 5.57% to ₹143.73 crore. Net worth improved significantly to ₹978.52 crore from ₹632.40 crore in the prior year, driven by an increase in reserves and surplus.

Q4 Performance

For the quarter ended March 31, 2026, Midwest reported a decline in profitability metrics on both a year-on-year and sequential basis. Consolidated net profit for Q4FY26 stood at ₹37.02 crore, decreasing from ₹48.47 crore in the corresponding quarter of the previous year. Revenue from operations for the quarter fell by 6.25% to ₹215.81 crore. On a sequential basis, however, revenue grew by 67.48% from ₹128.86 crore in Q3FY26, driven by operational recovery.

Q4 EBITDA on a consolidated basis stood at ₹58.32 crore, compared to ₹74.66 crore in the year-ago period, reflecting a margin compression to 27.03% from 32.43% year-on-year.

Strategic Updates and Disclosures

The investor presentation highlighted several strategic initiatives undertaken during the period. Midwest received a 30-year quarry lease work order from the Government of Andhra Pradesh effective January 6, 2026. The board approved establishing a wholly owned subsidiary in Sierra Leone to support the expansion of its Heavy Mineral Sands (HMS) reserves. Additionally, Midwest was selected as the Lead Consortium Partner by The Kerala Minerals and Metals Ltd. (KMML) for a strategic technology development initiative for rare earth elements. The financial results were reviewed by the Audit Committee and carry an unmodified audit opinion from the Statutory Auditors, MSKA & Associates LLP.

Midwest Limited has released the transcript of its earnings conference call held on May 27, 2026, discussing the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The company reported a consolidated revenue of INR645 crores for FY26, a growth of over 3% compared to the previous year's INR626 crores. The recording and transcript are available on the company's website pursuant to Regulation 30 and 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

For the quarter ended March 31, 2026, the company posted a consolidated revenue of INR215 crores. The EBITDA margin for the quarter stood at 27%, compared to 23.7% in the sequential quarter, while the PAT margin was 17.16% against 13.48% sequentially. For the full year, the EBITDA margin was 27.01% compared to 27.43% in the previous year, and the PAT margin was 16.49% compared to 17.17%.

The company noted that it could have added an additional INR25 crores to its top line in the last quarter had it not been for logistics issues triggered by geopolitical events, which prevented the shipment of 4,000 to 5,000 CBM of granite. Overall debt was reduced by INR50 crores, and working capital days decreased from 122 to 104 days.

Business Updates

Midwest Limited secured a new 30-year mining lease for Galaxy granite, with production already contributing to revenue. The company targets a contribution of INR70 crores to INR80 crores from this mine. Additionally, the company has started building a Phase 2 plant for High Purity Quartz (HPQ) with a capex of INR125 crores to INR130 crores, expected to be commissioned by Q4FY27.

In the Rare Earths sector, Midwest Limited was selected as a consortium partner by Kerala Minerals and Metals Limited (KMML) to build a pilot plant. The project has a budget of INR20 crores and is expected to run for six months starting July. The company is also awaiting a new policy from the Sri Lankan government to progress its Heavy Mineral Sands project.

Operational Guidance

The company targets 60% capacity utilization for its Quartz Phase 1 plant this year, aiming for 150,000 tonnes of production. The plant is designed to produce 70% engineered stone and 30% solar glass. Management expects organic growth of 10% to 12% in the granite segment. The conference call featured participation from Mr. Ram Kollareddy, Promoter, Whole-time Director & CEO; Mrs. Uma Kollareddy, Promoter & Whole-time Director; and Mr. Dilip Kumar, Chief Financial Officer.