Sandur Manganese & Iron Ores Limited (SMIORE) has reported strong quarterly results, with total income rising 84% year-on-year to ₹1,150.00 crore. The company's EBITDA grew 47% to ₹314.00 crore, while profit after tax increased 16% to ₹167.00 crore. However, the EBITDA margin declined to 27% compared to the previous year's levels.

The growth was primarily driven by the company's mining capacity expansions, with manganese ore capacity increased to 0.599 MTPA and iron ore to 4.45 MTPA. The integration of Arjas Steel, acquired in November 2024, also contributed to the company's performance.

Production and Sales

Production volumes remained strong, with manganese ore at 1.21 lakh tonnes and iron ore at 10.71 lakh tonnes, although sales volumes declined year-on-year for most segments. SMIORE, which holds the position of the 2nd largest manganese ore miner and 3rd largest iron ore miner in Karnataka, also commissioned a 42.9 MW renewable energy project.

Bonus Share Issue

In a significant move for shareholders, the Board of Directors has approved a bonus share issuance in the ratio of 2:1, subject to shareholder approval. This means shareholders will receive two new fully paid-up equity shares for every one existing share held.

Segment-wise Performance

The company's segment-wise performance was as follows:

Corporate Actions

• SMIORE has increased its authorized share capital from ₹200.00 crore to ₹600.00 crore to accommodate the bonus issue.
• The company has set September 10, 2025, as the record date for determining shareholder eligibility for the final dividend of ₹1.25 per equity share.
• The Board has re-appointed Bahirji Ajai Ghorpade as Managing Director for a period of three years, effective from October 1, 2025, to September 30, 2028, subject to shareholder approval.

Management Outlook

Management highlighted their focus on ramping up sales after capacity expansions and maximizing synergies from the steel acquisition. They also noted that seasonal softness is expected in steel markets due to the monsoon.

Annual General Meeting

The 71st Annual General Meeting is scheduled for September 17, 2025, to be held via video conferencing.

These strategic moves, including the bonus share issuance and leadership continuity, reflect SMIORE's commitment to shareholder value and long-term growth in the metals and mining sector.

Sandur Manganese & Iron Ores Limited has announced a 2-for-1 bonus share issue, subject to shareholder approval, amid mixed financial results for the first quarter.

Financial Performance

The company reported a revenue of 4.23 billion rupees for Q1, down from 6.00 billion rupees in the same period last year. Net profit decreased to 1.30 billion rupees from 1.46 billion rupees year-over-year. However, EBITDA improved to 2.10 billion rupees from 1.90 billion rupees, with the EBITDA margin significantly increasing to 48.94% from 31.74% in the previous year.

Bonus Share Issue

The Board of Directors has approved the issuance of bonus shares in the ratio of 2:1, meaning shareholders will receive two new fully paid-up equity shares for every one existing share held. This decision is subject to shareholder approval.

Increase in Authorized Share Capital

To facilitate the bonus issue, the company plans to increase its authorized share capital from 2 billion rupees to 6 billion rupees, divided into 600 million equity shares of 10 rupees each.

Management Changes

The Board has re-appointed Bahirji Ajai Ghorpade as Managing Director for a three-year term from October 1, 2025, to September 30, 2028, subject to shareholder approval at the upcoming Annual General Meeting.

Production Capacity Enhancement

In a separate announcement, Sandur Manganese received approval from the Central Empowered Committee to enhance its permissible annual production limit:

• Manganese ore limit increased from 0.032 Million Metric Tonnes (MMT) to 0.049 MMT
• Iron ore limit set at 0.089 MMT for Mining Lease No. 2679

Additionally, the company is permitted to transport 0.327 MMT of already produced incidental iron ore over two years:

• 0.164 MMT during FY2025-26
• 0.163 MMT during FY2026-27

The company will now seek necessary regulatory approvals to operate at these enhanced levels.

Conclusion

Sandur Manganese & Iron Ores Limited's strategic decisions, including the bonus share issue and production capacity enhancement, come at a time of mixed financial performance. While revenue and net profit have declined, the significant improvement in EBITDA margin suggests operational efficiencies. The company's focus on expanding production capacity may help drive growth in the coming quarters.