Ashapura Minechem Limited reported Q3 FY26 earnings that reflected a mixed performance, with revenue remaining largely flat while operational efficiency improvements drove better margins. The company's Guinea operations faced weather-related challenges, though management remains optimistic about future quarters.

Financial Performance Overview

The company's Q3 FY26 consolidated revenue from operations stood at INR960.4 crores, representing a marginal 0.8% quarter-on-quarter growth. Despite the modest revenue increase, the company demonstrated improved operational efficiency with EBITDA reaching INR143 crores, marking an 8.3% quarter-on-quarter growth.

For the nine-month period of FY26, consolidated revenue reached INR3,268 crores, reflecting robust 50% year-on-year growth. EBITDA for nine months came to INR463 crores, up 52% year-on-year, with margins improving to 14.2% from less than 14% in the corresponding period last year.

Operational Challenges and Improvements

The company's Guinea operations, which contributed 76% to Q3 revenue, faced significant challenges from prolonged monsoon conditions. Management emphasized that volume shortfalls were primarily due to climatic changes and logistic difficulties rather than lack of business orders or shipping arrangements.

Despite volume challenges, the company achieved notable improvements in cost structure. The EBITDA margin expansion was primarily driven by:

• Reduced demurrage charges through faster vessel turnaround times
• Enhanced cost efficiency measures
• New tie-ups with mining and logistics contractors including China Railway
• Consistent shipping freight arrangements

Market Conditions and Pricing Environment

Bauxite pricing faced headwinds during the quarter, with current prices around $60-61 per ton compared to previous levels of around $70 per ton. Management attributed the price decline to several factors:

• Resumption of previously suspended mining leases in Guinea
• Pending long-term US-China trade agreements
• Chinese government restrictions on new domestic smelter approvals
• Excess alumina supplies from new refineries

Strategic Initiatives and Future Outlook

The company has implemented several strategic measures to maintain cost competitiveness:

• Long-term contracts with ocean freight providers offering rates below market index
• CQD (Customary Quick Dispatch) terms eliminating demurrage charges
• Development of iron ore business alongside bauxite operations
• Focus on premium quality bauxite to command price premiums of $1-2.5 per ton

Management reaffirmed its long-term volume target of 15 million tons by FY28, expecting linear growth progression. The company expressed confidence in maintaining operations even at current price levels, with a stated floor price of around $52 per ton below which operations would require reassessment.

Exceptional Items and Labor Code Impact

The company reported a one-time exceptional impact of INR4.56 crores in consolidated results due to revised labor code definitions effective November 2025, affecting employee benefit computations.

Management remains optimistic about price stabilization and gradual recovery, particularly after the Chinese New Year period, while continuing to focus on volume growth and operational efficiency improvements.

Ashapura Minechem Limited has announced the cessation of Shri Pundarik Sanyal as Independent Director following the completion of his second term of appointment. The company informed stock exchanges about this corporate governance development through a regulatory filing dated February 8, 2026.

Director Cessation Details

The cessation became effective from the close of business hours on February 8, 2026, marking the end of Shri Pundarik Sanyal's tenure as Independent Director. The following table summarizes the key details of this corporate change:

Regulatory Compliance

The company has made this disclosure pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was sent to both BSE Limited and National Stock Exchange of India Limited, ensuring compliance with listing requirements.

The disclosure also references SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, demonstrating adherence to the latest regulatory guidelines for such corporate announcements.

Board Recognition

The Board of Directors has formally acknowledged Shri Pundarik Sanyal's contributions during his tenure with the company. The board placed on record its deep appreciation for the valuable contributions and guidance provided by him throughout his service as Independent Director.

Corporate Communication

The formal intimation was signed by Sachin Polke, Company Secretary & President (Corporate Affairs), and digitally authenticated on February 8, 2026. The communication was addressed to the Deputy General Managers of both major stock exchanges where the company's shares are listed under scrip codes 527001 (BSE) and ASHAPURMIN (NSE).