Ashapura Minechem Limited announced its financial results for the quarter and nine months ended December 31, 2025, alongside significant board appointments that strengthen the company's leadership structure. The diversified multi-mineral solutions provider demonstrated mixed performance with revenue growth offset by margin pressures in India operations while Guinea business showed improved profitability.

Q3FY26 Financial Performance

The company's consolidated financial results for Q3FY26 showed steady operational performance with income from operations reaching ₹960.43 crores, representing a marginal 0.8% increase compared to ₹952.50 crores in the previous quarter. EBITDA improved to ₹143.06 crores from ₹132.13 crores in Q2FY26, marking an 8.3% quarter-on-quarter growth.

Nine-Month Performance Highlights

The nine-month period ending December 31, 2025, showcased exceptional year-on-year growth across key financial metrics. Income from operations surged 49.7% to ₹3,268.50 crores compared to ₹2,183.69 crores in the corresponding period of the previous year.

Business Segment Performance Analysis

The company operates through four distinct business verticals with varying performance during Q3FY26. The Guinea business dealing in bauxite and iron ore mining demonstrated strong performance, while India operations faced margin pressures.

Guinea Business Operational Excellence

The Guinea business recorded improved profitability during the quarter, primarily driven by reduction in demurrage charges compared to Q2, enhanced operational and logistical efficiencies achieved through partnership with China Railways, and realization of customer contracts priced higher than prevailing bauxite index prices. Bauxite export volumes increased to 1.39 million metric tons from 1.33 million metric tons in the previous quarter, with EBITDA per metric ton improving to $10.5 from $8.9.

Board Appointments and Leadership Changes

The Board of Directors approved several key appointments during its meeting held on February 5, 2026. Mr. Hemul Shah received re-appointment as Executive Director and Chief Executive Officer for an additional two-year term commencing February 16, 2026, subject to shareholder approval. The board also appointed two new independent directors - Mr. Jagdish Shetty and Mr. Wilson Mathais - for five-year terms starting February 5, 2026.

Exceptional Items and Outlook

The company recognized exceptional items totaling ₹1.77 crores in standalone results and ₹4.56 crores in consolidated results due to implementation of New Labour Codes. Looking ahead, the company expects moderation in Guinea business EBITDA levels due to softening bauxite index prices, though this impact is expected to be partially offset through increasing operational efficiencies and volume scaling.

Ashapura Minechem has reported strong financial performance in the first half of FY26, driven by significant growth in bauxite exports from its Guinea operations. The diversified mineral company has capitalized on global supply chain shifts and rising demand for aluminium in clean energy applications.

Strong Financial Performance in H1FY26

The company's financial metrics reflect substantial growth across key parameters:

The India business segment also contributed positively, growing over 25% in H1FY26, with management expecting stronger performance in the second half.

Diversified Mineral Portfolio

Ashapura Minechem operates across multiple mineral verticals with a well-balanced revenue mix:

The company recently commenced production at two new bentonite mines in Kutch, supporting annual dispatches of around 300,000 tonnes to optimize sourcing costs and improve supply reliability.

Guinea Operations Drive Volume Growth

Bauxite operations in Guinea have emerged as a critical growth driver despite representing a smaller revenue percentage. The company exported 3.38 MMT of bauxite in H1FY26, nearly matching the entire FY25 volume of 3 MMT. Bauxite exports doubled to 1.33 MMT in Q2FY26 compared to the same period last year.

Infrastructure and Logistics Capabilities

Ashapura operates comprehensive infrastructure in Guinea:

The company completed a 100-meter bridge to access high-quality bauxite deposits in the BOFFA region and maintains end-to-end supply chain control.

Export Strategy and Pricing Structure

Most bauxite sales to China operate on a CIF (Cost, Insurance, and Freight) basis, where Ashapura bears all costs until cargo reaches Chinese ports. This results in higher revenue as prices include ocean freight and insurance costs. Some customers prefer FOB (Free on Board) arrangements, resulting in lower revenue as pricing excludes freight costs.

Guinea bauxite export EBITDA stood at $8.90 per metric tonne in H1FY26. The company plans to scale exports to 15 MMT by FY28, supported by port capacity expansion from 16 MMT to 27 MMT by Q2FY27.

Portfolio Diversification Initiatives

Beyond bauxite, Ashapura is entering Guinea's iron ore market through a long-term sale-and-purchase contract with a local beneficiation plant. Trial production was expected to begin in late 2025, with management targeting commercialization of around 1 million tonnes within the next one to two quarters.

Iron ore sales are structured on an ex-works basis, excluding road transport, port handling, and ocean freight costs. Management expects ex-mines costs to be less than $10 per tonne, supporting good contribution margins despite lower top-line revenue compared to CIF bauxite sales.

Market Position and Outlook

The company trades at an EV/EBITDA multiple of 15, above its 5-year median of 11. Key operational segments show strong capacity utilization, with the Paddhar kaolin plant operating near peak capacity and bleaching clay capacity running at peak utilization. Management is evaluating debottlenecking and brownfield expansion options to support incremental volumes across various segments.