Midwest Gold Reports Standalone Profit Amid Consolidated Losses in Q2 FY2026
Midwest Gold Limited announced Q2 FY2026 results with standalone profit of ₹72.57 crore but consolidated loss of ₹352.43 crore. Standalone revenue was ₹0.52 crore, while consolidated revenue reached ₹120.12 crore. Auditors issued a qualified opinion on ₹2,009.34 crore classified under Intangible Assets Under Development. The renewable energy segment reported ₹131.24 crore revenue but ₹262.72 crore loss. Management committed to improving documentation processes for intangible asset development costs. The company fully utilized ₹7,890.44 crore raised through preferential allotment for various purposes including expansion, working capital, debt repayment, and corporate needs.
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Midwest Gold Limited has announced its financial results for the quarter and half-year ended September 30, 2025, revealing a mixed performance across its standalone and consolidated operations.
Standalone Performance
On a standalone basis, Midwest Gold Limited reported a profit of ₹72.57 crore for the quarter, marking a significant turnaround from the loss of ₹37.46 crore in the previous quarter. The company's standalone revenue from operations stood at ₹0.52 crore for the quarter.
Consolidated Results
However, the consolidated picture presents a different scenario. The company posted a consolidated loss of ₹352.43 crore for the quarter. The consolidated revenue from operations was reported at ₹120.12 crore.
Financial Highlights
| Particulars | Q2 FY2026 (Standalone) | Q2 FY2026 (Consolidated) |
|---|---|---|
| Revenue from Operations | ₹0.52 crore | ₹120.12 crore |
| Profit/(Loss) | ₹72.57 crore | (₹352.43 crore) |
Auditor's Observations
The auditors have issued a qualified opinion on the consolidated results, noting concerns about ₹2,009.34 crore classified under Intangible Assets Under Development. They stated that sufficient evidence for recognition criteria under accounting standards was not provided for this amount.
Segment Performance
The company operates in multiple segments through its subsidiaries:
- Rare-earth materials and magnets
- Renewable energy and power storage systems
- Other operations
The renewable energy and power storage systems segment reported revenue of ₹131.24 crore but faced a segment loss of ₹262.72 crore for the quarter.
Management's Response
Regarding the auditor's qualification, the management acknowledged that certain supporting documentation and project evaluations required to conclusively demonstrate the capitalization criteria may not have been adequately compiled or presented. The company has committed to strengthening its documentation processes related to the capitalization of development costs to ensure full compliance with accounting standards.
Utilization of Preferential Allotment Proceeds
The company reported full utilization of the ₹7,890.44 crore raised through preferential allotment. The funds were allocated as follows:
- ₹1,900.00 crore for future expansion plans and activities
- ₹2,027.00 crore for working capital requirements
- ₹2,003.44 crore for repayment of borrowings
- ₹1,960.00 crore for general corporate purposes
Midwest Gold Limited's mixed financial results reflect the complex nature of its operations across various segments. While the standalone entity has shown profitability, the consolidated performance indicates challenges in its subsidiaries, particularly in the renewable energy and power storage systems segment. The company's commitment to improving documentation processes for intangible asset development costs suggests a focus on addressing the auditors' concerns in future reporting periods.
Historical Stock Returns for Midwest Gold
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -5.00% | -4.39% | +35.56% | +438.98% | +3,509.74% | +36,189.36% |
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