Midwest Limited held its Q3FY26 earnings conference call on February 12, 2026, providing comprehensive insights into the company's performance and strategic developments across its granite, quartz, and heavy mineral sands (HMS) business segments. The company, India's largest producer and exporter of Black Galaxy granite, continues to demonstrate strong operational execution while advancing its diversification strategy.

Financial Performance Overview

The company reported robust financial results for Q3FY26 and 9MFY26, showcasing consistent growth momentum across key metrics.

For Q3FY26 specifically, consolidated revenue reached ₹128.86 crores compared to ₹117.12 crores in Q3FY25, representing 10.02% YoY growth. The quarter's EBITDA stood at ₹30.54 crores with a margin of 23.70%, while PAT reached ₹17.36 crores, marking 19.71% YoY growth.

Granite Business Momentum

CEO Ram Kollareddy highlighted strong demand trends in the granite segment, particularly noting exceptional growth in domestic markets exceeding expectations. The company is experiencing robust demand from China, its largest export market, driven by two key factors: construction project completions requiring natural stone finishing and favorable RMB exchange rates at 6.9 compared to historical levels of 6.3-6.4.

Quartz Operations Update

The company addressed previous challenges in its quartz processing operations, with management confirming resolution of integration issues between solar and engineered stone production lines. Commercial production has resumed, with Phase I of the 303,600 MTPA plant now operating smoothly. The company has initiated Phase II development, targeting commissioning by end of Q3 or early Q4 next year, with plans to incorporate High Purity Quartz (HPQ) production capabilities.

Management expects the combined Phase I and Phase II operations, including HPQ, to generate approximately ₹500-550 crores in revenue, representing over 40% of the company's projected total revenue.

Heavy Mineral Sands Progress

Significant developments emerged in the HMS segment, particularly regarding Sri Lankan operations. The Sri Lankan government has developed a new, more transparent and industry-friendly mining policy, receiving cabinet approval in recent weeks. This development positions Midwest Limited to accelerate its four HMS concessions in the country.

The company has also established a subsidiary in Sierra Leone to explore additional HMS opportunities, leveraging its technical expertise in resource identification and development.

Strategic Initiatives and Future Outlook

Midwest Limited continues advancing its sustainability initiatives, having deployed nine electric trucks from IPO proceeds with additional orders planned for completion within two quarters. The company is prototyping its first electric excavator, targeting conversion of diesel-powered equipment to electric alternatives.

The Union Budget 2026-27 announcement of Dedicated Rare Earth Corridors and PLI schemes for permanent magnet production creates significant opportunities for the company's rare earth oxide business. The PLI scheme targeting 6,000 tons of permanent magnets will require 2,000-2,500 tons of oxides, compared to India's current production of 500 tons, indicating substantial domestic demand potential.

Management Commentary

CFO Dilip Kumar Chalasani reported debt reduction of ₹54 crores from IPO proceeds, improving the company's gearing ratio. The management maintains confidence in achieving EBITDA margins similar to previous year levels, with expectations for improvement as new business verticals mature.

The company has repaid ₹54 crores in long-term borrowings from the ₹250 crores raised through its IPO, with remaining funds allocated toward Phase II quartz plant development and EV truck procurement totaling ₹27 crores.

Midwest Limited's diversified approach across granite, quartz, and HMS segments, combined with strategic geographic expansion and sustainability initiatives, positions the company for sustained growth across multiple high-demand sectors serving EV, semiconductor, solar, and defense industries.

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Midwest Limited announced that its Board of Directors has approved the incorporation of a wholly-owned subsidiary in Sierra Leone during a board meeting held on January 7, 2026. This strategic decision represents a significant step in the company's global expansion efforts to secure additional Heavy Mineral Sands (HMS) reserves.

Strategic Expansion Initiative

The company has identified Sierra Leone as a prospective location for expanding its HMS reserves portfolio as part of its long-term growth strategy. Sierra Leone, recognized as a resource-rich West African nation, offers promising opportunities for mineral exploration and extraction activities.

Regulatory Compliance and Subsidiary Formation

The incorporation of a local subsidiary is essential to meet regulatory requirements in Sierra Leone's jurisdiction. Local regulations necessitate the establishment of a domestic entity to apply for mineral rights in the country. The following details outline the subsidiary formation:

Growth Objectives and Market Expansion

Midwest Limited is actively exploring global opportunities to diversify its mineral reserves and strengthen its market position. The Sierra Leone subsidiary will serve as a strategic platform to advance the company's expansion objectives in the West African mining sector. This initiative aligns with the company's commitment to securing long-term growth through geographical diversification of its HMS operations.

Regulatory Disclosure and Next Steps

The company has informed both BSE Limited and National Stock Exchange of India about this development in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Additional information regarding the subsidiary incorporation will be disclosed as required under regulatory guidelines in due course.

The board meeting was conducted efficiently, lasting approximately 20 minutes, demonstrating the directors' clear alignment on this strategic expansion initiative. This development positions Midwest Limited to capitalize on mineral exploration opportunities in Sierra Leone while adhering to local regulatory frameworks.