Midwest Reports Strong Q2 Performance; Subsidiary's Credit Rating Upgraded
Midwest announced robust Q2 FY2026 financial results with significant improvements across key metrics. EBITDA increased by 52% to ₹430 crore, while consolidated net profit surged 87% to ₹278 crore. Revenue grew by 14% to ₹1,600 crore. The company's subsidiary, Andhra Pradesh Granite (Midwest) Private Limited, received a credit rating upgrade from CRISIL, with its long-term rating improving to CRISIL A-/Stable from CRISIL BBB+/Positive, and short-term rating to CRISIL A2+ from CRISIL A2. The upgrade reflects APGMPL's improved financial profile and strong business performance.
*this image is generated using AI for illustrative purposes only.
Midwest (formerly known as Midwest Private Limited) has reported robust financial results for the second quarter of fiscal year 2026, with significant improvements in key financial metrics. Additionally, the company's subsidiary, Andhra Pradesh Granite (Midwest) Private Limited (APGMPL), has received a credit rating upgrade from CRISIL Ratings Limited.
Q2 Financial Highlights
Midwest delivered strong quarterly results with the following key performance indicators:
| Metric | Q2 FY2026 | Q2 FY2025 | YoY Change |
|---|---|---|---|
| EBITDA | 430.00 | 283.00 | +52.00% |
| EBITDA Margin | 27.10% | 20.04% | +706 bps |
| Consolidated Net Profit | 278.00 | 149.00 | +87.00% |
| Revenue | 1,600.00 | 1,400.00 | +14.00% |
The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose to 430.00 crore rupees from 283.00 crore rupees in the same quarter last year, marking a significant 52.00% increase. The EBITDA margin expanded substantially to 27.10% compared to 20.04% in the corresponding period of the previous year.
Midwest's consolidated net profit nearly doubled, reaching 278.00 crore rupees from 149.00 crore rupees year-over-year. Revenue growth was also notable, with the company reporting 1,600.00 crore rupees in revenue, up from 1,400.00 crore rupees in the same quarter of the previous fiscal year.
Credit Rating Upgrade for Subsidiary
In a separate development, CRISIL Ratings Limited has upgraded the credit rating of Andhra Pradesh Granite (Midwest) Private Limited, a subsidiary of Midwest. The upgrade reflects the improved financial profile and business performance of APGMPL.
The revised ratings are as follows:
| Facility | Previous Rating | New Rating |
|---|---|---|
| Long Term Rating | CRISIL BBB+/Positive | CRISIL A-/Stable |
| Short Term Rating | CRISIL A2 | CRISIL A2+ |
CRISIL's upgrade is based on several factors, including:
- Strong support from the parent company, Midwest
- Extensive experience of the promoters in the granite industry
- Healthy business performance and strong financial risk profile of APGMPL
The rating agency noted that APGMPL's revenue increased to 256.84 crore rupees in fiscal 2025 from 242.59 crore rupees in fiscal 2024. The company's operating margin remained strong at over 25%, which CRISIL attributes to APGMPL's presence in the premium segment of granites.
Outlook
The credit rating upgrade for APGMPL, coupled with Midwest's strong Q2 performance, indicates a positive outlook for the company. However, CRISIL has identified certain risk factors, including exposure to intense competition from alternative products, product concentration risk, and susceptibility to fluctuations in foreign exchange rates.
As Midwest continues to strengthen its market position in the granite industry, investors and stakeholders will be watching closely to see if the company can maintain its growth trajectory and address the identified risks in the coming quarters.
Historical Stock Returns for Midwest
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.46% | -6.13% | +26.72% | +22.88% | +22.88% | +22.88% |
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