Ashapura Minechem Limited has disclosed the acquisition of 49,000 equity shares by its promoter Chetan Navnitlal Shah through open market purchase. The transaction was completed on February 18, 2026, and disclosed in compliance with Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011.

Transaction Details

The acquisition represents a strategic increase in the promoter's stake in the company. Shah purchased the shares through open market transactions, demonstrating continued confidence in the company's prospects.

Shareholding Pattern Changes

The acquisition has resulted in a marginal increase in the promoter's shareholding percentage. Shah's total holding in Ashapura Minechem has increased following this transaction.

Company Information

Ashapura Minechem Limited's equity shares are listed on both major Indian stock exchanges. The company's share capital structure remains unchanged following this promoter acquisition.

Regulatory Compliance

The disclosure was made in accordance with SEBI regulations governing substantial acquisition of shares and takeovers. The promoter has fulfilled all mandatory reporting requirements under the applicable regulations. The transaction does not involve any encumbrance, voting rights other than equity shares, or convertible securities.

The acquisition reflects the promoter's continued involvement in the company's equity structure, with no changes to the overall share capital or diluted voting capital of Ashapura Minechem Limited.

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.