Sobhagya Mercantile Limited , through its consortium SML CALIBER SPV, has been awarded a mining contract in Maharashtra. The Assam Mineral Development Corporation (AMDCL) has issued a Letter of Intent to the company for operations at the Vadakhol Asoli Ni, Cr, Co & other Associated Mineral Block.

Contract Details

The Letter of Intent, dated November 13, 2025, outlines the scope of work for SML CALIBER SPV, which includes:

• Obtaining Composite License
• Prospecting and preparation of Geological Report
• Mining Plan approval and other statutory permissions
• Land acquisition
• Drilling, excavation, and transportation
• Supply of minerals as Mine Developer and Operator (MDO)
• Sale of minerals on a revenue-sharing basis with AMDCL

Financial Implications

The exact financial terms of the contract have not been disclosed. The company has stated that the awarded contract is for Composite Mining on an MDO and SALE revenue-sharing basis. The final consideration and size of the contract will be determined after the detailed exploration of the allotted mine is completed and a detailed agreement is signed.

Performance Security

As part of the agreement, SML CALIBER SPV has submitted a Performance Security of Rs. 1,50,00,000 (One Crore Fifty Lakh) through a Bank Guarantee valid until November 13, 2030.

Strategic Importance

This contract represents an expansion of Sobhagya Mercantile Limited's mining operations. The Vadakhol Asoli block contains nickel, chromium, and cobalt, which are in demand for industries such as electric vehicle battery production and stainless steel manufacturing.

Next Steps

The company is expected to enter into a detailed contract agreement with AMDCL. Following this, SML CALIBER SPV will commence the detailed exploration of the allotted mine, which will provide more clarity on the project's scope and potential value.

This development aligns with India's efforts to increase domestic mineral exploration and production. As the project progresses, it may contribute to local employment and economic development in the region.

Sobhagya Mercantile Limited (SML) has announced impressive financial results for the second quarter of fiscal year 2025-26, along with a significant development in its mining operations. The company's performance and new contract highlight its growing presence in the Indian market.

Financial Performance

For the quarter ended September 30, 2025, Sobhagya Mercantile Limited reported the following financial results:

The company's strong financial performance demonstrates its operational efficiency and market positioning in the current economic environment.

New Mining Contract

In a strategic move to expand its mining operations, Sobhagya Mercantile Limited has secured a significant contract. Key details of the agreement include:

• Contract Awarded By: Assam Mineral Development Corporation Ltd. (AMDCL)
• Project Location: Vadakhol Asoli Ni, Cr, Co & other Associated Mineral Block, Maharashtra
• Contract Type: Mining Development Operator (MDO)
• Scope of Work:
  • Obtaining Composite License
  • Prospecting and Preparation of Geological Report
  • Mining Plan approval and other Statutory permissions
  • Land acquisition
  • Drilling, excavation, and transportation
  • Supply and sale of minerals on a revenue-sharing basis with AMDCL

This contract positions SML CALIBER SPV, with Sobhagya Mercantile Limited as the lead member, to play a crucial role in the development and operation of the Vadakhol Asoli mineral block.

Corporate Governance

The company's board of directors met on November 14, 2025, to approve the unaudited standalone financial results for Q2 and the half-year ended September 30, 2025. The financial statements were prepared in accordance with IND-AS and have undergone a limited review by the company's auditors, Joshi & Shah.

Market Implications

The combination of strong financial performance and the new mining contract suggests a positive outlook for Sobhagya Mercantile Limited. The diversification into mining operations, particularly in strategic minerals like nickel, chromium, and cobalt, may provide the company with new revenue streams and growth opportunities.

Investors and market analysts will likely be watching closely to see how effectively SML leverages this new contract and whether it translates into sustained financial growth in the coming quarters.