Ashapura Minechem has reported strong financial performance in the first half of FY26, driven by significant growth in bauxite exports from its Guinea operations. The diversified mineral company has capitalized on global supply chain shifts and rising demand for aluminium in clean energy applications.

Strong Financial Performance in H1FY26

The company's financial metrics reflect substantial growth across key parameters:

The India business segment also contributed positively, growing over 25% in H1FY26, with management expecting stronger performance in the second half.

Diversified Mineral Portfolio

Ashapura Minechem operates across multiple mineral verticals with a well-balanced revenue mix:

The company recently commenced production at two new bentonite mines in Kutch, supporting annual dispatches of around 300,000 tonnes to optimize sourcing costs and improve supply reliability.

Guinea Operations Drive Volume Growth

Bauxite operations in Guinea have emerged as a critical growth driver despite representing a smaller revenue percentage. The company exported 3.38 MMT of bauxite in H1FY26, nearly matching the entire FY25 volume of 3 MMT. Bauxite exports doubled to 1.33 MMT in Q2FY26 compared to the same period last year.

Infrastructure and Logistics Capabilities

Ashapura operates comprehensive infrastructure in Guinea:

The company completed a 100-meter bridge to access high-quality bauxite deposits in the BOFFA region and maintains end-to-end supply chain control.

Export Strategy and Pricing Structure

Most bauxite sales to China operate on a CIF (Cost, Insurance, and Freight) basis, where Ashapura bears all costs until cargo reaches Chinese ports. This results in higher revenue as prices include ocean freight and insurance costs. Some customers prefer FOB (Free on Board) arrangements, resulting in lower revenue as pricing excludes freight costs.

Guinea bauxite export EBITDA stood at $8.90 per metric tonne in H1FY26. The company plans to scale exports to 15 MMT by FY28, supported by port capacity expansion from 16 MMT to 27 MMT by Q2FY27.

Portfolio Diversification Initiatives

Beyond bauxite, Ashapura is entering Guinea's iron ore market through a long-term sale-and-purchase contract with a local beneficiation plant. Trial production was expected to begin in late 2025, with management targeting commercialization of around 1 million tonnes within the next one to two quarters.

Iron ore sales are structured on an ex-works basis, excluding road transport, port handling, and ocean freight costs. Management expects ex-mines costs to be less than $10 per tonne, supporting good contribution margins despite lower top-line revenue compared to CIF bauxite sales.

Market Position and Outlook

The company trades at an EV/EBITDA multiple of 15, above its 5-year median of 11. Key operational segments show strong capacity utilization, with the Paddhar kaolin plant operating near peak capacity and bleaching clay capacity running at peak utilization. Management is evaluating debottlenecking and brownfield expansion options to support incremental volumes across various segments.

Ashapura Industrial Finance Limited has disclosed the acquisition of 40,000 equity shares through an open market transaction, as per regulatory filing submitted to stock exchanges on December 24, 2025. The acquisition was completed on December 22, 2025, in compliance with SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011.

Transaction Details

The share acquisition represents a strategic move by Ashapura Industrial Finance Limited, classified as a Promoter/Promoter group entity. The transaction details are summarized below:

Shareholding Pattern Changes

The acquisition resulted in a marginal increase in the company's shareholding position. The comparative shareholding data shows:

Target Company Information

The target company maintains a stable equity structure with consistent share capital across the transaction period:

Regulatory Compliance

The disclosure was made under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011. The filing was submitted to both BSE Limited and National Stock Exchange of India Limited, ensuring full regulatory compliance. The company confirmed that no shares were encumbered, and no voting rights were acquired through instruments other than equity shares.

The transaction reflects routine portfolio management activities by the promoter group, with the acquisition maintaining the company's position within established shareholding thresholds. The disclosure demonstrates adherence to transparency requirements for substantial shareholding changes in publicly listed companies.