Midwest Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, confirming no deviations in the utilization of Initial Public Offering (IPO) proceeds. The report, prepared by CRISIL Ratings Limited and dated February 13, 2026, was filed with stock exchanges pursuant to Regulation 32(6) of SEBI Listing Regulations.

IPO Proceeds and Monitoring Framework

The company successfully raised ₹2,500.00 million through its IPO conducted from October 15-17, 2025, with CRISIL Ratings Limited serving as the monitoring agency. The monitoring framework ensures transparency in fund deployment and regulatory compliance under SEBI guidelines.

Fund Utilization Progress

During the quarter ended December 31, 2025, the company utilized ₹792.20 million from the total IPO proceeds, leaving ₹1,707.80 million unutilized. The major utilization was towards debt repayment and general corporate purposes.

Unutilized Funds Deployment

The company has deployed the unutilized IPO proceeds of ₹1,707.80 million in fixed deposits and monitoring accounts to ensure capital preservation while earning returns. The funds are primarily invested in fixed deposits with RBL Bank and Kotak Mahindra Bank.

Regulatory Compliance and Future Deployment

The monitoring agency report confirms that all fund utilization aligns with the objects disclosed in the offer document. The company has not yet commenced deployment of funds for major capital expenditure projects including the Phase II Quartz Processing Plant, electric dump trucks, and solar energy integration. The Board of Directors ratified the utilization of general corporate purpose funds for tax payments during the quarter.

The comprehensive monitoring framework ensures investor confidence through transparent reporting and adherence to regulatory requirements. The company maintains detailed documentation and independent chartered accountant certification for all fund movements and deployments.

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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