ASHAPURMIN - Ashapura Minech.

📊 NSE: ASHAPURMIN 🏢 Mining / Minerals / Metals 📅 Last Updated: 12/13/2025 18:33

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for H1 FY26 grew 75% YoY to INR 2,308 Cr. The Indian business segment recorded a growth of over 25% YoY in H1 FY26, while Q2 FY26 consolidated revenue grew 57% YoY to INR 952.5 Cr, driven by Guinea bauxite exports.

Geographic Revenue Split

Revenue is split between Indian operations (focused on value-added products from domestic mines) and International operations, primarily Guinea (focused on large-scale bauxite mining and exports). Guinea bauxite exports are a primary driver of the 57% Q2 revenue growth.

Profitability Margins

Net Profit Margin for FY25 was 23%, an 18% decrease from 28% in FY24. However, H1 FY26 PBT margin improved to 9.2% from 7.6% YoY, and Q2 FY26 PBT margin rose to 8.5% from 5.9% YoY.

EBITDA Margin

Consolidated EBITDA margin for H1 FY26 was 13.9%, up from 11.8% in H1 FY25. Q2 FY26 EBITDA margin stood at 13.9%, compared to 10.8% in Q2 FY25, representing a 102.6% YoY growth in absolute EBITDA to INR 132.1 Cr.

Capital Expenditure

While specific future INR Cr figures are not disclosed, the company is investing in 'large scale' mining infrastructure in Guinea and 'new initiatives' for value-added product facilities in India to drive long-term volume growth.

Credit Rating & Borrowing

The Debt-Equity ratio stood at 0.25 as of March 31, 2025, compared to 0.22 in the previous year. Interest coverage ratio significantly improved by 466.14% to 28.47 in FY25.

⚙️ Operational Drivers

Raw Materials

Bauxite (Guinea) and Bentonite (India) are the primary raw materials. Bauxite prices experienced a 3% correction during the quarter, impacting margins slightly.

Import Sources

Bauxite is sourced from the company's large-scale mining operations in Guinea. Bentonite and other minerals are sourced from self-owned mines in India, particularly in the Kutch region.

Key Suppliers

The company largely operates its own mines through subsidiaries like Ashapura Guinea Resources SARL and Ashapura International Limited, reducing third-party supplier dependency.

Capacity Expansion

The company is expanding its resource base in Guinea for large-scale exports and increasing its capacity for value-added mineral products in India to move up the value chain.

Raw Material Costs

EBITDA per metric ton for Guinea bauxite was USD 8.9 in Q2 FY26, a slight decrease from USD 9.3 in Q1 FY26 due to a 3% price correction and local currency strength.

Manufacturing Efficiency

EBITDA growth of 105% in H1 FY26 was supported by improved cost efficiencies and higher operating leverage across domestic and international verticals.

Logistics & Distribution

Shipping vessel timing causes quarterly revenue volatility; the company focuses on long-term volume guidance to offset the impact of vessels departing a few days after reporting cut-offs.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

Growth will be achieved by scaling large-scale bauxite mining and export volumes in Guinea and transitioning the Indian business toward high-margin value-added products. The company is leveraging internal operational efficiencies to maintain EBITDA margins despite commodity price fluctuations.

Products & Services

Bauxite, Bentonite, and various value-added mineral solutions for industrial applications.

Brand Portfolio

Ashapura.

New Products/Services

The company is focusing on 'value-added products' in the Indian market to diversify from raw mineral sales.

Market Expansion

Expansion is focused on increasing the resource base in Guinea and diversifying activities into various other countries to mitigate geographic risk.

Strategic Alliances

Key JVs include Ashapura Perfoclay Limited (50% stake) and APL Valueclay Private Limited (50% stake).

🌍 External Factors

Industry Trends

The mining industry is facing a shortage of skilled manpower and a need for digital transformation. Global demand is influenced by infrastructure growth and trade tensions between major economies.

Competitive Landscape

The company competes with global mining firms and domestic mineral processors, positioning itself through large-scale resource ownership.

Competitive Moat

Moat is built on a 40-year history (since 1982), cost leadership through integrated mining, and a diversified geographic presence across India and Guinea.

Macro Economic Sensitivity

Highly sensitive to global commodity price volatility (specifically Bauxite) and fluctuations in the USD/INR exchange rate.

Consumer Behavior

Industrial demand for minerals is shifting toward processed and value-added variants rather than raw ores.

Geopolitical Risks

Operations in Guinea face cross-border operational risks and complex geopolitical dynamics that could impact the growth agenda.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to evolving compliance norms, mining statutes, and tax laws in both India and Guinea.

Environmental Compliance

The company faces regulatory hurdles including delays in mining permits and environmental clearances which can constrain production and increase costs.