💰 Financial Performance

Revenue Growth by Segment

Granite segment (96% of revenue) grew from INR 502.52 Cr in FY23 to INR 626.18 Cr in FY25. H1FY26 revenue reached INR 300.96 Cr, up 7.92% YoY. Quartz Phase 1 started contributing in FY26, with Phase 2 and Heavy Mineral Sands (HMS) expected to drive growth by FY28.

Geographic Revenue Split

Global distribution across 17 countries and 5 continents. A significant portion of revenue is derived from international markets, particularly for Black Galaxy granite exports where the company holds a ~55% market share from India.

Profitability Margins

Adjusted PAT margin improved from 10.83% in FY23 to 17.17% in FY25 and reached 17.31% in H1FY26. Profitability is driven by improved capacity utilization and cost optimization in mining operations.

EBITDA Margin

EBITDA margin increased from 17.83% in FY23 to 27.43% in FY25, and further to 28.41% in H1FY26 (up 196 bps YoY). Q2FY26 standalone EBITDA margin reached 29.32% due to operational efficiencies.

Capital Expenditure

Raised INR 250 Cr through a recently concluded IPO. Funds are allocated for Quartz Phase 2 expansion, electric dump trucks, solar energy integration at select mines, and debt repayment.

Credit Rating & Borrowing

CRISIL Ratings upgraded the corporate credit rating to 'CRISIL A/Stable' from 'CRISIL A-/Positive' in November 2025. Interest coverage ratio is expected to remain above 10 times over the medium term.

⚙️ Operational Drivers

Raw Materials

Granite blocks (Absolute Black and Black Galaxy) and Quartz mineral reserves represent the primary raw materials. Diamond tools (specifically Diamond Wire) are used as critical consumables, with 100% backward integration for captive consumption.

Import Sources

Primarily sourced from captive mines located in India. The company operates as an integrated miner and processor.

Key Suppliers

Reliance Diamond Tools Pvt Ltd (a wholly-owned subsidiary) supplies diamond tools. Mining is conducted through captive reserves and subsidiaries like Maitreya Minerals and Baahula Minerals.

Capacity Expansion

Quartz Phase 1 is currently operational. Phase 2 expansion is underway with a target of 0.5 million tons total production by FY28. HMS business operations are expected to commence in FY27.

Raw Material Costs

Total expenses for H1FY26 were INR 215.45 Cr (71.6% of revenue), up 5.03% YoY. Procurement strategy focuses on backward integration of diamond tools to optimize extraction costs.

Manufacturing Efficiency

EBITDA growth of 52% in Q2FY26 was driven by improved capacity utilization and mechanized processes that enhance stone recovery rates from mines.

Logistics & Distribution

Global distribution network covering 17 countries. Distribution costs are managed through a vast network of distributors developed over four decades.

📈 Strategic Growth

Expected Growth Rate

26%

Growth Strategy

Strategy involves doubling top-line by FY28 through the full commissioning of Quartz Phase 2 (0.5 million tons), commencement of Heavy Mineral Sands (HMS) revenue in FY27/28, and expansion into rare earth materials for aerospace and defense sectors.

Products & Services

Absolute Black Granite blocks, Black Galaxy Granite blocks, Quartz slabs, Diamond Wire tools, and upcoming Heavy Mineral Sands (HMS) products.

Brand Portfolio

Midwest, Midwest Neostone (Quartz division).

New Products/Services

Quartz Phase 2 slabs and Heavy Mineral Sands (HMS) for aerospace/defense are expected to contribute significantly to revenue by FY28.

Market Expansion

Targeting high-tech industries including aerospace, chemicals, automotive, electronics, defense, and medical devices through HMS and rare earth materials by FY27.

Market Share & Ranking

Holds ~55% market share of India's overall Black Galaxy granite export volume as of FY24.

Strategic Alliances

Consolidated entities include Midwest Holdings Ltd, Reliance Diamond Tools Pvt Ltd, and Midwest Neostone Pvt Ltd.

🌍 External Factors

Industry Trends

Industry is shifting toward sustainable mining and processed stones like Quartz (growing at 15-20% globally). Midwest is positioning itself as a diversified mineral player beyond granite.

Competitive Landscape

Intensely competitive market dominated by unorganized entities and a few reputed global brands. Midwest competes on recovery rates and resource base.

Competitive Moat

Cost leadership through 55% market share in Black Galaxy granite and backward integration in diamond tools. These advantages are sustainable due to high entry barriers in mining and land acquisition.

Macro Economic Sensitivity

Highly sensitive to global real estate demand and economic cycles which dictate the offtake of premium natural stones and quartz.

Consumer Behavior

Increasing consumer preference for Quartz over natural stone in premium real estate applications is driving the company's shift in product mix.

Geopolitical Risks

Exposure to international trade barriers and changes in export duties which could affect the competitiveness of Indian granite in global markets.

⚖️ Regulatory & Governance

Industry Regulations

Susceptible to Ministry of Mines regulations, including changes in royalty rates, export duties, and potential mining bans which act as major entry barriers.

Environmental Compliance

Investing IPO proceeds into electric dump trucks and solar energy to meet evolving environmental norms and reduce carbon footprint.

Taxation Policy Impact

Effective tax rate of approximately 26% based on H1FY26 figures (INR 18.42 Cr tax on INR 70.51 Cr PBT).

Legal Contingencies

Not disclosed with specific case values in available documents.

⚠️ Risk Analysis

Key Uncertainties

Product concentration risk with 96% revenue from granite. Regulatory risks in the mining sector could impact operations by up to 20% if bans are implemented.

Geographic Concentration Risk

Global distribution across 17 countries; however, a significant portion of revenue is export-dependent, exposing the company to global macro risks.

Third Party Dependencies

Low dependency on third-party tool suppliers due to 100% backward integration in diamond tools.

Technology Obsolescence Risk

Mitigated by employing latest mechanized processes and R&D in diamond tools to maintain high recovery rates.

Credit & Counterparty Risk

Trade receivables stood at INR 190.96 Cr as of September 2025, down from INR 239.97 Cr in March 2025, indicating improving collection efficiency.