MOIL - MOIL

📊 NSE: MOIL 🏢 Mining / Minerals / Metals 📅 Last Updated: 12/14/2025 9:57

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 9.35% to INR 1,584.94 Cr in FY 2024-25. Segment contributions are Mining of Manganese Ore at 91.80%, Manufacturing (Ferro Manganese and Electrolytic Manganese Dioxide) at 7.82%, and Power Generation (Wind Power) at 0.38%. Q1 FY 2024-25 revenue was INR 492.84 Cr, representing a 30% YoY increase.

Geographic Revenue Split

Not disclosed in available documents; however, operations are centered in India with registered offices in Maharashtra and mines in regions like Balaghat (MP) and Gumgaon.

Profitability Margins

Net profit margin improved from 20.24% to 24.08% YoY. Operating profit margin increased from 20.25% to 23.69% in FY 2024-25. These improvements were driven by record production levels and higher sales volumes despite global price pressures.

EBITDA Margin

EBITDA margin stood at 40.31% in FY 2024-25, up from 36.65% in FY 2023-24. Core profitability improved as EBITDA reached INR 638.91 Cr, a 20.27% increase YoY, reflecting better cost absorption over higher production volumes.

Capital Expenditure

Planned capital expenditure of INR 328 Cr for the current year and INR 340 Cr for the next year. In the last 2-3 years, capex has exceeded Profit After Tax (PAT) to fund modernization and high-speed shaft sinking projects at Balaghat and Gumgaon mines.

⚙️ Operational Drivers

Raw Materials

Manganese ore resources (internal), power, and consumables. Mining accounts for 91.80% of turnover, making the extraction of manganese ore the primary cost and revenue driver.

Import Sources

Primarily sourced from internal mines in Maharashtra and Madhya Pradesh, India. The company added 7.98 million tons of resources in the last year to its domestic base.

Capacity Expansion

Current production is 18.03 lakh MT (FY 2024-25). The company is targeting a production capacity of 3.5 million tons (35 lakh MT) by 2030, supported by environmental clearances for up to 5 million tons.

Raw Material Costs

Total expenditure rose 4.63% to INR 1,209.54 Cr in FY 2024-25. The company focuses on converting its 7.98 million tons of added resources into reserves to manage long-term procurement costs.

Manufacturing Efficiency

Production increased 2.67% to 18.03 lakh MT. Exploratory core drilling reached 30,028 meters in Q1 FY25, a 1.5x increase YoY, which improves the efficiency of future mining operations.

Logistics & Distribution

Not disclosed as a specific percentage of revenue, but sales quantity grew 3.32% to 15.87 lakh MT in FY 2024-25.

📈 Strategic Growth

Expected Growth Rate

12%

Growth Strategy

MOIL plans to double production to 3.5 million tons by 2030 through the modernization and mechanization of existing mines, sinking new high-speed shafts at Balaghat and Gumgaon, and aggressive exploration (30,000+ meters drilled recently) to convert resources into mineable reserves.

Products & Services

Manganese Ore (various grades), Ferro Manganese, Electrolytic Manganese Dioxide, and Wind Power.

Brand Portfolio

MOIL (Manganese Ore India Limited).

New Products/Services

Focus is on expanding existing manganese ore grades and value-added products like Electrolytic Manganese Dioxide; specific new launch revenue % not disclosed.

Market Expansion

Targeting increased domestic supply to meet the National Steel Policy goal of 300 million tons of steel production by 2030.

Market Share & Ranking

MOIL is a prominent public sector undertaking and a Schedule 'A' Miniratna Category-I company, indicating a leading position in the Indian manganese ore market.

🌍 External Factors

Industry Trends

The industry is shifting toward higher mechanization and deeper underground mining as surface reserves deplete. MOIL is positioning itself by investing in high-speed shaft sinking and targeting 3.5 MTPA by 2030 to match India's growing steel capacity.

Competitive Landscape

MOIL competes with global manganese miners and domestic private players, maintaining its edge through large-scale integrated operations and government backing.

Competitive Moat

MOIL holds a cost leadership moat due to its extensive domestic reserves and Miniratna status, providing it with preferential access to resources and a strong balance sheet to fund heavy capex (INR 300+ Cr annually).

Macro Economic Sensitivity

Highly sensitive to the steel industry's performance; manganese is a critical input for steel. National Steel Policy targets suggest a long-term demand tailwind.

Consumer Behavior

Demand is driven by industrial steel producers rather than individual consumers; shifts toward higher-grade steel increase the demand for high-quality manganese ore.

Geopolitical Risks

Global pressure on manganese ore prices affects domestic realizations. Trade barriers or global supply shifts in manganese from other regions could impact MOIL's competitive pricing.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by mining regulations, environmental laws, and labor standards. Compliance is managed through regular audits and adherence to the Risk Management Policy.

Environmental Compliance

The company is targeting environmental clearances for 50 lakh tons by 2030 to support its 35 lakh ton production goal. It received the 1st prize for Mines Environment and Mineral Conservation at the Chikla Mine.

Taxation Policy Impact

The company faces a 25-30% effective tax rate (PBT of INR 486.78 Cr vs PAT of INR 381.64 Cr). It is subject to royalties, DMF, and NMET on ore consumption.

Legal Contingencies

The company received an order from the Commissioner (Appeals), CGST & Central Excise regarding Service Tax on Royalty, DMF, and NMET. While a query mentioned a potential INR 2,500 Cr contingent liability for various taxes, management stated there is no direct liability from the recent Supreme Court decision on state-imposed royalty taxes.

⚠️ Risk Analysis

Key Uncertainties

Fluctuations in global manganese ore prices (impacts revenue by ~10% for every major price shift) and the risk of structural collapses or equipment accidents in underground mining.