Midwest Ltd

Financial Performance

• Q1 FY27: revenue growth 35%, EBITDA growth 25%, PAT growth 27% (YoY).
• Quartz revenue in the last quarter around INR 5 crores; quartz volume ~5,000 tons.
• FY27 revenue guidance ~INR 840 crores; granite ~INR 720 crores; quartz ~INR 120 crores.
• FY28 quartz revenue guidance 180–200 crores; blended EBITDA target 29–30%.

Operating Update

• Quartz Phase 1: commercial operations started; year-end run-rate around 15,000 tons per month.
• Quartz 1Q realized price around INR 10,000 per ton.
• Diesel cost ~13% of cost head; diesel price rose to INR 125–130 per litre.
• Phase 2 quartz commissioning planned next year; capex ~INR 125 crores.

Capex and Projects

• Phase 2 quartz capex ~INR 125 crores; INR 60–70 crores expected in next two quarters.
• Sri Lanka plant capex around INR 120 crores; build-out expected with 12–15 month horizon.
• Indonesia MoU with PERMINAS to form JV for rare earths; 12–15 months to plant build-out.
• Two JVs under discussion: mine-to-oxide with Midwest Limited; oxide-to-magnet with Energy.

Q&A Highlights

• Indonesia MoU provides access to light and heavy rare earths (DyTb); initial deposits ionic clays.
• quartz Phase 2 timing: commissioning next year; 10 months to complete; numbers start next year.
• Kerala KMML JV: no activity this quarter due to new government, timeline uncertain.
• FY27 guidance reaffirmed: ~INR 840 crores; quartz ~INR 120 crores; 10k t/month break-even target for quartz.
• Promoter holding at 77%; no near-term plan to reduce to 75%.
• Export shipping largely FOB; freight costs typically borne by customer; CIF used in some cases.

Outlook and Guidance

• FY27 revenue guidance ~INR 840 crores with granite ~INR 720 crores and quartz ~INR 120 crores.
• FY28 quartz revenue guidance ~INR 180–200 crores; blended EBITDA ~29–30%.
• Indonesia JV to start generating cash flows after 12–15 months; Phase 2 capex funded via fresh equity.

Meeting Details

• Date: August 13, 2026; Event: earnings conference call; Mode: audio; Recording: available on company site.

Q1 FY27 Highlights

• Revenue rose 34.85% YoY to ₹191.84 Cr in Q1 FY27.
• EBITDA ₹48.87 Cr, up 25.40% YoY.
• PAT ₹31.04 Cr, up 27.31% YoY.

Strategic Update

• MoU with PERMINAS to collaborate on Critical Minerals and Rare Earths.

Capex & Growth

• Capex plan of ₹300 Cr over 3-4 years to accelerate growth.
• Target 2.5x revenue, 3x profitability, and 35% ROCE in 3-4 years.

Operations & Asset Base

• Quartz Phase I capacity 303,600 MTPA; Phase II expansion planned.
• HMS & REE expansion into new mines; multiple operational mines listed.

Liquidity & Balance Sheet

• Cash and bank balances ₹228.77 Cr; borrowings ₹171.83 Cr; net worth ₹978.52 Cr.

Efficiency & Sustainability

• Energy consumption to be reduced by 15-20% through on-site solar and electrification.

IPO proceeds utilization status

• Purpose: report deviation/variation status for IPO proceeds.
• Mode of fund raising: Public Issue (IPO).
• Date of fund raising: Oct 20, 2025.
• Amount raised: ₹2,500 million (excluding OFS ₹2,010 million).
• Monitoring agency: CRISIL Rating Limited (Applicable).
• Status: No deviation in use of funds raised for quarter ended June 30, 2026.

Issue Overview

• Type of issue: IPO of equity shares.
• Net proceeds revised upward due to lower offer-related expenses.
• Objectives: Phase II capex for Midwest Neostone.
• Objectives: Capex for electric dump trucks and APGM.
• Objectives: Solar energy integration at mines.
• Objectives: Pre-payment/repayment of borrowings.
• Objectives: General corporate purposes (GCP).

Utilisation of Proceeds

• Utilisation is as per disclosures; no deviations reported.
• Phase II Neostone: 35.00 utilized; 1,267.98 unutilised; ongoing due to orders.
• Electric Dump Trucks: 16.96 utilized; 240.59 unutilised; one truck purchased.
• Solar energy: 0 utilized; 32.56 unutilised; evaluation ongoing.
• Pre-payment borrowings: fully utilized; no unutilised.
• GCP: 85.73 utilized; 55.20 unutilised; phased deployment.
• Unutilised funds parked in fixed deposits and a monitoring account.

Governance and Compliance

• Approvals: Statutory approvals for the objects NA.
• No material events affecting viability reported.
• Vendor arrangements for Midwest Neostone revised; in line with prospectus.
• Funds transferred from monitoring account to subsidiaries; schedule delays noted.

GCP Details

• GCP usage: 85.73 utilised; 55.20 unutilised; board approval not explicitly stated.

Financial results and audit actions

• Standalone unaudited results for quarter ended June 30, 2026 approved.
• Consolidated unaudited results for quarter ended June 30, 2026 approved.
• Limited Review Report from MSKA & Associates LLP received; no material misstatement.
• Internal Auditor appointed: Eswaraiah & Co for FY 2026-27.
• Secretarial Auditor appointed: B S S & Associates for five years from FY 2026-27.
• Board approved Board’s Report and Corporate Governance report for 2025-26.
• AGM notice for FY 2025-26 approved; Company Secretary/MD authorized to issue.
• Scrutinizer appointed for AGM and e-voting: B S S & Associates.
• IPO proceeds total 2,296.25 million; utilised 699.92; unutilised 1,596.33.
• Unutilised IPO proceeds invested in short-term deposits.
• Audit Committee reviewed results; Board approved the quarterly statements.

Directors and governance changes

• Independent Director Rana Som to continue, subject to shareholder approval.
• Soumya Kukreti designated from Whole-time Director to Non-Executive Director, subject to shareholders.
• Notice of AGM for FY 2025-26 approved.

IPO proceeds and group allocations

• IPO proceeds utilization table shows total 2,296.25 million; utilised 699.92; unutilised 1,596.33.

Meeting Details

• Date and time: 13 August 2026, 03:00 P.M. IST.
• Type: earnings conference call; mode not specified.
• Purpose: discuss Q1 FY2026-27 quarterly results for quarter ended 30 June 2026.

Rating action

• CRISIL reaffirmed ratings for Midwest Limited and APGMPL.

Instruments / Ratings

• Midwest Limited: Long Term A/Stable; Short Term A1; Corporate Credit Rating A/Stable.
• APGMPL: Long Term A-/Stable; Short Term A2+.

Rating Agency

• CRISIL Ratings Limited (CRISIL).

Rationale

• Strengths: promoter experience, diversified revenue, healthy financial risk profile.
• Weaknesses: product concentration, forex exposure, mining regulatory risk, cyclicality.

Outlook

• Outlook: Stable for both Midwest and APGMPL.

Material changes

• Ratings reaffirmed; no change from prior ratings.

Financial highlights

• Midwest 2026: Operating income Rs 645.62 cr; PAT Rs 106.48 cr.
• APGMPL 2026: Operating income Rs 208.42 cr; PAT Rs 15.12 cr.