Midwest Limited posted a 49% rise in Q1FY27 net profit to ₹ 310.39 million, driven by 35% revenue growth to ₹ 1,918.39 million. Management guided for FY27 revenue of ₹ 840 crore, with ₹ 720 crore expected from granite and ₹ 120 crore from quartz. The company highlighted progress on its Indonesia rare earths MoU and Sri Lanka HMS project, while noting diesel cost pressures mitigated by electrification efforts.
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Midwest Limited reported a consolidated net profit of ₹ 310.39 million for the quarter ended June 30, 2026 (Q1FY27), marking a 49% increase from ₹ 243.80 million in the same period last year. The Hyderabad-based natural stone manufacturer saw consolidated revenue from operations surge 35% year-on-year to ₹ 1,918.39 million, reflecting strong demand in its core granite segment. Standalone net profit also climbed 50% YoY to ₹ 211.33 million, compared to ₹ 141 million in Q1FY26.
The Board of Directors approved the unaudited standalone and consolidated financial results on August 12, 2026. M/s. M S K A & Associates LLP, the statutory auditors, issued an unmodified conclusion on the limited review report for both standalone and consolidated figures. The results were prepared in accordance with Indian Accounting Standards (Ind AS) and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Consolidated revenue from operations stood at ₹ 1,918.39 million in Q1FY27, compared to ₹ 1,422.65 million in Q1FY26. Total income reached ₹ 1,977.69 million, aided by other income of ₹ 59.30 million. EBITDA for the quarter came in at ₹ 268 million, up from ₹ 222 million in the year-ago period, though the EBITDA margin contracted to 27.22% from 28.30% YoY. Gross segment revenue was dominated by the Granite segment, which contributed ₹ 1,844.26 million, while Quartz revenue grew significantly to ₹ 37.44 million from ₹ 0.60 million in the prior year quarter.
Standalone revenue from operations was ₹ 985 million, up from ₹ 787 million in Q1FY26. Standalone profit before tax rose 47% to ₹ 282.41 million. Earnings per share (basic and diluted) stood at ₹ 8.58 on a consolidated basis and ₹ 5.84 on a standalone basis, compared to ₹ 7.21 and ₹ 4.17 respectively in Q1FY26.
Midwest Limited, together with Midwest Energy Limited and NFTDC, signed an MoU with Indonesia’s state-owned PERMINAS to collaborate across the Critical Minerals and Rare Earth value chain, including Rare Earth Magnet manufacturing. This move aligns with the company's strategy to diversify into Heavy Mineral Sands (HMS) and Rare Earth Materials (REE). The company has secured four HMS exploration licenses in Sri Lanka for minerals such as Rutile, Ilmenite, Zircon, Garnet, Sillimanite, and Monazite.
Additionally, CRISIL reaffirmed the Company’s credit ratings at CRISIL A/Stable (Long Term) and CRISIL A1 (Short Term), citing its strong credit profile. Management has also planned to add a High Purity Quartz (HPQ) line along with Quartz Phase II instead of its initial plan of Phase III. The electricity requirement for the mines has been tied up with a renewable energy supplier under a group captive arrangement, enabling savings of approximately ₹ 2 per unit.
The Granite segment remained the primary profit driver, reporting a segment result (profit before interest and taxes) of ₹ 521.88 million, up from ₹ 366.37 million in Q1FY26. In contrast, the Quartz segment incurred a loss of ₹ 48.58 million, widening from a loss of ₹ 13.14 million in the previous year. This divergence highlights the ongoing investment phase in the quartz processing business, which continues to drag on overall segment margins despite top-line growth.
The Board appointed M/s. Eswaraiah & Co., Chartered Accountants, as Internal Auditors for Financial Year 2026-27, based on the Audit Committee's recommendation. Additionally, M/s. B S S & Associates, Company Secretaries, was appointed as Secretarial Auditor for a five-year term commencing from FY26-27, subject to shareholder approval. The Board also approved the continuation of Mr. Rana Som as Independent Director and the change in designation of Mrs. Soumya Kukreti from Whole-time Director to Non-Executive Director, both subject to shareholder approval at the upcoming Annual General Meeting.
While revenue grew 35%, total expenses rose faster at 37%, leading to a contraction in EBITDA margin by 108 basis points to 27.22%. This suggests that input costs or operational expenses are outpacing top-line growth in the near term. However, the significant jump in net profit (49%) indicates that non-operating items or tax efficiencies may be supporting bottom-line performance more than operational leverage alone.
Historical Stock Returns for Midwest
How will the widening losses in the Quartz segment impact Midwest Limited's overall profitability timeline, and when is the company expecting to achieve break-even for this division?
What specific milestones or regulatory approvals are required to transition the MoU with Indonesia’s PERMINAS into active Rare Earth Magnet manufacturing operations?
Given the 108 basis point contraction in EBITDA margins despite revenue growth, what operational strategies will management employ to control input costs and restore margin expansion in FY27?
Midwest Ltd, alongside Midwest Energy Limited and NFTDC, has signed an MoU with Indonesia's state-owned PERMINAS to jointly develop critical minerals and rare earth resources in Indonesia. The agreement covers the full rare earth value chain, including exploration, mining, processing, refining, and magnet manufacturing. No monetary consideration is specified, and the transaction is conducted at arm's length despite involving a related party.
Midwest Ltd , along with consortium partners Midwest Energy Limited and the Non-Ferrous Materials Technology Development Centre (NFTDC), has signed a Memorandum of Understanding (MoU) with PT Perusahaan Mineral Nasional (Persero) (PERMINAS). This agreement aims to collaborate on developing critical minerals and rare earth resources in Indonesia, marking the company's first structured engagement with a Southeast Asian state-owned strategic minerals enterprise.
The MoU establishes a framework for the parties to evaluate potential collaboration across the rare earth value chain in Indonesia. This includes upstream exploration and resource assessment, mining, processing, extraction, refining, and downstream manufacturing, with a specific focus on rare earth magnet production. The agreement is designed to complement Midwest Limited's ongoing strategy to build a presence across the rare earth value chain.
Under the terms of the agreement, the parties will establish a joint working group to plan and monitor the implementation of the project. The consortium will leverage complementary expertise across the value chain, with each partner contributing distinct capabilities.
Midwest Limited will contribute skills in exploration, mine planning, environmental studies, and mineral processing operations. Midwest Energy Limited will provide technology and operational expertise for establishing the rare earth magnet manufacturing plant, while NFTDC will offer technology and technical services across the value chain. PERMINAS, Indonesia's state-owned strategic minerals enterprise, will provide access to critical minerals and rare earth resources for joint development in Indonesia.
The following table outlines the key parameters of the MoU:
The disclosure confirms that the MoU does not specify any monetary consideration or financial commitment at this stage. The transaction involves related parties, as Midwest Energy Limited is part of the promoter group; however, the company has stated that the transaction is conducted at arm's length. The filing was submitted to the exchanges in compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015.
What are the expected timelines for the joint working group to identify specific project sites and begin resource assessment?
How will Midwest Ltd fund the capital-intensive phases of mining and magnet manufacturing given the current lack of specified financial commitments?
What potential regulatory hurdles might the consortium face regarding foreign ownership and environmental compliance in Indonesia?
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