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Ashapura Minechem Ltd

| Quarterly Financial Results Q3 FY 2025-26

NEUTRAL SENTIMENT

Report Source

⬤5th Feb 26

Summary : Ashapura Minechem reports strong Q3 and 9M FY26 consolidated results, driven by Guinea business improvements, while addressing India business profitability challenges and board changes.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Total Expenses Q3 FY25-26: Rs. 903.67 crores.
  2. Consolidated Total Expenses 9M FY25-26: Rs. 3023.04 crores.
  3. Standalone Total Expenses Q3 FY25-26: Rs. 98.38 crores.
  4. Standalone Total Expenses 9M FY25-26: Rs. 239.00 crores.
  5. Exceptional item (New Labour Code impact) Q3 FY25-26: Rs. 1.77 cr (standalone), Rs. 4.56 cr (consolidated).
  6. Consolidated Income from Operations Q3 FY25-26: Rs. 960.43 crores.
  7. Consolidated Income from Operations 9M FY25-26: Rs. 3268.50 crores.
  8. Standalone Income from Operations Q3 FY25-26: Rs. 121.28 crores.
  9. Standalone Income from Operations 9M FY25-26: Rs. 314.35 crores.
  10. Guinea Business Q3 TO: Rs. 729.46 crores.
  11. India Business (Bentonite, White Performance Materials) Q3 TO: Rs. 230.97 crores.
  12. Specialty Adsorbent Solutions Q3 TO: Rs. 105.28 crores.
  13. Advanced Ceramic Materials Q3 TO: Rs. 93.35 crores.
  14. Paid-up Equity Share Capital: Rs. 19.11 crores (95,526,098 shares of Rs. 2 each).
  15. Reserves excluding revaluation reserve (Audited 31/03/2025): Rs. 293.75 cr (Standalone), Rs. 1,222.92 cr (Consolidated).
  16. Standalone income includes service receipts from a subsidiary.
  17. Standalone Profit for the period Q3 FY25-26: Rs. 19.19 crores.
  18. Consolidated Profit for the period Q3 FY25-26: Rs. 75.95 crores.
  19. Standalone Profit for the period 9M FY25-26: Rs. 113.54 crores.
  20. Consolidated Profit for the period 9M FY25-26: Rs. 295.83 crores.

Corporate Overview

  1. India (value-added mineral products).
  2. Guinea (mining and exports of Bauxite and Iron Ore).
  3. UAE (overseas subsidiary for Guinea business).
  4. Moderation in India business profitability due to rising input costs.
  5. Change in sales mix towards lower-margin products in India.
  6. Sharp increase in sulphuric acid prices affecting Specialty Adsorbent Solutions.
  7. Softening bauxite index prices impacting Guinea business EBITDA.
  8. Sulphuric acid prices for Specialty Adsorbent Solutions.
  9. Bauxite index prices for Guinea business.
  10. Partnership with China Railways for logistics efficiency.
  11. Diversified multi-mineral group providing solutions across industries.
  12. Operates primarily in a single segment: minerals.
  13. Two main business lines: Guinea (mining/exports of Bauxite/Iron Ore) and India (value-added mineral products).
  14. Positive on Q3 and 9M financial performance.
  15. Acknowledges moderation in India business profitability.
  16. Identifies mitigating factors for Guinea business challenges.
  17. Bauxite and Iron Ore (Guinea Business).
  18. Bentonite & Allied Minerals (India Business).
  19. White Performance Materials (India Business).
  20. Specialty Adsorbent Solutions (India Business, 50% JV).
  21. Advanced Ceramic Materials (India Business, 31.76% Associate).
  22. Bauxite exports from Guinea: 1.39 MMT in Q3 FY25-26.

Risk Factors

  1. Softening bauxite index prices may impact.
  2. Rising input costs affect India businesses.
  3. Sales mix shifting to lower-margin products.
  4. New Labour Codes impact employee benefits.

Key Drivers

  1. Consolidated revenue grew significantly year-on-year.
  2. Guinea business profitability improved due to efficiencies.
  3. New independent directors appointed to board.
  4. Higher-priced customer contracts boosted Guinea.

Auditor’s Report

  1. Unmodified opinion on standalone unaudited financial results.
  2. Unmodified opinion on consolidated unaudited financial results.

Board Commentary

  1. Re-appointment of Mr. Hemul Shah as Executive Director & CEO for two years.
  2. Appointment of Mr. Jagdish Shetty as Additional Director (Non-Executive Independent Director) for five years.
  3. Mr. Jagdish Shetty nominated as Audit Committee Chairman.
  4. Appointment of Mr. Wilson Mathais as Additional Director (Non-Executive Independent Director) for five years.
  5. Cessation of Mr. Pundarik Sanyal's term as Independent Director.
  6. Impact of New Labour Codes on employee benefits and financial results.
  7. New Labour Codes (effective Nov 2025) revised wage definition for employee benefits.
  8. Incremental impact of Rs. 1.77 cr (standalone) and Rs. 4.56 cr (consolidated) recognized as exceptional item.

Corporate Governance

  1. Appointment of two new Non-Executive Independent Directors.
  2. Mr. Jagdish Shetty nominated as Audit Committee Chairman.
  3. Audit Committee Chairman nominated (Mr. Jagdish Shetty).

Management Discussion & Analysis

Future Strategy

  1. Offset softening bauxite prices through increased operational efficiencies.
  2. Scale volumes and ease freight costs in Guinea business.
  3. Expect more clarity on Iron Ore business, currently in trial phase.

Macroeconomic Outlook

  1. New Labour Codes effective November 2025, impacting employee benefits.
  2. Softening bauxite index prices globally.

Operational Focus Areas

  1. Monitoring developments and clarifications on New Labour Codes.
  2. Improving operational efficiencies and scaling volumes in Guinea business.

Performance Drivers

  1. Consolidated Income from Operations increased by 0.8% Q-o-Q.
  2. Consolidated Profit Before Tax & Exceptional Items increased by 10.0% Q-o-Q.
  3. Consolidated Income from Operations increased by 49.7% Y-o-Y (9 months).
  4. Consolidated Profit Before Tax & Exceptional Items increased by 37.3% Y-o-Y (9 months).
  5. Guinea business profitability improved due to reduced demurrage charges.
  6. Enhanced operational and logistical efficiencies in Guinea business.
  7. Realization of higher-priced customer contracts in Guinea.

Risk Control Measures

  1. Increasing operational efficiencies.
  2. Scaling of volumes.
  3. Easing of freight costs.

Critical Risks

  1. Softening bauxite index prices affecting profitability.
  2. Rising input costs for India businesses.
  3. Shift in sales mix towards lower-margin products.
  4. Impact of new Labour Codes on employee benefits.