MOIL Ltd Q2 FY26 – India’s Manganese Maharaja Mines a 41% Profit Jump While Digging Deeper into Bureaucracy and Billion-Ton Dreams
1. At a Glance
MOIL Ltd — the state-owned manganese emperor that digs rocks for a living — just reported a smashing Q2 FY26 with a 41% YoY rise in quarterly profit to ₹70.4 crore on a 19.2% rise in sales to ₹348 crore. The company’s EBITDA margins stood tall at 27.6%, showing that even in a world of battery dreams and electric hopes, good old manganese still pays its bills.
At a market cap of ₹7,339 crore, a stock price of ₹361, and P/E of 24.4x, this miniratna is quietly making the metal business glamorous again. The company has been on a production binge—achieving record highs in FY24 (17.56 lakh tonnes produced, 15.36 lakh tonnes sold) and now eyeing 3.5 million tonnes by 2030. It’s like watching a government office that accidentally started performing well.
Meanwhile, no debt, ROCE of 18.8%, and ROE of 14.7% make it a rare PSU that’s not gasping under loan interest. Add to that a dividend yield of 1.58%, and you’ve got a company that literally digs money from the ground and hands some of it back.
Ever seen a PSU break records month after month? MOIL’s production press releases are now more frequent than Bollywood teasers. September: record production. October: new high. November? Probably broke another one. Someone please check if they installed Red Bull in the Nagpur mines.
2. Introduction
When India talks of natural resources, most people think of coal, oil, or the number of political “reserves” sitting in Parliament. But beneath the red soil of Madhya Pradesh and Maharashtra, another metal quietly powers the economy — manganese. And MOIL Ltd, our government-backed mining behemoth, owns over half of India’s manganese market share (53%).
It’s a company that’s as old as India’s mining bureaucracy but somehow more productive. With ten operational mines spread across Nagpur, Bhandara, and Balaghat, MOIL doesn’t just dig rocks—it digs revenue. It’s also the only producer of Electrolytic Manganese Dioxide (EMD) in the country, used in batteries and pharmaceuticals. Yes, while every startup dreams of becoming “the next Tesla,” MOIL quietly makes the metal that Tesla actually needs.
But don’t let the PSU tag fool you — this one’s in beast mode. Between FY22 and FY24, sales volume jumped 27%, even though price realizations dropped 18%. Imagine selling more and earning the same — that’s either dedication or government pricing strategy.
Still, MOIL hasn’t just been sitting with its ore. It’s exploring deeper, literally — 87,661 meters of exploration drilling in FY24, adding 7.98 million tonnes of new resources. For FY25, it’s going further with a target of 1,00,000 meters. That’s deeper than most private miners’ due diligence.
And here’s the cherry on the ore cake — despite being a PSU, MOIL has zero debt. Yes, zero. Not “technically net debt-free,” not “manageable leverage.” Just flat ₹0 crore debt. Somewhere, a PSU auditor fainted.
3. Business Model – WTF Do They Even Do?
In plain words, MOIL’s business model is dig, process, sell, repeat. The company’s fortune depends on how fast and efficiently it can dig manganese out of the ground — the metal essential for steelmaking, batteries, and certain chemicals.
Here’s the simple recipe:
Step 1: Mine manganese ore from its 10 mines across Madhya Pradesh and Maharashtra.
Step 2: Sell it to steel plants, ferroalloy producers, and battery manufacturers.
Step 3: Add a bit of processing magic — produce Ferro Manganese (FeMn) and Electrolytic Manganese Dioxide (EMD) for value addition.
Step 4: Use a sprinkle of renewable energy from its 20 MW wind and 10.5 MW solar plants to keep the ESG people happy.
MOIL earns 95% of its revenue from mining, 4% from manufactured products (EMD and FeMn), and 1% from power generation. Essentially, 99% mining, 1% greenwashing.
The EMD plant (1,500 MTPA) and ferro manganese plant (12,000 MTPA) are like the company’s side hustles — small but strategic. With EMD being critical for battery manufacturing, this could become a goldmine once India’s EV sector fully kicks off. But for now, it’s more like the garnish on the manganese biryani.
So yes, it’s a boring mining business on paper, but when you control 53% of the market, boring becomes profitable. MOIL is the SBI of manganese — too big to ignore, too slow to fail.
4. Financials Overview
Metric
Latest Qtr (Sep’25)
YoY Qtr (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue (₹ Cr)
348
292
348
+19.2%
0%
EBITDA (₹ Cr)
100
79
79
+26.6%
+26.6%
PAT (₹ Cr)
70.4
50
52
+40.8%
+35.4%
EPS (₹)
3.46
2.46
2.53
+40.6%
+36.8%
Annualised EPS = ₹3.46 × 4 = ₹13.84, giving a P/E of 26.1x (CMP ₹361). Screener’s P/E of 24.4x checks out — the math department at MOIL is awake.
Commentary: A 41% YoY jump in profit with zero debt? That’s not PSU behavior — that’s private-sector level efficiency. MOIL just showed every “strategic disinvestment candidate” what real performance looks like.
