Midwest Ltd Q2FY26 | FY25 – The Black Galaxy Boss With a 29% OPM and IPO Swagger

1. At a Glance

When you mine black stones and make profits that shine brighter than your trucks’ headlights, you know you’re doing something right. Midwest Ltd — India’s granite gladiator and Black Galaxy overlord — just wrapped up a fiery quarter. With₹159 crore in salesand₹27.8 crore PATforQ2FY26, the company saw profits shoot up86.8% YoY, proving that stone-hearted business can actually have golden veins.

From₹141 crore in sales last yearto₹159 crorenow, Midwest seems to have figured out how to turn rocks into ROI. TheOperating Profit Margin (OPM)hit a smooth29%, while theStock P/Estrutted in at37.7×, which, let’s be honest, is premium pricing for a company selling literal rocks.

Market cap stands proud at₹4,408 crore,ROE at 18.7%,ROCE at 21.7%, and a zero-dividend policy that screams “we reinvest every rupee.” Debt sits at₹234 crore, but with aDebt-to-Equity ratio of 0.35, this miner isn’t drowning in loans.

As the Bhagavad Gita says — “You have the right to work, but not to the fruits thereof.” Midwest clearly disagreed, because these guys are harvesting marble fruits by the truckload.

2. Introduction – The Stone Cold Reality

If you thought mining was boring, you haven’t met Midwest Ltd. The company has turned itsBlack Galaxy Graniteinto theShah Rukh Khanof stones — exclusive, high-value, and globally adored. While competitors like Pokarna or Global Surfaces are still polishing their slabs, Midwest’s Galaxy rocks are already shining in Swedish living rooms and Italian villas.

Incorporated back in1981, this company took its sweet time evolving from a local stone cutter to avertically integrated mining powerhouse. With20 minesspread acrossTelangana, Andhra Pradesh, Karnataka, and Tamil Nadu, Midwest has basically turned South India into its private quarry park.

But wait — they’re not stopping there. The company is now venturing intoHeavy Mineral Sands,Quartz, andDiamond Wire manufacturing. In short, if it glitters, cuts, or sparkles, Midwest wants a piece of it.

Their latestIPO in October 2025brought in₹451 crore, out of which ₹250 crore was a fresh issue. Funds are being used for solar integration at mines, electric dump trucks (because ESG is the new granite polish), and expansion of their quartz business.

Fromgranite boulders to market bulls, Midwest’s journey is the kind of glow-up even skincare brands dream about.

3. Business Model – WTF Do They Even Do?

Let’s break it down like a geologist with a sense of humor.

Midwest’s empire rests on four shiny pillars:

a) Natural Stone Segment:The crown jewel —Black Galaxy Granite, a glittering stone found only in Andhra Pradesh, andAbsolute Black Granite, loved worldwide for its deep, mirror-black finish. Together they make up amassive 97% of revenues(export + domestic). Think of it as the iPhone and iPhone Pro of the rock world.

b) Diamond Wire Segment:At their Hyderabad facility, Midwest makes diamond wires used to slice granite blocks. They also sell these precision tools to others, proving even miners can diversify like mutual funds.

c) Quartz Segment:The company’s new quartz plant in Andhra Pradesh is their moonshot project. Quartz is used in countertops and semiconductor fabrication — it’s like going from laying floors to powering chips.

d) Future Portfolio Expansion:Midwest is already scoutingHeavy Mineral Sands in Sri Lankato extract titanium, zircon, and even rare-earth metals likecerium, lanthanum, and neodymium. Yes, the same elements that make your EV motors spin and your LEDs glow. If this bet pays off, Midwest might transform from a granite company to a materials tech player — and that’s no small leap.

In short: they dig, cut, polish, and export. But underneath that simplicity lies a goldmine of operational complexity (and profit margins that could make software companies blush).

4. Financials Overview

If rocks could talk, they’d brag about these numbers. Midwest’s margins have improved like fine wine — from22% OPM