1. At a Glance
Ashapura Minechem Ltd just reported Q3 FY26 consolidated revenue of ₹960.43 Cr, up ~11% YoY, while PAT slipped to ₹76 Cr, down ~16% YoY. Market cap sits at ₹5,802 Cr, stock price at ₹608, and the company trades at a P/E of ~15x, lower than industry average despite a 27% ROE and 18.6% ROCE.
Sounds attractive? Well, this is a mining company with bauxite in Guinea, bentonite across the globe, and court cases in India. Returns over 3 years are 81%, but the stock is down ~35% from highs. Debt is ₹1,228 Cr, promoters hold ~48%, pledging is zero, and FIIs are slowly inching up.
This quarter felt like a thali: strong volumes, decent margins, weak PAT optics, and a legal dessert no one ordered. Curious already? Good. Let’s dig.
2. Introduction
Ashapura Minechem is not your boring iron-ore PSU. This is a global industrial minerals powerhouse supplying everything from bentonite in drilling muds to bauxite feeding Chinese alumina plants.
Founded in 1982, the company survived commodity cycles, debt stress, ED raids, CBI cases, and still came back swinging with 45%+ sales CAGR over the last 5 years. That alone deserves respect.
But this is also a company where FY19–FY20 looked like a horror movie, followed by a FY21–FY25 redemption arc. The recent quarters show growth, but also volatility in tax rates, profits, and headlines.
So the big question:
Is Ashapura a global minerals champion temporarily stuck in legal mud, or a high-risk mining story with recurring governance landmines?
Let’s break it down slowly, with data
and sarcasm.
3. Business Model – WTF Do They Even Do?
Ashapura digs rocks. Then it cleans them, grinds them, cooks them, and sells them to people who make soap, steel, ceramics, oil wells, and batteries.
Its core segments include:
- Bentonite (global top-3 producer)
- Bauxite (15% global export share, mostly Guinea → China)
- China Clay / Kaolin / CCC / GCC
- Refractory & specialty minerals
- Proppants for oil & gas
This is a B2B, volume-driven, logistics-heavy business. Mines in India, assets in Guinea & Oman, customers in 90+ countries.
Margins depend on:
- Ore quality
- Freight rates
- China demand
- Guinea politics
- And sometimes… Indian courts
Simple business, complicated execution.
4. Financials Overview (Quarterly Performance)
Q3 FY26 – Consolidated (₹ Cr)
| Metric | Latest Qtr (Dec-25) | YoY Qtr (Dec-24) | Prev Qtr (Sep-25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 960.43 | 865.00 | 952.00 | +11.0% | +0.9% |
| EBITDA | 114.00 | 135.00 | 131.00 | -15.6% | -13.0% |
| PAT | 76.00 | 108.00 | 106.00 | -29.6% | -28.3% |
| EPS (₹) | 8.82 | 11.04 | 10.11 | -20.1% | -12.8% |
Annualised EPS Rule (Q3):
Average of Q1, Q2, Q3 EPS × 4
But company already provides TTM EPS ~₹39.5, so we use that.
Commentary:
Revenue held up well. Margins softened. PAT got smacked by tax volatility and lower operating leverage. Nothing structurally broken, but
