01 — At a Glance
From IPO Listing to Deep Dive Mining in Three Months Flat
Midwest Ltd just wrapped Q3 FY26 (quarter ended Dec 31, 2025) three months after listing on the BSE/NSE. Revenue sat at ₹129 crore (+10% YoY). Operating margin stayed put at ~24–27% (EBITDA ~27% per management). PAT ₹17.36 crore, up 29.4% YoY. EPS annualised to ~₹20.24 (based on Q3 EPS ₹5.06 × 4). Stock price at ₹1,276. Market cap ₹4,614 crore. P/E at 42.6x — which is either “premium for quality” or “someone hasn’t priced in reality yet.” The jury’s still out. Return over 3 months? -20.8%. Ouch. Welcome to the stock market, IPO investors. Reality tastes like lost money.
IPO Reality Check: Midwest raised ₹451 crore gross, got ₹250 crore in fresh equity, IPO-ed at ₹555 per share in October 2025. Now trading at ₹1,276. That’s a 2.3x pop. Then a 20.8% dump in 3 months. Your portfolio is a micro soap opera.
02 — Introduction
The Granite Company That Wants to Be Everything: Stone. Quartz. Rare Earths. Why Stop?
Meet Midwest Ltd. Since 1981, they’ve been pulling Black Galaxy Granite out of Telangana and Andhra Pradesh, selling it to the world for kitchen countertops and bathroom vanities. Boring? Absolutely. But 64% market share of India’s Black Galaxy export volume is not boring. That’s domination dressed up in shiny black rock.
Fast forward to 2025. Midwest got an IPO itch. Raised ₹451 crore, got listed, stock went bonkers, then went bonkers in reverse. Now the company is doing what every ₹4,600 crore market cap company does: diversify into quartz processing, heavy mineral sands, rare earth extraction, and now, apparently, mining in Sri Lanka like it’s a casual Tuesday plan.
The February 2026 concall with management revealed something magical: demand is not the constraint. Execution is. Translation: “We have customers. We just don’t have the product yet.” Classic Indian startup energy, except they’ve been around since 1981.
Vertical integration looks like this: 20 mines → 77 excavators → 58 dump trucks → 95 wire saws → 33 mechanical drills → 3 quartz processing plants → diamond wire manufacturing → dreams of rare earth processing → probably a crypto sidecar if we’re not careful.
Management Concall Highlight (Feb 2026): “Our challenge or our focus was always on the execution and getting the volumes up, because demand was never an issue.” Translation: Midwest built an all-you-can-eat buffet, priced it correctly, then forgot to hire enough chefs.
03 — Business Model: Black Galaxy Granite For Desis, Quartz For Boomers, Rare Earths For Scientists
Three Businesses Masquerading As One Company
Natural Stone Segment (69.55% of FY25 revenue): Mine rough granite in Andhra Pradesh/Telangana. Cut it with 95 wire saws. Polish it on the side. Ship it globally. Black Galaxy dominates 54.5% of FY25 revenue (exports), while domestic Absolute Black takes 25%. The rest is Tan Brown, Marble, Quartzite — basically the clearance section of a stone shop.
Diamond Wire Manufacturing (2.5% of FY25 revenue): Midwest makes precision diamond-coated wire at Hyderabad. Uses it to cut its own granite (vertical integration flex). Sells surplus to the market. It’s not going to move the needle, but it’s the only non-mining revenue stream that doesn’t depend on seasonal demand or Chinese construction resets.
Quartz Processing (NEW, Phase 1 operational as of Q3 FY26): Engineered stone slabs, solar glass grit, eventual high-purity quartz. Phase 1 just got its act together after commissioning issues. Phase 2 starts ordering next month (per Feb concall). Management targeted ₹350–400 crore revenue potential once Phase 1 ramped plus oxide upside of ₹150–180 crore. Chart that on your napkin.
Heavy Mineral Sands / Rare Earths (FUTURE, Sri Lanka plays starting FY27): Midwest is mining in Sri Lanka for ilmenite, rutile, zircon, and monazite. Phase 1 sized at 150,000 tpa. Revenue estimate: ₹350–400 crore base, plus ₹150–180 crore rare earth oxide upside once extraction kicks in. 20–25 year reserve life. Also exploring Sierra Leone. Also planning to process rare earths in India under PLI subsidy schemes. Management said they’ll decide on ₹1,000+ crore magnet plants “once policy becomes clear.” Translation: “We’ll wait for government subsidies to be actually real before we commit.”
Black Galaxy54.5%Export Revenue
Absolute Black25%Domestic Revenue
Market Share64%India’s BGE Exports
Customer Count209Across 17 Countries
New Quartzite Lease (Jan 7, 2026): Midwest just got a 30-year mining lease for 21 hectares of Grey Quartzite in Andhra Pradesh. Management’s play: exclusive mining rights + branded B2B2C distribution + job-working partners. No capex for processing. Just brand control and pricing power. If it works in 9–12 months, management said they’ll “go aggressive on this model.” Translation: If desis buy it, they’ll build plants for it.
💬 You work in remodeling homes. Does your contractor use Midwest stone? Or does he just call it “that black stone from the quarry guy”?
04 — Financials Overview
Q3 FY26: Numbers That Scream “Execution, Not Demand, Is the Issue”
Result type: Quarterly Results (Q3 = Standalone) | Q3 EPS: ₹5.06 | Annualised EPS (Q3×4): ₹20.24 | 9M FY26 consolidated revenue: ₹430 Cr
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 128.86 | 117.14 | 142.16 | +10.0% | -9.4% |
| Operating Profit (EBITDA) | 31.48 | 22.88 | 39.28 | +37.6% | -19.9% |
| OPM % | 24.4% | 19.5% | 27.6% | +490 bps | -320 bps |
| PAT | 17.36 | 13.39 | 23.61 | +29.4% | -26.5% |
| EPS (₹) | 5.06 | 3.91 | 6.86 | +29.4% | -26.2% |
The Ugly Truth: Revenue down -9.4% QoQ (Q3 vs Q2). PAT down -26.5% QoQ. But YoY numbers look good because last year was a disaster. Management’s rationale per concall: Q2 was abnormally strong due to Chinese market recovery + domestic demand inflection. Q3 faced “working capital challenges” (fancy corporate language for “we’re paying more upfront to suppliers”). EBITDA margin at 24.4% in Q3 vs 27.6% in Q2 vs management’s 27% 9M guidance — the margin is being eaten by inventory buildup for Quartz phase 1 and working capital expansion. Annualised EPS from Q3: ₹20.24. Full-year EPS has to be higher to justify the 42.6x P/E. Let’s see.
05 — Valuation: What Is This Company Worth?
Granite Mining, But Make It Visionary
