1. At a Glance
MOIL Ltd isn’t just another mining company—it’s basically India’s manganese landlord, charging rent in ore instead of rupees. With a 53% domestic market share, the government-owned Miniratna digs up everything from steel industry-grade manganese to the niche Electrolytic Manganese Dioxide (used in batteries). FY25-26 Q1 results were a mixed bag—sales fell 29% YoY while profits got clobbered 66% lower, proving that commodity cycles treat miners like Tinder dates: hot one quarter, cold the next. Still, the company is debt-free, dividend-friendly, and just posted its highest-ever July production despite monsoon chaos. Translation: Mother Nature tried to stop them, and MOIL said, “Hold my pickaxe.”
2. Introduction
The metals game isn’t for the faint-hearted. Prices swing, rain floods pits, and sometimes the government plays referee and player at the same time. MOIL Ltd, however, is like that seasoned cricket captain who’s seen every pitch condition—sometimes scoring centuries, sometimes defending for dear life.
The PSU has been around since 1962, and unlike your favorite startup, it’s not here to pivot—it just mines manganese. With steel demand driving its fortunes and battery tech slowly becoming a bigger play, MOIL’s story is equal parts boring and strategic. Q1 FY26 showed revenue stress but also operational resilience, as costs were contained and production growth returned. If manganese prices recover, expect the stock to wake up faster than a college kid offered free WiFi.
3. Business Model (WTF Do They Even Do?)
MOIL mines manganese ore across Maharashtra and Madhya Pradesh. The ore
feeds the steel industry, chemicals, and battery manufacturers. The company also processes ore into Electrolytic Manganese Dioxide (EMD)—critical for dry cell batteries and certain EV battery chemistries.
Revenue streams:
- High-grade ore sales – Steelmakers’ oxygen.
- Low-grade ore – Cement, ferro-alloys, and other industries.
- Value-added products – EMD and ferro-manganese.
Being a PSU, MOIL’s pricing is more policy-driven than market-violent, with periodic adjustments (latest: +3% for high-grade, -3% for some low-grade from Aug 1, 2025).
4. Financials Overview
Let’s annualize Q1 FY26 EPS before talking P/E:
Q1 EPS = ₹2.53 → Annualized = ₹2.53 × 4 = ₹10.12
CMP ₹322 → Fresh P/E = 322 / 10.12 = 31.8 (not the 23.4 printed on screener).
FY25 (Standalone):
- Revenue: ₹1,585 Cr
- EBITDA: ₹528 Cr (Margin ~33%)
- PAT: ₹382 Cr (Margin ~24%)
- YoY Revenue Growth: +9%
- YoY PAT Growth: +30%
Q1 FY26 vs Q1 FY25:
- Revenue: ₹348 Cr vs ₹493 Cr (-29%)
- PAT: ₹52 Cr vs ₹152 Cr (-66%)
- EBITDA Margin: 23% vs 43% (ouch).
Commentary: Commodity prices have clearly done a
