Sandur Manganese & Iron Ores Ltd Q1 FY26 – Bonus Bonanza, Mine Expansion & Debt Drama in Ballari’s Backyard

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1. At a Glance

The Sandur Manganese & Iron Ores Ltd (SMIORE) is the mining maharaja of Karnataka’s Ballari belt, and the 3rd largest manganese ore miner in India. At CMP ₹167, market cap ₹8,091 Cr, it’s trading at a P/E of 16.4 vs industry’s 11.9. Recent numbers? Q1 FY26 revenue ₹1,135 Cr (+88.7% YoY), PAT ₹167 Cr (+15.3% YoY). ROE sits at 18.6%, ROCE at a juicy 20.8%.

Debt, though, has ballooned to ₹1,890 Cr (Debt/Equity 0.72). To sweeten the bitter pill, management pulled a crowd-pleaser – 2:1 bonus issue in Sep 2025, after a 5:1 bonus in Feb 2024. Clearly, they know retail investors love “free laddoos” even if it’s just halwa slicing.

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2. Introduction

SMIORE is that old family haveli of the Sandur Group (incorporated 1954), still standing tall after decades of mining. Its legacy is manganese and iron ore, but it has added ferro-alloys, coke ovens, and renewable energy to the mix. Think of it as a Ballari buffet – ore, alloys, coke, and solar.

The real kicker? The company’s iron ore capacity jumped from 1.6 MTPA to 3.81 MTPA, with approvals now up to 4.5 MTPA. And manganese capacity quietly rose from 0.28 to 0.46 MTPA. In short, they’ve doubled production at a time when Karnataka courts and the Supreme Court finally lifted export bans. This could mean operating profit doubling in FY25 over FY24.

But not everything is rosy. Debt is rising, management saw a CEO exit in Mar 2025, and they also shut down their pellet subsidiary. Add to it a recent steel subsidiary acquisition (Arjas Steel), and you’ve got a company biting more than just iron ore.

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3. Business Model – WTF Do They Even Do?

This isn’t your friendly neighbourhood startup. SMIORE is a miner, processor, and now, wannabe steel integrator:

• Mining (~64% of revenue)
  • Iron ore (3.81 MTPA capacity, Fe 56–58%).
  • Manganese ore (0.46 MTPA, 17 MT reserves).
  • Mining leases valid till 2033.
  • This is their bread, butter, and also the curry.
• Ferroalloys (~11% revenue)
  • Silico-manganese, ferro-manganese.
  • 95,000–1,25,000 TPA capacity.
  • Powered by 32 MW captive + 42.9 MW hybrid renewable energy.
• Coke & Energy (~26% revenue)
  • Coke ovens (0.5 MTPA), WHRB (32 MW).
  • Cleaner energy reuse – sounds ESG, but really just smart jugaad.
• Steel (new)
  • Acquired Arjas Steel Pvt Ltd in Nov 2024.
  • This turns SMIORE from a mining purist into an integrated ore-to-steel player.

So yeah – SMIORE is a mining company cosplaying as a mini-JSW.

👉 Question for you: Do you prefer miners sticking to mining, or do you like when they suddenly want to be steelmakers?

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4. Financials Overview

Quarterly Snapshot – Q1 FY26 vs Q1 FY25 vs Q4 FY25

Source table

Metric	Latest Qtr (Q1 FY26)	YoY Qtr (Q1 FY25)	Prev Qtr (Q4 FY25)	YoY %	QoQ %
Revenue	₹1,135 Cr	₹602 Cr	₹1,321 Cr	+88.7%	–14.1%
EBITDA	₹299 Cr	₹191 Cr	₹316 Cr	+56.5%	–5.4%
PAT	₹167 Cr	₹144 Cr	₹156 Cr	+15.3%	+7.1%
EPS (₹)	3.43	2.97	3.21	+15.3%	+6.9%

Annualised EPS (FY26e) = 3.43 × 4 = ₹13.7.
At CMP ₹167 → P/E ~12.2x forward (cheaper than current 16.4x).

Commentary: Revenue doubled YoY, but PAT grew slower due to higher interest costs (debt-funded expansion). The alloy-coke-steel dream isn’t free.

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5. Valuation Discussion – Fair Value Range Only

1. P/E Method
   • EPS FY26e