Sandur Manganese Q1 FY27: Revenue ₹1,375 Cr, PAT ₹227 Cr, and a Hospitality Subsidiary at a Mining Company

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1 — At a Glance

Consolidated revenue for the June 2026 quarter came in at ₹1,375 crore, up 21% from ₹1,135 crore a year earlier and down 9% from the ₹1,511 crore of the March quarter. Net profit was ₹227 crore against ₹167 crore in Q1 FY26 — a 36% increase — and ₹236 crore in the preceding quarter. Operating profit was ₹343 crore at a 25% margin.

Segment revenue splits four ways: steel ₹859 crore, mining ₹420 crore, ferroalloys ₹116 crore, coke and energy ₹48 crore. The steel business, acquired in November 2024, is now roughly twice the size of the mining operation that gave the company its name and its first seven decades.

Manganese ore sales volumes were 0.97 lakh tonne, which management describes as nearly twice the Q1 FY26 level. Iron ore sales were 9.64 lakh tonne, up 13% year on year. Ferroalloys sales rose 162% year on year to 16,292 tonnes. Coke production was nil for the quarter, excluding 57,352 tonnes produced under a contract manufacturing arrangement — the plant ran, it just ran for somebody else.

And on 14 August 2026, a 72-year-old iron ore miner incorporated a wholly owned subsidiary called Royal Sandur Academy Private Limited with ₹1 crore of capital. A hospitality subsidiary was approved the same week. More on the empire-building later.

2 — Introduction

The Sandur Manganese & Iron Ores Limited was incorporated in 1954, when His Highness Y R Ghorpade, the former Maharaja of Sandur, transferred a mining lease awarded to him into a corporate vehicle. Seven decades later a Ghorpade — Bahirji A. Ghorpade — is still Managing Director, and the company still describes its founding principle as the founder patron’s line that what is earned from the soil of Sandur should primarily benefit Sandur.

That is unusual provenance for a mid-cap listed on both exchanges. Most companies trace their origins to a shed in Ludhiana. This one traces it to a palace.

The last two years have been the busiest stretch in that history. In November 2024 the company completed the acquisition of a ~99% stake in Arjas Steel Private Limited and its step-down subsidiary Arjas Modern Steel, at an enterprise value of ₹3,000 crore and equity value of ₹1,914 crore. In September 2025 shareholders received two bonus shares for every one held — 32,40,69,876 new shares allotted on 23 September. In March 2026 the company redeemed 45,000 secured 11% non-convertible debentures worth ₹423 crore, ahead of a 2031 maturity, funded from internal accruals.

Then in July 2026 the board approved a rebranding. The group is now Royal Sandur, with SMIORE as flagship. Management says the unified identity enables exploration of business opportunities beyond existing segments, and has initiated incorporation of Royal Sandur Hospitality and Royal Sandur Academy while evaluating an opportunity in medical devices, consumables and manufacturing.

On the same day, Manoj Kumar Jha was appointed Chief Financial Officer effective 9 July 2026; Uttam Kumar Bhageria ceased to be CFO. Jha had been appointed Chief Risk Officer six months earlier, in January 2026.

3 — Business Model: WTF Do They Even Do?

Four things, in descending order of how much they resemble the company’s name.

Mining (28% of FY26 revenue, versus 50% in FY25). Low-phosphorus manganese and iron ore from two leases — ML-2678 and ML-2679 — covering 1,999.30 hectares in the Hosapete-Ballari region of Karnataka. Permissible annual production is 4.45 MTPA of iron ore and 0.599 MTPA of manganese, against reserves of 138 MT and 15 MT. Second-largest manganese ore miner in India, third-largest iron ore miner in Karnataka. Customers include JSW Steel and SAIL. The leases are valid until December 2033, at which point renewal goes through competitive auction — a date the management has been planning around for some time.

Steel (62% in FY26, versus 38% in FY25). Arjas makes Special Bar Quality steel — 100-plus grades — at Tadipatri in Andhra Pradesh and Mandi Gobindgarh in Punjab, 5.85 lakh tonnes of combined capacity, two different routes (BOF at one plant, EAF at the other), 41 MW of captive power, and a customer list of Hyundai, Maruti Suzuki, Royal Enfield and Tata Motors. There is also a land bank of 879 acres with infrastructure to support expansion to 1 MTPA.

Ferroalloys (7%). Silico-manganese and ferro manganese at Vyasankere near Hospet, 95,000 and 1,25,000 TPA respectively, powered partly by waste heat recovery boilers so the