Highlights
| Issue Size – 4,234,740 shares | Issue Open/Close – 15 Oct / 17 Oct, 2025 |
| Price Band (Rs.) 1014 – 1065 | Issue Size (Rs.) – 4,510 mn |
| Face Value (Rs) – 5 | Lot Size (shares) – 14 |
Midwest Limited (MWL) incorporate in 1981, engaged in the business of exploration, mining, processing, marketing, distribution and export of natural stones, with an emphasis on sustainability.
The company is the largest producer of Black Galaxy Granite, a premium variety of Granite, and Absolute Black Granite, Company also offers Diamond wires, and other natural stones with distribution network across North America, South America, Europe, Africa and Asia.
The company currently leases and operates around 20 mines in Telangana and Andhra Pradesh region, has 2 granite processing plants in Andhra Pradesh, and 1 Diamond tool plant in Hyderabad, and 1 Quartz crushing and processing plant in Andhra Pradesh. Currently company has 5 mines with lease but waiting for approval for mining.
Out of the total proceeds from the offer, ~Rs. 1,270 mn would go towards Phase II Quartz Processing Plant, ~Rs. 290 mn would go towards capex and ~Rs. 528 mn would go towards debt repayment and ~Rs. 401 mn would go towards general corporate purposes. While ~Rs. 2,010 mn would go towards existing selling shareholders of the company.
Key Highlights
- Granite production increased from 17,193 KT in FY22 to 19,709 KT in FY25, clocking a CAGR of 4.7 pct and it is projected to grow to 26,375-27,643 KT in FY30, registering a CAGR of 6.0-7.0 pct between FY25 and FY30. The production is expected to be driven by increased domestic demand as well as exports of granite.
- In FY30, the share for black granite is expected to be ~17 pct of overall domestic granite production, increasing at a CAGR of ~10 pct, owing to increase in corresponding demand for black galaxy granite from both domestic market as well as exports.
- MWL has a blockable reserve of ~8.46 mn cubic meter of Black Galaxy Granite and ~1.88 mn cubic meter of Absolute Black Granite i.e. around 28 pct and 22 pct of their respective proved reserve. Company’s mines under development would bring another ~3.5 mn cubic meter and ~2.6 mn cubic meter of Black Galaxy Granite and Absolute Black Granite.
- MWL is India’s largest producer and exporter of Black Galaxy Granite, a premium variety of Granite, and held a share of approximately 64 pct of the Indian export market for Black Galaxy Granite in FY25, exporting 44,992 cubic meters of Black Galaxy Granite during FY25.
- The company aims to capitalize on the expanding markets for Black Galaxy and Absolute Black Granite by strengthening its resource base, broadening its range of dimensional stone products, and entering new geographic markets. It also plans to diversify its revenue by producing quartz grit and powder, expand into heavy mineral sand mining, enhance and grow operations in the diamond wire segment, and improve the overall efficiency and sustainability of its operations.
- Sales of the company has grown by 11.6 pct CAGR in over FY23-25 and EBITDA and profit grew by 38.5 pct CAGR and 40.6 pct CAGR over same period. During FY25 the sales of the company jumped by 6.9 pct YoY to Rs. 6,262 mn. While EBITDA of the company grew by 13.5 pct YoY to Rs. 1,718 mn and EBITDA margin expanded by 157 bps to 27.4 pct in FY25. During FY25, the company reported profit of Rs. 1,075 mn, which grew 7.2 pct YoY.
Key Risk
- MWL’s estimated natural stone reserves may differ significantly from the actual quantity and quality extracted. In addition, the projected mine life could be inaccurate, and variations in market prices or operating and capital costs might make parts or all of the reserves uneconomical to mine.
- A significant portion of the company’s revenue relies on key customers, with the top 10 contributing over and around 50 pct of operational sales for the past three fiscal.
Financial Performance
| Particulars | FY23 | FY24 | FY25 |
| Sales (Rs. mn) | 5,025 | 5,856 | 6,262 |
| EBITDA (Rs. mn) | 896 | 1,514 | 1,718 |
| EBITDA Margin % | 17.8% | 25.9% | 27.4% |
| Profit (Rs. mn) | 544 | 1,003 | 1,075 |
| Profit Margin % | 10.8% | 17.1% | 17.2% |
| ROE % | 14.4% | 25.0% | 18.8% |
| ROCE % | 16.3% | 23.8% | 19.4% |
Peer Comparison
| Particulars | Midwest | Pokarna |
| Sales (Rs. mn) | 6,262 | 9,301 |
| EBITDA (Rs. mn) | 1,718 | 3,258 |
| EBITDA Margin % | 27.4% | 35.0% |
| Profit (Rs. mn) | 1,075 | 1,875 |
| Profit Margin % | 17.2% | 20.2% |
| ROE % | 18.8% | 27.4% |
| ROCE % | 19.4% | 24.1% |
Valuation
Midwest Limited is engaged in the business of exploration, mining, processing, marketing, distribution and export of natural stones. With presence across the entire Dimensional Granite value chain with mine to distribution capabilities and MWL exhibited proven track record of financial and operational performance. At the upper end of the price of Rs. 1,065, the issue quotes PE of 39.5x on FY26E annualized earnings. The issue looks fully priced. One can Avoid this issue.
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