To The Members,
Your Directors have pleasure in presenting the 45th Boards Report and audited financial statements for the year ended March 31, 2026. The consolidated performance of the Company, its subsidiaries and joint venture has been referred to wherever required.
| Particulars | STANDALONE 2025-26 | STANDALONE 2024-25 | CONSOLIDATED 2025-26 | CONSOLIDATED 2024-25 |
| Revenue | 4,217.71 | 3,697.35 | 6,456.18 | 6,261.82 |
| Other Income | 169.93 | 346.16 | 141.57 | 169.60 |
| Total Income | 4,387.64 | 4,043.51 | 6,597.75 | 6,431.42 |
| Total Expenses | 3,072.14 | 2,857.48 | 5,160.42 | 4,909.24 |
| Profit before exceptional items & tax | 1,315.50 | 1,186.03 | 1,437.33 | 1,522.18 |
| Exceptional Items | - | - | - | 257.88 |
| Profit before tax | 1,315.50 | 1,186.03 | 1,437.33 | 1,780.06 |
| Less: Income Tax Expense: | ||||
| - Current Tax | 350.00 | 309.00 | 421.64 | 456.11 |
| - Tax pertaining to earlier years | - | - | (3.29) | 0.10 |
| - Deferred Tax | (10.78) | (7.70) | (45.78) | (9.14) |
| Total Tax Expenses | 339.22 | 301.30 | 372.57 | 447.07 |
| Profit after tax | 976.28 | 884.73 | 1,064.76 | 1,332.99 |
| Other comprehensive income after tax for the year | (1.17) | (6.03) | 87.18 | 22.30 |
| Total Comprehensive Income for the year | 975.11 | 878.70 | 1,151.94 | 1,355.29 |
| Total Comprehensive Income attributable to Owners of the Company | - | - | 1,135.79 | 1,246.51 |
| Total Comprehensive Income attributable to Non-Controlling Interest | - | - | 16.15 | 108.78 |
| Earnings Per Share | ||||
| Basic | 28.00 | 26.17 | 29.45 | 39.42 |
| Diluted | 28.00 | 26.17 | 29.45 | 39.43 |
The Company has achieved a turnover of 4,217.71 million during the Financial Year 2025-26, against a turnover of 3,697.35 million during the previous year on a standalone basis. Your Company has earned a net profit of 976.28 million during the Financial Year 2025-26 against net profit of 884.73 million during the previous year on a standalone basis.
On a consolidated basis, your Company has achieved a turnover of 6,456.18 million during the Financial Year 2025-26, against a turnover of 6,261.82 million during the previous year on a consolidated basis. Your Company has earned a net profit of 1,064.76 million during the Financial Year 2025-26 against net profit of 1,332.99 million (including exceptional item of 257.88 million) during the previous year on a consolidated basis.
The Company did not undergo any change in the nature of its business during the Financial Year ended March 31, 2026.
The Board of Directors did not recommend any dividend for the Financial Year ended March 31, 2026.
In terms of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), the Company has formulated and adopted a Dividend Distribution Policy with the objective of providing clarity to its stakeholders on the profit distribution strategies of the Company. During the year, the said Policy has been reviewed by the Board of Directors of the Company and the same is hosted on the website of the Company at: .
Pursuant to the provisions of Section 124 of the Companies Act, 2013 (Act) Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refunds) Rules, 2016 (IEPF Rules) read with the relevant circulars and amendments thereto, the amount of dividend remaining unpaid or unclaimed for a period of seven years from the date of transfer to the unclaimed dividend account, is required to be transferred to the Investor Education and Protection Fund (IEPF), constituted by the Central Government.
There are no dividends remaining unclaimed as on 31.03.2026.
During the Financial Year 2025-26, no shares in respect of which dividend has not been paid or claimed for seven consecutive years or more of the company were due for transfer to Investor Education and Protection Fund Authority (IEPF), in compliance with the provisions of Section 124 of the Companies Act, 2013.
The company has decided against transferring any portion of its annual profits to designated reserves, keeping in mind the strategy of fueling the growth plans by reinvesting the earnings, the Company has decided to transfer its profit for the year to the surplus of the profit & loss account.
As on 31st March, 2026, the authorized share capital of the Company is 25,00,00,000/- (Rupees Twenty-Five Crores Only) divided into 5,00,00,000 (Five Crores) equity shares of face value 5/- each.
As on 31st March, 2026, the paid-up equity share capital of the Company is 18,08,04,080/- (Rupees Eighteen Crores Eight lakhs Four thousand and Eighty Only) divided into 3,61,60,816 (Three crores Sixty-One Lakhs Sixty Thousand Eight hundred and Sixteen) equity shares of face value 5/- each.
The Company has paid listing fee for the Financial Year 2025-26, to BSE Limited and National Stock Exchange of India Limited (NSE) where its shares are listed.
The Companys equity shares were listed on the Stock Exchanges i.e. Bombay Stock Exchange (BSE) and National Stock Exchange of India Limited (NSE) for trading on Stock Exchanges with effect from October 24, 2025, following the Initial Public Offer (IPO) conducted through a Fresh issue of shares and Offer for Sale (OFS) transaction by the existing shareholders of the Company as on that date. The offer period ran from 15th October, 2025, to 17th October, 2025, while the anchor issue began on 14th October, 2025.
The Companys maiden IPO witnessed an overwhelming response from Qualified Institutional Buyers, Non-Institutional Investors, Retail Individual Investors and Anchor Investors. The robust investor participation and strong subscription across investor categories reflect the markets confidence in the Companys governance standards, business model and future prospects.
The Company had launched an Initial Public Offer (IPO) by way of fresh issue and an Offer for Sale (OFS) aggregating to 42,35,724 equity shares of face value of 5/- each for cash, at a price of 1065/- per equity share (comprising a
face value of 5/- per equity share and a premium of 1060/- per equity share). The IPO comprised of (a) fresh issue of 23,48,401 equity shares (b) an offer for sale of 1,699,530 equity shares by Mr. Kollareddy Rama Raghav Reddy, and (c) 187,793 equity shares by Mr. Guntaka Ravindra Reddy. The equity shares were allotted to eligible applicants on 20th October, 2025, and the listing and trading of the Companys shares commenced on 24th October, 2025, on BSE Limited and National Stock Exchange of India Limited.
The Company has allotted 23,48,401 (Twenty-Three Lakhs Forty-Eight Thousand Four Hundred and One) fresh equity shares at an offer price of 1065/- per equity share (comprising a face value of 5/- per equity share and a premium of 1060/- per equity share) under public issue and out of such shares, 10,373 (Ten Thousand Three Hundred and Seventy-Three) equity shares were allotted to such eligible employees at a discounted offer price of 964/- per equity share (comprising a face value of 5/- per equity share, a premium of 1060/- per equity share and a discount of 101/- per equity share) under Employee reservation portion, i.e. at a discount of 101/- in accordance with the provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (SEBI ICDR Regulations) on 20th October, 2025.
The Company has not bought back any of its securities and there was no disinvestment during the Financial Year ended 31st March, 2026.
The Company has not issued any Sweat Equity Shares during the year under review.
The Company has not issued any bonus shares during the year under review.
The Company has not provided any Stock Option Scheme to the employees.
There have been no material changes and commitments which affect the financial position of the Company that have occurred between the end of the Financial Year to which the financial statements relate and the date of this report.
Management Discussion and Analysis Report, pursuant to Regulation 34 of the Listing Regulations for forms part of this Report as Annexure-I.
As on the date of this report, the Board of Directors consists of 6 members as detailed below:
| Sr. No. | Name of Director | Designation |
| 1 | Mr. Rana Som | Independent Director & Chairman |
| 2 | Mr. Duvva Pavan Kumar | Independent Director |
| 3 | Mrs. Smita Amol Lahoti | Independent Director |
| 4 | Mr. Kollareddy Raghav Reddy | Whole time Director & CEO |
| 5 | Mrs. Uma Priyadarshini | Whole time Director |
| 6 | Mrs. Kukreti Soumya | Whole time Director |
None of the directors of the company are disqualified under the provisions of the Companies Act, 2013 (Act) and under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
As per Section 152(6) of the Companies Act, 2013 and rules made thereunder, Mrs. Uma Priyadarshini Kollareddy (DIN: 02736184) Director will retire by rotation at the ensuing Annual General Meeting and being eligible offers herself for reappointment. The Board considers and recommends her appointment.
The information about the Director seeking re-appointment as per the Secretarial Standards on General Meetings and Regulation 36 (3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, has been given in the notice convening the 45th Annual General Meeting.
Apart from the above, there was no change in the composition of the Board of Directors of the company during the year under review.
The Company is having the following Key Managerial Personnel as on 31st March, 2026:
Kollareddy Ramachandra, Whole Time Director and Chief Executive Officer
Dilip Kumar Chalasani, Chief Financial Officer
Rohit Tibrewal, Company Secretary*
K. Achyutanand Reddy, Company Secretary*
There was no change in the KMP of the company during the year under review.
However, the Board at its meeting held on 26th May, 2026, took on record the resignation of Mr. Rohit Tibrewal from the office of Company Secretary (CS) and Key Managerial Personnel (KMP) of the Company without effect from the close of business hours of April 30, 2026 and based on the recommendation of the Nomination and Remuneration Committee, the Board approved the appointment of Mr. K. Achyutanand Reddy as Company Secretary and Key Managerial Personnel (KMP) of the Company with effect from 26th May, 2026.
Mr. Rohit Tibrewal, Company Secretary of the Company resigned as the Company Office of the Company effective 30th April, 2026.
The composition of the committees as on 31st March, 2026, as per the applicable provisions of the Act, Rules and Listing Regulations are as follows:
| Sr. No. | Name of the Committee | Composition of the Committee | Highlights of duties, responsibilities and activities |
| 1 | Audit Committee | Mrs. Smita Amol Lahoti (C) Mr. Duvva Pavan Kumar (M) | All recommendations made by the Audit Committee during the year were accepted by the Board. The Audit Committee shall review the quarterly/half yearly/annual financial statements, related party transactions before submission to the Board for approval. It reviews with the management, the performance of statutory auditors, internal auditors, adequacy of internal control systems, etc. |
| 2 | Nomination and Remuneration Committee | Mr. Duvva Pavan Kumar (C) Mr. Rana Som (M) Mrs. Smita Amol Lahoti (M) | The committee oversees and administers the appointments, remuneration, compensation paid to directors and Key Managerial Personnel of the company. The Nomination and Remuneration Committee has framed the Nomination and Remuneration policy of the company. |
| 3 | Stakeholders Relationship Committee | Mr. Rana Som (C) Mr. Duvva Pavan Kumar (M)* Mrs. Smita Amol Lahoti (M)* Mrs. Uma Priyadarshini Kollareddy (M) Mrs. Kukreti Soumya (M) | The committee reviews and ensures redressal of investor grievances. The committee ensures that grievances of the investors if any will be resolved timely. |
| 4 | CSR & ESG Committee | Mrs. Smita Amol Lahoti (C) Mr. Kollareddy Ramachandra (M) Mrs. Uma Priyadarshini Kollareddy (M) Mrs. Kukreti Soumya (M) | The CSR & ESG Committee of the Board reviews and monitors the CSR and ESG activities of the company. The Committee formulated and recommended to the Board, a Corporate Social Responsibility (CSR) Policy indicating the CSR activities to be undertaken by the Company in compliance with provisions of the Companies Act, 2013 and rules made there under. |
Risk Management Committee
*Appointment as Members of the Stakeholders Relationship Committee w.e.f. 26th May, 2026.
The Company was listed on BSE Limited and National Stock Exchange of India Limited on 24th October, 2025. In view of the completion of the IPO and listing, the role of the IPO Committee has been completed.
The Independent Director Committee was constituted by the Board on 30th September, 2025 in terms of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, to review the draft Price Band Advertisement and to issue the recommendation on the price band. Independent Director Committee met on 09th October, 2025 to consider, review and recommend the Price Band in relation to the Offer and has discharged the functions.
In view of the above, the Board in the meeting held on 12th November, 2025, has dissolved the IPO Committee and the Independent Director Committee.
A separate meeting of the Independent Directors for the Financial Year 2025-26 was held on 12th February, 2026, to evaluate the performance of the Non-Independent Directors, the Board as a whole, and the Chairman. The evaluation was conducted based on parameters such as effectiveness and the quality, quantity, and timeliness of the flow of information between the Management and the Board. The Independent Directors expressed their satisfaction with the performance.
The Company has received necessary declaration from each independent director that he/she meets the criteria of independence laid down in Section 149(6), Code for independent directors of the Companies Act, 2013 and Regulation 16(1)(b) of the SEBI Listing Regulations.
Statement regarding opinion of the Board with regard to integrity, expertise and experience (including the proficiency) of the independent directors appointed during the year.
It is hereby declared that in the opinion of the Board, each independent director appointed is a person of integrity and possesses all the relevant expertise and experience (including proficiency). The Board confirms that the Independent Directors are independent of the Management.
The Independent Directors of the Company have registered themselves with the Indian Institute of Corporate Affairs, (IICA) as required under Rule 6 of Companies (Appointment and Qualification of Directors) Rules, 2014.
The Company has Subsidiaries and Joint Venture Companies within the meaning of the Companies Act, 2013 (Act). Pursuant to provisions of Section 129(3) of the Act, a statement containing salient features of the financial statements of the Companys subsidiaries in Form AOC-1 is attached as Annexure - II to this Report.
In accordance with Section 129(3) of the Companies Act, 2013, your directors have prepared consolidated financial statements of the Company, which forms part of this Annual Report.
There was a complete cessation of activities of BEML Midwest Limited, a subsidiary Company since September, 2008 and matters relating to the said Company is subjudice before the National Company Law Appellate Tribunal. Hence the Company could not prepare the financial statements. Consequently, the said financial statements were not consolidated with the Company.
The particulars of contracts or arrangements with related parties as per Section 188 of the Companies Act, 2013, Clause (h) of sub-section (3) of section 134 of the Companies Act, 2013, Rule 8(2) of the Companies (Accounts) Rules, 2014, rules made thereof and as per the Related Party Transaction (RPT) policy of the Company during the Financial Year ended March 31, 2026, in prescribed Form AOC-2 are annexed to this Boards Report at Annexure-III.
Further, there are no materially significant related party transactions during the year under review with Promoters, Directors, Key Managerial Personnel and their relatives, which may have potential conflict with interest of the company at large. The related party transactions were placed before the Audit Committee and the Board at their respective meetings for approval. All related party transactions entered during the year were in the ordinary course of business and on arms length basis. The details of the related party transactions during the year are part of the financial statements forming part of this Annual Report. The policy on Related Party Transactions as approved by the Board is uploaded on the website of the Company.
The Audit Committee comprises three members. The Committee is chaired by Mrs. Smita Amol Lahoti (DIN: 08764528), Non-Executive Independent Director. All members of the Committee are Independent Directors.
Details of the roles and responsibilities of the Audit Committee, the particulars of Meetings held and attendance of each Member at such Meetings are given in the Report on Corporate Governance, which forms part of this Annual Report.
There were no instances of any disagreement between the Committee and the Board and all recommendations of the Audit Committee made during the year under review were accepted by the Board.
M/s. MSKA & Associates LLP (Formerly known as M S K A & Associates), Chartered Accountants (ICAI Firm Registration No.:105047W/W101187), were appointed as Statutory Auditors of the Company in the 43rd Annual General Meeting of the Company held on 30th September, 2024 for a term of five consecutive years commencing from the conclusion of the 43rd Annual General Meeting until the conclusion of the 48th Annual General Meeting to be held for the Financial Year 2028-2029.
In terms of Section 148 of the Act, the Company is required to maintain cost records and have the audit of its cost records conducted by a Cost Accountant. Cost records are prepared and maintained by the Company as required under Section 148(1) of the Companies Act, 2013.
The Board of Directors of the Company has approved the appointment of M/s. PKR & Associates LLP, Cost Accountants, as the cost auditors of the Company (LLPIN: AAB-7156 & Firm Registration No. 000698) for the year ending 31st March, 2026.
In accordance with the provisions of Section 148(3) of the Act read with Rule 14 of the Companies (Audit and Auditors) Rules, 2014, as amended, the remuneration of 1,25,000/- plus applicable taxes and reimbursement of out-of-pocket expenses payable to the Cost Auditors for conducting cost audit of the Company for Financial Year 2026-27 as recommended and approved by the Board, required to be ratified by the members of the Company. The resolution is placed for ratification of members and forms part of the notice of the AGM.
Pursuant to Regulation 24A of the Listing Regulations and Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11th November, 2024, issued by Securities and Exchange Board of India, the Company has obtained Annual Secretarial Compliance Report for the FY 2025-2026, from Mr. Munesh Kumar Gaur, Practicing Company Secretary on compliance of all applicable SEBI Regulations and circulars/guidelines issued thereunder and the copy of the same has been submitted to the Stock Exchanges on 30th May, 2026.
Pursuant to Section 204 of the Act, read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors of the company at the Board Meeting held on Saturday, 30th August, 2025, appointed Mr. Munesh Kumar Gaur, a Company Secretary in practice, (Membership No. 39597 & CP No. 24478), as the Secretarial Auditor of the Company for Financial Year 2025-26 (the Term) to conduct the Secretarial Audit of the company
and issue the Secretarial Audit Report during their term of appointment as per the Section 204 of the Companies Act, 2013 and rules made thereof as amended from time to time, at a remuneration to be determined by the Board of Directors of the Company. The Secretarial Audit Report for the FY 25-26, does not contain any qualification, reservation or adverse remark or disclaimer, hence no explanation or comments were required by the Board.
The Secretarial Audit Report in Form MR-3 received from them is annexed as Annexure IV.
Pursuant to Regulation 24A and other applicable provisions of the Listing Regulations, Section 204 of the Act, read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, and in accordance with the recommendation of the Board of Directors, the appointment of M/s B S S & Associates (Peer Review Certificate No. 6513/2025), a firm of Company Secretaries in practice is proposed to be appointed as the Secretarial Auditors of the Company for a term of 5 consecutive years i.e. commencing from Financial Year 2026-27 up to Financial Year 2030-2031 (the Term) to conduct the Secretarial Audit of the company and issue the Secretarial Audit Report during their term of appointment as per the Listing Regulations and Section 204 of the Companies Act, 2013 and rules made thereof as amended from time to time, at a remuneration to be determined by the Board of Directors of the Company.
Pursuant to Regulation 34(3) and Schedule V Para C clause (10) (i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has obtained a certificate from Mr. Munesh Gaur, (Membership No. 39597 & CP No. 24478) Company Secretary in practice, stating that none of the directors on the board of the company have been debarred or disqualified from being appointed or continuing as directors of companies by the Securities and Exchange Board of India/Ministry of Corporate Affairs or any such statutory authority, which is annexed to this report.
As per Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Secretarial Audit Report of Andhra Pradesh Crainite (Midwest) Private Limited (CIN: U14102TG2007PTC054390), unlisted material subsidiary of the company for the Financial Year 2025-26, issued by the Secretarial Auditors, M/s. Munesh Gaur, (Membership No. 39597 & CP No. 24478) Company Secretary in practice, is annexed as Annexure IV to this Report. The Secretarial Audit Report of unlisted material subsidiary does not contain any qualification, reservation or adverse remark or disclaimer, hence no explanation or comments were required by the Board of Andhra Pradesh Crainite (Midwest) Private Limited.
M/s Eswaraiah & Co., Chartered Accountants (Firm registration no. 0061575), are the internal auditors of the Company. As prescribed under Section 138 of the Act, M/s Eswaraiah & Co., Chartered Accountants, carried out the internal audit of the Company for FY 2025-26. The internal audit was completed as per the scope defined by the Audit Committee from time to time.
In terms of the Section 148 of the Companies Act, 2013, read with Companies (Cost Records and Audit) Rules, 2014, the Company is required to maintain cost accounting records. Accordingly, such accounts and records were made and maintained for the Financial Year 2025-26.
During the year under review, the Statutory Auditors, Cost Auditors, Secretarial Auditors, Internal Auditors have not reported any instances of frauds committed in the Company by its Officers or Employees, to the Audit Committee or the Board under Section 143(12) of the Companies Act, 2013, read with rules thereunder. Hence no disclosure is required in this regard.
During the year under review, there were no cyber security incidents, breaches or loss of data or documents.
During the year under review, CRISIL has assigned Credit Rating as follows:
| Rating Agency | Facilities Rated | Amount Rated in Cr | Rating Assigned | Rating Action |
| CRISIL Ratings Limited (CRISIL) | NA | NA | Crisil A/Stable | Upgraded |
The brief outline of the Corporate Social Responsibility (CSR) Policy of the Company and the initiatives undertaken by the Company on CSR activities during the year are set out in Annexure-V of this report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. The policy is available on the website of the Company at
Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act read with Rule 5(2) and 5(3) of the (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (Rules) are enclosed as Annexure-VI to this Report.
The statement containing particulars of employees as required under Section 197(12) of the Act read with Rule 5(2) and 5(3) of the Rules forms part of this Report.
There were no significant and material orders passed by the regulators or courts or Tribunals impacting the going concern status and Companys operations in future.
Liquidation proceedings of BELM Midwest Limited, represented by its resolution professional, had filed an application dated October 10, 2023, before the NCLT to initiate the corporate insolvency resolution process (CIRP) against our Company for outstanding operational debts aggregating to ?106.78 million (Application). The Application was dismissed by the NCLT by way of its order dated August 14, 2024 (Dismissal Order).
Consequently, our Company has been served with an appeal proposed to be filed by the resolution professional against the Dismissal Order before the National Company Law Appellate Tribunal, Chennai (Appeal). The Appeal has not been admitted as of the date of this report.
During Fiscal 2021, our Company had undertaken a buy-back of 17,030 equity shares of face value ?100, which was completed on October 23, 2020 (2020 Buy-back). In relation to the 2020 Buy-back, M.V.V. Nagi Reddy (HUF), represented by its karta, M.V.V. Nagi Reddy, has filed a company petition before the NCLT alleging oppression and mismanagement in relation to the 2020 Buy-back. The NCLT dismissed the Petition by way of its order dated March 10, 2025 (Dismissal Order).
Consequently, M.V.V Nagi Reddy (HUF) filed an appeal before the National Company Law Appellate Tribunal, Chennai (NCLAT) on April 23, 2025 against the Dismissal Order (Appeal). Further, on June 9, 2025, Nagi Reddy HUF filed an interim application before the NCLAT praying inter alia, that an administrator be appointed to supervise the administration of our Company. The Appeal has not been admitted as of the date of this report.
No one-time settlement of loans has taken place during the year. Therefore, the requirement to disclose the details of difference between amount of the valuation done at the time of one-time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof is not applicable.
Pursuant to the Companies (Amendment) Act, 2017, notification dated 03rd January, 2018, Companies having a website are required to place the copy of the Annual Return on the website of the Company. The annual return for the year ended March 31, 2026 shall be available in the link .
As of the date of this report, the Company has formulated a policy on directors selection
and appointment, payment of remuneration, directors qualifications, positive attributes, independence of directors, selection, and appraisal of performance of Key Managerial Personnel and Senior Management and their remuneration and other related matters as applicable under Section 178(3) of the Companies Act, 2013. The Policy is available on the Companys website at .
Pursuant to the provisions of the Companies Act, 2013 and the Listing Regulations, the Board, in consultation with its Nomination and Remuneration Committee, has formulated a framework containing, inter-alia, the criteria for annual performance evaluation process of Board, Committees and Directors.
The annual performance evaluation was conducted in accordance with the framework and each board member completed the questionnaire, sharing vital feedback and identified areas that showed scope for improvement.
The overall outcome of the performance evaluation was satisfactory with the Board identifying key areas for focus going forward and improving the effectiveness of discussions at the meetings.
Pursuant to Section 134(5) of the Companies Act, 2013 the Board of Directors of the Company confirms that:
a) In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures; b) The directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the Financial Year 31st March, 2026 and the Profit of the Company for that period; c) The directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities; d) The directors had prepared the annual accounts on a going concern basis; and e) Internal financial controls have been laid down and such controls are adequate and operating effectively; and f) Proper systems have been devised to ensure compliance with the provisions of all applicable laws and those systems are adequate and operating effectively.
The Company has not accepted any deposits covered under Chapter V of the Companies Act, 2013 (the Act).
The Board in its meeting dated 12th February, 2026 approved the change of Address of the Registered office of the Company from 8-2-684/3/25 & 26 Road No. 12, Banjara Hills, Hyderabad 500034 to Level 19, Wing A, Sky One, Prestige Syktech, Financial District, Nanakramguda, Hyderabad 500032.
Loans, guarantees and investments covered under Section 186 of the Companies Act, 2013 (the Act) form part of the notes to the financial statements provided in this Annual Report.
The provisions relating to Corporate Governance as specified in the Listing regulations are applicable to the Company, as the paid-up share capital and net worth of the Company have exceeded the threshold limits of 10 crores and 25 crores respectively, as per the latest audited financial statements.
The Company has accordingly implemented the necessary governance practices and procedures in compliance with the applicable provisions of the Listing Regulations.
A separate report on Corporate Governance, is annexed herewith as Annexure-VII and forms part of this Annual Report and a Certificate on Corporate Governance compliance for the Financial Year ended on 31st March, 2026 issued by Mr. Munesh Gaur, (Membership No. 39597 & CP No. 24478) Practicing Company Secretary.
The Company has a defined risk management framework to identify, assess, monitor and mitigate risks involved in its business. The Company understands that risk evaluation and risk mitigation is an ongoing process within the organization and is fully committed to identify and mitigate the risks in the business. The Company has formulated and implemented a risk management policy to identify and monitor business risk and assist in measures to control and mitigate such risks. In accordance with the policy, the risk associated with the Companys business is always reviewed by the management team and placed before the Board/Committee. The Board/Committee reviews these risks on periodical basis and ensures that mitigation plans are in place. The Board is briefed about the identified risks and mitigation plans undertaken. The risk management policy is available on the Companys website .
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013, read with Rule 8 of the Companies (Accounts) Rules, 2014, is annexed herewith as Annexure - VIII.
In compliance with Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Business Responsibility and Sustainability Report of your Company for FY 2025-26, describing the various initiatives undertaken from an environment, social and governance perspective during the year forms part of the Annual Report and is annexed as Annexure - IX.
The Company has in place a Whistle Blower Policy to deal with unethical behavior and to provide a framework to promote responsible and secured reporting of undesired activities.
The Whistle Blower Policy is available on the website of the Company at . During the year, no case was reported under this policy.
The Company has zero tolerance towards sexual harassment at the workplace. The Company has adopted a policy on prevention, prohibition and Redressal of sexual harassment at workplace in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules made thereunder.
The Company has complied with the provisions relating to the constitution of the Internal Complaints Committee as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. During the year under review, the Company has not received any complaints of sexual harassment.
(a) number of complaints of sexual harassment received in the year: Nil (b) number of complaints disposed off during the year: Nil (c) number of cases pending for more than ninety days: Nil
The Company has adopted Indian Accounting Standards (Ind AS) pursuant to Ministry of Corporate Affairs notification of the Companies (Indian Accounting Standards) Rules, 2015. The standalone and consolidated financial statements of the Company, forming part of the Annual Report, have been prepared and presented in accordance with the Indian Accounting Standards (Ind AS) as notified under section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules 2015 (by Ministry of Corporate Affairs (MCA)) and relevant amendment rules issued thereafter and guidelines issued by the Securities and Exchange Board of India (SEBI).
The Company has complied with the applicable Secretarial Standards as notified from time to time.
INTERNAL FINANCIAL CONTROLS AND BOARD RESPONSIBILITY: Based on the framework of internal financial controls and compliance systems established and maintained by the Company, work performed by the statutory auditors and external consultants, including audit of internal financial controls over financial reporting by the statutory auditors, and the reviews performed by management and the board is of the opinion that the Companys internal financial controls were adequate and effective during Financial Year 2025-2026.
Pursuant to the Regulation 17(8) of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, the company has obtained certificates signed by Mr. Kollareddy Ramachandra, Whole Time Director & Chief Executive Officer and Mr. Dilip Kumar Chalasani, Chief Financial Officer of the Company, certifying the accuracy of the Financial Statements for FY 2025-26, which forms part of this report.
The Chief Executive Officer and the Chief Financial Officer of the Company also provide quarterly certification on financial results while placing the financial results before the Board in terms of Regulation 33(2)(a) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015, every quarter.
Pursuant to SEBI (Prohibition of Insider Trading) Regulations, 2015 as amended, the Company has adopted the Code of Conduct for Prevention of Insider Trading and Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information, copies of the same are available on companys website at .
Level 19, Wing A, Sky One, Prestige Skytech, Financial District, Nanakramguda, Telangana, India, 500032 CIN: L141027G1981PLC003317 Ph: 040-40733000 Email: cs@midwest.in
Place: Hyderabad Date: August 12, 2026
The Company is committed to ensuring a safe, inclusive, and supportive work environment for all its employees. The Company has complied with all applicable provisions of the Maternity Benefit Act, 1961, including those relating to maternity leave, nursing breaks, and other benefits as prescribed under the Act.
The Company continues to uphold the rights of women employees and remains committed to providing necessary support to enable work-life balance and promote gender diversity within the organization.
Statements in this Report, including those which relate to Management Discussion and Analysis, Corporate Governance Report, describing the Companys objectives, projections, estimates and expectations may constitute forward looking statements with the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied in the statement depending on the circumstances.
The Board of Directors would like to place on record its appreciation towards all the employees & the managerial personnel of the company for their contribution in the operations of the company during the year under review. The Directors would also like to record their sincere thanks to the Companys bankers, Central and State Government officials, customers, vendors and the shareholders for their continued support and co-operation.
By Order of the Board of Directors MIDWEST LIMITED
Kollareddy Ramachandra Uma Priyadarshini Kollareddy Wholetime Director & CEO DIN: 00060086 DIN: 02736184
INTERNATIONAL DISUSSION AND ANALYSIS
The global economy expanded by an estimated 3.3% during 2025, supported by domestic demand, easing financial conditions and investment in technology and digital infrastructure. Elevated trade barriers, geopolitical tensions and policy uncertainty constrained the pace of recovery.
Inflation moderated across several economies as earlier monetary tightening and softer commodity prices reduced price pressures. However, geopolitical conflict, energy-market volatility, high public debt and changing trade policies continued to affect investment sentiment and operating costs.
Major central banks eased monetary conditions during 2025, although the pace remained uneven across regions. Manufacturing momentum improved but growth stayed uneven across industries. Merchandise trade grew 6.5% during 2025, supported partly by demand for Al-enabling goods and front-loading of imports ahead of anticipated tariff changes.
Near-Term Global Setting. Global growth is projected at 3.1% in 2026 and 3.2% in 2027, while trade is expected to moderate before recovering. Geopolitical tensions, energy prices, freight costs and trade restrictions remain key risks.
Relevance to Midwests Established Business. Natural-stone exports remain sensitive to construction demand, customer inventory cycles, freight availability, currency movements and changing trade conditions.
Longer-Term Opportunity. Growth in solar manufacturing, semiconductors, electric mobility, aerospace and defence is expanding demand for processed quartz, High-Purity Quartz, titanium feedstocks and rare-earth elements.
Source: IMF, World Economic Outlook, April 2026; UNCTAD, Key Statistics and Trends in International Trade, 2025.
India remained one of the worlds fastest-growing major economies during FY26, with real GDP expanding by 7.7% Growth was supported by domestic consumption, public infrastructure investment, improving private-sector capital expenditure and broad-based activity across manufacturing, services and construction.
Average CPI inflation fell to around 2% supported by easing food prices, healthy agricultural output and favourable supply-side conditions. The Reserve Bank of India maintained an accommodative stance, keeping the repo rate at 5.25% following its June 2026 Monetary Policy Committee meeting. Industrial production remained resilient, supported by higher manufacturing output and improving capacity utilisation.
Mining and quarrying activity remained relevant to Indias industrial development. Policy initiatives aimed at accelerating mineral exploration, strengthening domestic processing and building greater self-sufficiency are creating a supportive environment for companies with resource-development capabilities.
Indias external sector demonstrated resilience despite heightened trade uncertainties. Merchandise exports remained stable, services exports sustained healthy growth, and foreign exchange reserves remained comfortable. The Indian rupee witnessed moderate fluctuations against the US dollar but remained comparatively stable among emerging market currencies. GST collections continued to register growth, reflecting stronger economic formalisation and rising compliance.
For Midwest, external-sector stability matters directly. The Company generates a material share of revenue from exports across 17 countries, and currency stability, freight-market normalisation and sustained trade flows are relevant to both natural-stone realisations and the medium-term competitiveness of its quartz and strategic-minerals verticals.
The Economic Survey projects real GDP growth of 6.8 to 7.2% for FY27, supported by domestic demand, infrastructure expenditure and manufacturing growth. Risks remain from geopolitical tensions, crude-oil volatility, global trade fragmentation and
adverse weather; however, Indias domestic growth story remains intact and the medium-term outlook is expected to provide resilience.
Strategic Relevance for Midwest Indias growth is broadening, increasingly driven by infrastructure, urbanization, construction, renewable energy, semiconductor manufacturing, electric mobility and defence localization require a wider range of natural, processed and strategic materials.
Midwest is positioned across this changing landscape. Its granite business participates in construction and architectural demand, its quartz platform serves the solar-glass and future HPQ applications and its emerging HMS and rare-earth initiatives align with Indias focus on titanium feedstocks, permanent-magnet inputs and mineral security.
Source: IMF, World Economic Outlook, April 2026; PIB, NITI Aayog, Press Information Bureau, Government of India, 2025-26.
Industry Overview
The industry relevant to Midwest spans three connected material categories, each at a different stage of development: granite and natural stone, quartz and High-Purity Quartz, and Heavy Mineral Sands and rare-earths. Together these form a progression from established resource-led materials towards value-added processing and strategic-material applications.
Global Granite and Natural Stone Industry
The global natural stone industry remained steady during 2025, supported by construction activity, residential development, hospitality, commercial real estate and infrastructure investment. Granite continues to hold a relevant position owing to durability, aesthetics and cost-effectiveness, particularly in flooring, façade, counters, sculptures and monuments.
Demand is moving towards value-added materials, including customized finishes, cut-to-size products and responsibly sourced stone. Asia-Pacific, North America and the Middle East remain important demand centres. The industry is witnessing greater automation in quarrying and processing to improve yield and resource-efficient extraction. The medium-term outlook remains constructive, although demand will be influenced by construction cycles, freight costs, trade disruptions and competition from engineered surfaces.
Indian Granite and Natural Stone Industry
Industry performance in FY26 Indias granite and natural stone industry remained resilient, supported by domestic infrastructure, commercial hospitality and infrastructure projects. Export conditions were mixed, reflecting slower construction in certain overseas markets, geopolitical uncertainty and higher freight. The industry continued to shift towards value-added products, customized finishes and project-specific architectural solutions.
Key Growth Drivers
Expansion of residential development in the mid-to-premium segment.
Continued investment in hospitality, airports, metro systems and public infrastructure.
Growing preference for durable and visually differentiated natural materials.
Increased demand for customised, high-finish and project-specific stone products.
Greater adoption of automated quarrying and precision-cutting technology.
Black Galaxy: Indias Differentiated Position Black Galaxy Granite occupies a distinct position within Indias natural-stone portfolio because of its geological scarcity and its established reputation as an architectural, monumental and interior application. Black Galaxy Granite is distinctive because commercially viable deposits are concentrated in Andhra Pradesh. Its geological scarcity and global recognition have made it one of the most widely available varieties. Indias black granite segment benefits from experienced quarrying capabilities, established buyer relationships and familiarity across international markets.
Challenges
Uneven export demand across international markets.
Rising freight and logistics costs.
Increasing competition from engineered surfaces in selected applications.
Stringent mining, environmental and operating approvals.
Exposure to currency movements and changing trade conditions.
Emerging Industry Trends
Shift from volume-led raw-block exports towards value-added and customised products.
Growing use of automation, precision cutting and digital fabrication.
Increasing preference for traceable and responsibly sourced stone.
Greater collaboration among miners, fabricators, architects and developers.
Rising domestic relevance of natural materials in branded real-estate projects.
Industry Outlook Domestic demand is expected to remain a key support driven by urbanisation, housing, hospitality and infrastructure expenditure. Export demand may recover gradually. Black Galaxy is expected to retain its premium positioning, while the broader granite market is likely to see greater value realisation compared with commoditised stone categories.
India Construction Ornamental Stone Market Size (USD Billion) (Graph showing market size from 2025 to 2033)
2025: USD 8.53 B
2026: USD 8.88 B
2033: USD 11.70 B
Opportunities for Midwest Limited
Midwests position in Black Galaxy Granite provides exposure to one of Indias most differentiated natural-stone categories. The Company accounted for approximately 64% (including third-party exports) of Black Galaxy Granite export volume during FY25.
Scale in Absolute Black Granite broadens the portfolio and provides diversification across product categories.
The new Black Galaxy mining area adjacent to existing operations offers shared infrastructure and favourable unit economics.
The newly secured coloured-quartzite lease creates an opportunity to test a B2B2C model combining exclusive mineral access, external conversion partners and Midwest-controlled distribution.
Diamond Wire, mine electrification and captive renewable energy support productivity and cost efficiency.
Heavy Mineral Sands and Rare-Earth Elements
Definition and Applications Heavy Mineral Sands (HMS) are naturally occurring placer deposits containing minerals such as ilmenite, rutile, zircon, garnet, sillimanite, leucoxene and monazite. Ilmenite and rutile serve as titanium feedstocks for pigments, aerospace, defence and industrial applications. Zircon is used in ceramics, refractories and foundries, while garnet serves as an industrial abrasive.
Monazite connects Heavy Mineral Sands with the rare-earth value chain. It contains elements such as neodymium and praseodymium, which may be separated into rare-earth oxides used to manufacture permanent magnets for electric vehicles, wind turbines, electronics and defence systems.
Global Industry Overview Global HMS demand remained supported during 2025 by construction, paints, pigments, ceramics, refractories, aerospace and defence applications. Supply remains geographically concentrated, increasing the strategic relevance of new resources and processing capacity outside established producing regions.
Rare-earth supply chains remain the most concentrated globally. China is estimated to account for approximately 60% of mined magnet rare earths, 91% of refined output and 94% of sintered permanent-magnet production. Export controls introduced during 2025 reinforced global awareness of this concentration. Governments and industrial buyers have responded by accelerating investment in exploration, separation, refining and off-take partnerships outside established jurisdictions.
Heavy Mineral Sand (Beach Sand) Market (Graph showing market size from 2024 to 2034)
2024: 12.6
2025: 13.3
2034: 21.9
CAGR: 5.2%
Indias Strategic Rare Earth Mineral Deposits Unlocking a vital role in the nations growth, driving industries, and a self-reliant future.
[Image: Mineral Sources - Monazite Beach Sands, Carbonatites, Ion Adsorption Clays, Laterite/Bauxite; Primary Elements - Rare Earth Elements (REEs): La-Lu (Lanthanum-Lutetium), Y (Yttrium), Sc (Scandium); Uses & Industry/REEs - High-Tech Industries, Clean Energy & Green Tech, Defense & Aerospace; Critical for Tomorrows Technologies; Enabling a Strong, Vibrant; Key Locations - Kerala, Tamil Nadu, Odisha, Andhra Pradesh, Karnataka, Rajasthan, West Bengal, Northeast India, Madhya Pradesh & Chhattisgarh, Jharkhand]
Indias economic HMS resources are estimated at approximately 1,309.42 million tonnes as of December 2025, according to the Indian Bureau of Mines. The country produces over 400,000 tonnes of ilmenite annually yet continues to import significant volumes of titanium ores, alloys, oxides and finished articles. Import dependence rises progressively down the value chain, with China the principal source of finished products.
The National Critical Mineral Mission, with an outlay of approximately 16,300 crore, provided the principal policy framework during FY26, directing attention towards exploration, domestic processing, recycling and overseas resource acquisition. The Production Linked Incentive scheme for permanent magnets reinforced the emphasis on building domestic value-addition capability.
Despite the resource potential, development remains constrained by stringent regulation, limited processing capacity, coastal sensitivities and controls applicable to monazite-bearing deposits.
Rising titanium dioxide demand from paints, coatings, plastics and paper.
Increasing zircon consumption across ceramics, sanitaryware and refractories.
Growth in aerospace, defence and manufacturing applications.
Indias focus on critical-mineral security and domestic value addition.
Increasing permanent-magnet demand from electric mobility, wind energy and electronics.
Stringent approvals for beach-sand and monazite-bearing deposits.
Environmental sensitivity and coastal-ecosystem considerations.
Limited domestic mineral-separation and refining capacity.
High technology and capital requirements.
Commodity price volatility in titanium and zircon markets.
Increasing investments in integrated mineral-separation facilities.
Greater focus on titanium feedstock and value-added zircon applications.
Development of diversified, multi-geography rare-earth supply chains.
Government-industry collaboration for pilot and processing technologies.
Staged development through pilot plants before commercial scale-up.
Indias large HMS resource base and increasing policy focus provide a favourable long-term foundation. Development is expected to proceed gradually because of environmental, regulatory and technical requirements. The strongest value-creation opportunity extends beyond extraction into downstream separation and processing.
Midwests planned HMS platform provides access to ilmenite, rutile, zircon, garnet and monazite, broadening its portfolio beyond natural stone.
Geological and mining experience supports resource assessment and project development across new mineral categories.
Sri Lankan licences provide longer-term mineral-resource potential, subject to the evolving local policy framework.
The KMML pilot initiative allows Midwest to develop monazite-separation capabilities ahead of commercial-scale investment.
The HMS and rare-earth platform remains at an emerging stage, with revenue contribution expected to develop progressively.
Quartz is abundant, but its commercial applications depend on mineral quality, processing and purity. Processed grit and powder serve engineered stone, surface materials, specialty glass and industrial applications. Higher-grade quartz supports solar glass, optical and electronic units. High-Purity Quartz is used in semiconductor-related processes and quartz crucibles. These applications are defined by impurity thresholds; consistency against specifications determines commercial value.
The industry spans three demand pools: engineered stone and construction materials; solar glass and specialised industrial glass; and HPQ for semiconductor and crucible applications.
Global Industry Overview
Global quartz demand remained supported during 2025 by construction, renewable-energy investment, electronics and semiconductor manufacturing. Supply at the upper end is unusually concentrated. A single US mine is estimated to supply approximately 70% of the worlds natural high-purity quartz, while China accounts for close to 60% of global consumption. This has increased buyer interest in alternative sources, particularly among solar-glass, crucible and wafer manufacturers seeking to diversify raw-material risk.
HPQ remains a specialised segment with high technical barriers, strict impurity limits and demanding customer qualification requirements.
India possesses significant quartz resources but has historically exported a substantial portion in raw or minimally processed form. Industry data indicates a 34% decline in raw-quartz exports during FY25, reinforcing the need for domestic processing and value addition.
Domestic capacity continued to expand, supported by demand from engineered stone, glass and renewable-energy applications. The longer-term opportunity extends to HPQ, where Indias semiconductor and solar-manufacturing ambitions create demand for reliable, high-specification material.
Growth in engineered stone and surface applications.
Expansion of domestic solar-glass manufacturing.
Increasing semiconductor and electronics investment.
Import substitution and local supply-chain development.
Shift from raw-mineral exports towards processed grades.
Variation in mineral chemistry across deposits and mining pockets.
High technical requirements for purity and contamination control.
Customer qualification and testing cycles.
Capital intensity of processing facilities.
0 Competition from established international suppliers.
Expansion of integrated mine-to-processing models.
Greater investment in laboratories and mineral-characterisation capability.
Increasing focus on solar-grade and semiconductor-linked applications.
Shift from raw-quartz exports towards domestic value addition.
Indias quartz industry is expected to benefit from the combined growth of construction materials, solar manufacturing and electronics. Companies with reliable mineral access, processing capability, laboratory infrastructure and customer relationships will be better positioned to participate across these demand pools.
Quartz Phase I provides 303,600 TPA of installed capacity serving engineered stone, solar glass and industrial applications.
Phase II is intended to double installed capacity, funded partly through IPO proceeds.
The HPQ line has been advanced from Phase III into Phase II, bringing semiconductor and crucible applications closer to the current investment programme.
Mine-to-market model provides control across sourcing, processing, quality assurance and distribution.
Managements immediate priority is Phase I utilisation, product consistency and customer development.
Midwest Limited is a materials company with over four decades of experience across natural-stone exploration, mining, marketing, distribution and exports. The Company serves customers across 17 countries and five continents.
Its established business is centred on granite. Midwest is Indias largest producer and exporter of Black Galaxy Granite and one of the countrys largest producers of Absolute Black Granite. This business is supported by long-duration mineral access, operating scale and a globally recognised product portfolio.
The Company is extending this resource-led model into processed and strategic materials. Quartz Phase I establishes its presence in quartz grit and powder, while Phase II and the proposed HPQ line are intended to expand participation across solar glass and semiconductor-related applications. Beyond quartz, Midwest is developing opportunities across Heavy Minerals Sands, titanium feedstocks and rare-earth oxides through its HMS licences, proposed resource expansion and the KMML pilot initiative.
Midwests Diamond Wire division provides backward integration, supporting captive cutting efficiency and serving external customers in mining, semiconductor and solar-processing segments.
Core Earnings Foundation: Granite and natural stone.
Scaling Value-Addition Platform: Quartz grit, quartz powder and HPQ.
Emerging Strategic-Materials Platform: Heavy Mineral Sands, titanium feedstocks and rare-earth oxides.
Enabling Capabilities: Diamond Wire, geological exploration, R&D, processing technology and responsible mining.
Midwests competitive position rests on four reinforcing moats.
Scare Resource Access. Black Galaxy Granite is commercially concentrated in Andhra Pradesh; Midwest is its largest producer and exporter. This resource position now extends into controlled quartz deposits, prospective heavy-mineral-sand licences in Sri Lanka and proposed rare-earth access in India and Indonesia.
Mine-to-Market Integration. Midwest operates across exploration, mining, quality control, logistics and global distribution. This is also the capability set being redeployed from natural stone into strategic minerals.
Multi-Material Optionality. Three distinct platforms: quartz and HPQ for solar glass and semiconductor applications; heavy mineral sands for titanium feedstock; and rare-earth oxides for permanent-magnet inputs. Each serves different end markets, operates on different timelines and de-risks the portfolio against single-vertical dependence.
Enabling Infrastructure. An advanced quartz laboratory, internally manufactured Diamond Wire, fleet electrification and captive solar energy convert resource ownership into operational and cost advantage.
These moats carry execution requirements. Quartz utilisation must stabilise. HPQ must meet demanding purity specifications. HMS and rare-earth projects remain dependent on regulatory approvals, technology validation and disciplined capital deployment. Scaling these verticals while preserving the strength of the cash-generating granite foundation will be central to long-term value creation.
During FY26, Midwest strengthened its natural-stone operations while advancing the transition towards a broader materials platform. The year included resource additions, higher granite output, commissioning and stabilisation of Quartz Phase I, progress on HPQ and early steps in Heavy Mineral Sands and rare-earth oxide processing.
The natural-stone business remained the principal contributor to revenue and profitability. Black Galaxy Granite production increased to 75,988 cubic metres during FY26, with sales of 72,789 cubic metres. Absolute Black Granite production stood at 39,758 cubic metres, with sales of 39,684 cubic metres.
A new Black Galaxy mining area adjoining existing operations was added during the year. Its proximity allows shared infrastructure, while the direct government lease structure offers lower consideration fees compared with secondary sub-lease arrangements at existing operations. Production commenced during the year, with management targeting 10,000 to 12,000 cubic metres annually.
Domestic demand remained healthy, supported by the GST rate reduction from 18% to 5% and government concessions on royalty for local processing. China continued to be an important export market as stalled construction projects resumed and renminbi strength improved the economics of imported stone. The Company also developed opportunities in Middle Eastern and North African markets, including Algeria and Egypt.
Midwest secured a 30-year quarry lease for coloured quartzite, being developed as a B2B2C model with exclusive mining rights, external conversion partners and dealer-led distribution. The model remains at an early validation stage.
Quartz Phase I was commissioned during FY26. Initial stabilisation issues affected production pace and created start-up costs of approximately 6 crore; however, the Company progressively addressed these constraints and entered the ramp-up phase. Monthly output reached approximately 2,000 tonnes by April 2026, with management targeting 10,000 to 15,000 tonnes per month by end of Q1 FY27 and 60% capacity utilisation during FY27. The facility is positioned to serve Indias solar-glass industry, which imports approximately 65% of its requirements, with Midwest aiming to supply 11% to 13% of domestic raw-material needs over the medium term.
Phase II has moved into execution with estimated capital expenditure of 125 to 130 crore, intended to double installed capacity to approximately 607,200 TPA. The HPQ line has been included within Phase II, targeting purity levels of 99.9% and above for semiconductor-crucible and solar-crucible applications. Phase II is expected to shift the product mix towards 70% solar glass and 30% engineered stone. Laboratory-scale work, raw-material identification and process-flow development have been completed.
Sri Lanka finalised the policy framework applicable to heavy-mineral-sand development during the year, and Midwest has been asked to reconfirm its investment commitment, capacity and timelines. The final mining licence remains pending. Plant development is estimated at approximately 120 crore, with commercial revenue conservatively expected from FY2029. The Sri Lankan total identified resource base exceeds 3.5 million tonnes, providing an estimated 20 to 25 year operational runway. A Phase I plant with planned output of 150,000 tonnes ROM feed is intended to produce ilmenite, rutile and zircon.
Midwest was selected as Lead Consortium Partner by Kerala Minerals and Metals Limited for a technology-development initiative and pilot plant for rare-earth elements. The pilot project, budgeted
at approximately 20 crore with a six-month timeline commencing July 2026, is designed to validate monazite separation into rare-earth oxides, specifically neodymium and praseodymium used in permanent magnets. KMMLs reserve base of approximately 140,000 tonnes of crude monazite provides the raw-material foundation.
The project carries relevance to Indias PLI scheme for permanent magnets, under which the targeted 6,000-tonne domestic magnet industry would require 2,000 to 2,500 tonnes of rare-earth oxides annually, against current domestic production of approximately 500 tonnes. Midwests selection as the first private-sector participant in monazite processing represents an opportunity to develop this capability ahead of commercial-scale deployment.
Subsequent to FY26, Midwest Limited, Midwest Energy Limited and NFTDC signed a non-binding MoU with Indonesias state-owned PERMINAS for rare-earth-bearing ionic-clay deposits. The proposed JV would cover mine-to-oxide operations, with NFTDC as technology partner. Indonesian deposits offer access to both light and heavy rare earths, including dysprosium and terbium. The MoU entails no capital commitment; progress remains subject to resource evaluation, definitive agreements, regulatory approvals and investment structuring.
Production increased to 263,615 metres during FY26, with sales of 268,611 metres. Segment revenue grew to approximately 25 crore from 16 crore in the previous year, maintaining a profit before tax margin of approximately 15%. The division serves both captive cutting requirements and external customers in semiconductor and solar-processing sectors.
Nine electric dump trucks are operational across mining sites, with each unit estimated to yield annual savings of approximately 20 lakh compared with diesel equivalents. An electric excavator prototype is under evaluation. Captive solar capacity reached 1 MW, with an additional 0.6 MW planned. Grid-energy costs of approximately 9 to 10 per unit are expected to decline to 4.50 to 5 per unit as captive solar scales. Export pricing was renegotiated, achieving a 4% increase for FY27.
Chemical powder separation is being adopted as an alternative to conventional blasting at selected quarry faces, improving block recovery and dimensional control while reducing vibration, noise and dust. Together with fleet electrification, captive solar and internally manufactured Diamond Wire, these measures form a cost structure in which environmental performance and operating efficiency advance together. Midwest is targeting a 15 to 20% reduction in its carbon footprint over the medium term, alongside sourcing 10% of energy from renewable sources.
On a consolidated basis, Midwest reported revenue from operations of 64.62 crore during FY26, compared with 26.18 crore in FY25, representing a logistics disruption in the final days of Q4 FY26, when sudden freight-rate increases and vessel unavailability left an estimated 3,000 to 5,000 cubic metres of granite unshipped. This inventory is expected to convert to revenue in Q1 FY27.
Consolidated EBITDA increased by 1.5% to 174.37 crore. EBITDA margin stood at 27.01%, compared with 27.43% in the previous year. The modest moderation was attributable to start-up and fixed operating costs in the quarter business. The underlying granite business maintained an EBITDA margin of approximately 27.55% and a standalone PAT margin of 17.47%.
The Companys credit rating was upgraded to CRISIL A/Stable during the year.
Adjusted profit after tax stood at 106.48 crore, compared with 107.51 crore in FY25, excluding the exceptional item recorded in the previous year.
Cash flow from operations increased to 174.72 crore from 87.31 crore, while the working-capital cycle improved from 120 days to 104 days, reflecting better customer terms, bill discounting and improved receivables management.
FY26 marked the Companys transition into the listed-company environment. Midwest raised approximately 250 crore through its IPO, strengthening the equity base and providing resources for Quartz Phase II, electric mining vehicles, captive-solar integration and borrowing repayment. Net worth increased to 978.52 crore. Return ratios moderated, with ROE at 11.58% and ROCE at 13.91%, as the enlarged capital base and ongoing expenditure had not yet contributed fully to earnings.
| Metric | FY26 (\u20b9 Cr) | FY26 (\u20b9 Cr) | YoY Change | Takeaway |
| Net Revenue | 626.18 | 645.62 | +3.10% | Consistent top-line growth from granite |
| Total Expenses | 454.40 | 471.25 | +3.71% | In line with scale-up of operations |
| Consolidated EBITDA | 171.78 | 174.37 | +1.51% | Operational profitability maintained |
| EBITDA Margin (%) | 27.43% | 27.01% | -0.42% pts | Stable margin despite quartz fixed costs |
| PAT (Adjusted) | 107.51 | 106.48 | -0.96% | Core net earnings remained steady |
| PAT Margin (%) | 17.17% | 16.49% | -0.68% pts | Consistent net profit conversion |
| Net Worth | 632.40 | 978.52 | +54.73% | IPO and equity base expansion |
| Operating Cash Flow | 87.31 | 174.72 | +100.11% | Cash generation doubled |
| Working Capital (Days) | 120 | 104 | -16 days | Cycle improved via bill discounting |
| ROE (%) | 19.50% | 11.58% | -8.53% pts | Moderated by expanded equity base |
| ROCE (%) | 18.94% | 13.91% | -6.20% pts | Normalised post capital expenditures |
Note: FY25 PAT and PAT margin exclude the exceptional item of approximately 26 crore to enable like-for-like comparison. All figures are on a consolidated basis.
The IPO raised approximately 250 crore, applied to debt repayment (54 crore), mining-fleet electrification (26 crore) and Quartz Phase II including the HPQ line. The debt-to-equity ratio reduced from 0.42 times in FY25 to 0.19 times in FY26, with long-term borrowings of approximately 164 crore at year-end. Capital expenditure remains matched to the maturity of each vertical: Phase II is IPO-funded, the 20 crore KMML pilot is a technology-validation commitment, and Sri Lanka Phase I is intended to be funded through internal accruals on a phased basis aligned to project milestones.
Midwests workforce comprises employees, contract personnel and specialists supporting mining, geology, exploration, engineering, manufacturing, quality, safety and corporate functions. The expansion into quartz, HPQ, HMS and rare-earth oxides is creating a need for additional capability across mineralogy, process engineering, laboratory operations and project execution.
During the year, the Company continued to invest in vocational training, mine safety, operating discipline and technical capability building. To support the complexity of emerging verticals, Midwest has recruited personnel with experience at established global minerals companies. The Company is also developing an employee stock ownership programme to improve retention of key technical and management talent.
During the year, the Company progressed implementation of SAP HANA to strengthen enterprise-wide integration across mining, processing, procurement, finance and compliance. Artificial-intelligence tools are being embedded into selected planning and technical workflows. An integrated HRMS was implemented, strengthening workforce planning and accountability.
Digital monitoring and analytical tools support operational performance review, resource planning and closer control over costs, receivables and project expenditure. Technology systems and related safeguards are reviewed periodically to support business continuity and financial integrity.
Midwest has established internal control systems to safeguard assets, support reliable financial reporting, strengthen statutory compliance and promote disciplined decision-making. The framework includes documented policies, standard operating procedures, delegated authority limits, approval mechanisms and periodic review processes.
Internal audits are conducted on a risk-based basis. The Audit Committee reviews findings, management responses and corrective actions. The Company continues to align its control framework with its expanding scale and emerging verticals. Management believes the internal control systems are commensurate with the nature and complexity of operations.
Risks and Concerns Midwest operates across industries exposed to changes in construction activity, international demand, commodity and energy prices, freight availability, foreign-exchange movements and evolving trade conditions. The following summaries principal risks and the Companys approach to managing them.
Resource and Geology Risk. Granite output depends on geological quality and continuity. Variations in mineral structure, colour consistency and blockyield can affect realisation and acceptance. Mitigation: geological assessment, selective extraction, multi-quarry operations and continuous quality monitoring.
Market and Demand Risk. Revenue remains sensitive to construction cycles, real-estate activity and customer inventory decisions. Mitigation: geographic diversification across 17 countries, a broadening portfolio and growing participation in domestic construction.
Commodity, Energy and Freight Risk. Diesel, electricity, explosives, abrasives and freight rates influence operating costs. Mitigation: progressive transition towards electric mining vehicles, captive solar energy and internally manufactured Diamond Wire.
Foreign-Exchange Risk. A material portion of revenue is denominated in foreign currencies. Rupee appreciation can compress export realisations. Mitigation: active monitoring of currency exposures and evaluation of appropriate hedging measures.
Regulatory and Approvals Risk. Mining and mineral-processing operations require multiple statutory, environmental and land-use approvals. Mitigation: a dedicated regulatory and compliance function and proactive engagement with relevant authorities.
Project Execution and New-Business Risk. Expansion into quartz, HPQ, HMS and rare earths introduces risks relating to project execution, plant stabilisation, technology validation, product consistency and customer qualification. In rare-earth processing, current extraction recovery of approximately 87% compares with benchmark rates of 95 to 96%. Mitigation: phased capital deployment, laboratory and pilot-scale validation, experienced project teams and staged commercial scale-up.
Geopolitical and Jurisdictional Risk. Sri Lankan licences remain subject to the evolving policy framework. Mitigation: project readiness maintained while monitoring each jurisdiction and calibrating capital deployment accordingly.
Concentration Risk. A material share of natural-stone revenue derives from a limited number of product categories and export markets, with China an important destination. Mitigation: diversification across the Middle East, North Africa and domestic construction, alongside portfolio broadening into quartz, HMS and strategic materials.
People and Capability Risk. The transition into a broader materialise enterprise requires new capabilities across mineralogy, process engineering and laboratory operations. Mitigation: continued investment in vocational training, technical capability building and leadership development.
Statements in this Management Discussion and Analysis describing objectives, expectations, projections, estimates, strategies and outlook may constitute forward-looking statements within the meaning of applicable laws. Actual results may differ materially due to economic conditions, construction and industrial demand, commodity-price movements, foreign-exchange fluctuations, freight disruptions, mining and environmental approvals, resource quality, project-execution timelines, technology-development outcomes, product qualification and other factors beyond the Companys control. Readers are advised not to place undue reliance on such statements. The Company assumes no obligation to update or revise them except as required under applicable laws.
[Image: Page containing tables for Part-II (Financial Details) and Part B: Associates and Joint Ventures]
| Sl. No. | Name of the subsidiary | Share Capital | Reserves & Surplus | Total Assets | Total Liabilities | Investments | Turnover | Profit Before taxation | Provision for taxation | Profit After Tax | % of Share holding | Proposed Dividend |
| 1 | Andhra Pradesh Granite (Midwest) Private Limited | 100.00 | 1307.60 | 1890.47 | 482.87 | - | 2084.21 | 196.66 | 45.51 | 151.15 | 88.99 | - |
| 2 | Midwest Neostone Private Limited | 871.0 | 981.14 | 1708.00 | 1719.04 | - | 1840 | (89.65) | (28.28) | (61.37) | 100.00 | - |
| 3 | AP Midwest Galaxy Private Limited | 50.00 | 46.45 | 427.33 | 330.88 | - | 158.69 | 63.21 | 16.00 | 47.21 | 74 | - |
| 4 | Deccan Silica LLP | 7.47 | (9.99) | 6.57 | 0.09 | - | - | (0.05) | - | (0.05) | 75.00 | - |
| 5 | NDR Mining Co. | 2.04 | (3.37) | 0.77 | 2.10 | - | - | (0.41) | - | (0.41) | 98.00 | - |
| 6 | Baahula Minerals | 4.00 | (28.43) | 45.17 | 69.60 | - | - | (7.59) | - | (7.59) | 50.00 | - |
| 7 | Maitreya Minerals | (10.15) | (5.29) | 0.25 | 15.69 | - | - | (2.51) | - | (2.51) | 98.00 | - |
| 8 | BEML Midwest Limited | 25.54 | 2.67 | 28.43 | 0.22 | - | - | (0.04) | - | (0.04) | 54.91 | - |
| 9 | Trinco Mineral Sands Private Limited | 32.94 | (5.37) | 77.22 | 49.67 | - | - | (2.70) | - | (2.70) | 97.92 | - |
| 10 | Midwest Heavy Sands Private Limited | 10.34 | 19.47 | 90.01 | 60.20 | - | - | (0.96) | - | (0.96) | 96.64 | - |
| 11 | Reliance Diamond Tools Private Limited | 130.12 | 269.00 | 1,262.63 | 863.51 | - | - | (4.94) | - | (4.94) | 99.99 | - |
| 12 | Midwest Holdings Limited** | - | - | - | - | - | - | - | - | - | 100.00 | - |
**Subsidiaries which have been liquidated or have ceased to be a subsidiary during the year.
No Accounts were prepared since there was a management dispute between the Joint Venture Partners i.e. Midwest Limited and BEML Midwest Limited and the case is pending for adjudication before the National Company Law Tribunal, Hyderabad.
Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures
(? in million)
| Name of associates | *South Coast Infrastructure Development Company of Andhra Pradesh Limited |
| 1. Latest audited Balance Sheet Date | 31.03.2026 |
| 2. Date on which the Associate or Joint Venture was associated or acquired | January 08, 2007 |
| 3. No. of Shares of Associate held by the company on the year end | |
| A. Number | 25,000 |
| B. Amount of Investment in \u20b9 in millions | 0.25 |
| C. Extent of Holding% | 50 |
| 4. Description of how there is significant influence | Being 50% shareholder and having common directors |
| 5. Reason why the associate is not consolidated | NA |
| 6. Net worth attributable to shareholding as per latest audited Balance Sheet | (3.85) |
| 7. Profit/Loss for the year | (0.41) |
| 8. Considered in Consolidation | - |
| 9. Not Considered in Consolidation | (0.41) |
*The financial figures of M/s. S.C.R. Agrotech Private Limited, a subsidiary of M/s. South Coast Infrastructure Development Company of Andhra Pradesh Limited was consolidated and the details were mentioned accordingly.
Level 19, Wing A, Sky One, Prestige Skytech, Financial District, Nanakramguda, Telangana, India, 500032 CIN: L14102TG1981PLC003317 Ph: 040-40733000 Email: cs@midwest.in
Place: Hyderabad Date: August 12, 2026
For and on behalf of the Board of Directors of Midwest Limited (Formerly known as Midwest Private Limited) (CIN: L14102TG1981PLC003317)
Kollareddy Ramachandra Whole time director & CEO DIN:00060086
Uma Priyadarshini Kollareddy Whole time director DIN:02736184
Dilip Kumar Chalasani Chief Financial Officer
K. Achyutanand Reddy Company Secretary M No: A44619
Place: Hyderabad Date: August 12, 2026
Page 76
CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS Page 77
2025-26
[Pursuant to Clause (h) of Sub-section (3) of Section 134 of the Companies Act, 2013, and Rule 8(2) of the Companies (Accounts) Rules, 2014]
This Form pertains to the disclosure of particulars of contracts / arrangements entered into by the Company with related parties referred to in Section 188(1) of the Companies Act, 2013 including certain arms length transactions under third proviso thereto.
There were no contracts or arrangements or transactions entered in to during the year ended March 31, 2026, which were not at arms length basis.
Details of material contracts or arrangement or transactions at arms length basis
There were no material contracts or arrangement or transactions during the year ended March 31, 2026.
REGISTERED OFFICE Level 19, Wing A, Sky One, Prestige Syktech, Financial District, Nanakramguda, Telangana, India, 500032 CIN: L14102TG1981PLC003317 Ph: 040-40733000 Email: cs@midwest.in
Place: Hyderabad Date: August 12, 2026
By Order of the Board of Directors MIDWEST LIMITED
Kollareddy Ramachandra Wholetime Director & CEO DIN: 00060086
Uma Priyadarshini Kollareddy Wholetime Director DIN: 02736184
To, The Members, Midwest Limited, Floor 19, Prestige Syktech, Financial District, Nanakramguda, Hyderabad - 500032
I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Midwest Limited (hereinafter called the Company). Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts/statutory compliance and expressing my opinion thereon.
Based on my verification of the Companys books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, I hereby report that in my opinion, the Company has, during the audit period covering the financial year ended on March 31 2026 (Audit Period) complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:
I have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial year ended on March 31 2026 according to the provisions of:
i. The Companies Act, 2013 (the Act) and the rules made thereunder.
ii. The Securities Contracts (Regulation) Act, 1956 (SCRA) and the rules made thereunder (Not applicable to the Company during the Audit Period);
iii. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2026, IIFL Capital Services Ltd. All Rights Reserved
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132 (Member ID - NSE: 10975 BSE: 179 MCX: 55995 NCDEX: 01249), DP SEBI Reg. No. IN-DP-185-2016, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, Merchant Banker SEBI Regn. No. INM000010940, RA SEBI Regn. No: INH000000248, BSE Enlistment Number (RA): 5016, AMFI-Registered Mutual Fund Distributor & SIF Distributor
ARN NO : 47791 (Date of initial registration – 17/02/2007; Current validity of ARN – 08/02/2027), PFRDA Reg. No. PoP 20092018, IRDAI Corporate Agent (Composite) : CA1099
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
