Sandur Manganese Q1 FY26: Profit Up 15%, Revenue Soars 89%

Sandur Manganese and Iron Ores Limited (SMIORE) announced its Q1 FY26 results on 8th August 2025, reporting a strong improvement in consolidated earnings. The company’s profit after tax (PAT) rose 15.32% YoY to ₹166.63 crores, supported by a significant 88.70% YoY increase in consolidated revenue to ₹1,135.38 crores.

While consolidated numbers reflected robust growth, standalone performance remained weak, with revenues and profits declining, highlighting the role of subsidiaries and consolidated operations in driving overall results.

1. Company Overview

Sandur Manganese and Iron, headquartered in Karnataka, is engaged in the mining of manganese ore, iron ore, and ferroalloys. It is one of India’s largest and oldest mining companies with a strong presence in the domestic steel value chain. The company’s results are closely linked with global commodity price trends, demand cycles in steel and alloys, and India’s infrastructure growth.

2. Extracts of Q1 FY26 vs Q1 FY25 Results

Consolidated Performance

Standalone Performance

(Figures in crores)

3. Key Highlights of Q1 FY26

• Consolidated Revenue: ₹1,135.38 crores, up 88.70% YoY.

• Consolidated PAT: ₹166.63 crores, up 15.32% YoY.

• Standalone Revenue: ₹422.72 crores, down 29.74% YoY.

• Standalone PAT: ₹128.75 crores, down 12.03% YoY.

• Profitability Divergence: Standalone weakness was offset by strong performance at subsidiaries and joint ventures.

4. Revenue Surge

The nearly 89% surge in consolidated revenue signals strong demand across SMIORE’s consolidated portfolio, possibly driven by:

• Higher Ferroalloy Sales: Better demand from steelmakers.

• Price Realizations: Improved commodity price environment for manganese and iron.

• Subsidiary Growth: Contributions from allied businesses beyond core mining.

5. Profitability Trends

The 15.32% PAT growth reflects improved operating leverage. However, the slower growth in PAT compared to revenue suggests:

• Rising Costs: Higher input and operational costs.

• Margin Pressure: Although sales surged, profit growth lagged, narrowing margins.

• Standalone Decline: Core mining operations faced weaker realizations or volume pressures.

6. Share Price Performance

On 28th August 2025, Sandur Manganese and Iron shares opened at ₹430.00 and were trading higher at ₹433.80 per share, indicating mild investor optimism post-results.

Long-Term Returns

• 1-Year: -11.45% → recent weakness.

• 5-Year: +67.12% → solid medium-term performance.

• Since Listing: +67.10% → long-term investor gains.

The stock reflects cyclicality: strong multi-year returns but recent corrections due to commodity volatility.

7. Analyst Expectations

Analysts remain positive on Sandur’s medium-term outlook:

• Upside Target: ₹500.20 per share in the next year, supported by sector demand and ferroalloy strength.

• Downside Risk: ₹380.20 per share in case of weaker global commodity prices.

• Advisory: Investors should account for high volatility in commodity-linked businesses.

8. Sector Context

India’s steel and alloy industry drives demand for manganese and iron ore. Sector tailwinds include:

• Government Infra Spending: Boosting steel consumption.

• Global Commodity Cycles: Affecting price realizations.

• China Factor: As a major consumer, Chinese demand shapes global manganese and iron prices.

• Renewable Energy and EV Growth: Rising demand for alloys in industrial applications.

9. Risks for Investors

1. Commodity Dependence: Revenue heavily linked to volatile prices.

2. Standalone Weakness: Core mining operations showing decline.

3. Regulatory Risks: Mining sector closely monitored by government.

4. Cyclicality: High dependence on steel demand and global cycles.

10. Opportunities Ahead

1. Diversification: Stronger contribution from ferroalloys business.

2. Export Potential: Rising demand in global steel hubs.

3. Government Push: Domestic mining sector reforms could support growth.

4. Long-Term Infrastructure Boom: India’s urbanization and industrialization to drive sustained demand.

11. Investor Outlook

• For Traders: Stock may benefit from commodity-driven cycles; high-risk, high-reward play.

• For Long-Term Investors: Strong fundamentals and sector tailwinds make Sandur a solid structural story, though cyclical risks persist.

• Balanced View: Investors may consider staggered accumulation to mitigate commodity volatility.

Conclusion

Sandur Manganese and Iron’s Q1 FY26 results reflect a tale of two sides: a robust 88.70% YoY surge in consolidated revenue driving 15.32% PAT growth, versus standalone weakness where both revenue and profit fell.

The company remains a key beneficiary of India’s infrastructure and steel growth story, but investors must account for commodity-linked cyclicality. With analysts projecting an upside target of ₹500.20, Sandur Manganese remains an attractive but volatile bet in the metals and mining sector.

ALSO READ: DMCC Q1 Results FY26: Revenue Jumps 49%, PAT Up 36% YoY