Midwest Limited Reports No Deviations in IPO Proceeds Utilization for Q3 FY26

Midwest Limited has submitted its quarterly statement to stock exchanges confirming no deviations in the utilization of Initial Public Offering (IPO) proceeds for the quarter ended December 31, 2025. The company filed the nil statement pursuant to Regulation 32 of the SEBI Listing Regulations following a review by its Audit Committee on February 12, 2026. IPO Details and Fund Allocation The company successfully raised ₹2,500.00 million through its public issue on October 20, 2025, excluding the Offer for Sale (OFS) portion of ₹2,010.00 million. CRISIL Rating Limited serves as the monitoring agency for the IPO proceeds utilization. IPO Parameter: Details Amount Raised: ₹2,500.00 Million Date of Issue: October 20, 2025 Monitoring Agency: CRISIL Rating Limited Quarter Reviewed: December 31, 2025 Deviation Status: No Fund Utilization Breakdown The IPO proceeds were allocated across several strategic objectives with specific amounts earmarked for each purpose. The largest allocation was designated for subsidiary investment and expansion projects. Object of Fund Utilization: Original Allocation (₹ Millions) Status Investment in Midwest Neostone (Phase II Quartz Processing Plant): 1,302.98 No Deviation Electric Dump Trucks and APGM Investment: 257.55 No Deviation Solar Energy Integration: 32.56 No Deviation Debt Repayment: 562.23 Utilized 543.28 General Corporate Purposes: 90.77 Utilized 74.57 Issue Related Expenses: 253.91 Utilized 174.35 Regulatory Compliance and Oversight The company's compliance with IPO fund utilization requirements demonstrates adherence to regulatory frameworks. The Audit Committee's review process ensures transparency in fund deployment and maintains investor confidence. The quarterly reporting mechanism under SEBI Listing Regulations provides regular updates on fund utilization progress. Key Investment Areas The major portion of IPO funds is directed toward expanding the company's operational capabilities through subsidiary investments. The allocation for Midwest Neostone's Phase II Quartz Processing Plant represents the largest single investment objective. Additional funds support modernization efforts through electric vehicle adoption and renewable energy integration at mining operations. The company has also utilized portions of the raised funds for debt optimization and general corporate purposes, contributing to overall financial health and operational efficiency. Issue-related expenses have been managed within the allocated budget, reflecting effective cost management during the public offering process. Midwest Limited has delivered impressive financial performance for the quarter and nine months ended December 31, 2025, demonstrating strong growth across key metrics while advancing strategic expansion initiatives. The company, which serves as India's largest producer and exporter of Black Galaxy granite, continues to strengthen its position in the natural stone processing industry. Financial Performance Highlights The company's consolidated financial results for 9MFY26 showcase robust growth momentum across revenue, profitability, and operational efficiency metrics. Metric 9MFY26 9MFY25 YoY Growth Net Revenue ₹429.81 Cr ₹396.00 Cr 8.54% EBITDA ₹116.05 Cr ₹97.12 Cr 19.48% EBITDA Margin 27.00% 24.53% +247 bps Adjusted PAT ₹69.45 Cr ₹59.04 Cr 17.63% PAT Margin 16.16% 14.91% +125 bps For Q3FY26 specifically, the company reported net revenue of ₹128.86 crores compared to ₹117.12 crores in Q3FY25, representing 10.02% YoY growth. EBITDA for the quarter reached ₹30.54 crores with a margin of 23.70%, while PAT stood at ₹17.36 crores, marking 19.71% YoY growth. Strategic Business Developments Midwest Limited achieved several significant milestones during the reporting period that position the company for future growth and diversification. Development Details Quarry Lease Award 30-year lease from Andhra Pradesh government effective January 6, 2026 Product Focus Colored quartzite blocks for cutting and polishing International Expansion Board approval for wholly owned subsidiary in Sierra Leone Strategic Purpose Support HMS reserves expansion for long-term growth Galaxy Mine 10.9-hectare mine awarded, production expected Q4 current fiscal The management has also revised its expansion strategy, planning to add the HPQ (High Purity Quartz) line along with Quartz Phase II instead of the initially planned Phase III approach. Business Segment Performance Midwest Limited operates across multiple segments with granite remaining the core business while expanding into quartz processing and rare earth materials. The company maintains exclusive mining rights that provide competitive advantages and strong revenue visibility. The granite business continues to demonstrate strong fundamentals, with the company holding the position as India's largest Black Galaxy granite producer and exporter. Black Galaxy granite, available only in one village in Andhra Pradesh globally, commands premium pricing between ₹50,000-100,000 per cubic meter. Operational Excellence and Future Outlook The company's quartz processing operations have gained momentum with Phase I of the 303,600 MTPA plant commissioned in September 2025. This facility serves the solar glass and engineered stone sectors, with management planning to double capacity to 606,600 MTPA for Ultra-High-Purity Quartz production. Midwest Limited's diversification into Heavy Mineral Sands and Rare Earth Materials aligns with the Union Budget 2026-27 announcement of Dedicated Rare Earth Corridors. The company has secured four HMS exploration licenses in Sri Lanka for minerals including Rutile, Ilmenite, Zircon, Garnet, Sillimanite, and Monazite. Management Commentary Mr. Kollareddy Ramachandra, Promoter, Whole-time Director & CEO, highlighted the company's progress toward becoming a world-class integrated materials processing company. He emphasized the strong leadership, diversified reserves, and operational excellence that support the long-term vision of becoming one of the world's top three producers of Quartz Grit and Powder, South East Asia's largest producer of Titanium feedstock, and among the world's leading producers of Rare Earth Oxides. The company's financial performance reflects effective execution of its diversification strategy while maintaining strong fundamentals in its core granite business. With proven reserves, strategic partnerships, and expanding product portfolio, Midwest Limited continues to strengthen its market position across multiple mineral processing segments. Source: We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better. Stock Markets are the true indicator of the growth of any country's economy. We are bullish on India, we are bullish on India's prospects to be one of largest economies of the world. We believe that Stock Markets provide an unique opportunity for all Indians to participate in the growth story of India. We are enabling the same for Indians. As financial services are becoming more accessible, there is now a large set of Indians today who are financially aware and literate. They value time and seek high quality products & services. Most screening, trading, investing platforms available today are more or less similar to each other, and they have not evolved with time. 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