Sandur Manganese & Iron Ores Limited has released its financial and operational highlights for the second quarter of FY27 (Q2FY27), ending 30 September 2026. The presentation details standalone and consolidated financial performance, segment operational data for manganese ore, iron ore, ferroalloys, coke, and steel, alongside debt profile, segment highlights, and key performance indicators.
Q2FY27 Financial Performance Overview
Sandur Manganese & Iron Ores Limited has presented its financial and operational results for the second quarter and first half of the fiscal year 2026-27. The company reported its performance across standalone and consolidated levels, providing insights into key financial metrics such as Total Income, EBITDA, Profit After Tax (PAT), and Shareholders’ Funds.
Standalone Financials (Q2FY27)
For the standalone entity, Total Income stood at ₹593 crore, with EBITDA at ₹263 crore and PAT at ₹178 crore. Shareholders’ Funds amounted to ₹3,422 crore. Growth year-on-year (YoY) for Total Income was 33%, EBITDA grew by 35%, and PAT saw a 62% increase. Quarter-on-quarter (QoQ) growth was also positive, with Total Income up 7%, EBITDA by 11%, and PAT by 11%. Margins were reported at 44% for EBITDA and 30% for PAT. Margins Expansion/ (Contraction) YoY was 0.9% for EBITDA and 5.4% for PAT, with a Gross Debt/Equity of 0.08.
Consolidated Financials (Q2FY27)
On a consolidated basis, Total Income reached ₹1,519 crore, EBITDA was ₹391 crore, and PAT stood at ₹261 crore. Shareholders’ Funds were ₹3,716 crore. Consolidated YoY growth for Total Income was 22%, EBITDA increased by 37%, and PAT saw a substantial 88% jump. QoQ growth showed Total Income up 9%, EBITDA by 9%, and PAT by 15%. EBITDA margins were 26%, and PAT margins were 17%. Margins Expansion/ (Contraction) YoY was 2.8% for EBITDA and 6.0% for PAT, with a Gross Debt/Equity of 0.24.
H1FY27 Financial Highlights
For the first half of FY27 (H1FY27), standalone Total Income was ₹1,147 crore, with EBITDA at ₹500 crore and PAT at ₹339 crore. Consolidated Total Income was ₹2,909 crore, EBITDA at ₹749 crore, and PAT at ₹489 crore. YoY growth for H1FY27 was 30% for standalone Total Income and 21% for consolidated Total Income.
Segment Operational Highlights (Q2FY27)
The company provided operational data across its key segments:
- Manganese Ore: Production of 1.36 Lakh Tonne, Sales of 0.79 Lakh Tonne. YoY Sales Volume Change was (3%), QoQ Sales Volume Change was (19%). Average/Tonne Realization was ₹8,502/-, with a QoQ Change in Realizations of 7%.
- Iron Ore: Production of 11.63 Lakh Tonne, Sales of 12.45 Lakh Tonne. YoY Sales Volume Change was 59%, QoQ Sales Volume Change was 29%. Average/Tonne Realization was ₹2,975/-, with a QoQ Change in Realizations of (4%). Sales volumes showed a Significant Increase in YoY & QoQ.
- Ferroalloys: Production of 14,142 Tonne, Sales of 13,429 Tonne. YoY Sales Volume Change was (5%), QoQ Sales Volume Change was (18%). Average/Tonne Realization was ₹70,515/-, with a QoQ Change in Realizations of (1%). Sales volumes showed a Decrease in YoY & QoQ.
- Coke: Production of 0 Tonne*, Sales of 935 Tonne. YoY Sales Volume Change was (80%), QoQ Sales Volume Change was (56%). Average/Tonne Realization was ₹28,967/-, with a QoQ Change in Realizations of 30%. Sales volumes showed a Significant Decrease^ in YoY & QoQ.
- Steel: Production of 1.09 Lakh Tonne, Sales of 1.12 Lakh Tonne. YoY Sales Volume Change was 11%, QoQ Sales Volume Change was 7%. Average/Tonne Realization was ₹78,422/-, with a QoQ Change in Realizations of 5%. Sales volumes showed an Increase in YoY & QoQ.
*Excludes production under contract manufacturing of 58,984 tonnes during the quarter. | Excludes conversion & screening income under contract manufacturing of ₹10.91 Crore during the quarter. | YoY = Q2FY27 vs. Q2FY26, QoQ = Q2FY27 vs. Q1FY27. | ^Due to volumes under conversion contract.
Group Debt Profile
The company’s credit rating is A+ by CRISIL and ICRA. Consolidated Debt to Equity as of Q2FY27 is 0.24. Standalone debt movement shows a Net Debt Decrease of ₹247 crore generated through core SMIORE cash flows in H1FY27. The company maintains a healthy liquidity profile with ₹608 Crore in Standalone Cash & Cash Equivalents and ₹630 Crore in Consolidated Cash & Cash Equivalents (Q2FY27).
Management Commentary
The Managing Director, Bahirji A. Ghorpade, highlighted that Q2FY27 was a healthy quarter with robust mining volumes and strong performance from Royal Sandur Metals. Key initiatives include capacity expansion at the Punjab steel plant and a foray into Medical Devices and Consumables. The mining segment showed strong YoY growth in iron ore production and sales, with improved realisations for manganese ore. The company is also pursuing growth initiatives in mining, including the Downhill Conveyor System and Beneficiation Plant projects. Expansion plans for iron ore production are underway, seeking enhancements in Environmental Clearance. In Coke and Energy, two Coke Oven batteries are being restarted. The Ferroalloys segment saw healthy throughput and steady realisations. Royal Sandur Metals, formerly Arjas Steel, reported healthy performance with increased production and sales, driven by value-add projects. Royal Sandur Green Steel is approved for CAPEX to enhance its Punjab plant capacity. The company is also exploring new frontiers through hospitality, academy, and medical device ventures, with Royal Sandur MedTech planning a CAPEX of ₹390 crore for a manufacturing unit in Visakhapatnam.
SMIORE at a Glance
SMIORE boasts 15 MT Manganese Ore and 137 MT Iron Ore reserves with leases up to 2033. Current capacities include 0.599 MTPA Manganese Ore, 4.45 MTPA Iron Ore, 0.585 MTPA Steel, and 0.50 MTPA Coke. The company also has captive energy arrangements, including 32 MW WHRB-based power and hybrid renewable energy projects. SMIORE is recognized as a 7+ Decade old merchant miner, the 2nd Largest manganese ore miner in India, and the 3rd Largest iron ore miner in Karnataka. It ranks among the top 5 players in SBQ steel.
Geographical Footprint & Values
The company has a broad geographical footprint with corporate offices, mining leases, and steel/ferroalloy plants spread across India, notably in Karnataka, Andhra Pradesh, and Punjab. Its operations are guided by core values of scientific mining, environment preservation, community development, customer focus, employee welfare, safety, integrity, and adherence to corporate governance standards.
Environment Stewardship and Safety
Royal Sandur Group emphasizes environment stewardship, holding 7-Star Rated Mines Recognition, zero discharge operations for ferroalloys, 100% scrap recycling, and significant sapling plantation. The company also focuses on renewable energy transition and consistent 5-star mines rating. Safety is paramount, with proactive hazard reporting, comprehensive safety programs, and adherence to strict safety protocols, evidenced by numerous safety awards and certifications like ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018.
Enabling Sustainable Growth & Recent Milestones
The company is committed to sustainable growth through focus areas in education promotion, healthcare initiatives, rural development, and cultural preservation. Recent milestones include environmental clearance for mining expansion, commissioning of renewable energy projects, crossing $1 billion in market capitalization, strategic business acquisitions, and early payment of NCDs.
Transforming Business Canvas
The company’s business canvas is transforming with strategic integration of mining to metals, and expansion in steel, coke, and energy segments. SMIORE has entered into hybrid renewable energy projects and Royal Sandur Metals into solar energy projects.
Mining – Our Mainstay
The mining segment operates with a capacity of 0.599 MTPA for Manganese Ore and 4.45 MTPA for Iron Ore. The company highlights its highest-ever production and sales volumes for both ores in FY26, driven by capacity enhancements and operational efficiencies. Mining operations adhere to environmental norms and regulatory requirements.
Ferroalloys – New and Improved
The company possesses a Silicomanganese/Ferromanganese capacity of 95,000/1,25,000 TPA. Operations have been enhanced through feasible power generation, utilizing byproduct power from Coke Oven Plant and WHRB, leading to substantial cost savings and a shift towards cleaner energy sources.
Coke and Energy – Strengthening Operations
The Coke Oven Plant has a capacity of 0.5 MTPA with 4 operational batteries. The company also operates 32 MW of Waste Heat Recovery Boilers (WHRB) for cleaner energy generation. Expansion work for the Coke Oven was started in March 2018, with full commissioning in January 2021.
Steel – Growth Engine
With a cumulative steel manufacturing capacity of 0.585 MTPA, the steel segment is integrated into SMIORE, focusing on specialty steel and high-quality auto grade products. It is among the top 5 players in this specialized industry and operates from two production facilities in Andhra Pradesh and Punjab. The company is also exploring growth in non-auto sectors.
Key Performance Indicators (Consolidated)
Consolidated financial performance shows a steady increase in Revenue and EBITDA over the years, with EBITDA margins stabilizing around 25-30%. PAT has also shown an upward trend. Capital Employed has grown, with ROCE ranging from 15% to 27%. Equity and ROE show healthy growth, and Gross Debt to Equity remains at a manageable level, with a significant reduction noted in FY26.
Royal Sandur Group in a Nutshell
The company presents a strong balance sheet with controlled leverage, disciplined capital allocation, robust cash flows, and a purpose-led organization. It is emerging as an integrated player from a merchant miner to a specialty steel manufacturer, driven by strategic inorganic growth, particularly through the acquisition of Royal Sandur Metals.
Capital Market Snapshot
As of 30 September 2026, the Current Market Price was ₹164, with a 52 Week High/Low of ₹273/153. Market Capitalization stood at ₹7,982 Crore, with 48.61 Crore Shares Outstanding. Shareholding is dominated by Promoters at 74.22%, followed by Public at 23.22%, and FII+DII at 2.56%. The NSE Scrip Code is SANDUMA and BSE Scrip Code is 504918.
Long-Term Value Creation
The company demonstrates long-term value creation through robust cash flows, disciplined capital allocation, and operational excellence. The Net Worth has consistently increased, and PAT shows a positive trajectory. Dividend payouts have also seen growth over the years, indicating value distribution to shareholders.
Source: BSE
