Midwest Energy Ltd (526570)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Midwest Energy's revenue was ₹6.2 Cr, and net profit ₹-1.0 Cr (a smaller loss than a year earlier); the operating margin was -7.4%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹6.2 | — | +8.3% |
| Operating profit | ₹-0.5 | loss narrowed | loss narrowed |
| Net profit | ₹-1.0 | loss narrowed | loss narrowed |
| EPS (₹) | -0.08 | loss narrowed | loss narrowed |
| Operating margin | -7.4% | — | — |
EPS restated for the ₹10 to ₹1 split of Sep 2026: Q4 FY26 ₹-2.67 to ₹-0.27; Q1 FY26 ₹-3.13 to ₹-0.31.
📢 Recent Corporate Announcements
Midwest Energy (formerly Midwest Gold) has approved its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The company also appointed M/s. Eswaraiah & Co. as Internal Auditor for FY 2026-27, a firm with over 30 years of experience. Given the company's high P/E ratio of 1190.8 and relatively small TTM revenue of Rs 24 Cr, these results are critical for assessing if operational growth is catching up to its Rs 3,679 Cr market capitalization.
- Board approved unaudited financial results for the quarter ended June 30, 2026
- M/s. Eswaraiah & Co. appointed as Internal Auditor for the full Financial Year 2026-27
- The new internal audit firm, established in 1993, brings over 30 years of professional experience
- Board meeting concluded at 8:30 PM IST on August 10, 2026, following a 2-hour session
Midwest Energy Ltd (formerly Midwest Gold) held a board meeting on August 10, 2026, to approve its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The company also appointed M/s. Eswaraiah & Co. as Internal Auditors for the 2026-27 fiscal year. Given the company's extremely high P/E ratio of 1190.8 and a relatively small TTM revenue of Rs 24 Cr, these quarterly results are critical for assessing if the business is scaling its mining operations as planned. The meeting concluded at 8:30 PM IST after a two-hour session.
- Approved unaudited financial results for the quarter ended June 30, 2026.
- Appointed M/s. Eswaraiah & Co. as Internal Auditor for FY 2026-27, a firm with over 30 years of experience.
- The board meeting commenced at 6:30 PM and concluded at 8:30 PM on August 10, 2026.
- Company currently operates with a TTM revenue of Rs 24 Cr against a market capitalization of Rs 3,679 Cr.
Midwest Energy Ltd has scheduled a board meeting for August 10, 2026, to consider and approve the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The company reported a TTM revenue of Rs 24 crore and a net profit of Rs 3 crore, reflecting a highly volatile quarterly performance in the previous year. The trading window for designated persons has been closed since July 1, 2026, and will reopen 48 hours after the results are declared. Investors will be monitoring if the company can improve its operating margins, which stood at -6.5% on a TTM basis.
- Board meeting scheduled for August 10, 2026, to approve Q1 FY27 results
- Trading window closed from July 1, 2026, until 48 hours post-announcement
- Company reported TTM revenue of Rs 24 crore against a market cap of Rs 4,186 crore
- Previous quarter (Mar 2026) revenue was Rs 4.1 crore with a net profit of Rs 0.22 crore
- TTM P/E ratio stands at an exceptionally high 1354.7
Midwest Energy has announced a major leadership overhaul with the resignation of four directors, including the Whole-time Director, and the Chief Financial Officer. To fill these vacancies, the company appointed Ms. Rama Devi Dasari as the new CFO and inducted two new directors, including a former MD & CEO of Bank of India. Notably, the board approved a consultancy fee of up to ₹12.50 lakh per month (₹1.5 crore annually) for outgoing director Deepak Kukreti for renewable energy initiatives. This annualized fee is significant, representing approximately 6.25% of the company's TTM revenue of ₹24 crore.
- Resignation of 4 directors (Deepak Kukreti, K.S.S. Pratap, R. Ankireddy, Sasikanth Rao) and CFO P.R. Venkatachala effective July 28-29, 2026.
- Appointment of Ms. Rama Devi Dasari as CFO, a Chartered Accountant with 20 years of experience at firms like UltraTech Cement and Virtusa.
- Approval of professional consultancy fees not exceeding ₹12.50 lakh per month plus GST for related party Deepak Kukreti.
- Appointment of Mr. Dinabandhu Mohapatra, former MD & CEO of Bank of India, as an Independent Director for a 5-year term.
- The annualized consultancy fee of ₹1.5 crore represents ~6.25% of the TTM revenue of ₹24 crore.
Midwest Energy announced a sweeping management change on July 28, 2026, involving the resignation of four directors and the CFO. The outgoing Whole-time Director, Deepak Kukreti, is being transitioned to a consultant role with a proposed fee of up to ₹12.50 lakhs per month (₹1.5 cr annually), which is significant given the company's TTM revenue of ₹24 cr. New appointments include a former Bank of India MD & CEO as an Independent Director and a new CFO with 20 years of experience. These changes coincide with a strategic pivot toward renewable and clean energy initiatives.
- Resignation of 4 directors (including the Whole-time Director) and the CFO effective July 28-29, 2026.
- Proposed consultancy fee of ₹12.50 lakhs per month for outgoing director Deepak Kukreti, totaling ₹1.5 cr annually.
- The annual consultancy fee represents approximately 6.25% of the company's TTM revenue of ₹24 cr.
- Appointment of Dinabandhu Mohapatra, former MD & CEO of Bank of India, as an Independent Director for a 5-year term.
- Appointment of Rama Devi Dasari as CFO, bringing nearly 20 years of experience from firms like UltraTech Cement and Virtusa.
Midwest Energy has officially commenced commercial production at its 1.2 GWh Battery Energy Storage System (BESS) manufacturing facility in Bengaluru as of July 20, 2026. This facility features integrated 'Cell-to-Container' capabilities, producing battery modules and fully integrated systems ranging from 3 kWh to 6 MWh. For a company with a TTM revenue of just ₹24 Cr, this 'Giga-scale' expansion represents a massive pivot into the clean energy sector. Additionally, the company is expanding its rare earth magnet capacity from 500 TPA to 5,000 TPA in Hyderabad.
- Commencement of 1.2 GWh annual manufacturing capacity for Battery Energy Storage Systems (BESS).
- Integrated production range covering 3 kWh to 6 MWh (48V–1500V) for utility and industrial use.
- Expansion of rare earth magnet manufacturing from 500 TPA to 5,000 TPA in Hyderabad.
- Products aligned with international safety standards including UL 1973 and UL 9540.
- TTM revenue of ₹24 Cr is extremely small relative to the scale of a 1.2 GWh facility, indicating a transformative shift.
Midwest Energy Limited has signed a Memorandum of Understanding (MoU) with Indonesia's state-owned enterprise PT Perusahaan Mineral Nasional (PERMINAS) and India's NFTDC. The collaboration aims to evaluate the entire rare earth value chain in Indonesia, ranging from upstream mining to downstream rare earth magnet production. While the MoU currently specifies no monetary consideration or financial commitment, it represents a strategic entry into Southeast Asian critical minerals. A joint working group will be established to plan and monitor project implementation.
- Partnership involves 4 entities: Midwest Energy, Midwest Limited, NFTDC, and Indonesia's state-owned PERMINAS
- Scope covers the full value chain including exploration, refining, and rare earth magnet manufacturing
- Midwest Energy to specifically provide technology and operational expertise for magnet manufacturing plants
- MoU specifies 'Not Applicable' for current financial size, indicating a non-binding framework at this stage
- Collaboration includes NFTDC, an autonomous R&D institution under India's Ministry of Mines
Financial Performance
Revenue Growth by Segment
Standalone total revenue grew 65.7% YoY to INR 181.66 lakhs, though core turnover from operations fell 57.3% to INR 44.64 lakhs. Consolidated turnover was INR 77.58 lakhs.
Geographic Revenue Split
The company targets both domestic and international granite and marble markets; specific percentage split by region is not disclosed in available documents.
Profitability Margins
Standalone net profit margin declined by 633.17% to -8.83%. Operating profit margin was -391.20%, a 2.76% decrease from the previous year's -104.03%.
EBITDA Margin
Operating profit margin was -391.20% for FY 2024-25, compared to -104.03% in FY 2023-24, reflecting a significant decline in core profitability.
Credit Rating & Borrowing
Not disclosed in available documents; however, the Debt-Equity ratio was 0.31, a 127.18% change from the previous year's -1.16.
Operational Drivers
Raw Materials
Imported marble and locally sourced granite blocks; specific cost percentages for each are not disclosed.
Import Sources
International markets for marble and local Indian sources for granite blocks.
Capacity Expansion
The company is actively pursuing new mining leases and prospecting licenses for gold and natural stones; specific MTPA targets are not disclosed.
Raw Material Costs
Not disclosed as a specific percentage of revenue, but the company notes rising operational costs are driving up commodity prices globally.
Manufacturing Efficiency
Inventory turnover ratio was 0.78, representing a 12.10% improvement YoY.
Strategic Growth
Growth Strategy
Applying for new mining leases, leveraging state-of-the-art technology (geologists, geophysicists), and strategically positioning in international marble markets to generate steady revenue.
Products & Services
Gold, natural stones, imported marble, and processed locally sourced granite blocks.
Brand Portfolio
Midwest Gold Limited.
New Products/Services
New mining projects for gold and natural stones are in the development and execution phase; specific revenue contribution percentages are not disclosed.
Market Expansion
Focusing on both domestic and international granite and marble markets to enhance business opportunities.
External Factors
Industry Trends
The global mining industry is seeing a surge in demand but faces rising operational costs, declining ore grades, and infrastructure shortages.
Competitive Landscape
The sector is characterized by intense competition and market challenges, making optimistic outlooks difficult to project.
Competitive Moat
Moat is based on the extensive experience of the Directors and access to a highly skilled team of geologists and mining engineers; sustainability depends on securing new mining leases.
Macro Economic Sensitivity
Highly sensitive to global supply and demand dynamics, international economic trends, inflation rates, and interest rate levels.
Consumer Behavior
Revenue is influenced by consumer demand levels for gold and natural stones.
Geopolitical Risks
Geopolitical events are cited as external factors beyond control that influence the market prices of gold and natural stones.
Regulatory & Governance
Industry Regulations
Operations are governed by the Mines and Minerals (Development and Regulation) Act, 1957 and subsequent amendments.
Environmental Compliance
Governed by a complex framework of government regulations related to environmental protection and land acquisition; specific costs not disclosed.
Taxation Policy Impact
Operations are affected by government regulations and taxation which impact demand and supply dynamics.
Legal Contingencies
No shareholder complaints were pending at the beginning or end of the year; no specific court case values were disclosed.
Risk Analysis
Key Uncertainties
Speculative nature of mining exploration, requirement for multiple government approvals, and dependency on capital markets for funding due to lack of operational cash flow.
Third Party Dependencies
Heavy reliance on key personnel, contractors, and suppliers for project execution.
Technology Obsolescence Risk
Identified as a risk in the management framework; the company aims to mitigate this by leveraging state-of-the-art technology.
Credit & Counterparty Risk
Debtors turnover ratio of 1.41 (-50.47% YoY) suggests increased credit risk or slower collections from counterparties.
