MOIL Q1FY26 Profit Plunges 66% YoY to ₹51.5 Cr on Lower Manganese Ore Realisations

Nagpur, July 30, 2025 — MOIL Ltd (NSE: MOIL, BSE: 533286) reported a steep decline in profitability for Q1FY26, with standalone net profit falling 55.5% QoQ to ₹51.51 crore, compared to ₹115.66 crore in Q4FY25. On a YoY basis, profit dropped 66.2% from ₹152.35 crore in Q1FY25. The downturn was primarily attributed to lower manganese ore realizations, weak sales volumes, and reduced operational leverage amid a sluggish steel demand environment.

Despite the challenging quarter, the company maintained a healthy EBITDA margin of around 18%, supported by cost controls in employee and other operating expenses. MOIL’s production of manganese ore stood at approximately 3.91 lakh tonnes during the quarter, down from 4.64 lakh tonnes YoY. However, the company remains optimistic about a recovery in H2 FY26, supported by expected infrastructure-led steel demand and improved pricing traction in the international manganese market.

Key Standalone Financials

For Q1 FY26, the company reported a significant decline in financial performance across key metrics. Revenue from operations fell sharply by 29.4% year-on-year (YoY) to ₹348.06 crore, down from ₹492.84 crore in Q1 FY25, and declined 19.7% quarter-on-quarter (QoQ). Total income dropped 28.7% YoY to ₹370.52 crore, while total expenses marginally decreased by 2.8% YoY to ₹306.70 crore. Profit before tax (PBT) plunged 68.8% YoY to ₹63.82 crore, and net profit declined steeply by 66.2% to ₹51.51 crore compared to ₹152.35 crore in the same quarter last year. Basic and diluted earnings per share (EPS) also fell by 66.2% YoY to ₹2.53.

Additional Metrics

In Q1 FY26, the company reported employee benefit expenses of ₹140.66 crore, marking a 4.4% increase quarter-on-quarter, reflecting continued investment in workforce retention and talent acquisition. Depreciation expenses slightly eased to ₹37.44 crore from ₹39.08 crore in the previous quarter, while other expenses declined to ₹106.03 crore compared to ₹118.05 crore in Q4 FY25, indicating improved cost efficiency. Notably, tax expense saw a sharp drop to ₹12.31 crore, down significantly from ₹95.85 crore in Q4 FY25 and ₹51.99 crore in Q1 FY25, largely contributing to the company’s bottom-line preservation despite a challenging revenue environment.

Comprehensive Income

In Q1 FY26, the company posted a net profit of ₹51.51 crore, significantly down from ₹115.66 crore in Q4 FY25 and ₹152.35 crore in Q1 FY25, reflecting ongoing pressure on profitability. Other comprehensive income (net of tax) stood at a negative ₹12.26 crore, though this was a marked improvement over the previous quarter’s loss of ₹63.12 crore. As a result, total comprehensive income for the quarter amounted to ₹39.25 crore, compared to ₹52.53 crore in Q4 and ₹152.73 crore in the year-ago period.

Equity Position

On the balance sheet front, the company maintained a solid equity base. The paid-up equity share capital stood at ₹203.49 crore, while other equity, including revaluation reserves, amounted to ₹2,473.66 crore, reflecting the company’s continued financial stability and retained earnings despite recent earnings pressure.

Management Commentary & Outlook

The quarterly performance was impacted by subdued demand and weak pricing in the manganese ore segment. However, MOIL continues to maintain a healthy balance sheet and remains debt-free. The company aims to optimise operations and enhance value-added production to buffer volatility in core commodity pricing.

Auditor’s Note

TACS & Co., in their limited review, raised a note regarding revenue recognition for statutory levies (Royalty, DMF, NMET) being reported on a gross basis. Though this diverges from Ind AS 115 guidelines, the company stated that the treatment aligns with prevailing industry practice and expert advice. No material misstatement was noted.

Stock Performance

On July 30, 2025, MOIL Ltd’s stock closed at ₹345.00, down 6.63% or ₹24.50, after opening at ₹370.90 and hitting an intraday low of ₹342.40.

About MOIL Ltd.

MOIL Ltd, a Government of India enterprise, is India’s largest producer of manganese ore. The company is listed on NSE and BSE and plays a vital role in supporting the domestic steel and ferroalloy industries. As of June 30, 2025, it maintains a strong equity base with no subsidiaries or joint ventures.

REF:https://nsearchives.nseindia.com/corporate/MOIL_30072025150331_Q1_Results_2025-26.pdf

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