Midwest Q1 FY27 Results (NSE: MIDWESTLTD)

12 Aug 2026 · Analysis by Alpha Inflection

Signal: Margin pressure

The read

The core Granite business remains the trajectory driver, with revenue up 35.8% YoY and PBIT up 42.4%, but consolidated EBITDA margin fell 180bps YoY to 28.6% and Quartz losses widened to ₹48.58 million; the key inflection to monitor is whether Quartz investment converts into profitability without further group margin dilution.

P&L walk

Consolidated revenue rose to ₹1,918.39 million, +34.8% YoY but -11.1% QoQ; EBIT increased 25.6% YoY to ₹459.23 million, while EBITDA margin was 28.6%, down 180bps YoY, as higher stores and spares, employee costs and depreciation absorbed part of the revenue growth.

Segments

Granite drove the group with ₹1,844.26 million of revenue and ₹521.88 million of PBIT, up 35.8% and 42.4% YoY respectively, while Quartz remained loss-making at -₹48.58 million versus -₹13.14 million YoY and is the principal drag.

Key positives

• Granite segment revenue reached ₹1,844.26 million, +35.8% YoY, and Granite PBIT reached ₹521.88 million, +42.4% YoY, outpacing consolidated revenue growth of 34.8%.
• Consolidated EBIT rose 25.6% YoY to ₹459.23 million despite a 180bps YoY EBITDA-margin contraction, while standalone finance costs fell 56.5% YoY to ₹10.91 million.
• ₹1,596.33 million of unutilised IPO proceeds remains available for Quartz Phase II, electric dump trucks, solar integration and general corporate purposes.

Key concerns

• Consolidated EBITDA margin declined 180bps YoY to 28.6% even as revenue rose 34.8%, with stores and spares increasing 74.7% YoY and depreciation increasing 34.5%.
• Quartz generated only ₹37.44 million of revenue but recorded a ₹48.58 million PBIT loss, versus a ₹13.14 million loss YoY.
• Consolidated finance costs rose 110.6% QoQ to ₹38.69 million, reversing the prior-quarter benefit and increasing below-EBIT volatility.

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