Introduction
Established in 1954, The Sandur Manganese & Iron Ores Limited (SMIORE) is a 72-year-old company as of 2026, operating what it describes as the largest private-sector manganese ore mines in India. The flagship company of the Karnataka-based Sandur Group, SMIORE has evolved from a manganese and iron ore mining business into a diversified group with operations across mining, special steel, ferroalloys, coke and energy.
The company mines low-phosphorus manganese ore and iron ore at Deogiri in Sandur Taluk, within Karnataka’s Hosapete–Ballari mining region. Its low-grade, low-phosphorus manganese ore is used in ferroalloy and steel production. Alongside mining, SMIORE manufactures silico-manganese, ferro-manganese and coke at its Vyasankere facility near Hosapete. The acquisition of Arjas Steel in November 2024 significantly expanded its presence in downstream steel manufacturing.
In FY2026, steel accounted for 62% of the reported business mix, followed by mining at 28%, ferroalloys at 7%, and coke and energy at 3%. The corresponding FY2025 shares supplied for steel, mining and ferroalloys were 38%, 50% and 4%, respectively. The comparative coke and energy share is addressed in the editorial notes below because its year is incorrectly repeated in the supplied material.
Historical Background and Founding Legacy
(Can skip if not interested in history)
SMIORE’s origins extend to the pre-independence administration of the Ghorpade family, the erstwhile royal family of Sandur. In 1904, the then ruler, His Highness Y. R. Ghorpade, granted a 25-year mining lease covering 7,511 hectares to the Belgian General Sandur Mining Company. Mining operations in the area commenced in 1907.
His Highness Yeshwantrao Hindurao Ghorpade subsequently envisioned the scientific development and professional management of Sandur’s mineral resources. He supported his eldest son, Murarirao Yeshwantrao Ghorpade, in establishing SMIORE in 1954 as a private limited company to take over and develop the manganese mines at Deogiri near Sandur. The company became a public limited company on 29 July 1964, as it pursued the establishment of an electro-metallurgical industry at Vyasankere, and subsequently listed on the Bombay Stock Exchange. The supplied historical timeline places its BSE listing in the 1960s.
The company associates its founding values with the Sandur royal family’s emphasis on public welfare, social equality and conservation. Its historical account recalls Mahatma Gandhi describing Sandur as “an oasis” while praising the administration’s efforts to abolish caste-based discrimination and foster equality. These principles continue to feature in the company’s stated approach to business and community development.
Successive generations of the Ghorpade family have developed and diversified the business. Shivrao Yeshwantrao Ghorpade, also referred to as S. Y. Ghorpade in the supplied company history, led its manufacturing diversification and is identified as Chairman Emeritus. A metallurgical engineer from the Colorado School of Mines in the United States, he oversaw the development of the Metal & Ferroalloy Plant from its initial infrastructure to commissioning, introducing scientific operating procedures and a performance-oriented manufacturing approach. The company’s current expansion and diversification initiatives are being pursued under Managing Director Bahirji Ajai Ghorpade.
Manufacturing Operations
SMIORE entered manufacturing in the 1960s to add value to its mineral resources and support industrial development in the region. In 1968, it established its metal and ferroalloy plant near Hosapete with a 15-MVA electric reduction furnace initially used for pig iron production. Two additional furnaces were subsequently installed, and the product portfolio expanded to include ferro-manganese and other ferroalloys.
During the 1970s, the company increased its ferroalloy capacity and broadened production across pig iron, ferro-manganese, ferro-silicon and silico-manganese. During the 1980s, it consolidated its mining and ferroalloy operations. Power self-sufficiency became an important focus in the 2000s, followed by the development of captive thermal generation and, more recently, waste-heat recovery and renewable energy infrastructure.
In 2018, SMIORE embarked on a coke oven expansion programme. Batteries 1 and 2 commenced operations in January 2020, and a new 24-MVA furnace was commissioned in March 2020. Stage I of its Iron and Steel Project, comprising a 0.4-million-tonne-per-annum coke oven plant, a 30-MW waste heat recovery boiler facility, and the repair and refurbishment of the ferroalloy plant, was commissioned in FY2021. These are the historical project specifications; the supplied current operating profile reports coke capacity of 0.5 million tonnes per annum and associated power capacity of 32 MW.
In 2022, the company expanded its stated silico-manganese capacity from 48,000 to 95,000 tonnes per annum and ferro-manganese capacity from 66,000 to 1,25,000 tonnes per annum. These product-specific capacity figures should not be added together without confirming the plant’s operating configuration and product-mix constraints.
The company’s earlier diversification initiatives included a separate electronics division for manufacturing dot matrix printers in collaboration with a Japanese partner and a software division engaged in advanced software development and training. Other Sandur Group companies mentioned in its history include Sandur Investment, Sandur Financial Services and Sandur Laminates. These activities form part of the group’s historical development and should not be confused with SMIORE’s present reported business segments.
In January 1994, SMIORE undertook a rights issue of 18.75 lakh equity shares at a premium of ₹35 per share, raising approximately ₹8.44 crore. The proceeds were intended to partly finance a ₹60-crore, 100% export-oriented copper-clad laminates project with an annual capacity of 1.35 million square metres, developed in technical collaboration with West Coast Enterprises of the United States.
The company also developed a 30-MW mini-hydel project with a stated annual generation capability of 130 million units. Separately, it established a pilot beneficiation plant designed to process 15,000 tonnes of C-grade ore and produce 5,000 tonnes per annum of ferro-manganese-grade sinter.
During FY2000, SMIORE was declared a sick industrial company by the Board for Industrial and Financial Reconstruction, with IDBI appointed as the operating agency. The third and fourth units of its hydel power project were commissioned in April 2001. Sandur Fluid Controls Limited ceased to be a subsidiary during FY2004.
As part of its efforts to raise funds for rehabilitation, SMIORE sold the Hemavathy Left Bank Canal Hydel Plant at Gorur in Hassan to Hemavathy Power & Light Private Limited in March 2004. The historical hydel assets therefore should not automatically be included in the company’s current captive power portfolio.
Star Metallics and Power Private Limited (SMPPL) became a subsidiary following an allotment of 1,95,00,000 equity shares on 25 October 2008. The supplied history records the commissioning of a 2-MW captive thermal power plant at Vyasankere in FY2010, while a separate decade-wise timeline refers to a 32-MW captive thermal power plant becoming operational during the 2010s. These descriptions require reconciliation before constructing a historical power-capacity schedule.
SMIORE’s mining operations resumed on 25 January 2013. During FY2020, SMPPL was amalgamated with SMIORE with effect from 1 April 2019. Following the amalgamation, SMIORE’s holding of 7,52,40,000 shares, representing 80.58% of SMPPL’s issued, subscribed and paid-up equity capital, was cancelled, and SMPPL ceased to exist as a separate subsidiary.
Business Overview
SMIORE operates across four connected businesses: mining, specialty steel, ferroalloys, and coke and energy. Mining provides the group’s mineral-resource base and cash generation, while ferroalloys, coke, captive energy and Arjas Steel extend its participation into value-added manufacturing. The company now operates under the unified Royal Sandur Group identity, with SMIORE remaining its flagship company.
Based on external-customer revenue in the audited FY2026 consolidated segment disclosure, steel contributed approximately 61.7% of revenue, mining 29.1%, ferroalloys 7.4%, and coke and energy 1.7%, with a small unallocated balance. The corresponding FY2025 shares were approximately 38.7%, 49.8%, 3.9% and 7.5%. These percentages use a consistent revenue basis, excluding sales between group businesses.
Mining Business
Mining remains the foundation of SMIORE’s operations. The company conducts open-cast manganese and iron ore mining across Deogiri, Kammathuru, Subbarayanahalli and Ramghad in the Sandur–Ballari region of Karnataka. Its two mining leases, ML-2678 and ML-2679, cover approximately 1,999.30 hectares and remain valid until December 2033. The company identifies itself as India’s second-largest manganese ore miner and Karnataka’s third-largest iron ore miner, while describing its manganese mines as the largest in India’s private sector.
The August 2026 investor presentation reports estimated reserves of approximately 15 million tonnes of manganese ore and 137 million tonnes of iron ore. These are the latest supplied figures, superseding the approximately 138 million tonnes of iron ore reported in the FY2026 annual report. Current permitted annual production capacities stand at 0.599 million tonnes of manganese ore and 4.45 million tonnes of iron ore.
Manganese ore capacity has progressively increased from 0.28 million tonnes per annum to approximately 0.46 million tonnes, then 0.582 million tonnes, and subsequently 0.599 million tonnes. Iron ore capacity has expanded from 1.60 million tonnes per annum to 3.81 million tonnes and ultimately approximately 4.45 million tonnes. In April 2023, the company obtained environmental clearance for iron ore expansion from 1.6 million to 4.5 million tonnes per annum. In February 2024, the Monitoring Committee approved production limits of 3.81 million tonnes of iron ore and 0.462 million tonnes of manganese ore, followed by further lease-specific approvals during 2025.
The FY2026 annual report records an iron ore limit of 4.36 million tonnes per annum for ML-2678 and a further 0.089 million tonnes for ML-2679, together explaining the rounded company-wide capacity of 4.45 million tonnes. Environmental clearance, consent to operate and Maximum Permissible Annual Production are separate regulatory approvals, and these capacities should not be confused with actual annual output. The company also received permission to dispatch 0.327 million tonnes of previously excavated incidental iron ore in addition to regular production, with the balance permitted for dispatch by the end of August 2026.
Mining Operating Performance
For FY2026, manganese ore production reached a record 5.89 lakh tonnes, compared with 5.12 lakh tonnes in FY2025, an increase of approximately 15%. External sales increased to 3.38 lakh tonnes from 1.75 lakh tonnes, representing growth of approximately 93%, while captive consumption stood at 0.61 lakh tonnes against 0.65 lakh tonnes. Average realisation declined to ₹6,486 per tonne from ₹8,090 per tonne.
Iron ore production reached a record 43.51 lakh tonnes in FY2026, compared with 38.10 lakh tonnes in FY2025, an increase of approximately 14%. Sales rose to 41.04 lakh tonnes from 40.12 lakh tonnes, while average realisation declined to ₹3,128 per tonne from ₹3,510 per tonne. Higher volumes therefore partly offset weaker ore prices during the year.
During Q4 FY2026, manganese ore production stood at 2.02 lakh tonnes against 2.33 lakh tonnes in Q4 FY2025, while sales increased to 1.20 lakh tonnes from 0.46 lakh tonnes. Average realisation was ₹6,935 per tonne against ₹7,059 per tonne. Iron ore production increased to 12.65 lakh tonnes from 8.33 lakh tonnes, sales rose to 15.10 lakh tonnes from 13.51 lakh tonnes, and average realisation declined to ₹2,834 per tonne from ₹3,554 per tonne.
For the quarter ended 30 June 2026, or Q1 FY2027, manganese production increased approximately 24% year-on-year to 1.50 lakh tonnes and sales rose approximately 99% to 0.97 lakh tonnes. Sales were, however, 19% lower sequentially. Average realisation improved 15% over Q4 FY2026 to ₹7,954 per tonne. Iron ore production rose approximately 27% year-on-year to 13.61 lakh tonnes and sales increased 13% to 9.64 lakh tonnes, although sales declined 36% sequentially. Iron ore realisation improved 9% quarter-on-quarter to ₹3,095 per tonne.
Manganese Ore
SMIORE’s manganese ore is distinguished by its low phosphorus content of below 0.05%. The company describes it as a high-quality, low-grade metallurgical ore suitable for blending in ferroalloy and steel production. Part of the mined ore is consumed internally in the ferroalloy business, while the balance is sold to external customers or held in inventory.
Manganese mining is semi-mechanised and labour-intensive, generating employment for communities in and around Sandur. The company emphasises scientific mining, worker safety and environmental management, alongside afforestation, healthcare and education initiatives in surrounding communities. Its approach combines resource extraction with local employment and community development.
Iron Ore
SMIORE’s iron ore operations are fully mechanised and produce ore with approximately 56–58% iron content. Mechanisation supports operating efficiency, workplace safety and environmental compliance. Compared with the labour-intensive manganese business, management describes iron ore mining as a higher-margin activity. Most ore is sold externally, while supplies to Arjas Steel have begun to support greater internal utilisation and integration.
The company’s mining customers include JSW Steel, Steel Authority of India Limited, Acore Industries, Berry Alloys Limited and the MPL Group. Its mines are connected to the Swamihalli and Sunderambencha railway sidings on the Swamihalli–Hosapete broad-gauge line, while the new downhill conveyor will provide a direct evacuation route to the PMBR railway siding.
Steel Business and the Arjas Acquisition
SMIORE announced the acquisition of Arjas Steel Private Limited on 25 April 2024 and completed the purchase of a 98.94% equity stake on 11 November 2024, within the stated seven-month timeline and following regulatory approvals. The transaction was reported at an enterprise value of approximately ₹3,000 crore and an equity value of ₹1,914 crore. Arjas Modern Steel Private Limited, Arjas Steel’s wholly owned subsidiary, consequently became a step-down subsidiary of SMIORE.
Arjas operates manufacturing facilities at Tadipatri in Andhra Pradesh and Mandi Gobindgarh in Punjab, with a combined steel capacity of 5.85 lakh tonnes per annum, equivalent to 0.585 million tonnes. Arjas Steel uses the basic oxygen furnace route, while Arjas Modern Steel uses the electric arc furnace route. The group’s steel operations span coke, sinter, hot metal, billets, value-added bars and other downstream products.
The business has approximately 879 acres of land and infrastructure stated to support potential expansion to 1 million tonnes per annum. This represents expansion headroom rather than current installed capacity. Its energy portfolio comprises approximately 41 MW from solar and recovered-energy sources. Arjas also maintains regional offices in Pune, Chennai and Faridabad, supporting access to automotive and industrial customers across India.
Arjas ranks among India’s five leading manufacturers in the special bar quality, or SBQ, steel segment, producing more than 100 grades for automotive and industrial applications. Its product portfolio includes technically demanding alloy steels, bars, wire rods and ingots. Compared with commodity steel, specialty grades offer opportunities for better realisations and margins, supported by stringent customer qualification requirements and long-standing OEM relationships.
Its customer network, served directly and through supply-chain partners, includes Hyundai, Mahindra, Maruti Suzuki, Ford and Stellantis in passenger vehicles; Daimler, Sonalika, Rane, John Deere, Volvo, Eicher, Tata Motors, TRW, Escorts and VE Commercial Vehicles in commercial vehicles and off-road applications; and Honda, Suzuki, Royal Enfield, Hero and Ather in two-wheelers.
Beyond its established automotive business, Arjas is developing opportunities in railways, energy, electric vehicles, exports, defence and aerospace. The company reports RDSO approval for railway applications. Its locations provide access to both southern and northern OEM clusters, while customer empanelment and product-development capabilities support repeat business.
Operational Upgrades and Integration
The Garrett Coiler facility at Tadipatri entered trial production in February 2025, enabling coil-based products and supporting expansion beyond the traditional bars portfolio into wire rods. A new ingot casting facility was commissioned in December 2025, one month ahead of schedule, opening further opportunities in forging, defence and other high-value applications. An acid pickling line was also commissioned to complete the coil-finishing route and improve surface quality.
Additional improvements included raising blast-furnace hot-blast temperatures to approximately 1,150°C through Stove No. 3, reducing fuel and coke requirements, and increasing steel melt shop throughput from 30 to 32 heats per day through the Phase 2 flying-tundish project. A planned 15-day shutdown delivered four projects together—Stove No. 3, SMS Phase 2, a new ladle turret and a new induced-draft fan—without incident.
Integration initiatives include iron ore supplies from SMIORE to Arjas, coordinated procurement, greater use of captive resources, energy-cost optimisation, sharing operating practices and the appointment of SMIORE nominees to Arjas’s board. Together, these measures support the transition from a merchant mining business towards an integrated mining-to-specialty-steel group.
Steel Operating Performance
On Arjas’s own full-year comparison, FY2026 steel production increased to 4.04 lakh tonnes from 3.77 lakh tonnes, while sales rose to 4.06 lakh tonnes from 3.64 lakh tonnes. Revenue increased approximately 9% to ₹3,141 crore from ₹2,884 crore, despite average steel realisation declining to ₹70,238 per tonne from ₹72,501 per tonne. EBITDA increased approximately 85% to ₹351 crore from ₹190 crore, and profit before tax improved to approximately ₹135 crore from a loss of ₹16 crore.
During Q4 FY2026, steel production increased to 1.07 lakh tonnes from 0.98 lakh tonnes in Q4 FY2025, sales rose to 1.10 lakh tonnes from 0.98 lakh tonnes, and average realisation improved to ₹70,361 per tonne from ₹69,362 per tonne.
In Q1 FY2027, production and sales each stood at approximately 1.05 lakh tonnes, representing year-on-year growth of approximately 10% and 9%, respectively. Sales were 4% lower sequentially, but average realisation improved 6% over Q4 FY2026 to ₹74,385 per tonne. Management attributed the stronger performance to improved pricing, energy-cost optimisation and an increasing focus on value-added products. FY2026 was SMIORE’s first full year of Arjas consolidation; FY2025 group results included Arjas only from the November 2024 acquisition.
Ferroalloy Business
SMIORE commenced ferroalloy operations in 1968 at Vyasankere near Hosapete, using Italian and Norwegian machinery and submerged arc furnace technology. According to its historical account, by 1980 the plant had established a reputation for supplying quality low-phosphorus pig iron to Indian foundries, particularly those serving the automobile industry, as well as ferroalloys to SAIL and other domestic and overseas steel producers.
Over subsequent decades, the company upgraded its production technology and broadened its manufacturing capabilities across ferro-manganese, silico-manganese, pig iron and ferro-silicon. Current production is primarily focused on silico-manganese and ferro-manganese. Product-specific capacities are 95,000 tonnes per annum of silico-manganese or 1,25,000 tonnes per annum of ferro-manganese, compared with 48,000 and 66,000 tonnes respectively in FY2021. The latest presentation places the higher capacities from FY2022 onwards. These alternative product capacities are not additive, and actual output depends on the product mix.
The company originally developed a 32-MW captive thermal power plant to address expensive and unreliable external electricity supply. Its subsequent combination of coke ovens, waste-heat recovery and hybrid renewable energy transformed the power-supply model and supported the ferroalloy turnaround in FY2021. The latest presentation describes a shift away from separately coal-fired generation towards recovered process heat and renewable power, reducing effective power costs and improving operational resilience. Customers include Metal Impex India and BMM Ispat Limited.
Ferroalloy Operating Performance
Ferroalloy production stood at 54,698 tonnes in FY2022, increased to 57,338 tonnes in FY2023, and declined to 28,694 tonnes in FY2024. Corresponding sales volumes were 53,114 tonnes, 55,174 tonnes and 28,446 tonnes, respectively.
Ferroalloy production increased approximately 89% to 51,857 tonnes in FY2026 from 27,389 tonnes in FY2025. Sales rose approximately 213% to 56,130 tonnes from 17,954 tonnes, supported by higher output and inventory carried forward from the previous year. Average realisation declined to ₹66,464 per tonne from ₹68,464 per tonne.
Ferroalloy production capacity stood at 32,000 tonnes per annum in FY2020, increasing to product-specific capacities of 48,000 tonnes of silico-manganese or 66,000 tonnes of ferro-manganese in FY2021. From FY2022 onwards, these capacities increased to 95,000 tonnes of silico-manganese or 1,25,000 tonnes of ferro-manganese annually. These capacities represent alternative product configurations and should not be added together.
During Q4 FY2026, production increased to 13,371 tonnes from 6,768 tonnes in Q4 FY2025, while sales rose to 18,241 tonnes from 2,311 tonnes. Average realisation declined to ₹67,773 per tonne from ₹69,783 per tonne.
In Q1 FY2027, production stood at 13,130 tonnes and sales at 16,292 tonnes. Sales increased 162% year-on-year but declined 11% sequentially, while realisation improved 5% quarter-on-quarter to ₹71,005 per tonne. Two furnaces remained operational, with management seeking better utilisation through process optimisation and increased waste-heat power generation as the remaining coke batteries are restarted.
Coke and Energy Business
SMIORE operates a 0.5-million-tonne-per-annum Vertical Non-Recovery coke oven plant at Vyasankere, comprising four installed batteries and integrated with two waste heat recovery boilers supporting 32 MW of power generation. Expansion work began in March 2018, and the August 2026 presentation identifies 18 January 2021 as the full commissioning date.
The company describes itself as among the early Indian adopters of Vertical Non-Recovery technology. Unlike conventional by-product coke ovens, this process burns volatile matter released during coking within the oven system, with the resulting hot gases used for energy recovery. The company describes the facility as fully automated, supporting precise process control, consistent metallurgical coke quality and efficient operations.
The waste heat recovery plant captures heat from coke-oven flue gases that would otherwise be lost and uses it to generate electricity. This reduces the need for additional fuel and purchased power while supporting ferroalloy and iron-making operations. Waste-heat power is recovered energy, rather than renewable energy in the same sense as solar or wind. The company’s stated environmental objectives include zero liquid discharge, lower particulate emissions and productive utilisation of process gases, supported by water reuse and pollution-control measures.
Capacity Utilisation
The company entered into a conversion agreement effective 1 April 2025 covering approximately 46% of total coke capacity, equivalent to two batteries. Under this arrangement, it produces coke for a customer rather than relying predominantly on merchant coke sales, reducing direct exposure to coking-coal prices and related foreign-exchange movements. Customers mentioned in the supplied business profile include Mukand, Kirloskar Ferrous Industries and Arjas Steel.
The same contracted capacity was renewed for FY2027. As of the August 2026 update, two batteries were operating at optimum utilisation under the agreement and the company had initiated the process of reigniting the other two. Restarting these batteries would increase total plant utilisation and provide additional recovered heat for power generation, supporting the ferroalloy business.
Coke Operating Performance
Including conversion volumes, FY2026 coke production reached 2,23,444 tonnes and sales or dispatch volumes reached 2,42,742 tonnes, representing reported growth of approximately 161% and 187%, respectively. Contract-manufacturing production accounted for 2,22,575 tonnes. Own-account coke production was only 869 tonnes, while own-account sales stood at 20,167 tonnes, largely reflecting the sale of opening inventory. Conversion and screening income increased to approximately ₹41 crore from ₹2 crore in FY2025.
On the separately supplied own-account quarterly comparison, Q4 FY2026 coke production was nil against 0.13 lakh tonnes in Q4 FY2025, while sales were 0.05 lakh tonnes against 0.19 lakh tonnes. Average realisation declined to ₹21,432 per tonne from ₹28,624 per tonne. These figures should not be interpreted as showing that the coke plant was shut down.
In Q1 FY2027, own-account production was again nil, but contract-manufacturing production reached 57,352 tonnes. Own-account sales stood at 2,134 tonnes, down 17% year-on-year and 59% sequentially, with average realisation of ₹22,302 per tonne, up 4% sequentially. The company separately earned ₹10.61 crore of conversion and screening income during the quarter.
Renewable Energy and Power Infrastructure
SMIORE holds a 49% equity interest in ReNew Sandur Green Energy Private Limited under agreements with ReNew Green Energy Solutions Private Limited and the project company. The associated 42.9-MW hybrid project comprises 33 MW of solar capacity and 9.9 MW of wind capacity at Kudligi Taluk, Vijayanagara district, connected to the Karnataka Power Transmission Corporation grid. The August 2026 presentation confirms commissioning in June 2023; the earlier supplied history gives the specific date as 13 June 2023.
As of 31 March 2026, SMIORE had invested approximately ₹38.64 crore in ReNew Sandur, subscribing to 3,51,30,000 shares of ₹10 each at a ₹1 premium. Power is supplied under a captive-consumption arrangement to the metal and ferroalloy plant. Alongside this renewable project, SMIORE has 32 MW of waste-heat-based power capacity.
Arjas’s approximately 41-MW energy portfolio comprises 21 MW of recovered-energy power and a 20.4-MW solar arrangement through Amplus Arjas Solar Private Limited. The solar project is included within the approximately 41-MW description, not additional to it. The annual report states that approximately 99.15% of SMIORE plant electricity in FY2026 came from wind, solar and waste-heat recovery combined; this is not a claim that 99.15% was renewable electricity alone.
Downhill Pipe Conveyor System
SMIORE’s 1.2-kilometre Downhill Pipe Conveyor System connects the Kammathuru iron ore mine with the PMBR railway siding. With a design capacity of 300 tonnes per hour, it is expected to enable evacuation of approximately 1 million tonnes of ore annually. Direct movement to rail is intended to reduce road haulage, dust and transport emissions, improve customer logistics and support better net realisations.
The annual report records forest-diversion approval for 2.4314 hectares in the Deogiri Swamimalai Forest Block, consent to operate and execution of a Forest Lease Agreement. SMIORE describes itself as the first private mine in the Ballari and Vijayanagara districts to establish this system in compliance with the Supreme Court’s ore-evacuation directions.
The August 2026 presentation provides the latest status: the project had been completed and capitalised in the company’s books, with commercial operations targeted for Q2 FY2027, covering July–September 2026. Completion and capitalisation therefore should not be confused with confirmed commercial commissioning.
Iron Ore Beneficiation Project
SMIORE has commenced a beneficiation project at its Deogiri mines to upgrade iron ore into higher-quality concentrate suitable for pellet manufacturing. The annual report describes an input-processing capacity of 2 million tonnes per annum and expected concentrate output of approximately 1–1.2 million tonnes annually. The process will include crushing, screening, grinding, magnetic separation and filtration.
The August 2026 presentation states that the project commenced during Q1 FY2027, with committed capital expenditure of ₹285 crore and commissioning targeted for Q2 FY2028, or July–September 2027. The project is intended to improve ore quality, optimise average sales realisations, reduce waste and support downstream integration. It is a beneficiation project; the disclosed concentrate output should not be described as commissioned pellet-production capacity.
Developments and New Growth Initiatives
SMIORE incorporated Sandur Pellets Private Limited on 7 May 2022 as a wholly owned subsidiary. The supplied information does not establish commissioning of a pellet plant. Separately, the company obtained environmental approval for changes in plant configuration and product mix at Hanumanahalli village in Hosapete Taluk, supporting the development of its manufacturing operations.
The company listed on the National Stock Exchange in 2023, supplementing its BSE listing, crossed US$1 billion in market capitalisation in January 2024, and raised ₹450 crore through listed non-convertible debentures to support its financing requirements. In September 2025, it completed a 2:1 bonus issue, issuing two additional shares for every share held. On 14 October 2025, it entered India’s 500 largest listed companies by market capitalisation at rank 494.
Under the new Royal Sandur identity, the company is also exploring opportunities beyond its existing metals and mining operations. The August 2026 presentation states that incorporation had been initiated for Royal Sandur Hospitality Private Limited and Royal Sandur Academy Private Limited, while an opportunity in medical devices, consumables and manufacturing was being evaluated. These are initiatives under development or evaluation, not established revenue-generating business segments.
Management continues to evaluate organic and acquisition-led expansion using expected market demand, infrastructure availability, utilities, capital requirements and operating synergies. Within the existing businesses, immediate priorities include improved mine utilisation, commercial operation of the conveyor, execution of the beneficiation plant, restarting the remaining coke batteries and increasing value-added steel production.
Financial Performance and Balance Sheet
For the Year Ended 31 March 2026
Consolidated revenue from operations increased to ₹5,088.42 crore in FY2026 from ₹3,135.06 crore in FY2025, while total income increased to ₹5,162.99 crore from ₹3,212.18 crore. Profit before tax rose to ₹827.49 crore from ₹624.14 crore, and net profit after the share of associate losses increased approximately 40% to ₹658.07 crore from ₹470.61 crore. FY2026 includes the first full-year contribution from Arjas Steel and is therefore not a like-for-like organic-growth comparison.
Consolidated EBITDA before exceptional items was approximately ₹1,283.82 crore, compared with ₹861.86 crore in FY2025. After exceptional charges of ₹32.27 crore, FY2026 EBITDA was ₹1,251.55 crore. On a standalone basis, total income was approximately ₹2,075.44 crore, EBITDA after exceptional items was ₹904.38 crore and PAT was ₹543.08 crore, representing reported year-on-year growth of approximately 3%, 24% and 22%, respectively.
The group reported FY2026 return on capital employed of approximately 27% and return on equity of 22%. Consolidated operating cash flow was approximately ₹1,143 crore, and year-end equity was approximately ₹3,254 crore.
For the Quarter Ended 30 June 2026
Consolidated total income increased 21% year-on-year to approximately ₹1,390 crore in Q1 FY2027. EBITDA increased 14% to ₹358 crore, while PAT rose 36% to ₹228 crore. EBITDA and PAT margins were approximately 26% and 16%, respectively. Compared with Q4 FY2026, total income, EBITDA and PAT declined by approximately 9%, 12% and 4%.
Standalone total income rose 27% year-on-year to approximately ₹554 crore, EBITDA increased 8% to ₹237 crore, and PAT grew 25% to ₹161 crore. Standalone EBITDA and PAT margins were approximately 43% and 29%. Sequentially, income, EBITDA and PAT declined by approximately 19%, 23% and 18%, respectively. Despite higher profits year-on-year, EBITDA margins contracted, reflecting the importance of monitoring both volumes and profitability.
SMIORE redeemed approximately ₹423 crore of non-convertible debentures ahead of maturity in March 2026 using internal accruals. Its standalone position improved from net debt of approximately ₹490 crore at March 2025 to net cash of approximately ₹93 crore at March 2026, a ₹583-crore improvement. This followed acquisition-related investment that had moved the company from approximately ₹819 crore of standalone net cash at March 2024 into net debt in FY2025.
Consolidated gross debt-to-equity declined from approximately 0.72 times in FY2025 to 0.31 times in FY2026. The Q1 FY2027 financial-highlights slide reports gross debt-to-equity of 0.27 times on a consolidated basis and 0.09 times on a standalone basis. The presentation reports standalone and consolidated cash and cash equivalents of approximately ₹534 crore and ₹565 crore, respectively, and shareholders’ funds of ₹3,270 crore and ₹3,481 crore. The group cites A+ ratings from CRISIL and ICRA. Standalone net-cash status does not mean the consolidated group has no debt.
As of 30 June 2026, promoters held 74.22%, combined foreign and domestic institutional investors held 2.31%, and the public held 23.47%. Shares outstanding were approximately 48.61 crore. The presentation’s dated market snapshot for 6 August 2026 records a share price of ₹214, market capitalisation of approximately ₹10,388 crore and a 52-week high and low of ₹273 and ₹141. These are historical reference prices, not live quotations. The Board recommended a FY2026 final dividend of ₹0.50 per share, amounting to approximately ₹24.31 crore, subject to shareholder approval at the time of the reporting disclosure.
Environmental Conservation
SMIORE’s stated operating philosophy combines scientific mining and manufacturing with resource conservation, community welfare and safety. Historically, it relinquished approximately 2,800 hectares of iron-ore-bearing land to NMDC and approximately 1,500 hectares for forest conservation, together exceeding 4,000 hectares.
The Kammathuru mine received a Seven-Star Rated Mine award on 7 July 2025 for its FY2024 performance, with the annual report identifying it as the only mine in South India and one of the first three nationally to receive the recognition. SMIORE also reports ten consecutive years of Five-Star recognition under the Sustainable Development Framework. These awards recognise mining practices and do not constitute a guarantee of zero incidents.
The company reports approximately four million saplings planted over four decades, including 94,500 saplings highlighted in its recent environmental programme. The August presentation reports approximately 15 hectares reclaimed through backfilling, 15 hectares of rehabilitated afforested area, and green cover of 18.21% of leased area. Measures include afforestation, mine reclamation, wildlife conservation, forest-fire prevention, retaining walls, drainage, mist cannons, dry-fog dust suppression and wheel-washing systems.
Ferroalloy operations follow a zero-discharge approach, reusing blowdown water for coke quenching and treated water for dust suppression and green-belt maintenance. The annual report describes a 400-kilolitre-per-day sewage treatment plant and a 10-kilolitre-per-day effluent treatment plant. Arjas reports recycling 100% of scrap. Environmental impact studies, water and energy audits, and wildlife studies involve specialist bodies and accredited agencies, including ICFRE, the Zoological Survey of India and auditors accredited by the relevant groundwater and energy-efficiency authorities.
Management Commentary and Future Outlook
Management described Q1 FY2027 as a strong start to the year, supported by robust mining volumes and improving realisations across business segments. Manganese ore production increased 24% year-on-year, while sales were nearly double the corresponding period of the previous year. Iron ore production and sales increased 27% and 13%, respectively, with operations remaining within the applicable Maximum Permissible Annual Production limits. Manganese and iron ore realisations improved 15% and 9% sequentially, respectively, reflecting the recovery in domestic benchmark prices highlighted at the end of FY2026.
Improving mining logistics remains an important operational priority. Following execution of the Forest Lease Agreement and establishment of the 1.2-kilometre Downhill Pipe Conveyor System, the project has been completed and capitalised. Management targets commercial operations in Q2 FY2027, covering July–September 2026. Direct transportation to the railway siding is expected to improve customer convenience and reduce the environmental impact of ore evacuation. The company identifies itself as the first private mine in the Ballari and Vijayanagara districts to implement this system in accordance with the Supreme Court’s directions.
The company also commenced its iron ore beneficiation project during Q1 FY2027, with committed capital expenditure of ₹285 crore and commissioning targeted for Q2 FY2028, or July–September 2027. The project is intended to improve ore quality and optimise average iron ore sales realisations, supporting SMIORE’s strategy of downstream value addition and greater integration across its businesses.
In coke and energy, two of the four coke oven batteries continue to operate at optimum utilisation, supported by steady volumes under the customer conversion agreement covering the contracted capacity for FY2027. Management has initiated the process of reigniting the remaining two batteries. Their restart is expected to improve overall capacity utilisation and increase waste-heat power generation, providing additional energy support to the group’s metallurgical operations.
Management noted a healthy recovery in ferroalloys, with throughput from the two operating furnaces remaining consistent over recent quarters. Average realisations improved 5% sequentially in Q1 FY2027, following a similar improvement in Q4 FY2026. The company believes the improving operating environment across the broader iron and steel industry is beginning to support better performance in this segment.
Arjas Steel recorded year-on-year production and sales growth of 10% and 9%, respectively, while average realisations increased 6% sequentially following industry-wide price increases. Management attributed the improvement in steel EBITDA margins to stronger realisations, operational-efficiency initiatives, lower energy costs per unit of production and a greater focus on value-added products. Its priority is to build on existing volumes while capturing the benefits of recent efficiency improvements.
The adoption of the Royal Sandur Group identity brings the businesses under a unified name and logo, with SMIORE continuing as the flagship company. Management views the identity as an extension of the group’s royal heritage and its association with Sandur over more than seven decades, while providing a framework for opportunities beyond metals and mining. Incorporation has been initiated for Royal Sandur Hospitality Private Limited and Royal Sandur Academy Private Limited, and an opportunity involving medical devices, consumables and manufacturing is being evaluated. Each business will retain its individual focus while presenting a unified group identity to customers, investors and communities. These diversification initiatives remain at the development or evaluation stage.
These comments reflect management’s August 2026 outlook. Project commissioning dates and anticipated operating improvements are forward-looking targets rather than confirmed outcomes.
Sectoral Outlook
Manganese Ore: Global production increased 10% to 21.4 million tonnes on a manganese-content basis in 2025. With approximately 96% of consumption linked to steelmaking, India’s steel expansion supports long-term demand, although recovering global supply may constrain prices.
Iron Ore: India’s FY2026 production was estimated at 289.19 million tonnes. Domestic demand remains supported by the country’s 300-million-tonne steel capacity goal, while weak Chinese demand and additional overseas supply could pressure international prices.
Ferroalloys: Global silico-manganese production reached approximately 16.4 million tonnes in 2025. India has around 5.15 million tonnes of annual ferroalloy capacity and exports roughly 25–30% of production. Infrastructure and specialty-steel demand support growth, while electricity costs remain a key constraint.
Coking Coal and Coke: India imports approximately 90% of its coking-coal requirements, leaving producers exposed to international prices. Domestic coke output increased 9% to 47.56 million tonnes during April–February FY2026, while the shift from import quotas to anti-dumping duties influences competition and margins.
Specialty Steel: Automotive, infrastructure, railways and energy demand support the SBQ steel outlook. The broader specialty-steel PLI scheme, with an outlay of ₹6,322 crore, attracted committed investments of ₹43,874 crore, supporting capacity expansion, import substitution and higher-value manufacturing.
Conclusion
The Sandur Manganese & Iron Ores Limited, a 72-year-old company engaged in mining, ferroalloys, coke and specialty steel, is India’s second-largest manganese ore miner. It improved its standalone net-debt position by ₹583 crore in FY2026, including early redemption of ₹423 crore of debentures, becoming net cash-positive. With its ₹285-crore beneficiation project, opportunities to increase coke utilisation and Arjas Steel’s expanding value-added portfolio, the company presents an interesting long-term growth story, supported by stronger finances and downstream integration, although execution and commodity cycles remain key considerations.