India's shift toward electric vehicles, solar manufacturing, and semiconductors is driving demand for a range of critical minerals. Granite, traditionally associated with real estate and infrastructure, is now intersecting with these emerging supply chains through its processed forms, notably Quartz, a key input for solar glass and semiconductor manufacturing.
This convergence of traditional mining and emerging technologies is gradually bringing a new set of specialised players into focus. In fact, India's granite industry is valued at approximately $40 billion (about Rs 3.6 lakh crore), with growth largely driven by domestic construction and demand for premium real estate.
Domestic consumption has grown faster than production. In this regard, the price and demand for the premium variety, Black Galaxy granite, remain strong. Alongside natural stone, engineered Quartz has emerged as a structurally growing segment. The Indian-engineered quartz stone market was estimated at $3.6 billion in 2022 and is projected to reach $7.4 billion by 2032.
Unlike granite, Quartz has diverse demand across multiple end markets. In addition to construction, demand is now also growing from solar energy, semiconductors, and electronics. Quartz grit is a crucial component in producing solar glass, constituting approximately 65-70% of the raw material. This is where Midwest, India's largest producer of Black Galaxy and Absolute Black Granite, is positioning itself.
The Black Galaxy Monopoly: Mining One of the World's Rarest Stones
Midwest's core business is the exploration, mining, processing, marketing, distribution, and export of natural stone. In this sector, the company specializes in dimensional granite, focusing on premium varieties. It is the largest producer of Black Galaxy and Absolute Black granite in India.
The Strategic Reserve: Why Chimakurthi is the World's Only Source
The company holds exclusive mining rights to Black Galaxy granite, a rare geological deposit found in only one village worldwide (Chimakurthi, Andhra Pradesh). In FY25, the Midwest accounted for approximately 15.7% of India's total black granite production and approximately 20% of Black Galaxy production. Black Galaxy granite is priced at Rs 50,000-100,000 per cubic meter, compared with Rs 30,000-75,000 for black granite.
On the export side, it contributed around 64% of Black Galaxy exports, reinforcing its leadership position. Midwest is strengthening its leadership in the Granite sector. The granite division saw volume growth of more than 6% in H1FY26, and the company plans to add two more mines this fiscal year to further expand production.
Decarbonizing the Mining Value Chain
Operationally, Midwest continues to differentiate itself through technology adoption and backward integration. It is the first granite miner in India to deploy electric dump trucks and electric dressing stations, lowering diesel consumption and reducing carbon emissions.
Its operations are backward integrated with its own diamond wire tools manufacturing. These tools are used for captive consumption to improve cutting efficiency and are also sold to external customers in the natural stone and semiconductor industries.
Beyond its traditional foothold, the Midwest is positioning itself to tap into growing demand for quartz grit and powder (for applications in solar glass, engineered stone, and semiconductors) and for Heavy Mineral Sands (containing minerals such as titanium and rare-earth elements). To this end, it plans to invest approximately Rs 300 crores over the next three-four years.
The Quartz Pivot: Fueling India's Solar and Semiconductor Ambitions
Midwest has rapidly expanded its quartz-processing operations to meet demand from the solar-glass and engineered-stone industries. In September 2025, the company commissioned Phase 1 of its processing plant, with a capacity of 303,600 metric tons per annum. It is India's largest integrated quartz processing plant.
This expansion aligns with the supply gap as India currently imports around 65% of its solar glass needs. Midwest aims to fill this gap by supplying 11-13% of the sector's raw material needs, which are growing at a 30% CAGR. Management targets 60-70% capacity utilization for Phase 1 in FY26, increasing to 80-85% in FY27. Revenue contribution is expected from Q3FY26.
Phase 2, which will double the capacity to 606,000 MTPA, is expected to be commissioned in the next 12 months (by FY27). This phase will enable the production of Ultra-High Purity Quartz, a critical material for semiconductors, optical glass, and crucibles. By FY28, both facilities are expected to contribute fully, with production output reaching approximately 0.5 million tons.
Beyond Granite: The Geopolitical Bet on Rare Earths and EV Supply Chains
As part of its longer-term diversification strategy, Midwest is entering the Heavy Mineral Sands (HMS) and Rare Earth Elements sectors, targeting materials critical to Electric Vehicles, defence, aerospace, and electronics. The company has secured four mineral exploration licences in Sri Lanka, covering Ilmenite, Rutile, Zircon, and Monazite.
Monazite in particular is a feedstock for Neodymium and Praseodymium, which are key inputs for permanent magnets used in EV motors and wind turbines. Midwest plans to commence construction of its HMS facility in Q3/Q4 FY26, with commissioning targeted within 15 months. Commercial operations are expected to begin in FY27, with meaningful revenue contribution likely from FY28 onwards.
In a parallel development, the company received a Letter of Intent (LoI) from Kerala Mines and Minerals for a pilot project involving Monazite cracking and value addition in India. This marks a strategic entry into the domestic rare-earth processing market.
The 2.5X Revenue, 3X Profitability, and 35% ROCE Ambition
The company's revenue rose by 8% year-on-year to Rs 301 crore in H1FY26, driven by the commissioning of phase 1 of the Quartz processing plant. EBITDA increased 16% to Rs 86 crore, compared with Rs 73.75 crore in the previous year. The Ebitda margins expanded to 28% from 26%, supported by better capacity utilisation and cost optimisation.
The company's net profit (excluding exceptional items) rose by 16% to Rs 52 crore in H1FY26. It plans to use the IPO proceeds to repay Rs 50+ crore in debt, reducing its total debt to about Rs 120 crore. In H1FY26, Midwest finance cost stood at Rs 7.3 crore, up 49% compared to Rs 4.9 crore in H1FY25. Prepaying the loan will reduce financing costs, improving the company's bottom line.
Cash flow from operations more than doubled to Rs 125 crore, up from Rs 52 crore in H1FY25. Working capital cycle was reduced to 99 days in H1FY26, down from 120 days in FY25. This was due to better credit terms with export buyers (reducing days from 90-120 to 45-60) and the introduction of non-recourse discounting for letter-of-credit-backed bills.
On the back of ongoing expansion, Midwest has set ambitious targets for the next three to four years. It targets 2.5X revenue growth and 3X+ profitability growth, with a Return on Capital Employed (ROCE) of 35%. As of FY25, Midwest Return on Capital Employed (18.8%) and Return on Equity (19.4%) have declined from FY24 levels of 25% and 23.8%, but remain strong. At Rs 1,366 per share, it trades at an EV/EBITDA multiple of 27x, a premium. Motilal Oswal values the company at a 13x FY28 EV/EBITDA multiple, implying a target price of Rs 2,000.
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