India: SMIORE’s iron ore output rises over 25% y-o-y in Q1FY’27

• Iron ore sales increase 13% y-o-y, avg realisation falls 17%
• Production capacity raised to 4.45 mnt/y from 1.6 mnt/y

Sandur Manganese and Iron Ores Limited (SMIORE) reported a 27% y-o-y increase in iron ore production to 1.36 mnt in Q1FY’27, compared with 1.07 mnt in Q1FY’26. Iron ore sales rose 13% y-o-y to 0.96 mnt, while average realisation declined 17% y-o-y to INR 3,095/t, reflecting lower iron ore prices.

Key developments

• Mining volumes expand: Iron ore production reached 1.36 mnt, broadly aligned with the company’s Maximum Permissible Annual Production (MPAP), while sales increased to 0.96 mnt. Higher output was supported by expanded mining capacity.
• Realisation improves sequentially: Despite the y-o-y decline, average iron ore realisation increased 9% q-o-q, in line with the recovery in domestic iron ore benchmarks during the quarter.
• Profitability improves: Standalone total income rose 27% y-o-y to INR 554 crore, with EBITDA increasing 8% to INR 237 crore and PAT rising 25% to INR 161 crore. Consolidated total income grew 21% to INR 1,390 crore, while EBITDA and PAT increased 14% and 36%, respectively, to INR 358 crore and INR 228 crore.
• Expanded capacity provides headroom: Iron ore production capacity has risen from 1.6 mnt/year to 4.45 mnt/year following regulatory approvals and capacity enhancements, providing scope for higher output under the expanded MPAP.
• Ore evacuation infrastructure upgraded: The 1.2-km Downhill Pipe Conveyor System has been completed and capitalised, with commercial operations targeted for Q2FY’27. The system will transport ore directly to the railway siding, improving evacuation efficiency and logistics.
• Renewables support energy strategy: SMIORE’s 42.9 MW captive hybrid renewable energy project, alongside Arjas’s 20.4 MW solar project, is expected to increase renewable power usage and reduce reliance on coal-based generation and associated power costs.