Sandur Manganese & Iron Ores Limited (SMIORE), established in 1954, is the flagship company of the Sandur Group, headquartered in Bellary, Karnataka. With over six-and-a-half decades of operational experience, SMIORE has solidified its position as the 3rd largest manganese ore miner in India and one of the nation's most integrated commodity producers. The company's operations are centered in the resource-rich Hosapete-Ballari region of Karnataka, encompassing a diversified business model across mining, metallurgy, and energy generation.
The core of SMIORE's business lies in the mining of low-phosphorous manganese and iron ore in the Hosapete-Ballari region of Karnataka. The mining segment is the primary revenue driver, contributing approximately 64% of 9MFY24 revenues. The company produces iron ore with an Fe content of 56-58%, maintaining a lump to fine production ratio of 1:2.
SMIORE possesses substantial mining leases, with two leases (ML-2678 and ML-2679) valid until 2033, covering a significant area of 1860.10 hectares and 139.20 hectares respectively. The company boasts an impressive resource base, with reserves estimated at 17 million tonnes (MT) of Manganese Ore and 110 MT of Iron Ore (with some sources citing 117 MT). Its mining operations are fully mechanized.
Beyond its mining prowess, SMIORE has developed robust downstream capabilities. The company manufactures ferro-alloys (silico-Manganese and ferro-Manganese) and coke at its plant in Vyasankare, near Hospet. The ferroalloys segment produces ferromanganese, ferrosilicon, Silicomanganese, and ferrochrome. In 2022, the company significantly expanded its capacities for Silico Manganese and Ferro Manganese (SiMn/FeMn) to 95,000 tonnes per annum (TPA) / 125,000 TPA from previous capacities of 48,000 TPA / 66,000 TPA.
Additionally, SMIORE operates approximately four coke oven batteries with a cumulative capacity of 0.4 million tons per annum (MTPA) and two waste heat recovery boilers (WHRB) with a combined capacity of 30 megawatts (MW).
As of recent data, SMIORE has a market capitalization of ₹7,852 crore. The promoter holding stands at a strong 74.2%, indicating significant management control and commitment to the company's growth.
- Revenue: ₹3,135 crore in FY25, marking a substantial growth of 150.38% from ₹1,252.13 crore in FY24.
- Net Profit: ₹471 crore in FY25, an increase of 96.53% from ₹239.46 crore in FY24.
- Revenue: ₹1,321.27 crore, up 139.46% from ₹551.77 crore in Q4 FY24.
- Net Profit: ₹156.21 crore, compared to ₹163.61 crore in Q4 FY24.
The company demonstrated exceptional performance in Q3 FY25:
- Revenue: ₹951.87 crore, a remarkable increase of 522.06% from ₹153.02 crore in Q3 FY24.
- Net Profit: ₹137.48 crore, showing an outstanding growth of 1415.77% from ₹9.07 crore in Q3 FY24.
- EBITDA: ₹260 crore, registering a significant 700% year-on-year growth.
- Manganese Ore: Production at 1.13 lakh tonnes (up 54.79% YoY), with sales volume at 0.44 lakh tonnes (up 10% YoY).
- Iron Ore: Sales surged to 9.83 lakh tonnes compared to 1.48 lakh tonnes in Q3 FY24, with production at 10.17 lakh tonnes (a 157.47% YoY growth).
SMIORE has increased its iron ore production limit from 3.81 million tonnes per annum (MTPA) to 4.36 MTPA, underscoring its commitment to scaling operations to meet escalating demand.
The company has made significant investments in modern infrastructure and sustainable energy solutions. In 2023, SMIORE commissioned a 33 MW Solar Power Plant and 9.9 MW Wind Turbine Generators at Kudligi Taluk, Karnataka, integrated with the Karnataka Power Transmission Corporation Limited (KPTCL) grid. Furthermore, the company completed an ambitious Coke Oven expansion project in FY 2021, with Batteries 1 & 2 commissioned in January 2020 and a new 24 MVA furnace commissioned in March 2020.
During FY 2019-20, Star Metallics and Power Private Limited (SMPPL) was merged with SMIORE, enhancing the company's operational capabilities. In 2022-23, the company incorporated Sandur Pellets Private Limited as a wholly-owned subsidiary, signaling its strategic move towards forward integration.
The Board of Directors has recommended a final dividend of ₹1.25 per equity share (12.5%) for the financial year ended 31 March 2025, subject to approval at the Annual General Meeting (AGM) on 28 May 2025. The current dividend yield stands at 0.47%.
SMIORE operates the largest private-sector manganese ore mines in India, renowned for producing high-quality, low-phosphorous manganese ores essential for ferroalloy and steel production. The company enjoys a strong presence in the domestic market and exports its products to various regions, including Europe, South America, and the Middle East.
Shares of Sandur Manganese and Iron Ores experienced a surge following a court's validation of the forest clearance for mining operations in Ballari. This regulatory clarity ensures the continuation of the company's mining activities, providing stability for its operations.
Sandur Manganese & Iron Ores Ltd represents a compelling investment opportunity within India's mining and metals sector, driven by its diversified operations, robust financial performance, substantial reserves, and strategic positioning in the manganese and iron ore value chain. With integrated operations spanning mining, metallurgy, and renewable energy, SMIORE is well-equipped to leverage India's industrial growth and contribute to the global shift towards sustainable steel production.
