Breaking Down The Sandur Manganese & Iron Ores Limited Financial Health: Key Insights for Investors

From its founding in 1954 in Deogiri village to becoming a vertically integrated miner with ferroalloys, power and specialty steel ambitions, The Sandur Manganese & Iron Ores Limited (SANDUMA.NS) combines deep local roots with rapid recent scaling: a 98.94% acquisition of Arjas Steel in November 2024, an increased iron ore limit to 4.36 MTPA (Feb 2024), proven reserves of ~71.7 Mt iron and 15.7 Mt manganese, a 32 MW thermal plant plus 33 MW solar and 9.9 MW wind capacity, and mechanized operations that feed silico‑manganese, coke and now specialty steel lines; the results show in the numbers - FY2025 revenue of ₹3,135 crore (up 150.38% YoY) and net profit of ₹471 crore (up 96.53% YoY) - anchored by a promoter holding of 74.2% and a market cap near ₹7,852 crore; explore how its history, ownership, mission of sustainable community development, operational model, contractual offtake (conversion agreement covering ~46% of coke capacity), and strategic moves position SMIORE as India's third‑largest manganese miner and a major Karnataka iron ore player.

The Sandur Manganese & Iron Ores Limited (SANDUMA.NS): Intro

• Founded: 1954 - mining operations initiated in Deogiri village, Ballari District, Karnataka.
• Ferroalloys plant commissioned: 1980 - Vyasankere facility near Hospet to produce value-added manganese-based ferroalloys.
• Captive thermal power: 2007 - 32 MW plant commissioned to support ferroalloy and mining operations.
• Iron ore production limit: increased from 3.81 MTPA to 4.36 MTPA in February 2024.
• Strategic acquisition: 98.94% stake acquired in Arjas Steel Private Limited (November 2024) to enter specialty steel production.
• Green-mining recognition: Kammatharu Iron Ore Mine awarded Seven Star Rating by the Indian Bureau of Mines (July 2025).

• Extraction: Operates iron and manganese ore mines in Sandur region; sells lump and fines to domestic steelmakers and traders.
• Value addition: Converts ore into ferroalloys at Vyasankere, capturing higher margins versus raw ore sales.
• Integrated supply: Uses captive 32 MW thermal power to lower energy costs for energy-intensive ferroalloy production.
• Upstream-to-downstream expansion: Acquisition of Arjas Steel enables movement into specialty steel products, improving product mix and margins.
• Logistics & contracts: Revenue channels include long-term offtake agreements with steelmakers, spot sales through commodity exchanges/market participants, and captive use in group manufacturing.

• Production capacity vs permitted limits: 4.36 MTPA iron ore ceiling (post-Feb 2024).
• Ferroalloy capacity utilization at Vyasankere - primary driver of value-added revenue.
• Power cost per MWh from 32 MW captive plant - influences ferroalloy unit economics.
• Post-acquisition integration metrics for Arjas Steel - product mix, incremental EBITDA contribution, and capex needs for specialty steel ramp-up.
• Environmental & compliance rankings - e.g., Seven Star Rating (Kammatharu) as a competitive and permitting advantage.

• Realized ore and ferroalloy prices (benchmark-linked to domestic steel cycle and international manganese markets).
• Cost of extraction and beneficiation (strip ratio, ore grade, mining method).
• Energy costs and captive power efficiency (32 MW plant performance).
• Logistics and freight (proximity to steel hubs and rail/road availability).
• Scale benefits from higher permitted production (4.36 MTPA) and downstream integration (Arjas Steel).

• Publicly listed entity (SANDUMA.NS) with diversified shareholder base including promoters and institutional investors.
• Strategic M&A (Arjas) reflects promoter-led inorganic growth to move downstream and capture higher value chains.
• Compliance and sustainability focus strengthened by recent IBM recognition and investments aligned to green-mining principles.

The Sandur Manganese & Iron Ores Limited (SANDUMA.NS): History

The Sandur Manganese & Iron Ores Limited (SANDUMA.NS) traces its origins to mining operations in the mineral-rich Sandur region of Karnataka. Over decades the company evolved from an integrated miner of manganese and iron ores into a publicly listed entity focused on resource extraction, beneficiation and sale to domestic and export markets. Key milestones include expansion of mining leases, modernization of crushing and screening facilities, and strategic partnerships to secure offtake for high-grade ore.

• Listed on the National Stock Exchange of India under the ticker SANDUMA.
• Promoter holding (Dec 2025): 74.2% - indicating strong promoter control and long-term commitment.
• Largest shareholder: Skand Private Limited (major stake within the promoter block).
• Management: Bahirji A. Ghorpade - Managing Director & CEO.

The company's governance emphasizes transparency and accountability through an experienced board and standard governance practices. Operationally, The Sandur Manganese & Iron Ores Limited generates revenue primarily by:

• Mining and selling lump and fines of manganese and iron ore to steel producers and traders.
• Value addition via crushing, screening and size-wise dispatch to meet customer specifications.
• Strategic long-term offtake agreements and spot-market sales to optimize realizations.

For the company's stated direction and values, see: Mission Statement, Vision, & Core Values (2026) of The Sandur Manganese & Iron Ores Limited.

The Sandur Manganese & Iron Ores Limited (SANDUMA.NS): Ownership Structure

• Founded: 1949 - over 75 years of continuous operations (since incorporation).
• Primary activities: Exploration, open-pit mining, crushing, screening, beneficiation and sale of manganese and iron ore; forward integration into ferroalloys, power and steel is part of strategic intent.
• Workforce: several thousand employees and contract workers across mining, processing and support services (company maintains large local employment footprint).

• Preserve and promote the art, culture, heritage and traditions of Sandur and surrounding villages, aligned to community welfare.
• Commitment to safe, systematic, scientific and sustainable mining practices aimed at preserving environment and ecology.
• Improve local living standards and infrastructure with targeted interventions in education, health and rural youth employment.
• Grow into a reputed business house by consolidating manganese and iron ore activities into a significant conglomerate with forward integration into ferroalloys, power and steel.
• Uphold robust corporate governance anchored in fair play, integrity, ethics and social welfare.
• Dedication to nurturing the community and preserving the environment; core values of integrity, ethics and humility.

• Mining & Extraction - revenue generation begins with open-pit mining of manganese and iron ore from company-held leases; extracted ore is transported to on-site or nearby processing units.
• Beneficiation - value is added by crushing, screening and beneficiation to upgrade grades for sale domestically or for export; higher-grade concentrates command premium prices.
• Sales channels - direct supply contracts with steel and ferroalloy producers, domestic trading, and periodic export consignments depending on market and regulatory environment.
• Forward integration - margins enhanced by captive or group-linked ferroalloy, power and potential steel activities; integration reduces input cost volatility and captures downstream value.
• Services & royalties - access fees, logistics, and ancillary services in mining areas add non-core but recurring income streams; compliance with royalties and taxes is part of statutory cost structure.

• Major ownership blocks comprise promoters and promoter group, institutional investors and public shareholders; governance emphasizes transparency and compliance with stock exchange and statutory norms.
• Board practices and audit mechanisms aim to align business expansion with ESG commitments - safety, environment, community development and employee welfare.

The Sandur Manganese & Iron Ores Limited (SANDUMA.NS): Mission and Values

• Mining operations: SMIORE operates two mining leases in Sandur with proven reserves of approximately 71.7 million tonnes of iron ore and 15.7 million tonnes of manganese ore.
• Extraction method: The company employs mechanized mining methods (drill-blast, excavator-shovel, and dump-truck fleets) to ensure efficient, higher-yield and safer operations.
• Processing & ferroalloys: Ores are beneficiated and fed to the ferroalloys plant at Vyasankere, which produces silico-manganese to meet steel industry specifications.
• Captive power: A 32-megawatt thermal power plant supplies the energy required for ferroalloy smelting and other internal needs, improving energy security and cost control.
• Downstream integration: The November 2024 acquisition of Arjas Steel Private Limited integrates specialty steel production, enabling vertical value capture from ore → alloy → finished steel products.
• Expansion targets: The company is actively pursuing capacity expansion to raise iron ore production to 4.36 MTPA and manganese ore production to 0.582 MTPA.

• Raw material sales - iron ore and manganese ore sold to domestic and export buyers.
• Value-added products - silico-manganese produced at Vyasankere sold to steelmakers; post-acquisition specialty steel adds higher-margin finished goods.
• Operational leverage - captive 32 MW power reduces external power cost exposure for energy-intensive ferroalloy operations.
• Mine life & reserves - reserves (71.7 Mt Fe ore; 15.7 Mt Mn ore) provide multi-year feedstock visibility for downstream plants and contracts.

• Ore grade, beneficiation yields and strip ratios drive mining unit costs; mechanization reduces per-tonne operating expense and improves safety/consistency.
• Integrated downstream manufacturing (ferroalloys and specialty steel) captures value beyond commodity ore margins and mitigates price volatility in lump/sinter markets.
• Captive power reduces variable cost for smelting (energy represents a material portion of ferroalloy cost stack), improving margin stability.
• Expansion to 4.36 MTPA iron ore and 0.582 MTPA manganese ore is aimed at securing feedstock for higher plant utilization and incremental sales volumes to domestic steelmakers and alloy consumers.

• Mechanized mining practices aimed at minimizing environmental footprint and improving reclamation capability.
• Internal power generation reduces dependence on grid fluctuations and supports continuous alloy production.
• Downstream integration supports local value addition and employment in the Sandur region.

The Sandur Manganese & Iron Ores Limited (SANDUMA.NS): How It Works

• Primary business: extraction, beneficiation and sale of manganese and iron ores supplying domestic and export steel and ferroalloy producers.
• Ferroalloys: in-house production of silico-manganese and related alloys used as deoxidisers and strengtheners in steelmaking.
• Coke & energy: captive metallurgical coke production for use in ferroalloy furnaces, plus power generation to meet plant loads and sell surplus power.
• Downstream diversification: acquisition of Arjas Steel Private Limited (closed November 2024) to enter specialty steel product sales and downstream margins.
• Renewable energy: operating/commissioning of solar and wind assets to lower energy cost, reduce carbon intensity and generate commercial clean-energy revenue.

• Mining, beneficiation and logistics - ore is extracted from Sandur lease areas, beneficiated to required grades, then sold directly to steelmakers or to ferroalloy plants that convert ore to higher-value alloys.
• Ferroalloy production - silico-manganese is produced in submerged arc furnaces using beneficiated manganese ore, coke and power; product is sold on long-term and spot contracts to steel mills.
• Coke & conversion agreements - metallurgical coke made for captive use and third-party sale; conversion agreements lock a proportion of coke capacity to customers (see contract detail below).
• Energy integration - captive thermal and renewable generation supply furnace power; surplus renewable power is sold under group captive/third-party arrangements where permitted.
• Downstream steel sales - Arjas Steel addition provides route to manufacture and sell specialty steel grades, capturing processing margin beyond raw ore and alloy sales.

• Ore sales: mined manganese and iron ores sold on per-tonne contracts to domestic steelmakers and exporters; pricing linked to ore grade, freight and market spreads.
• Ferroalloys: higher margin product sold by weight (MT) and alloy content; often tied to long-term offtake and index/negotiated pricing.
• Coke & energy sales: metallurgical coke sold to external customers and used internally; surplus electricity (solar/wind) sold under group‑captive or open‑access arrangements.
• Specialty steel: post-acquisition, finished steel products sold into niche industrial segments at higher per‑unit margins than raw ore.

• Ore grade and beneficiation yields - highergrade output commands premium pricing; efficiency in crushing, screening and washing improves realized price per tonne.
• Ferroalloy furnace efficiency - power and coke consumption per tonne of alloy directly affects margins; captive power and captive coke reduce input cost volatility.
• Renewable energy offsets - 33 MW solar + 9.9 MW wind reduce thermal power draw and can create saleable surplus, improving EBITDA of manufacturing operations.
• Contract coverage - with ~46% of coke capacity under conversion agreement from April 1, 2025, a significant portion of coke volume has secured cashflow and price/volume predictability.
• Downstream capture - Arjas Steel enables capture of value-add margins on conversion of alloys/steel products rather than only selling raw materials.

• Spot ore sale: mined manganese ore → beneficiation → sale on per‑tonne basis to steel mill; revenue realized on delivery/dispatch.
• Ferroalloy sale: beneficiated ore + coke + power → silico‑manganese in submerged arc furnaces → sale under contract indexed to Fe/Mn metal prices.
• Energy sale: solar/wind generation → captive consumption for furnaces; surplus exported or sold to third parties under power purchase agreements (PPAs).
• Coke contract model: agreed conversion terms with customer secure a committed off-take of ~46% of coke capacity (reducing volatility and underwriting part of working capital needs).

The Sandur Manganese & Iron Ores Limited (SANDUMA.NS): How It Makes Money

• Core mining: open-pit extraction of manganese and iron ore sold to domestic steel producers and export buyers.
• Ore beneficiation and sale of lump/fines products that command better realisations than raw feed.
• Value-added: strategic moves into specialty steel production to capture higher margins upstream.
• Energy generation: captive power and renewable projects reduce operating costs and create a secondary income stream.
• Contract mining, logistics services and mineral trading that smooth cash flows and utilise excess capacity.