Guinea bauxite drives Ashapura Minechem’s 44% profit in a robust FY2026

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Mumbai-based bauxite and bentonite exporting firm Ashapura Minechem Limited has delivered a robust FY2026 financial performance, anchored by higher bauxite and iron ore shipments from its Guinea business, the key growth engine throughout FY2026. As the year generated record revenue figures, the company also rewarded shareholders with a higher dividend recommendation. Ashapura also expects the impending Guinea bauxite export limit to benefit smaller companies like itself in the long run.

For the financial year ended March 31, 2026, Ashapura posted a revenue or income from operations that surged 91.2 per cent Y-o-Y to INR 52.37 billion (USD 548.15 million), compared with INR 27.39 billion (USD 286.67 million) reported in FY2025.  

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A consolidated net profit amounted to INR 4.16 billion (USD 43.59 million), indicating a 44 per cent increase year-on-year from INR 2.89 billion (USD 30.26 million) recorded in the preceding year.

On a consolidated basis, total income for FY2026 stood at INR 53.56 billion (USD 560.58 million), while the basic earnings per share (EPS) improved by 33.57 per cent Y-o-Y to INR 42.02 from INR 31.46 in FY2025.  

A major contributor to the company's performance was its Guinea mining business, which handles bauxite and iron ore production and exports. The division generated turnover of approximately INR 42 billion (USD 439.6 million) during FY2026.

Export volumes accelerated quarter-on-quarter by a whopping 127.34 per cent during the fourth quarter (Q4), reaching 3.16 million tonnes, compared to the 1.39 million tonnes in Q3.

Despite the positive financial outcome, Q4 profitability faced pressure from elevated fuel prices and ocean freight rates owing to the geopolitical tensions stemming from the Middle East conflict.

Financial guidance and outlook toward a strong bauxite market

The Board of Directors recommended a final dividend of 100 per cent, or INR 2 (USD 0.02) per equity share, subject to shareholder approval. The proposed payout is double the previous year's final dividend.

For its India operations, the company has earmarked approximately INR 1.5 billion (USD 15.7 million) in capital expenditure during the next fiscal year to upgrade and enhance plant infrastructure and broaden its product portfolio. Management also indicated that its Guinea operations continue to benefit from a tax holiday, likely to continue for at least the next one to two years as capital investments are recovered.

As the Guinea bauxite export limit looms in the near future, bauxite export volume is expected to reduce by a significant margin. A reduction in Guinea’s export volumes under the new framework may help rebalance freight costs and support stronger net realisations for existing exporters.

Hence, Ashapura Minechem is focusing on broadening its bauxite business base. The company is upgrading its port infrastructure, aiming to lift the capacity from 15 million tonnes to 20 million tonnes by the year-end of FY2027-28.  

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