MOIL’s profits skyrocket 30% in FY25—Here’s why this PSU miner is on every investor’s radar

India‘s largest manganese ore producer, MOIL Limited, has delivered a 30% jump in net profit for FY25, marking one of the strongest fiscal performances in its recent history. The profit after tax (PAT) rose to ₹381.64 crore for the year ended March 31, 2025, from ₹293.57 crore in FY24, with the company attributing the surge to a combination of increased manganese ore output, a 54% rise in ferro manganese sales, and a 22% expansion in exploratory drilling. These results, approved by the Board of Directors on April 30, also underscore MOIL’s operational resilience and strategic progress in value-added processing.

What Propelled MOIL’s FY25 Earnings Surge?

MOIL’s revenue from operations for FY25 came in at ₹1,584.94 crore, representing a 9% year-on-year growth. While production volumes grew modestly by 3% to 18.03 lakh tonnes, sales of manganese ore increased to 15.87 lakh tonnes, up 3.3% over the previous year. The standout driver was ferro manganese, where sales hit a record 12,942 metric tonnes—up a sharp 54% compared to FY24.

The improved product mix and value-added alloy sales helped MOIL boost margins and earnings. The company also reported a 22% increase in exploratory drilling activities, reaching 1,07,530 meters for the year, which strengthens its long-term resource visibility. MOIL declared a final dividend of ₹1.61 per share, bringing the total FY25 payout to ₹5.63 per share, including the earlier interim dividend of ₹4.02.

From a margin perspective, MOIL maintained stable cost controls despite inflationary pressures on fuel, explosives, and freight. The company’s profitability reflects both volume-driven growth and a shift toward higher-margin products.

How Did Q4 FY25 Performance Reflect the Broader Momentum?

For the quarter ended March 2025, MOIL posted revenue from operations of ₹433.40 crore, marking a 4% increase from Q4 FY24. Profit after tax rose 27% to ₹115.65 crore in the same period. The strong Q4 results signal sustained demand in the company’s core end-user segments, particularly steel and ferro alloys.

According to company officials, MOIL’s financial performance was backed by continued operational focus, steady market demand, and improved realisations. This also aligns with seasonal production upticks, typically seen in the January-March quarter, driven by favourable weather conditions for mining and logistical movement.

What Are Analysts and Investors Saying About MOIL’s Stock?

In the wake of the earnings release, MOIL Limited’s stock drew renewed attention from institutional investors. As of May 1, the stock was trading around ₹212–₹215 on the National Stock Exchange, with a modest uptick seen in early morning trades. Analysts attributed this to the company’s strong financials, stable dividend profile, and increasing exposure to value-added alloy markets.

Institutional sentiment remains moderately positive. Foreign Institutional Investors (FIIs) maintained a marginal but consistent presence in MOIL throughout FY25, with no major selloff trends recorded. Domestic Institutional Investors (DIIs), especially government-linked mutual funds and LIC, have been steady holders of the stock, drawn by its public sector governance, reliable cash flows, and alignment with India’s mineral security roadmap.

Brokerages have varied views ranging from “Hold” to “Accumulate.” Motilal Oswal Securities noted MOIL’s “low-debt, high-cash profile” as a strength, while ICICI Securities flagged concerns over pricing volatility in the global manganese market. The stock is widely considered suitable for dividend-focused portfolios and long-term infrastructure-linked exposure.

How Does MOIL Align with India’s Mineral Policy and Sectoral Growth?

MOIL’s FY25 performance arrives at a time when India is aggressively pushing for self-reliance in strategic minerals. The National Mineral Policy and Production Linked Incentive (PLI) schemes in specialty steel have bolstered domestic demand for manganese. Moreover, with the push for electric vehicle batteries and green hydrogen electrolyser manufacturing, manganese is gaining new relevance beyond traditional steelmaking.

As a public sector miner with exclusive mining leases in Madhya Pradesh and Maharashtra, MOIL holds a strategic position. The company’s focus on downstream integration—particularly in ferro alloys—mirrors the government’s intent to increase domestic value capture from mineral resources.

India’s total manganese ore consumption in FY25 was estimated at 38 million tonnes, with MOIL supplying nearly 45% of the domestic requirement. Its dominance, combined with recent expansion in exploration, positions it as a linchpin in India’s mineral strategy.

What Role Does Exploration Play in MOIL’s Growth Strategy?

MOIL’s exploration drive—completing over 1 lakh meters of drilling in FY25—is part of a broader initiative to augment reserves and extend the life of its existing mines. Exploration activities were concentrated in the Chikla, Dongri Buzurg, and Gumgaon mines, where potential brownfield discoveries are under evaluation. These findings could be crucial as MOIL seeks to meet the projected doubling of manganese demand in India over the next decade.

Company insiders indicate that MOIL aims to increase its manganese ore production to over 2 million tonnes per annum by FY27. This aligns with its strategic plan to support India’s steel and battery metal value chains more meaningfully, including potential JV opportunities with alloy and cathode material producers.

What’s the Outlook for FY26 and Beyond?

Chairman and Managing Director Ajit Kumar Saxena stated that FY25’s results reflect “team MOIL’s dedication and resilience” and that the company is “determined to aim even higher” in upcoming quarters. While specific guidance for FY26 has not been released, industry insiders expect the company to focus on increasing ferro alloy capacities, digitalising mining operations, and streamlining logistics to improve cost efficiency.

Global manganese prices are expected to remain stable-to-moderate, with demand buoyed by recovering steel output in Asia and early-stage electric vehicle battery production. Domestically, the government’s infrastructure stimulus and Make-in-India initiatives provide a supportive backdrop.

In this context, MOIL is likely to sustain its growth momentum, particularly if it can deepen its portfolio of processed manganese products. Analysts believe potential policy clarity around critical minerals and incentives for value-added manufacturing may serve as catalysts for future valuation re-rating.