Key Financial Performance (Quarterly)

Income Statement (₹ in Lakhs):

  • Revenue from operations: ₹16,598 for Q2 FY27, compared to ₹14,217 in Q1 FY27 and ₹7,785 in Q2 FY25.
  • Other income: ₹97 for Q2 FY27, compared to ₹119 in Q1 FY27 and ₹59 in Q2 FY25.
  • Total Income: ₹16,695 for Q2 FY27.
  • Cost of materials consumed: ₹2,706.
  • Employee benefits expense: ₹438.
  • Finance costs: ₹3,179.
  • Depreciation and amortisation: ₹2,106.
  • Power and fuel expense: ₹8,526, a significant increase from ₹983 in Q2 FY25.
  • Freight and forwarding expense: ₹3,947.
  • Other expenses: ₹1,713.
  • Loss before tax: ₹(3,766) for Q2 FY27, an improvement from ₹(4,777) in Q1 FY27 and ₹(4,192) in Q2 FY25.
  • Tax expense: Total credit of ₹931, comprising a deferred tax credit of ₹931. Current tax was nil.
  • Net loss for the quarter: ₹(2,835), improved from ₹(3,593) in Q1 FY27 and ₹(4,192) in Q2 FY25.
  • Earnings per share (Basic & Diluted): ₹(3.08) for Q2 FY27.

Key Financial Performance (Half-Yearly)

Income Statement (₹ in Lakhs):

  • Revenue from operations: ₹30,815 for H1 FY27, compared to ₹17,738 in H1 FY25.
  • Other income: ₹216 for H1 FY27.
  • Total Income: ₹31,031 for H1 FY27.
  • Loss before tax: ₹(8,543) for H1 FY27, compared to ₹(7,154) in H1 FY25.
  • Tax expense: Total credit of ₹2,115, comprising a deferred tax credit of ₹2,115.
  • Net loss for the period: ₹(6,426) for H1 FY27, compared to ₹(7,154) in H1 FY25.
  • Earnings per share (Basic & Diluted): ₹(6.98) for H1 FY27.

Balance Sheet Position (as of September 30, 2026)

Assets (₹ in Lakhs):

  • Total Assets: ₹149,996
  • Non-current assets: ₹130,628 (including Property, plant and equipment: ₹102,101; Deferred tax assets: ₹24,003)
  • Current assets: ₹19,368 (including Inventories: ₹6,796; Trade receivables: ₹6,376)

Liabilities and Equity (₹ in Lakhs):

  • Total Equity: ₹1,650 (Equity share capital: ₹9,217; Other equity: ₹(7,567))
  • Non-current liabilities: ₹112,626 (Borrowings: ₹106,891)
  • Current liabilities: ₹35,720 (Borrowings: ₹11,486; Trade payables: ₹14,311)

Cash Flow Statement (H1 FY27)

Cash Flows (₹ in Lakhs):

  • Net cash from operating activities: ₹6,522
  • Net cash used in investing activities: ₹(8,612) (primarily Purchase of PPE: ₹8,706)
  • Net cash from financing activities: ₹2,097 (primarily Proceeds from non-current borrowings: ₹9,302)
  • Net increase in cash: ₹7
  • Cash and cash equivalents at period end: ₹28

Significant Notes and Corporate Updates

1. Offer for Sale (OFS): The parent company, Sagar Cements Limited, conducted an OFS of 1,38,25,821 equity shares on various dates (January 09, 12, March 17, 18, 2026) to help Andhra Cements meet Minimum Public Shareholding (MPS) requirements. This reduced the parent's holding from 90.00%.

2. Scheme of Amalgamation: The Board of Directors approved a Scheme of Amalgamation on June 05, 2026, wherein Andhra Cements Limited would merge into Sagar Cements Limited. The scheme is subject to approvals from Stock Exchanges, SEBI, Shareholders, Creditors, and the National Company Law Tribunal (NCLT).

3. Deferred Tax Assets: The recognition of deferred tax assets is based on projected future taxable income, which provides evidence that sufficient taxable profits will be available to utilise carried-forward business losses and unabsorbed depreciation.

4. MBL Cess Provision Reversal: Pursuant to an external legal opinion on the Mines and Minerals (Development and Regulation) Amendment Act, 2026, the company concluded that an outstanding MBL Cess liability was no longer payable. Consequently, a provision of ₹109.72 lakhs was reversed and credited to 'Other expenses' in the Statement of Profit and Loss for the quarter and six months ended September 30, 2026.

Audit Review

The unaudited financial results were reviewed by the Audit Committee and approved by the Board. The statutory auditors, B S R and Co., have issued an unmodified limited review report on these results.