Financial Results Highlights (Standalone)

Q4 FY26 Performance:

  • Net Sales: ₹3,614 crores, up 15% QoQ (from ₹3,132 crores) and up 11% YoY (from ₹3,261 crores)
  • EBITDA: ₹670 crores, up 25% QoQ (from ₹536 crores) but down 9% YoY (from ₹736 crores)
  • EBITDA Margin: 18.5% (QoQ: 17.1%, YoY: 22.5%)
  • Profit After Tax (PAT): ₹345 crores, up 91% QoQ (from ₹181 crores) but down 17% YoY (from ₹412 crores)
  • Earnings Per Share (EPS): ₹44.50

Full Year FY26 Performance:

  • Net Sales: ₹12,568 crores, up 16% YoY (from ₹10,802 crores)
  • EBITDA: ₹2,318 crores, up 18% YoY (from ₹1,968 crores)
  • EBITDA Margin: 18.5% (FY25: 18.2%)
  • Profit After Tax (PAT): ₹1,033 crores, up 21% YoY (from ₹851 crores)
  • Earnings Per Share (EPS): ₹133.70 (FY25: ₹110.1)

Dividend Declaration

The Board of Directors proposed a dividend of ₹20 per share, subject to shareholder approval.

Capacity Expansion Projects Update

Completed Projects:

  • Buxar, Bihar: Greenfield expansion commissioned during Q4 FY26
  • Muddapur Plant: Capacity increased by 1 million tons from 3.5 MTPA to 4.5 MTPA

Ongoing Projects:

  • Jaisalmer Greenfield Project: 7 MTPA plant (4 MTPA integrated clinker capacity at Jaisalmer + 3 MTPA grinding)
  • Project cost: ₹3,630 crores
  • Amount spent up to March 2026: ₹742 crores
  • Expected commissioning: H1 FY28
  • Civil construction and erection work progressing well
  • Bikaner Grinding Station:
  • Main plant and equipment orders placed
  • Construction work begun
  • Expected commissioning: H1 FY28
  • Punjab Grinding Units:
  • Land acquired
  • Main plant and equipment orders placed
  • Other approvals in process
  • Expected commissioning: H1 FY28
  • Nathdwara, Rajasthan: 6 lakh ton Wall Putty plant
  • Work in advanced stage of completion
  • Expected commissioning: September 2026

Balance Sheet Position (as of March 31, 2026)

  • Gross Debt: ₹5,136 crores
  • Net Cash: ₹1,765 crores
  • Net Debt: ₹3,370 crores
  • Net Debt to EBITDA: 1.45
  • Equity: ₹6,961 crores
  • Net Debt to Equity: 0.48

Operational Metrics and Guidance

Employee Expenses:

  • Q4 FY26 employee expenses increased due to:
  • Commissioning of new plants (salaries moved from capitalization to revenue)
  • Additional manpower requirements
  • Normal increments
  • Labor Code implementation impact
  • One-time liability for leave travel assistance
  • FY26 total employee expense: ₹937 crores
  • FY27 expected increase: 12-14% YoY

Other Expenses:

  • Increased due to higher packing costs (₹30 crores impact from volume and price increases)
  • Increased advertising and branding expenses

Incentive Income:

  • Q4 FY26 incentive: ₹29 crores
  • Outstanding incentives as of March 31, 2026: ₹300 crores
  • FY26 total incentive: ₹230 crores
  • FY27 expected incentive: ₹250-260 crores
  • Reduction due to:
  • Aligarh unit incentive period completed (10 years)
  • GST input credit affecting Rajasthan incentive claims
  • Bihar incentive awaiting sanction letter

Cost Structure:

  • Fuel Mix (Q4 FY26): 50% petcoke, 12% alternate fuels, balance Indian coal
  • Thermal Power Capacity: Reduced by 27.5 MW (discarded uneconomical plants)
  • Green Power Target: Currently 51-52%, expected to reach 55% in FY27 and 75% long-term
  • Cost Savings: Additional ₹50/ton expected in FY27 from green power and AFR initiatives

Regional Operations:

  • North Capacity: 15.5 MTPA
  • South Capacity: 4.5 MTPA (after debottlenecking)
  • Central Capacity: 12 MTPA (utilization at 65-75%)
  • Clinker-Cement Ratio: 67%
  • Rail Share: 8%

Market Outlook and Guidance

Volume Growth:

  • FY27 expected industry growth: 6-8%
  • Company expects double-digit volume growth
  • Minimum 2.5 million ton incremental volume expected in FY27
  • Similar incremental volume expected in FY28 from new capacities

Pricing Environment:

  • Recent cost inflation: ₹150-200/ton primarily from fuel and diesel prices
  • Price increases of ₹10/bag implemented in April-May 2026
  • Efforts to pass on full cost increase before monsoon
  • No significant pricing pressure expected from competitor expansions

Capex Guidance:

  • FY27: ₹3,500-4,000 crores (includes normal capex, greenfield expansion, putty plant, solar tie-ups, coal block investment)
  • FY28: ₹1,500-2,000 crores
  • Panna project expected to see ₹200-300 crores savings from initial ₹2,850 crores budget

Paint Business:

  • FY26 revenue: ₹380 crores
  • FY26 EBITDA: ₹40 crores
  • FY27 revenue guidance: ₹500-550 crores
  • FY27 EBITDA expected to be positive

White Cement Business:

  • Domestic production meeting all demand despite UAE supply disruptions
  • Prices increased to pass on higher chemical costs
  • FY27 volume growth expected: 8-10%

Risk Factors Mentioned

  • Geopolitical situation affecting supply chains and costs
  • Diesel price increases impacting freight costs (potential ₹50-60/ton impact if prices rise ₹10-12/liter)
  • Regulatory clearance timelines for new projects
  • Competitive intensity in central and Rajasthan markets

Participants in Conference Call

Management:

  • Mr. Ajay Kumar Saraogi – Deputy Managing Director and Chief Financial Officer
  • Mr. Prashant Seth – President Business Information and Investor Relations

Moderator:

  • Mr. Vaibhav Agarwal – PhillipCapital India Private Limited

Analysts Participating:

  • Harsh Mittal (Emkay Global)
  • Amit (Axis Capital)
  • Rajesh Ravi (HDFC Securities)
  • Parvez Qazi (Nuvama Group)
  • Pathanjali Srinivasan (Sundaram Mutual Fund)
  • Tejas Pradhan (Citigroup)
  • Siddhart (Kotak Securities)
  • Girija Ray (Nirmal Bang)
  • Shravan Shah (Dolat Capital)
  • Prateek Kumar (Jefferies)