Profit Before Tax (before exceptional items) decreased 53% YoY to ₹47.34 crores
Exceptional items: Profit on sale of non-core assets of ₹4.80 crores
Profit After Tax decreased 49% YoY to ₹38.18 crores
EPS (not annualized) stood at ₹1.61 (2QFY26: ₹3.14)
Operational Metrics
Cement sales volume grew 10% YoY to 9.56 MnT in 1HFY27
Cement sales volume grew 9% YoY and 7% QoQ in 2QFY27
Average cement prices remained flat YoY in 1HFY27 but improved 2% YoY and 1% QoQ in 2QFY27
Capacity utilization stood at 71% in 1HFY27 (72% in 2QFY27, 70% in 1QFY27)
OPC share: 34% in 1HFY27
B2B share: 32% in 1HFY27
Clinker to Cement ratio: 1.38x in 1HFY27
Cost Analysis
Power and fuel cost per ton increased 22% YoY in 1HFY27 (up ₹243/ton)
Power and fuel cost per ton increased 36% YoY and 5% QoQ in 2QFY27 (up ₹368/ton YoY, ₹71/ton QoQ)
Blended fuel consumption per ton of material: ₹134 in 1HFY27 (1HFY26: ₹125)
Blended fuel cost per Kcal: ₹1.92 in 1HFY27 (1HFY26: ₹1.52)
44% of total power in 1HFY27 was green power (50% in 2QFY27)
Employee cost per ton reduced 4% YoY in 1HFY27 due to operating leverage
Other expenditure increased due to 30% YoY rise in packing material cost per ton
Mineral Bearing Land Tax Impact
The company disputed levy of mineral bearing land tax @ ₹160 per ton of limestone in Tamil Nadu
Impact: ~₹72 crores for 1HFY27 (₹77 per ton of cement)
Impact: ~₹33 crores for 2QFY27 (₹69 per ton of cement)
The levy has been disputed effective from 22-Aug-2026 following cessation through MMDR Amendment Act, 2026
Logistics Metrics
Rail coefficient for cement despatches: 9% in 1HFY27 (8% in 1HFY26)
Average lead distance: 259 KMs in 1HFY27 (252 KMs in 1HFY26)
Diesel prices increased 6% YoY in 1HFY27
Balance Sheet Position (as of 30-09-2026)
Total assets: ₹16,622.30 crores (31-03-2026: ₹16,680.52 crores)
Fixed assets including CWIP: ₹13,892.54 crores
Inventories: ₹1,130.39 crores
Trade receivables: ₹774.27 crores
Cash and bank balances: ₹80.62 crores
Total borrowings: ₹3,963.14 crores (31-03-2026: ₹3,852.05 crores)
Net debt: ₹3,921.37 crores (31-03-2026: ₹3,664.24 crores)
Debt-equity ratio: 0.49 multiples
Cash Flow Summary (1HFY27)
Net cash flow from operating activities: ₹271.96 crores (1HFY26: ₹645.66 crores)
Net cash flow used in investing activities: ₹333.07 crores
Net cash flow used in financing activities: ₹105.28 crores
Net decrease in cash and cash equivalents: ₹166.39 crores
Capacity Expansion Update
Current total cement capacity: 27.17 MTPA after debottlenecking at Jayanthipuram (0.73 MTPA increase)
Target cement capacity: ~31 MTPA by Mar-27 with commissioning of Line-2 at Kolimigundla
Clinkering unit at Kolimigundla (3.15 MTPA capacity) expected by Dec-26
WHRS capacity of 15 MW to be commissioned at Kolimigundla
Construction chemicals manufacturing unit planned at Kolimigundla (1.2 lac tons p.a. capacity, ₹20 crores cost, completion by 2QFY28)
Capex and Asset Monetization
Capex for FY27 estimated at ₹800 crores
Capex incurred: ₹197 crores in 2QFY27; ₹373 crores in 1HFY27
Non-core asset monetization: ₹29 crores realized in 1HFY27 (out of remaining identified assets valued at ~₹150 crores)
61% of total mining lands and 13% of total factory lands acquired for Karnataka Green Field project
Credit Ratings
ICRA: Long Term Debt - AA+; Short Term Debt - A1+; Non-Convertible Debentures - AA+
CRISIL: Short Term Debt - A1+
Awards and Recognition
Hard Worker brand achieved ₹390 crores net revenue within 12 months of launch
Multiple awards received including Global Biodiversity Standard Advanced Site Certification, CII National AI Awards, Best Performing Windfarms award, National Energy Excellence Awards, and various quality and safety awards across manufacturing units
Macroeconomic Context
GDP growth: +7.8% YoY in Q1 FY27; RBI raised FY27 growth forecast to 7.1%
Industrial production: +8.0% YoY in Aug-26
CPI inflation: 5.54% in Sep-26 (highest since Oct-24)
RBI repo rate: 5.50% (25 bps hike, first since Feb-23)
Monsoon: 12.6% below normal
Brent crude: ~USD 115/bbl
INR: ~95.3/USD
Cement production: +9.8% YoY in Sep-26; +10.1% in H1 FY27
