Financial Performance Summary

Volume and Revenue

  • Total sale volume (including construction chemicals) for FY26: 18.81 million tons (FY25: 18.50 million tons), representing marginal growth of 2%
  • Cement capacity utilization decreased from 77% in FY25 to 74% in FY26 due to capacity increase of 2 MTPA during February 2026
  • Net revenue for FY26: Rs.9,056 crores (FY25: Rs.8,539 crores), growth of 6% driven by price improvement of approximately 4% YoY
  • Cement revenue growth: 5% YoY
  • Construction chemicals revenue growth: 66% YoY

Profitability Metrics

  • EBITDA for FY26: Rs.1,482 crores (FY25: Rs.1,276 crores), growth of 16%
  • Blended EBITDA per ton: Rs.788/- (FY25: Rs.690/-)
  • Operating profit ratio: 16% for FY26 (FY25: 15%)
  • Profit before exceptional items and tax: Rs.326 crores (FY25: Rs.126 crores)
  • Profit before tax after exceptional items: Rs.879 crores (FY25: Rs.466 crores)
  • Profit after tax: Rs.694 crores (FY25: Rs.417 crores), growth of 66%

Cost Analysis

Raw Materials

  • Cost of raw materials per ton increased by 7% from Rs.956/- in FY25 to Rs.1,023/- in FY26
  • Increase mainly due to levy of mineral bearing land tax (MBLT) of Rs.160 per ton of limestone in Tamil Nadu from April 2025
  • MBLT impact translates to approximately Rs.86 per ton of cement in variable cost
  • Company along with other cement companies have represented to Tamil Nadu Government to reduce the levy (pending)

Power & Fuel

  • Blended fuel consumption per ton: $124 equivalent (Cost per Kcal: Rs.1.59) in FY26 vs $127 (Cost per Kcal: Rs.1.53) in FY25
  • Power & fuel cost per ton decreased from Rs.1,123/- in FY25 to Rs.1,098/- in FY26
  • Petcoke mix: 47% in FY26 (63% in FY25)
  • Green power share increased from 36% in FY25 to 40% in FY26
  • Current spot CIF prices of pet coke: approximately $150 to $160
  • Clinker conversion ratio improved from 1.42 in FY25 to 1.43 in FY26

Other Costs

  • Interest cost reduced from Rs.459 crores in FY25 to Rs.419 crores in FY26 due to repo rate cuts and repayment of borrowings
  • Depreciation increased to Rs.736 crores (FY25: Rs.691 crores) due to commissioning of WHRS at RR Nagar and Railway Siding at Kolimigundala during FY26

Exceptional Items

  • Profit of Rs.574 crores from sale of surplus lands recognized under exceptional items
  • Expense of Rs.20 crores towards past service cost for gratuity and compensated absences due to change in definition of wages under new labour codes, 2025
  • Net exceptional items: Rs.553 crores (FY25: Rs.340 crores)

Capital Expenditure (CAPEX)

  • FY26 capex incurred: Rs.997 crores (including maintenance capex)
  • Plans to achieve cement capacity of approximately 31 MTPA including debottlenecking of existing integrated units and brown field expansion at Kolimigundala during FY27
  • WHRS capacity of 15 MW expected to be commissioned in Kolimigundala along with Kiln Line-2 in FY27
  • FY27 capex guidance: Rs.800 crores

Non-Core Asset Disposal

  • Monetized Rs.1,098 crores through sale of non-core assets over past two years
  • Active steps in progress to dispose remaining identified non-core assets valued at approximately Rs.150 crores in near term

Debt Position

  • Net debt as at 31-3-2026: Rs.3,664 crores (31-3-2025: Rs.4,481 crores)
  • Net debt reduction during FY26: Rs.817 crores
  • Cost of debt for FY26: 7.29% (FY25: 7.90%)
  • Net debt to EBITDA: 2.47 times in FY26 (FY25: 3.51 times)

Dividend

  • Proposed dividend of Rs.2.50 per equity share of face value of Re.1/- each for FY26

Outlook for FY27

Macroeconomic Context

  • India's real GDP grew 7.6% in FY26, with FY27 growth projected at 6.9%
  • Growth weighed down by energy disruptions, higher oil prices, and currency volatility
  • Cement demand expected to grow 6-7%, in line with GDP
  • Key demand drivers: Union budget's Rs.12.2 lakh crores capex outlay and strong rural incomes supported by good rabi crop and healthy reservoir levels
  • Muted demand scenario in April 2026 due to state elections in Tamil Nadu, Kerala and West Bengal

Cost Pressures

  • Pet coke and gypsum price increases expected to have adverse impact of approximately Rs.400 per ton of cement
  • Polymer price increases causing packing material costs to increase by approximately Rs.120 per ton of cement
  • Diesel prices increased by Rs.4 per litre effective from 19-05-2026, impacting logistics cost by approximately Rs.50 per ton for both inbound and outbound movement
  • Full impact of higher fuel costs expected from Q2FY27 onwards (given existing fuel inventories)
  • Packing material and diesel cost increases to be visible in Q1FY27 itself

Pricing Environment

  • Cement prices in April 2026 improved by Rs.15 per bag in trade segment and Rs.25 per bag in non-trade segment over March 2026 exit price
  • Company expects cement prices to improve further but prices remain under pressure due to competitive intensity