Date: 7 August 2026

Financial Performance Overview

Net revenue for Q1 FY27 reached ₹2,276 crores compared to ₹2,077 crores in Q1 FY26, representing 10% YoY growth. EBITDA declined significantly to ₹314 crores from ₹404 crores in Q1 FY26, reflecting a 22% decrease. The EBITDA ratio stood at 14% compared to 19% in the same quarter previous year. Blended EBITDA per ton decreased to ₹681 from ₹981 YoY.

Profit before tax (including exceptional items) was ₹42 crores in Q1 FY27 compared to ₹116 crores in Q1 FY26. The company recognized ₹13 crores profit from sale of surplus lands under exceptional items.

Operational Performance

Cement sales volume reached 4.48 million tons in Q1 FY27 compared to 4 million tons in Q1 FY26, representing 12% growth despite demand disruptions due to state elections in Tamil Nadu, Kerala and West Bengal. Cement capacity utilization improved to 70% from 68% YoY.

Construction chemicals business registered sales volume of 1.35 lakh tons for Q1 FY27 compared to 1.20 lakh tons during Q1 FY26, showing 13% growth.

Cost Analysis

The company faced significant cost pressures from multiple fronts:

  • Mineral bearing land tax of ₹160 per ton of limestone in Tamil Nadu, effective from April 2025, resulted in a variable cost impact of ₹39 crores (equivalent to ₹84 per ton of cement)
  • Blended fuel consumption per ton for cement increased to $127 (Cost per Kcal: ₹1.85) from $126 (Cost per Kcal: ₹1.55) during Q1 FY26
  • Power and fuel cost per ton of cement increased to ₹1,326 from ₹1,222 YoY, driven by escalation in imported fuel costs from geopolitical disruptions in West Asia
  • Fuel cost was adversely impacted by rupee depreciation by 11% YoY
  • Domestic diesel prices increased by 4% YoY
  • Polymer prices increased by 40% YoY, impacting packing and forwarding costs

Green energy usage improved from 31% in Q1 FY26 to 37% in Q1 FY27 due to addition of WHRS capacity in RR Nagar during previous year.

Financial Costs and Depreciation

Interest cost reduced from ₹105 crores in Q1 FY26 to ₹96 crores in Q1 FY27 due to repo rate cuts and repayment of borrowings during previous year. The cost of debt for Q1 FY27 was 7.03% compared to 7.64% in Q1 FY26.

Depreciation increased to ₹190 crores from ₹183 crores YoY due to commissioning of WHRS at RR Nagar and Railway Siding at Kolimigundala during FY26.

Capacity Expansion and Capex

The company plans to achieve cement capacity of approximately 31 MTPA including debottlenecking of existing integrated units and brownfield expansion at Kolimigundala during FY27. WHRS capacity of 15 MW is expected to be commissioned at Kolimigundala, along with Kiln Line-2, in FY27.

During Q1 FY27, the company incurred ₹176 crores towards capex, including maintenance capex. The capex guidance for FY27 is estimated at ₹800 crores.

Non-Core Asset Disposal

Over the past two years up to March 2026, the company monetized ₹1,098 crores through sale of non-core assets. Active steps are in progress to dispose of remaining identified non-core assets valued at approximately ₹150 crores. Of this identified amount, the company realized ₹24 crores during Q1 FY27.

Debt Position

Total debt as of 30 June 2026 stood at ₹4,007 crores compared to ₹3,852 crores as of 31 March 2026.

Market Context

The company continues to pursue its strategy of matching the right products to the right applications and strengthening its brand equity. The current spot CIF price of pet coke is $139. The company has represented to the Tamil Nadu Government for reduction in the mineral bearing land tax levy, which is under consideration.