Macroeconomic Context

The document provides an overview of the operating environment:

  • India's real GDP grew by 7.7% in FY26 but is projected to moderate to 6.6% in FY27
  • CPI inflation rose to an 18-month high of 4.4% YoY in Jun-26 (3.9% in May-26)
  • RBI held the repo rate at 5.25% with a neutral stance
  • Cement production rose 9.8% YoY in Jun-26 per Index of Core Industries
  • Union budgeted capital expenditure of ₹12.2 lakh crores for FY27
  • West Asia conflict and Strait of Hormuz disruption impacting energy and logistics costs

Financial Performance - Q1FY27 vs Q1FY26

Standalone Results:

  • Total Revenue: ₹2,276.18 Crores (up 10% from ₹2,076.61 Crores)
  • Cement Revenue: ₹2,182.86 Crores (up 10% from ₹1,991.74 Crores)
  • Construction Chemicals Revenue: ₹86.11 Crores (up 10% from ₹78.39 Crores)
  • Other Income: ₹7.21 Crores (up 11% from ₹6.48 Crores)
  • Operating Expenses: ₹1,961.80 Crores (up 17% from ₹1,672.49 Crores)
  • EBITDA: ₹314.38 Crores (down 22% from ₹404.12 Crores)
  • Finance Costs: ₹95.58 Crores (down 9% from ₹104.74 Crores)
  • Depreciation: ₹189.87 Crores (up 4% from ₹182.91 Crores)
  • Profit Before Tax (before Exceptional Items): ₹28.93 Crores (down 75% from ₹116.47 Crores)
  • Exceptional Items: Profit on sale of non-core assets of ₹12.62 Crores (nil in Q1FY26)
  • Profit Before Tax: ₹41.55 Crores (down 64% from ₹116.47 Crores)
  • Current Tax Expenses: ₹3.45 Crores (nil in Q1FY26)
  • Deferred Tax Expenses: ₹6.24 Crores (down 80% from ₹30.46 Crores)
  • Profit After Tax: ₹31.86 Crores (down 63% from ₹86.01 Crores)
  • Total Comprehensive Income: ₹31.86 Crores (down 65% from ₹91.79 Crores)

Consolidated Results:

  • Revenue: ₹2,279.79 Crores (up 10% from ₹2,080.00 Crores)
  • Profit After Tax: ₹31.02 Crores (down 63% from ₹84.41 Crores)

Operational Performance

  • Total cement sale volume increased by 12% YoY but decreased by 17% QoQ
  • Demand disruption due to state elections in Tamil Nadu, Kerala & West Bengal
  • Average cement prices dropped by 2% YoY but improved by 6% QoQ
  • Capacity utilization details not quantified

Regional Performance

South East Region:

  • Volume from B2C & B2B grew YoY
  • Share of premium products: 28% in 1QFY27 vs 29% in 1QFY26
  • Volume share: 73% in 1QFY27 vs 79% in 1QFY26
  • Trade prices increased by 5% from exit price of Mar-26
  • Demand disrupted due to state elections in Tamil Nadu & Kerala

East Region:

  • Volume from B2C & B2B grew YoY
  • Share of premium products: 23% in 1QFY27 vs 22% in 1QFY26
  • Volume share: 27% in 1QFY27 vs 21% in 1QFY26
  • Trade prices improved by 6% from exit price of Mar-26
  • Demand disrupted due to state elections in West Bengal

Cost Analysis

Raw Materials per ton: Impacted by levy of mineral bearing land tax @ ₹160 per ton of limestone in Tamil Nadu from April 2025, amounting to ~₹39 Crores for 1QFY27 (₹84 per ton of cement)

Power & Fuel per ton:

  • Increased by 9% YoY and 24% QoQ due to West Asia conflict
  • Blended Fuel consumption per ton of material: ₹127 in 1QFY27 vs ₹126 in 1QFY26 vs ₹120 in 4QFY26
  • Blended Fuel cost per Kcal: ₹1.85 in 1QFY27 vs ₹1.55 in 1QFY26 vs ₹1.62 in 4QFY26
  • 37% of total power met from green power (31% in 1QFY26)
  • Fuel cost impacted by rupee depreciation of ~11% YoY

Logistics per ton:

  • Rail coefficient for cement despatches: 9% in 1QFY27 vs 8% in 1QFY26 vs 12% in 4QFY26
  • Average diesel price per liter increased by 4% YoY
  • Average lead distance: 264 KMs in 1QFY27 vs 246 KMs in 1QFY26 vs 276 KMs in 4QFY26

Employee Cost per ton: Decreased by 5% YoY despite annual increments and additional manpower for construction chemicals business

Other Expenditure per ton: Increased due to packing material cost rising 30% YoY from higher polymer prices due to West Asia conflict

Key Ratios (Standalone)

  • EBITDA Ratio: 14% in 1QFY27 vs 19% in 1QFY26 vs 15% in 4QFY26
  • PBT Ratio (including Exceptional Items): 1% in 1QFY27 vs 6% in 1QFY26 vs 7% in 4QFY26
  • PAT Ratio: 1% in 1QFY27 vs 4% in 1QFY26 vs 6% in 4QFY26
  • EPS (Not Annualized): ₹1.35 in 1QFY27 vs ₹3.64 in 1QFY26 vs ₹6.19 in 4QFY26
  • Debt-Equity Ratio: 0.49 as of 30-06-2027 vs 0.62 as of 30-06-2026 vs 0.47 as of 31-03-2026
  • Debt Service Cover Ratio (Annualized): 2.43 in 1QFY27 vs 0.79 in 1QFY26 vs 3.15 in 4QFY26
  • Interest Service Cover Ratio: 2.92 in 1QFY27 vs 3.22 in 1QFY26 vs 3.52 in 4QFY26
  • Current Ratio: 1.12 as of 30-06-2027 vs 1.06 as of 30-06-2026 vs 1.20 as of 31-03-2026

Capex & Capacity Expansion

  • Capex incurred during 1QFY27: ₹176 Crores
  • Plans to achieve cement capacity of ~31 MTPA including debottlenecking and brown field expansion at Kolimigundala during FY27
  • WHRS capacity of 15 MW expected in Kolimigundala along with Kiln Line-2 in FY27
  • Estimated FY27 capex: ₹800 Crores
  • 60% of total mining lands and 13% of total factory lands acquired for Karnataka Green Field project

Borrowings & Credit Profile

As of 30-06-2027:

  • Interest-bearing Borrowings: ₹3,977.38 Crores
  • Interest Free/Soft Loans: ₹29.93 Crores
  • Total Borrowings: ₹4,007.31 Crores
  • Cash & Cash Equivalents: ₹69.12 Crores
  • Net Debt: ₹3,938.19 Crores

Credit Ratings:

  • ICRA: Long Term Debt - AA+, Short Term Debt - A1+, Non-Convertible Debentures - AA+
  • CRISIL: Short Term Debt - A1+

Asset Monetization

  • Over past two years up to Mar-26: Monetized ₹1,098 Crores through sale of non-core assets
  • Remaining identified non-core assets valued at ~₹150 Crores
  • Realized ₹24 Crores during 1QFY27 from these assets

Awards & Accolades

The company received multiple awards including:

  • Six honours at Kyoorius Creative Awards including Grey Elephant Grand Prix for Eco Plaster film
  • Seven awards at Good Ads Matter Awards 2026 for Hard Worker campaign
  • "Gold Award for Environment, Health & Safety Excellence" at CII National EHS Excellence Awards 2025
  • "Best Kaizen Award" for RR Nagar unit
  • "Shrama Shakti Award" by Government of Andhra Pradesh for Jayanthipuram unit
  • 14 awards at Mines Safety Week Celebrations for Ariyalur Unit
  • Apex India Safety Leadership Award 2025 & Platinum Award for Ariyalur Unit
  • "Best Safety Award 2026" from Andhra Pradesh Fire Services Department for Jayanthipuram unit

Disclaimer

The document contains forward-looking statements subject to risks including economic conditions, foreign exchange and commodity price fluctuations, competitive pressures, regulatory changes, and other factors.