Revenue Growth: 5% year-on-year, driven by volumes with realizations broadly stable.
EBITDA per tonne: ₹451.
Power & Fuel Cost: ₹1,484 per tonne (vs. ₹1,450 per tonne in Q1 FY26).
Freight Cost: ₹858 per tonne (vs. ₹860 per tonne in Q1 FY26).
Gross Debt (as of 30th June 2026): ₹1,704 crore (Long-term debt: ₹1,434 crore; Working capital debt: ₹270 crore).
Net Worth (Consolidated): ₹1,833 crore.
Debt-Equity Ratio: 0.78:1.
Cash & Bank Balances: ₹105 crore.
Operational Highlights & Capacity Utilization
Volume Guidance for FY27: Approximately 7 million tons (excludes clinker sales).
Plant-wise Capacity Utilization for Q1:
Mattampally (Telangana): 65%
Gudipadu (Andhra Pradesh): 79%
Bayyavaram (Andhra Pradesh): 67%
Jeerabad: 96%
Jajpur (Odisha): 50%
Dachepalli: 42%
Recent Commissioning: 1.55 MW waste heat recovery system (WHRS) at Gudipadu plant (out of total 4.35 MW installed).
Capacity Expansion: Completed 0.5 million tonne expansion at Jeerabad unit during the quarter.
Ongoing Project: 0.75 million tonne cement capacity expansion at Andhra Cements expected completion by end of Q2 FY27.
Cost Structure & Outlook
FY27 Cost Inflation Expectation: ~₹100 per tonne increase (₹50 from power & fuel, ₹50 from raw materials & miscellaneous).
Q2 FY27 Outlook: Expects higher costs due to planned maintenance shutdowns at three plants and inventory adjustments.
Cost Mitigation Levers: Savings from newly commissioned WHRS at Gudipadu, Jeerabad expansion, and new mill at Andhra Cements expected to offset inflation in H2 FY27.
Target EBITDA per tonne for FY27: ₹500-550, contingent on stable pricing.
Pricing & Demand Environment
Pricing Trend: Realizations remained broadly stable sequentially with a marginal improvement (₹50-60/tonne), attributed to product mix or regional price hikes.
Demand Drivers: Government infrastructure spending, housing activity (e.g., Amaravati capital development, Indiramma Pathakam scheme), and private construction.
Regional Demand Growth (Y-o-Y for Q1):
Andhra Pradesh & Telangana: ~11%
Karnataka: Flat
Tamil Nadu: ~4% (June alone grew ~20%)
Kerala: ~12%
Overall South India: ~6-6.5%; expected to reach 8-10% for full FY27.
Madhya Pradesh: 9-10%
Odisha: Extremely healthy
Near-term Impact: Q1 demand temporarily affected by heatwaves and election-related labor shortages in Eastern/Southern India.
Vizag Land Monetization
Status: Awaiting final generic Government Order (GO) from Andhra Pradesh government for approval to monetize.
Expected Timeline: Approval expected imminently; earlier expectation was a case-specific GO, but government plans a broader policy.
Monetization Target for FY27: ₹150 crore.
Total Expected Proceeds: ₹350 crore (₹150 crore in FY27, ₹200 crore in FY28).
Purpose: Debt reduction.
Balance Sheet & Capex
Debt Reduction Plan: Focus on reducing gross debt through operational cash flows and land monetization proceeds.
FY27 Capex: ₹240 crore (spread over FY27 and FY28), primarily for ongoing projects.
No major greenfield Capex planned until end of 2028; only operational maintenance Capex of ₹30-40 crore per year.
Analyst Q&A Key Points
Clinker Sales: FY27 volume guidance of 7 million tons excludes clinker sales. Some clinker sales to continue to Bayyavaram and externally from Jeerabad until volume stabilization.
Andhra Cements Cost Structure: Variable cost is ₹100-125/tonne higher than Mattampally due to lack of WHRS and higher grid power costs.
Andhra Cements Utilization: Currently at ~50%; target to reach 60% by end of FY27 and 60-70% thereafter.
Competitive Intensity: High in Andhra Pradesh region, but manageable.
Limestone Reserves: Adequate; recent auction premiums in Telangana were 50-75%.
Forward-Looking Commentary
Volume Growth: Expects double-digit growth in FY28 similar to FY27.
Input Costs: Expects moderation as geopolitical situation (West Asia) normalizes, but has inventory coverage until mid-October 2026.
Strategic Focus: Cost optimization through WHRS, green energy, and plant efficiency initiatives.
