Financial Performance Q2 FY27 (Consolidated)

Sagar Cements Limited reported unaudited consolidated financial results for Q2 FY27 ending September 30, 2026.

Operational Metrics:

  • Sales Volume: 17,09,100 MT, showing 26% YoY growth from 13,60,268 MT in Q2 FY26
  • Plant Utilization: Operated at around 63% during the quarter

Financial Results:

  • Revenue from Operations: ₹70,536 lakhs, increased 17% YoY from ₹60,186 lakhs
  • Other Income: ₹242 lakhs, decreased 44% YoY from ₹434 lakhs
  • Total Income: ₹70,778 lakhs, increased 17% YoY from ₹60,620 lakhs
  • Operating expenses: ₹66,005 lakhs, increased 20% YoY from ₹55,053 lakhs
  • Operating EBITDA: ₹4,531 lakhs, decreased 12% YoY from ₹5,133 lakhs
  • Operating EBITDA Margin: 6%, decreased from 9% in Q2 FY26 (300 bps contraction)
  • Finance cost: ₹5,516 lakhs, increased 19% YoY from ₹4,648 lakhs
  • Depreciation: ₹6,129 lakhs, increased 10% YoY from ₹5,570 lakhs
  • Loss before tax: ₹(6,872) lakhs, compared to ₹(4,651) lakhs in Q2 FY26
  • Tax expenses: ₹(1,718) lakhs, compared to ₹(234) lakhs in Q2 FY26
  • Loss after tax: ₹(5,154) lakhs, compared to ₹(4,417) lakhs in Q2 FY26

Per Ton Analysis (Consolidated) Q2 FY27:

  • Net Realization per ton: ₹4,127, decreased 7% YoY from ₹4,425
  • Total Expenditure per ton: ₹3,862, decreased 5% YoY from ₹4,048
  • Raw Material Consumed per ton: ₹730, decreased 10% YoY from ₹812
  • Employee Expenses per ton: ₹224, decreased 24% YoY from ₹295
  • Power & Fuel per ton: ₹1,473, increased 3% YoY from ₹1,428
  • Freight per ton: ₹900, increased 5% YoY from ₹855
  • Other Expenses per ton: ₹535, decreased 19% YoY from ₹658
  • EBITDA per ton: ₹265, decreased 30% YoY from ₹377

H1 FY27 Performance (Consolidated):

  • Sales Volume: 33,15,309 MT, increased 19% YoY from 27,87,907 MT
  • Revenue from Operations: ₹1,41,143 lakhs, increased 11% YoY from ₹1,27,252 lakhs
  • Operating EBITDA: ₹11,773 lakhs, decreased 32% YoY from ₹17,278 lakhs
  • Operating EBITDA Margin: 8%, decreased from 14% in H1 FY26
  • Loss after tax: ₹(7,964) lakhs, compared to ₹(3,668) lakhs in H1 FY26

Standalone Financial Results Q2 FY27:

  • Sales Volume: 11,13,352 MT, increased 18% YoY
  • Revenue from Operations: ₹44,432 lakhs, increased 11% YoY
  • Operating EBITDA: ₹1,276 lakhs, decreased 55% YoY
  • Operating EBITDA Margin: 3%, decreased from 7% in Q2 FY26
  • Loss after tax: ₹(2,058) lakhs, compared to ₹(822) lakhs in Q2 FY26

Management Commentary

Jt. Managing Director Mr. Sreekanth Reddy commented on the performance, noting:

  • Delivered 26% volume growth despite monsoon-related slowdown
  • Cement prices remained soft during July and August before recovering in September
  • Realizations were lower by around 6% sequentially
  • Elevated input costs across fuel, packaging and other operating expenses due to geopolitical developments in West Asia
  • Cost optimization initiatives including increased Waste Heat Recovery Systems utilization helped mitigate cost pressures
  • Completed 0.75 MTPA grinding capacity expansion in Andhra Pradesh during the quarter
  • Expect demand momentum to improve during H2 FY27 supported by post-monsoon recovery and infrastructure spending

Capacity Expansion Update

Gudipadu, A.P Plant:

  • Company proposes to expand cement capacity by 0.25 MnT by FY28
  • Proposed capex: ₹45 crore

Jeerabad, M.P Plant:

  • Commissioned expansion of cement grinding capacity by 0.50 MTPA on June 10, 2026
  • Total capital expenditure: ₹120 crore
  • Funded through debt of ₹74 crore, balance through internal accruals

Dachepalli, A.P Plant:

  • Construction of 6 stage preheater completed and commissioned on October 23, 2025
  • Clinker Capacity increased from 1.85 MnT to 2.31 MnT
  • Cement Capacity from 2.25 MnT to 3.00 MnT commissioned on September 28, 2026

Capex Budget FY27:

  • Dachepalli Expansion: Total ₹470 crore (FY25: ₹75 crore, FY26: ₹254 crore, FY27 Budget: ₹141 crore, H1 FY27 Actual: ₹103 crore)
  • 4.35 MW WHR Gudipadu: Total ₹84 crore (FY26: ₹67 crore, FY27 Budget: ₹17 crore, H1 FY27 Actual: ₹17 crore)
  • Jeerabad Expansion: Total ₹120 crore (FY26: ₹87 crore, FY27 Budget: ₹33 crore, H1 FY27 Actual: ₹29 crore)
  • Solar, Jeerabad: ₹20 crore (FY27 Budget: ₹20 crore)
  • Solar, Mattampally: ₹20 crore (FY27 Budget: ₹20 crore)
  • Gudipadu Expansion: ₹45 crore (FY27 Budget: ₹45 crore)
  • Maintenance Capex: ₹50 crore (FY27 Budget: ₹50 crore, H1 FY27 Actual: ₹24 crore)

Debt Profile (as of September 30, 2026):

  • Gross Debt: ₹1,73,538 lakhs, increased 2% QoQ from ₹1,70,360 lakhs
  • Long Term: ₹1,48,153 lakhs, increased 3% QoQ
  • Working Capital: ₹25,385 lakhs, decreased 6% QoQ
  • Cash & Bank Balance: ₹10,587 lakhs, increased 1% QoQ
  • Net Debt: ₹1,62,951 lakhs, increased 2% QoQ
  • Long term Debt Equity Ratio: 0.83%
  • Net Worth: ₹1,78,124 lakhs, decreased 3% QoQ

Financial Position (Consolidated):

September 30, 2026 vs March 31, 2026:

  • Property, plant and equipment including CWIP: ₹3,28,888 lakhs vs ₹3,17,075 lakhs
  • Right of use assets: ₹5,468 lakhs vs ₹5,406 lakhs
  • Goodwill: ₹4,162 lakhs vs ₹4,162 lakhs
  • Intangible assets: ₹7,607 lakhs vs ₹7,794 lakhs
  • Income tax and Deferred tax assets (net): ₹26,755 lakhs vs ₹24,591 lakhs
  • Inventories: ₹24,609 lakhs vs ₹31,271 lakhs
  • Trade Receivables: ₹29,228 lakhs vs ₹22,594 lakhs
  • Cash and Cash equivalents: ₹186 lakhs vs ₹352 lakhs
  • Total Assets: ₹4,52,946 lakhs vs ₹4,50,527 lakhs
  • Equity Share Capital: ₹2,614 lakhs vs ₹2,614 lakhs
  • Other equity, including NCI: ₹1,75,510 lakhs vs ₹1,83,478 lakhs
  • Borrowings: ₹1,73,538 lakhs vs ₹1,67,199 lakhs

ESG Performance H1 FY27:

Environment:

  • Specific Electricity Consumption: 73.08 kWh/MT Cement
  • Specific Thermal Consumption: 721 kCal/kg Clinker
  • Gross Emission Intensity (Scope-1&2): 651 kg CO2/MT Cementitious
  • TSR: 2.35%
  • 3X Water Positive
  • Specific freshwater Consumption: 37 Liters/t cementitious
  • Decarbonated Raw Materials: 0.81%
  • Clinker Factor: 74%
  • Blended Cements: 45%
  • Zero waste to Landfill
  • Alternative Cementitious Material consumed: 26% (8,82,952 MT)
  • Planted 25,730 saplings in 9.5 hectares
  • 21% Green Power
  • 8% Zero emission vehicles onsite (11 EV Vehicles deployed)

ESG Targets for FY27:

  • Specific Electricity Consumption: 70.64 kWh/MT Cement
  • Gross Emission Intensity: 615 kg CO2/MT Cementitious
  • 5X Water Positive
  • Reduce freshwater consumption by 8.6% from 2022
  • Decarbonated raw materials: 1.11%
  • Clinker Factor: 70.80%
  • Enhance TSR to 15%

ESG Targets for FY30:

  • Specific Electricity Consumption: 70 kWh/MT Cement
  • Gross Emission Intensity: 542 kg CO2/MT Cementitious
  • 10X Water Positive
  • Reduce freshwater consumption by 20% from 2022
  • Decarbonated raw materials: 2.0%
  • Clinker Factor: 64%
  • TSR: 25%
  • 50% Green Power
  • Deploy 30% Zero Emission transportation onsite

Decarbonization Initiatives:

  • Syngas-as-alternate fuel project at Mattampally Cement Plant: India's First for accelerating decarbonisation from cotton crop residue
  • Integrated Biochar and Gasification Units established
  • Project completed and Trial run for Syngas started from September 12, 2026
  • Syngas will be utilized as alternative fuel, biochar provided to farmers as manure

Awards and Recognition:

  • Jeerabad and Bayyavaram plants recognized with "National Award for Excellence in Energy Management 2026" by CII GBC, Hyderabad
  • Awarded for demonstrating strong performance in energy efficiency and conservation practices