Key Financial Figures and Operational Metrics

Consolidated Performance (New Reporting Emphasis)

Management emphasized that investors should focus on consolidated numbers rather than standalone, as subsidiaries now contribute significantly to turnover:

  • Consolidated volume: 114.5 lakh tons for Q1 FY27
  • Consolidated operational EBITDA (without other income): ₹1,272 crores
  • Consolidated operational EBITDA per ton: ₹1,111
  • Corresponding Q1 FY25 figures: Volume 99.6 lakh tons, Operational EBITDA ₹1,333 crores, EBITDA per ton ₹1,339
  • March 2026 consolidated volume: 119.4 lakh tons

Standalone India Operations

  • Volume: 10.4-10.5 million tons in Q1 FY27
  • Realization: ₹4,919 per ton (₹4,752 in year-ago quarter)
  • Year-on-year volume growth: 15%+

Cost Structure Impact

Q1 FY27 was significantly impacted by Middle East geopolitical situation:

  • Fuel mix shifted dramatically due to unavailable petcoke shipments
  • Petcoke usage reduced from 54% to 9%
  • Coal usage increased from 32% to 81%
  • Fuel cost reached ₹1.95 per kcal (compared to normal ₹1.82 per kcal)
  • Omani gypsum unavailable, forcing procurement of more expensive domestic gypsum

Operational Metrics

  • Clinker conversion factor: 1.50 (vs 1.58 in June 2025 quarter)
  • Trade mix: 62% (vs 71% in June 2025)
  • Blended cement ratio: 60% (vs 70% in June 2025)
  • Overall capacity utilization: 62%
  • Regional utilization: North 66%, East 60%, South 57%

Regional Performance

  • South region sales increased from 11 lakh tons to 16.9 lakh tons (new plant contribution)
  • North region growth: 20%
  • East region: Flat year-on-year
  • UAE operations: Minimal sales in April-May due to war impact

Guidance and Outlook

  • Maintains FY27 volume guidance: 40 million tons
  • Q2 expected volume: 9-9.5 million tons
  • H1 FY27 expected volume: 19.5-20 million tons
  • Fuel costs expected to stabilize in Q2 (barring further Middle East disruptions)
  • Target to return to 70% trade sales mix (currently 62%)
  • UAE capacity expansion: Doubling to 7 million tons by Q3 FY27

Capital Expenditure

  • FY27 capex guidance: ₹1,500 crores (India operations only)
  • Q1 FY27 capex: ₹456 crores
  • UAE expansion funded separately from UAE operations
  • Northeast plant commissioning expected Q4 FY28

Other Business Segments

  • RMC (Ready Mix Concrete): 26 operational plants (added 8 plants in Q1)
  • Plan to add 10 more RMC plants in next quarter
  • RMC revenue: ₹109 crores for Q1 (₹90 crores in March 2026, ₹40 crores year-ago)
  • RMC currently profit-neutral, target EBITDA of 5%

Financial Position

  • Consolidated net cash: ₹8,348 crores (vs ₹7,733 crores in June 2025)
  • Depreciation: ₹2,400-2,500 crores for FY27
  • Tax rate: ~30%

Strategic Initiatives

  • Commissioning 100 electric commercial vehicles in current year
  • Renewable energy component increased from 61% to 66% of total energy
  • Exploring Battery Energy Storage Systems (BESS)
  • Working on alternative cementitious materials beyond fly ash
  • Rail transportation: 9% of volumes
  • Lead distance reduced from 459 km to 445 km

Management Commentary

Ashok Bhandari characterized Q1 as "abnormal quarter" due to Middle East impacts but expects:

  • Better performance Q2 onwards
  • Regaining trade sales supremacy
  • Cost stabilization if Middle East situation doesn't worsen
  • Company remains focused on bottom-line rather than volume growth