Star Cement Limited submitted an investor presentation for Q1 FY27 (ended June 30, 2026) to the National Stock Exchange of India Limited and BSE Limited pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Q1 FY27 vs Q1 FY26

  • Cement and Clinker Sales Volume: 13.54 lacs tons (up 4% YoY from 12.96 lacs tons)
  • Revenue from sale of cement and clinker: ₹943 Cr (up 3% YoY from ₹912 Cr)
  • Other Revenue: ₹8 Cr (up 358% YoY from ₹2 Cr)
  • EBITDA: ₹203 Cr (down 12% YoY from ₹230 Cr)
  • Depreciation: ₹91 Cr (up 7% YoY from ₹85 Cr)
  • Interest: ₹14 Cr (up 35% YoY from ₹10 Cr)
  • Profit Before Tax: ₹98 Cr (down 28% YoY from ₹135 Cr)
  • Profit After Tax: ₹74 Cr (down 25% YoY from ₹98 Cr)
  • Gross Cash Accruals: ₹165 Cr (down 10% YoY from ₹183 Cr)
  • Per Unit EBITDA: ₹1,497/ton (down 16% YoY from ₹1,774/ton)
  • Per Unit Profit Before Tax: ₹720/ton (down 31% YoY from ₹1,039/ton)
  • Per Unit Profit After Tax: ₹546/ton (down 28% YoY from ₹757/ton)

Operational Highlights

  • The quarter was impacted by liquidity constraints from delayed Central Government fund releases, temporary demand disruptions due to West Bengal and Assam elections, and the ongoing West Asia crisis.
  • Sales volume includes clinker sales of 52 KT.
  • Premium share reached 15.9% of Trade sales (vs 12.2% in Q1 FY26).
  • Market share in West Bengal (Star Operating area) increased from 19.4% to 22.0% despite elections.
  • Sales in Manipur were negatively impacted by intense protests and riots.
  • Route restrictions by railways in NFR created challenges for coal & fly ash supply in Northeast.
  • Vikram Shila Bridge collapse at Bhagalpur impacted fly ash cost at Siliguri.
  • Trials for Clinker Movement through EV are ongoing in Lums-Silchar route, expecting significant value unlock.
  • Cement Sales volume grew 7% YoY; NE sales was flat while ROE sales grew 22%.
  • Cement Sales realizations grew 1.2% YoY and 1.3% QoQ.
  • Premium sales at 15.9% of Trade sales in Q1 FY27; up from 15.1% in Q4 FY26.
  • Growth in Non-trade volumes was ~11% YoY.
  • Logistics impacted by increased diesel prices.
  • Power & Fuel costs were high due to lower sourcing from FSA and increased reliance on coal from Nagaland/others and spot contracts.

Expansion Updates

  • The company plans to increase capacities by over 1.5x over the next 3 years.
  • North India Expansion:
  • Nimbol IU, Rajasthan: Clinker capacity 3.3 MTPA, Cement capacity 3.0 MTPA
  • Jhajjar GU, Haryana: Cement capacity 2.0 MTPA
  • Total CAPEX outlay: ₹3,080 Cr
  • CAPEX phasing: FY27 ₹560 Cr, FY28 ₹1,910 Cr, FY29 ₹610 Cr
  • Land acquisition almost done in Rajasthan and in progress for Haryana.
  • MoU signed with Rajasthan Government and at advanced stages with Haryana Government.
  • Ground-breaking work will start from Q3 FY27 onwards.
  • Planned expansion in Northeast will be guided by real-time assessment of demand.
  • Expansion to be funded through internal accruals and debt financing, targeting Net debt/EBITDA below 2x.

Subsidy Information

  • Subsidy decreased by ₹39 Cr YoY due to reduction of GST rate on cement and change in reimbursement mechanism.
  • Rajasthan offers multiple subsidy options: Net SGST reimbursement @75% of Net SGST for 7 years OR Capital subsidy @23% of EFCI equally over 10 years.
  • Haryana offers: Net SGST reimbursement @50% of Net SGST for 10 years OR Capital subsidy @15% of EFCI equally over 10 years OR Turnover Subsidy @1.65% of Total sales for 10 years.

Sustainability & ESG Goals

  • Green energy share: Q1 FY27 ~26%, target of 60% by FY28
  • WHRS: 24.3MW; 25% of total power substituted with WHRS
  • Thermal Substitution Rate (TSR): Target 20% by FY27 (achieved in Q4 FY26, Q1 FY27 affected due to heavy rain & supply constraint)
  • Water positivity: 1.60x currently, target 2x by FY28
  • Diversity and Inclusion: Reached ~11% women of permanent workforce as of June'26, target 12% by FY27

Social Initiatives

  • Supporting Assam during devastating floods
  • Srijani livelihood hub operates Agarbatti, Tailoring & Beautician units
  • STAR SAMARTH supports around 1,000 entrepreneurs
  • STAR ANANYA empowers 35 women by converting rejected cement bags into carry bags
  • 3 Health & Eye Check-up camps organized in Assam
  • Community Drinking Water System operational in Assam
  • Construction of new sanitation facilities for two educational institutions completed in Cachar
  • Kala Mandir engaging 331 students
  • Computer Education on Wheels benefiting 1,000+ students
  • Technical education benefited around 1,700 youths
  • Black Pepper distribution programme for agricultural development
  • Repairing of installed solar street-lights at Jalpaiguri
  • Inauguration of MAHIMIRI WATCH TOWER completed

Brand Ambassador Associations

  • Mirabai Chanu (Olympic medalist in Weight-lifting)
  • Riyan Parag (Indian National Team Cricketer)
  • Lovelina Borgoain (Olympic medalist in Boxing)
  • Baichung Bhutia (Former Indian Team Football Captain)
  • Association with Shillong Lajong FC
  • Association with Sikkim Football Association