Key Financial Results (Q4 FY26)

Production & Sales Volume:

  • Clinker production: 11.59 lakh tons (vs. 11.38 lakh tons in Q4 FY25)
  • Cement production: 16.45 lakh tons (vs. 14.79 lakh tons in Q4 FY25)
  • Cement sales: 16.18 lakh tons (vs. 14.75 lakh tons in Q4 FY25)
  • Clinker sales: 1.15 lakh tons (vs. 0.57 lakh tons in Q4 FY25)

Geographical Sales Mix:

  • Northeast India cement sales: 11.27 lakh tons (vs. 11.02 lakh tons)
  • Outside Northeast cement sales: 4.91 lakh tons (vs. 3.74 lakh tons)
  • Product blend: 18% OPC, 82% PPC

Financial Figures:

  • Total Revenue: INR 1,174 crores (vs. INR 1,052 crores in Q4 FY25)
  • EBITDA (excluding exceptional items): INR 324 crores (vs. INR 268 crores)
  • Profit After Tax: INR 147 crores (vs. INR 123 crores)
  • EBITDA per ton: INR 1,871 (vs. INR 1,748)

Full Year FY26 Performance

  • Total Revenue: INR 3,776 crores (vs. INR 3,163 crores in FY25)
  • EBITDA (excluding exceptional items): INR 955 crores (vs. INR 589 crores)
  • Profit After Tax: INR 390 crores (vs. INR 169 crores)
  • EBITDA per ton: INR 1,738 (vs. INR 1,245)
  • Subsidy/Incentives accrued: INR 184 crores

Management Guidance & Commentary

Volume Guidance: Management expects 10-12% volume growth in FY27 over FY26 volume of 5.3 million tons.

Subsidy Impact: FY27 subsidies are expected to reduce by INR 40-50 crores to approximately INR 140-150 crores, compared to INR 184 crores in FY26.

Capex Plans:

  • FY27 Capex: INR 600-700 crores
  • FY28 Capex: INR 1,500 crores
  • Projects include grinding units in Nimbol (Haryana) and Bihar, and a major clinker plant in Rajasthan
  • Land acquisition and approvals expected by October 2026
  • Rajasthan project timeline: Targeting commissioning in first half of FY29

Non-Cement Business:

  • AAC blocks, RMC and allied products revenue in Q4: INR 17 crores
  • Full year FY26: INR 43 crores
  • FY27 target: INR 150 crores with 7-8% margin

Cost Structure & Operational Metrics

Fuel Mix:

  • FSA coal: 78.5%
  • Biomass: 21.5%
  • No spot purchases in Q4

Green Power Share: Current green share is 33.8% from WHRS and CPP. Management is considering group captive power agreement, with decision expected next quarter.

Cost Pressures:

  • Estimated fuel cost increase of INR 0.10-0.15 per GCV in Q1-Q2 FY27 due to coal shortage and railway rake diversion to power plants
  • Overall cost impact from West Asia crisis estimated at INR 250-300 crores in H1 FY27, mainly from packing bags and fuel costs
  • Diesel price increase also impacting logistics costs

Pricing Actions:

  • Northeast: INR 6-7 per bag price increase
  • Outside Northeast (West Bengal, Bihar): INR 10 per bag increase

Capital Structure & Investments

  • Gross debt: INR 583 crores
  • Net debt: INR 200 crores
  • Cash & liquid assets: INR 383 crores (includes bonds, mutual funds, fixed deposits)
  • Non-current investments increased by INR 240 crores due to liquid asset classification under IndAS

Expansion Projects Details

Bihar Grinding Unit:

  • Capacity: 2 million tons
  • Timeline: ~2 years from commencement
  • Clinker sourcing: From Meghalaya plant via Silchar railway siding
  • Applied for FCSC benefits under Bihar industrial policy (150-200% of investment benefit)

Rajasthan Project:

  • Clinker capacity: 3.3 million tons
  • Grinding capacity: 2-2.5 million tons
  • Additional grinding in Haryana: 2-2.5 million tons
  • Total North India capacity: 5 million tons

Jorhat Unit: Grinding unit of 2 million tons capacity

Market Competition & Strategy

  • Management maintains 3-4 year timeline for new competition entry into Northeast
  • Premium cement share in Q4: 15.1%
  • Star Cement has highest trade penetration in Northeast region
  • Brand building for North India expansion to start 8-9 months before commercial production

Other Information

  • Exceptional item in Q4: INR 10 crores donation (INR 5 crores one-off component)
  • Clinker factor (CC ratio): ~66.6-67.5% for FY26
  • No decision yet on QIP fundraising for Rajasthan project