Sagar Cements (502090) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw 20% year-over-year revenue growth and 11% volume growth, driven by increased infrastructure activity, government spending, and robust demand in construction and housing sectors.

• EBITDA margin improved to 18% from 8% year-over-year, with EBITDA per ton at ₹851, reflecting better realizations, cost efficiencies, and operational leverage.

• Profit after tax reached ₹749 lakh, reversing a loss of ₹3,220 lakh in Q1 FY25.

• Ongoing cost optimization initiatives include freight reduction, clinker factor lowering, plant upgrades, and increased renewable energy usage.

• Modernization and capacity expansion projects, including a 6 MW solar power plant, are progressing as scheduled, targeting ~6 MnT volume in FY26.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was ₹67,066 lakh, up 20% year-over-year from ₹56,060 lakh in Q1 FY25.

• EBITDA rose to ₹12,145 lakh, with margin at 18%; EBITDA per ton reached ₹851.

• Profit after tax was ₹749 lakh, compared to a net loss of ₹3,220 lakh in Q1 FY25; EPS improved to ₹0.57 from a loss of ₹2.46.

• Power and fuel cost per ton was ₹1,450 (down from ₹1,470), while freight cost per ton was ₹860 (up from ₹844).

• Gross debt as of June 30, 2025: ₹1,708 crore; net worth ₹1,80,193 lakh; debt-equity ratio at 0.86.

Outlook and guidance

• FY26 volume guidance maintained at 6 million tons, with potential revision in Q3; FY27 target set at 7 million tons.

• EBITDA per ton guidance is a minimum of ₹600 for the year, with Q1 at ₹851.

• Price regime expected to be flat to slightly negative, with seasonal corrections factored in.

• Green energy share expected to rise to 20-23% in FY27 after new projects come online.

• Management expects steady growth in profitability and margins, supported by operational improvements and increased renewable energy integration.