Sagar Cements (502090) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw strong year-over-year growth in revenue and volumes, with revenue rising 27% to INR 602 crore and EBITDA margin improving to 9%, despite seasonal monsoon impacts and softer realizations.

• Net loss after tax for Q2 FY26 was INR 44 crore, with ongoing cost optimization and capacity utilization improvements expected to support future profitability.

• Capacity expansion projects at Andhra Cements Ltd, Dachepalli, and Jeerabad are on track, with new facilities and upgrades expected to drive growth.

• Continued focus on sustainability, regional presence, and increased renewable energy usage.

• Un-audited standalone and consolidated financial results for Q2 and H1 FY2025-26 were approved by the Board on 23rd October 2025.

Financial highlights

• Q2 FY26 consolidated revenue rose 27% year-over-year to INR 602 crore (₹6,018.6 million); H1 FY26 revenue up 23% to ₹12,730 million.

• Q2 FY26 sales volume increased 17% year-over-year to 1.36 million tons; H1 FY26 volume up 14% to 2.79 million tons.

• Q2 FY26 EBITDA was INR 51 crore (₹513.3 million), margin at 9% from 4% last year.

• Net loss after tax for Q2 FY26 was INR 44 crore (₹441.7 million); H1 FY26 net loss was ₹3,105 lakhs.

• Power and fuel cost: INR 1,428 per ton (down from INR 1,446 per ton YoY); sales cost: INR 855 per ton (up from INR 830 per ton YoY).

Outlook and guidance

• FY26 sales volume guidance maintained at 6 million tons; FY27 guidance at minimum 7 million tons.

• Profitability outlook remains positive, targeting INR 600 EBITDA per ton for the full year, supported by cost initiatives and capacity expansion.

• Demand expected to strengthen in H2 FY25/FY26, with Q4 anticipated to set the stage for better pricing.

• Cement capacity expansion at Dachepalli expected by end of Q1 FY27; Jeerabad and Gudipadu expansions by FY26/FY27.