Sagar Cements (502090) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw subdued demand in the first half due to extended monsoon and festive season, but demand improved later, supporting a positive outlook for the fiscal year.

• Volume growth was 8% year-over-year, with revenue rising 5% to INR 591 crores compared to Q3 FY25; nine-month revenue up 16% and sales volumes up 12%.

• EBITDA remained flat at INR 38 crores, with EBITDA per ton at INR 254; margins compressed and losses widened.

• Loss after tax for the quarter was INR 64 crores; consolidated net loss for Q3 FY26 was INR 6,410 lakhs.

• Unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2025, were approved by the Board and reviewed by the Audit Committee.

Financial highlights

• Q3 FY26 consolidated revenue: INR 591 crores (up 5% YoY); 9M FY26: INR 1,863 crores (up 16% YoY).

• EBITDA for the quarter was INR 38 crores, unchanged year-over-year; EBITDA margin fell 100 bps to 6%.

• Power and fuel costs decreased to INR 1,408 per ton from INR 1,456 per ton year-over-year; raw material cost per ton up 8% YoY.

• Gross debt as of December 31, 2025, was INR 1,835 crores; net debt expected to be INR 1,450 crores by year-end.

• Net worth as of December 31, 2025, stood at INR 1,694 crores.

Outlook and guidance

• FY26 volume guidance is maintained at 6 million tons, with a 9% year-over-year growth expected; FY27 volume outlook is 7 million tons.

• Q4 FY26 EBITDA per ton is expected at INR 550, with full-year EBITDA per ton between INR 500 and INR 525.

• Capacity expansions at Andhra Cements and Jeerabad progressing as planned; new projects to be commissioned in FY26 and early FY27.

• No major capacity additions expected from peers in the next 6-12 months; some additions expected by end of next financial year.