Sagar Cements (502090) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 revenue declined 7% year-over-year to INR 658 crore, while sales volume rose 5% to 1.61 MnT; FY25 revenue fell 10% to INR 2,258 crore with flat annual volumes at 5.51 MnT.

• Q4 FY25 consolidated EBITDA margin dropped to 6% (down from 10% YoY), with EBITDA per tonne at INR 218; loss after tax was INR 73 crore versus a profit of INR 11.58 crore in Q4 FY24.

• Operational profitability improved sequentially due to higher volumes and lower input prices, with management expecting further margin strengthening in FY26, targeting 6.0–6.3 MnT sales volume.

• Board approved audited standalone and consolidated results for Q4 and FY25; auditors issued unmodified opinions.

Financial highlights

• Q4 FY25 consolidated EBITDA at INR 37 crore, down 46% YoY; FY25 EBITDA at INR 141 crore, down 43% YoY.

• Gross debt as of March 31, 2025, stood at INR 1,428 crore, with a debt-equity ratio of 0.80 and cash balances at INR 66.58 crore.

• Net worth on a consolidated basis was INR 1,79,433 lakhs as of March 31, 2025.

• Exceptional item of INR 27 crore recognized in Q4 FY25 related to fuel and power cost adjustment recovery from Andhra government for FY23 and FY24.

• Standalone FY25 revenue: INR 1,56,664 lakhs, down from INR 1,90,755 lakhs year-over-year.

Outlook and guidance

• FY26 sales volume guidance is 6.0–6.3 MnT, aligning with industry growth of 6%-8%.

• Focus remains on maintaining pricing over volume growth to protect margins.

• EBITDA per tonne is expected to reach INR 500 in Q1 FY26, with potential for further improvement if price hikes sustain.

• CapEx for FY26 is planned at INR 350-360 crore, with major spends on Andhra plant upgrades, solar projects, and Dachepalli expansion.

• Green power share targeted to reach 20%-25% by FY26 exit and 30%-35% by FY27, aiming for 50% by 2030.