The India Cements (INDIACEM) Q1 25/26 earnings summary

Executive summary

• Cement demand remained steady, supported by increased government CapEx, with 2,108 km of highways built in Q1 FY26, up 8.9% year-over-year.

• Sales volume grew between 9.7% and 11.6% year-over-year in Q1 FY26, with India Cements and Kesoram integration progressing well.

• Urban housing showed signs of a future rebound, while rural markets continued to perform well.

• Cement realizations (net of logistics) improved up to 5.7% quarter-over-quarter.

• EBITDA per ton rose to ₹424 from ₹88 in Q4 FY25, and average interest rate declined to 6.83%.

Financial highlights

• Net sales for Q1 FY26 were about ₹1,025 crore, nearly flat year-over-year.

• Consolidated PBIDT/EBITDA improved to ₹92 crore from a loss of ₹9 crore in Q1 FY25.

• PAT before exceptions was a loss of ₹241 crore, with reported PAT loss at ₹133 crore.

• Free cash flow to firm was negative at ₹81 crore for Q1 FY26.

• Finance costs reduced sharply to ₹26.58 crores from ₹82.36 crores year-over-year due to debt refinancing.

Outlook and guidance

• Double-digit volume growth targeted for FY26, supported by new capacities and integration of acquisitions.

• CapEx for FY26 is close to INR 10,000 crores, with further guidance for FY27 to be provided later.

• Planned capex for productivity and energy efficiency expected to yield benefits from Q4 FY27.

• Green power (RE + WHRS) targeted to scale from 5% to 86% by FY27.

• Profitability is expected to improve as capex benefits and synergies from the holding company materialize.