Star Cement Ltd (NSE: STARCEMENT) Q3 2026 Earnings Call dated Feb. 09, 2026
Corporate Participants:
Manoj Agarwal — Chief Financial Officer
Tushar Bhajanka — Deputy Managing Director
Analysts:
Vaibhav Agarwal — Analyst
Harsh Mittal — Analyst
Naveen Sahadev — Analyst
Rajesh Kumar Ravi — Analyst
Shivashish Kaushik — Analyst
Kamlesh Bagmar — Analyst
Uttam Kumar Srimal — Analyst
Shravan Shah — Analyst
Milind Raginwar — Analyst
Siddharth Mehrotra — Analyst
Presentation:
Harsh Mittal — Analyst
Ladies and gentlemen, good day and welcome to the earnings call for the quarter and nine months ending 31 December 2025 for Star Cement Limited hosted by Philip Capital India Private Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the call please signal an operator by pressing Star then zero on your touchstone phone. I now hand the conference over to Mr. Vaibhav Agarwal from Philip Capital India Private Limited. Thank you. And over to you sir.
Vaibhav Agarwal — Analyst
Yeah. Thank you. Rayo. Good evening everyone. On behalf of Philip Capital India Private Limited we welcome you to the Q3 and 9 months FY26 call of Star Summit Limited. On the call we have with us Mr. Tushar Bhashankar, Deputy Managing Director and Mr. Manoj Agarwal, Chief Finance Officer at Star Summit Limited. I would like to mention on behalf of Star Summit Limited and its management that certain statements that may be made or discussed on today’s conference call may include forward looking statements related to future performance and anticipated company developments by its management. Such statements stated on today’s call would be based on Star Cement’s current management expectations.
These statements are subject to a number of risks, uncertainties and other important factors which may cause the actual developments and results to differ materially from the statements made. Star Cement Ltd. And the management of the company assumes no obligation to publicly update or alter these forward looking statements whether as a result of new information or future events or otherwise. I will now hand over the floor to the management of Star Cement for their opening remarks which will be followed by interactive question and answer. Thank you. And over to you, Tushar.
Tushar Bhajanka — Deputy Managing Director
Hi, good afternoon all. My name is Tushar Bhajinka and I’m the Deputy MD of Star Cement. I welcome you all to the conference call of FY26 quarter three. I like our CFO Manoji to give his remarks regarding the numbers and then we can start with the Q and A.
Manoj Agarwal — Chief Financial Officer
Yeah. Hi friends. Very good afternoon. I on behalf of Star Summit Limited welcome you all to our conference call for discussing our number for Q3, FY26 and 9 months in the December 26. December 25. Starting from clinker production during the quarter ended December 25 we have produced 8.94 lakh ton of clinker as against 6.42 lakh ton 10 quarter last year. So far as cement production is concerned we have produced 12.57 lakh ton this quarter as against 10.82 lakh tonight same quarter last year. Now I will take you through the sales volume. During the quarter we have sold 12.3 mile lakh ton of cement and 0.65 lakh ton of clinker from the same same quarter we have during the and as against 10.61 lakh ton of cement and 0.07 lakh ton of clinker in the same period last year.
This is as far as cement and clinker sale is concerned. As far as geographical distribution is concerned. In Northeast we have sold around 9.36 lakh tonnes as against 8.37 lakh ton during same quarter last year. As far as outside Northeast is concerned we have sold 2.95 lakh tonne of cement this quarter as against 2.24 lakh tonnes same quarter last year. In terms of blend mix it is 18% of opt and rest is ppt. These are the quantitative numbers of the quarter. Now I will take you through the financial the total revenue figure this year this quarter is around 880 crore as against 719 crore since period last year.
As far as EBITDA figure is concerned. This quarter we have done an EBITDA excluding of exceptional item of 5.5 crore which is around 207 crore as against 107 crore last year. That is 74 crore as against 9 crore in the same period last year. On the per ton EBITDA front it is 1600 during this quarter as against 1000 per ton 10 quarter last year. This is what our quarterly numbers of the third quarter. The total revenue figure for the nine month ended December 25 is around 2603crore as against 2111crore same period last year. As far as the EBITDA figure is concerned as during nine months ended December 25 we have done an EBITDA of around 631 crore as against 321 crore last year.
Profit after tax is 243 crore as against 46 crore in the same period last year. On per 10 EBITDA front it is 1677 during this nine months as against 1005 per 10 same period last year. These are our quarterly and nine month ended numbers. Now I will ask request everyone if you have any questions then please you can ask the same and I will request to moderate the same whenever required. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the attached tone telephone. If you Wish to remove yourself from the question queue. You may press star and two participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. To ask questions Please press star and 1. The first question is from Harsh Mittal from MK Global Financial Services. Please go ahead.
Harsh Mittal
So firstly.
operator
Harsh, we can barely hear you. Request you to speak a little louder.
Harsh Mittal
Hello.
Tushar Bhajanka
Yeah, hi. We can hear you but if you can be clearer please.
Harsh Mittal
Okay, so good evening. So I have two set of questions. The first question there is 100 event happened in the district due to a coal mining blast. So do we have any on our operations? This is my first question.
Tushar Bhajanka
I think your question is regarding the Migalia mining blast and. And the situation of illegal coal mining in Meghalay. Right?
Harsh Mittal
Yes. Yes.
Tushar Bhajanka
Yeah. So we have no relation to that incident. You know because our coal is not coming from Meghalay. So you know, so I mean it’s unfortunate but we have no, you know, information about it.
Harsh Mittal
Okay. Okay. So second question is our volume guidance was 5.4 million tons for this year. And given that we have achieved a 21% growth in quarter three. So can we see any division to the friends.
Tushar Bhajanka
You know we can’t hear you clearly. You know, I think we can’t understand the question. Even so if it’s possible for you to be a bit clearer then I think it will be easier for us to answer.
Harsh Mittal
Hello.
Tushar Bhajanka
Hello. Yeah.
operator
Mr. Harsh, if you’re on a hand free request you to use the handset.
Harsh Mittal
I’m on handset only. Hello.
Tushar Bhajanka
Okay. Yeah, just try to repeat the question once. I’ll try to understand that.
Harsh Mittal
So my question was that our earlier volume guidance was around 5.4 million tons. And given that we have achieved 21% growth in quarter three, do we see any upward division with this guidance?
Tushar Bhajanka
No, we don’t. So you know I think we will be trying to do about that or some. Or probably 5.3, you know. So I don’t think there’ll be. There is any, you know, there’s any upward revision on that guidance for quarter four. I think we will be broadly growing at about the same pace in quarter four as well.
Harsh Mittal
Sure sir. Freight cost. There has been inflation in freight cost per ton which is up 13% y OI and 6% sequentially. So any specific reason for this flare up and can we see, can we assume this as a steady state guidance going ahead?
Manoj Agarwal
So there is slight. Because December quarter and March quarter is a natural cycle, there is a slight increase over the second Quarter because second quarter is a lot of oxygen. So there is a hardly. That is a 60, 70 rupees percent increase. That is a normal thing. It happens in every quarter. If you compare it from the Q2 visa vis 23 and then 2, 3 visa vis Q4 that is normal. And there is certain because that transport disruption was there in the middle maybe October end and november first week. So that is why we have to move the material through rate.
So handling cost as a has gone up. So that is why that was one off cost. But normal 60, 70 rupees increase was there. This is cyclical in nature. And every quarter two to three it keep on happening.
Harsh Mittal
Okay, so can we consume 60 rupees one off in freight cost for this quarter and that will reverse in this quarter. Is it a safer assumption?
Tushar Bhajanka
Actually in October we had a strike. The strike had lasted, you know, it was a strike in Meghalay which restricted the movement of clinkers. So we had to use race to send clinker to a vending unit. That had increased our logistics cost. And that is why you see abnormal hike in our logistics cost compared to last quarter or yoy which I don’t think you would see from quarter four when you compare quarter four to last year’s quarter.
Harsh Mittal
Last question. What will be our depression guidance for FY27 if you can help me with that number.
Manoj Agarwal
Yeah. Deficiency will remain the same. 30 crore a month. 90 crore per quarter. That will be same or more or less the same.
Harsh Mittal
Sir. Application depreciation I’m asking.
Tushar Bhajanka
Right now is about 30 crores per month for us. You know, so. And that will remain the same because. Because we are also commissioning filter plant, you know, this month. So I mean the depreciation will start showcasing itself in the next year. So whatever depreciation should have reduced will be neutralized by the fact that there’s another plant coming up and the depreciation of that fund will also.
Harsh Mittal
Thank you. These were my questions. Thank you. This was. Thank you.
operator
Thank you. Participants who wish to ask questions, please press star and one. The next question is from Naveen Sadev from ICICI Securities. Please go ahead.
Naveen Sahadev
Yeah. Good evening, sir.
Tushar Bhajanka
Good evening. Good evening. Good evening.
Naveen Sahadev
Good evening. So congratulations on a good set of numbers. I had a couple of questions. I’ll start with the incentive income that you have booked in this quarter please.
Tushar Bhajanka
Yeah, so the incentive income that we booked this quarter is about 33 crores. If you compare this number to, you know, last year same quarter then last year Same quarter was 43 crores. And if you compare it to Q2 of FY26 then it was about 56 crores. So our subsidy income has fallen, you know, from 43 crores yoy to a 33 crore which is a 28% off in the subsidy income.
Naveen Sahadev
So on subsidy my follow up question was that at roughly 1.3 million or nearly, you know, 13 lakhs of volumes 12.3 as you said in cement, at this volume run rate is this the subsidiary to continue or because you said Chilchar is just about to get commissioned. I think you just mentioned a while back Chilcher is about to get commissioned. So this subsidy amount can go up once the volumes from Silchar start coming up. How should one look at the run rate for the subsidy amount?
Tushar Bhajanka
Yeah, so I think the run rate for the subsidy that we experience in quarter three, you know, is the result of the reduction in GST from 28% to 18% which of course then reduces the overall subsidy amount which we were getting. So that’s why there’s a drop. And the question regarding filter, so when filter gets commissioned first it will use the input GST from the project, right? So that will take at least 7, 8 months to fully utilize. And after we utilize the GST import credit that’s when we will start utilizing the subsidy. So that will, so we can see the benefit of having filter from quarter four onwards next year in terms of substitution.
Naveen Sahadev
Understood? Understood sir. My second question then was on your realization. So net of ones I exclude the incentives. The cement realizations for us have seemed to gone up sequentially by a little under 2%. My question was because east as a region, I know yours is northeast but still 25% of the volume as I understand probably we sell it in areas out of northeast which is largely the eastern region. So if our candidates were correct and other companies also indicated the same that non trade prices and even trade prices had taken significant hit in the eastern region.
I wanted to understand how did we manage a 2% increase in a tough environment. I mean congratulations on that but just wanted to understand how did we manage to get an increase when most of the players are reporting a decline.
Tushar Bhajanka
So you know, I mean the information that I have, you know, from before Bihar in West Bengal, the cute, you know, why o y the prices in Bihar have risen a bit for us but the prices in West Bengal have fallen. Right? So that is the observation. So for us, you know, outside Northeast, which is basically Bengal and Bihar has been quite neutral yoy FY26 compared to FY26 Q3 compared to last year. Q3. And in Northeast we have seen an increase in the price of about 20 rupees compared to last year, same quarter. So I think our weighted average realization has improved mainly because of Northeast.
You know, in east we have been broadly, you know, if you average out the price increase in Bihar with the price drop in West Bengal, it’s basically neutral. So that is how we can see that there is a 2% increase in realization.
Naveen Sahadev
Understood. And just to conclude, since our prices or realizations are benefited by the price increase we could take in Northeast, are those hikes holding firm so far in January, Feb or there has been a further improvement. Any color will be helpful.
Tushar Bhajanka
Yes. So fair enough. So I think the prices, you know, are holding up in at least Northeast, you know, from December onwards. So we do see that the prices are maintained. So what we exited December a month from. The prices have continued to be stable from. From there. Bihar and West Bengal. I think there is an. You know, I think we have tried to take an attempt of 10 rupees. But the 10 rupees entirely is not necessarily going to show in the quarter. Four for Bihar and.
Naveen Sahadev
For Northeast. I was only confirming because very recently we also saw Dalmia’s big kill getting commissioned. So how is that impact on the. On the regional pricing if at all are you seeing or how should one see now with a major capacity coming up, how should one look at Northeast pricing in general for the next, let’s say one year or so?
Tushar Bhajanka
I see the pricing to be stable. Right. So I don’t think there’s any problem because of the increase in supply and the pricing. I do see that the pricing, even after Dalmia Skin has come to operation has broadly been stable. So I don’t see a price problem for the coming year as well.
Naveen Sahadev
Thank you. Sir, I have more questions. I’ll come back in queue. Thank you.
Tushar Bhajanka
Thank you.
operator
Thank you. Participants who wish to ask questions, please press star and 1. The next question is from Rajesh Ravi from HDFC Securities. Please go ahead.
Tushar Bhajanka
Yes, but if you can just speak a bit loudly, that’ll be very helpful.
Rajesh Kumar Ravi
Sure.
Tushar Bhajanka
Yes. Yes.
Rajesh Kumar Ravi
Sat on this side.
Tushar Bhajanka
Yeah, we are not able to hear you properly. Sorry,
operator
Mr. Rajesh, if you’re using a hands free, request you to use the handset. Please. We seem to have lost the line for Mr. Rajesh. We’ll move to the next question. The next question is from Shivashi Kaushik from IFM Investment Advisors. Please go ahead.
Shivashish Kaushik
My question is basically to check with you, what is the you know, composition of non trade and trade in your total volume. Plus I also want to know that what is the non trade even there is a marginal hike in the price, whether that has been absorbed properly and what is the view in February because there is a lot of noises which is there that there is going to be 10 to 50 rupees for the rise in the price. So we just want to know your view on that.
Tushar Bhajanka
Okay, so non trade in quarter three we had sold 22% of our overall volume. So this has increased compared to last year, same quarter which was 19%. So we have our overall non trade mix has increased from 19% to 22% over this one year. Your second question was regarding the price hike, right?
Shivashish Kaushik
Yeah.
Tushar Bhajanka
So I mean I have not heard any news of price hike as of now. I don’t think we have any plans of taking a price hike in Northeast but to maintain the current prices which have already been increased. So, you know. Yeah, so I don’t think there is a hike happening of 10 to 15 rupees in Northeast.
Shivashish Kaushik
Another thing which I want to know is what is the price differential with north or central with Northeast in terms of per bag.
Tushar Bhajanka
That is, you know, I can tell you the per bag cost in Northeast, but I do not know what is the price in central and west and east Lavino in central and north because we’re not present there. So the per bag price in northeast is about 453 rupees. But you know, you’ll have to probably verify the prices in north and Central as well.
Shivashish Kaushik
Thank you.
Tushar Bhajanka
Thank you.
operator
Thank you. Participants who wish to ask questions, please press star and one next question is from Mr. Rajesh Ravi from HDFC Securities. Please go ahead.
Rajesh Kumar Ravi
Yeah. Am I audible now?
operator
Yes.
Tushar Bhajanka
Yeah.
Rajesh Kumar Ravi
Sir, I was alluding to this, you. Know, this incident which is happening northeast. In your. Northeast is a dynamics of coal supply. Do you see this rect. And which would be taken by government and codes. Any implications on coal availability?
Tushar Bhajanka
So I. Are you talking about coal availability in Northeast and.
Rajesh Kumar Ravi
Yeah, yeah. Northeast coal availability and overall coal price. Is going up
Tushar Bhajanka
because of what?
Rajesh Kumar Ravi
Because of this rattle mining crackdown on the illegal.
Tushar Bhajanka
No, I don’t think. You know, our coal supply is really linked to the Meghalay coal, illegal coal. Right. So I don’t think there will be a big impact of that. Most of our coal is locked in the form of. Of FSA from coal India. Right. And the others are spot contracts that we take from coal India and little bit of biomass. Right. So I don’t think we are really impacted by that at all.
Rajesh Kumar Ravi
What we understand earlier that.
Tushar Bhajanka
You know, I’m not able to clearly hear your question, so I’m not able to answer.
operator
Mr. Rajesh, your voice is breaking. If you.
Rajesh Kumar Ravi
Is it better now?
Tushar Bhajanka
Yeah, it is better now, but then it goes in the middle.
Rajesh Kumar Ravi
Yeah.
Tushar Bhajanka
So you can try to ask a question. And then
Rajesh Kumar Ravi
this is one. And second, also on the freight cost. We see that there has been a. Upward revision or you know, rationalization on. The upward side on Meghalay truckers freight cost. So what sort of impact this would. Have on your numbers in subsequent quarter?
Tushar Bhajanka
I, I don’t think the freight cost has really been revised for Meghalay truckers as such. And I don’t see that we’re having a material impact on the freight cost going forward. You know, I think the reason why the freight had increased in cortex is mainly because of the strike which had happened in, in October. Right. With 2L1 deviation. And that is why the freight cost in October had increased. And, and, and, and that’s what you see in the results. So I don’t see that you’ll see a material impact of that going forward in quarter four.
We really can’t hear you. You know, now you’re like fully cracking.
Manoj Agarwal
There might be a problem issue with your.
Rajesh Kumar Ravi
I’ll come back in queue. I’ll come back in queue.
operator
Thank you. Before we take the next question, a reminder to participants that you may press Star and one to join the question queue. The next question is from Kamlesh Bagmar from Lotus Asset Managers. Please go ahead.
Kamlesh Bagmar
Hi Tushar, thanks for the opportunity. Can you please highlight, give some insight into the next phase of expansion because we were looking to expand capacities or enter the markets of Central and North market. So can you please touch upon that?
Tushar Bhajanka
Yes, so. Yes, so no, thanks for the question. So we are actually, you know, firm on a plan to enter Rajasthan. We have gotten mines in Nimble next to, you know, district and we have been securing land there and we plan to apply for our EC and get our EC by September, October and then start construction of about 3 million tons of clinker along with 3 million ton of grinding and subsequently put 2 million tons of grinding in Haryana which will be fed by the Tinker plant in Nambour. So that is our next plan which is to enter Rajasthan.
Kamlesh Bagmar
Okay. And apart from that, are we looking into the central region as well or so far speaking only to the north market?
Tushar Bhajanka
Yeah, we are sticking to the north market because we believe that, you know, if we focus on one market which is north and it is, it’s a quite a big market. Right. So I think we will be able to probably position ourselves better in terms of brand and also focus in, you know, deeper penetration of the market. So that is the first phase of expansion in north that we planned, which we plan to start executing from quarter three of this year onward for next year onwards to calendar, end of calendar basically. And, and then I think yeah, so that is a plan.
And besides this, we plan to put up a 2 million ton branding unit in Bihar which I think the timeline of which we can discuss in the next poll because we are in, in the field of acquiring land for that. So our plan, you know, for the next two, three years is basically to put up a 5 million ton grinding backed by sinkers in north and about 2 million tons of grinding in Bihar. And along with this we have also applied for, you know, the EC in Umrang in Assam for another clinker plant which we again will get from September this year.
So then we can also start laying the foundations and doing the basic civil work for our next clinker plant in Assam.
Kamlesh Bagmar
Okay, so is it fair to assume that by Q3 of FY27 or Q4 of this CY26 we would be ready with the like say we would be having the orders placed for all these equipments which we have talked about, other capacities which we have talked about.
Tushar Bhajanka
Yes, I think you, you. Yeah, by Q3 of FY27 we will be in a position where we have ordered the machineries and we’ve also started some work on ground in, in, in, you know, building up the plant. I think machines should be probably in Q2, Q3 around that time we should be placing orders for machine as well. So we are, you know, now a bit clearer about, you know, our plans of registration time.
Kamlesh Bagmar
Great. And lastly, what percentage of land we have acquired for Rajasthan and Mariana units.
Tushar Bhajanka
So in Rajasthan unit we have broadly done a sale agreement right now and the entire land will be, you know, probably transferred to us in the coming months, a month and a half. And we’ve already applied for the EC on the land that we have gotten a sale agreement. And for Haryana we have identified the plot that we are looking at and we will start the, start acquiring the land. The land in Haryana is a bit aggregated so I don’t think once we’ve decided to buy the land then I don’t think it’s going to take much time.
So the EC process is basically running parallel to the land acquisition process and that’s how we are progressing and that’s how we assured by September, October this year we will be able to start something on ground.
Kamlesh Bagmar
And what would be the mode of financing? That’s how much debt equity would be we would be looking at or the like say the equity raised through the QIP or that source of funding.
Tushar Bhajanka
So you know, I mean ideally we’d want to keep our debt equity ratio less than 1.5 times the EBITDA. Sorry, that debt EBITDA ratio to be less than 1.5 times EBITDA. And so I think that is what we are targeting. And then we will make sure that whenever we are reaching the threshold or before that we will do our QIP to. To fill in the gap. Right. So. So that is something that we will also share in our presentation. In the presentation which is on it.
Kamlesh Bagmar
Great, great. And thanks for the. Thanks for answering the question.
Tushar Bhajanka
No, thank you.
operator
Thank you. Participants who wish to ask questions, please press star and one to join the question queue. The next question is from Uttam Kumar Srimal from Access Securities. Please go ahead.
Uttam Kumar Srimal
Oh yes sir, Good afternoon and congratulations on a good set of numbers. Sir. What how much capex we have incurred in first nine months and how much we are going to incur in sport quarter and in FY27.
Tushar Bhajanka
Okay, so YTD we have until now incurred about 431 crores of CapEx and in quarter four, four we plan to incur about. About 150 crores of CapEx.
Uttam Kumar Srimal
Okay. And instead FY27.
Tushar Bhajanka
FY27. You know, we’ll have to probably, you know, plan it a bit and get back because we’re still, you know, figuring out our plans in Rajasthan when we start our construction. So accordingly we’ll have to revise the numbers and probably get back to you on that.
Uttam Kumar Srimal
Okay, answer. With regard to premium cement, what was the share of premium cement out of the trade sales during this quarter?
Tushar Bhajanka
So we sold about 17.1% of our trade sales was premium sales. This number has increased from 13.1 last year. Sorry, 12 last year. So it has jumped from 12% to 17% in that one year.
Uttam Kumar Srimal
Okay, that’s. That should have also helped you in getting more realization because see percentage has improved from 13 to 18%.
Tushar Bhajanka
Yeah, 12 to 17%. Yes.
Uttam Kumar Srimal
Okay. And so what is the current status of AAC block? How much revenue we have generated this quarter? Because it got commissioned last quarter.
Tushar Bhajanka
Yes. So we have sold 61.5 thousand CBN of ASE. The corresponding revenue is about 25 crores and quarter three we have generated about 13 crores from ASE. Because still in ramp up I think the plant is going to take some time to stabilize. And we’ve already utilized the plant at about 45% utilization in the second quarter of its commissioning.
Uttam Kumar Srimal
Okay. And so what would be the maximum revenue that we can, that we can generate from AC block when it gets into full utilization?
Tushar Bhajanka
I think we can generate a revenue of about 90 to 100 crores if we utilize it fully.
Uttam Kumar Srimal
Okay. And sir, a couple of data points. Trade early distance during the quarter.
Tushar Bhajanka
Yeah. So the lead distance was 212.
Uttam Kumar Srimal
Okay. It has come down. It was around 230 kilometer last time. 220 kilometers I think.
Tushar Bhajanka
Yeah. It was 220 kilometer and now it’s come down to 212. Yes.
Uttam Kumar Srimal
Enter fuel mix this quarter.
Tushar Bhajanka
Fuel mix. You know 78.8% was from FSA.
Uttam Kumar Srimal
Okay.
Tushar Bhajanka
And about 15% was from biomass and another 5% was from spot.
Uttam Kumar Srimal
Enter a per kil cost.
Tushar Bhajanka
1.1.2.
Uttam Kumar Srimal
1.2. Okay. Okay sir, that’s all from my side and all the best.
Tushar Bhajanka
Yeah. Thank you.
operator
Thank you. To ask questions please press star and 1. The next question is from Shavan Shah from Dolat Capital. Please go ahead.
Shravan Shah
Hi. Thank you. Sir, just to recheck in terms of the total cape for Bihar, Rajasthan and 3 million ton clinker at 2 million ton grinding in Johor.
Tushar Bhajanka
I’m sorry, can you please repeat that?
Shravan Shah
I’m saying the total capex if you can split Bihar. Last time you said 500 crore Rajasthan because now it seems a 5 million ton. So last time we said 2300 to 2500 odd crore. And for 3 million ton clinker and 2 million ton grinding at Durat what would be the total capex?
Tushar Bhajanka
Yeah. So right now you know the plan that we have in mind is to you know in the next three years or four years our plan is to put up a Bihar grinding unit in the next two years Nimbol and Haryana plant. Nimbol is in Rajasthan. The clinker plant in Nimbol and grinding unit in Haryana. And sequentially start working on a grinding unit in Clinker plant in Umramshu. So the overall capex for these four projects is about 4800 crores.
Shravan Shah
And and broadly this all should be commissioning in 1h FY or second half of FY 29.
Tushar Bhajanka
I think towards the second half of FY 29 or beginning of FY 30 these all plants should be commissioning. Of course the they all will not commission together some will commission before and surely you know Runshoe make a mission about FY29.
Shravan Shah
Okay so Umrangsu will commission in FR29 and Bihar and Rajasthan will be in the maybe. Okay but that also you said it would be in the. In the second half. So almost everything will be in a three or six months. Everything will be commissioned in FY29.
Tushar Bhajanka
Yeah. FY29 probably. Yeah. So I think the exact timeline, you know we will be putting it in the presentation so I think it’ll just be a bit clearer for everyone. But of course the branding units take less time to commission and you know in Nimble we are at a, at a decent position I think in September to start construction. So the Nimble Rajasthan plant will start sooner than the Ramshu plant.
Shravan Shah
Okay. Okay, got it. So. So the Rajasthan plant is also dependent on the QIP or we will start and as you said once the net debt Equity, net debt EBITDA is reaching to 1.5 times and we will then do the QIP 1500 that we have talked last time.
Tushar Bhajanka
I think we are you know going ahead with the plans irrespective, you know and whenever we do get the right time to do the QIP or ICE or any other instrument we will do it. But we’re not stopping any plans for the fundraiser.
Shravan Shah
Okay but, but broadly if one has to split this 4800 crore into FR27 2829 is it fair that FR27 would be a thousand eight odd corrode and FY28 would be a 2000-2500 current and FY29 would be the balance. That’s the way one can look at.
Tushar Bhajanka
I think we’ll have to really like. I mean like we’ll also have to plan it in a piece of paper and then share it. You know I don’t think I can just say like that.
Shravan Shah
Okay. Okay, got it. And sir, this till now the in terms of the volume you as a highlight that in the fourth quarter also we will see the similar kind of render in terms of growth. But for FY27 and 28 how one can look at. Because now all this extra new capacity will be coming in FY29. So ideally the volume should be coming in FY30 in a full way. So how one can look at the volume for at least 2728.
Tushar Bhajanka
I mean the coming year I think the volume growth would be similar to the volume growth that we experienced in FY26. So I don’t see any the FY27 to be very different to FY26 and you know the volume growth of 28 will be hard to predict right now.
Shravan Shah
Okay, got it. And then obviously the as you are saying that the prices are kind of stable so profitability should be similar. What we are right now having a 650. 650 to 1700.
Tushar Bhajanka
Yes. To be broadly maintained.
Shravan Shah
Yeah. And lastly sir all put together AEC block and other non cement revenue till now in FY. FY26 9 months how much we would have done and how much would be the EBITDA margin on that and for next year how one can look at that.
Tushar Bhajanka
So from non cement.
Manoj Agarwal
Around 25 crore. Okay. We’re expecting to be around 45 crore this year and this year because of first year because everything got the first year of operation and it has been. So maybe we have no profit, no. Loss kind of thing this year and. Next year what we are hopeful that 20% beta margin should be minimum there from that.
Shravan Shah
And then in terms of the revenue so this year you are saying a total.
Tushar Bhajanka
Yeah. So so what we expect is that 45 crores this year would be coming from the non cement businesses and next year we expect about 100 crores coming from this business.
Shravan Shah
Okay. Okay, got it. And then the current KKL cost 1.2 that should be stable for next one or two quarter because I hope we should be having a 2, 3, 34 months inventory.
Tushar Bhajanka
Yeah. I mean we have about 2.8 lakh tons of coal so that is good enough for at least four months. So and that is broadly at the same rate as 1.2. So I think it should be fine.
Shravan Shah
And sir on Green said the 50 megawatt solar that we were looking at in Assam so when it is going to start.
Tushar Bhajanka
So the 50 megawatt that we’re looking at Assam we are still in discussion. I think there’s some regulatory change and so we consider because now we’re thinking of Rajasthan and the generation of power in Rajasthan is higher we may decide to put it up in Rajasthan. So you know we’ll have to probably get back to you in the next next investor call on that.
Shravan Shah
Okay, thank you and all the best and congratulations on good set of numbers for this quarter. Thank you.
Tushar Bhajanka
Thank you. Thank you.
operator
Thank you. Before we take the next question a final reminder to participants that you may press Star and one to join the question queue. No further reminders will be announced. We take the next question from Naveen Sadev from ICICI Securities. Please go ahead.
Naveen Sahadev
Yeah, thank you for the follow up opportunity Just a couple of clarifications. So in terms of your capex priorities, is it fair to assume that number one will be the Bihar grinding unit followed by a greenfield project in limbo and thereafter umrang shoots reject correct sequence.
Tushar Bhajanka
So I mean in terms of priority, I think we are, you know, it’s a good question. I also haven’t put it like that but I think in terms of priority, you know, I think it really is to move all the four projects that I mentioned together as fast as we can because they are at different stages of completion. Right. I mean mean from an easy perspective and from a groundbreaking perspective. But the idea is to definitely do the Bihar project in nimble project. You know, the nimble Rajasthan project will of course give us a growth in revenue and create a diversification platform in terms of the, you know, in terms of the EBITDA and the revenue and the Bihar project would help us utilize our north these capacities better.
So from that perspective, these two things are in priority at the same time. You know, is not an easy terrain to work. So we just want to make sure that we start early so that we are able to commission the plants by the time we need the clinker which we expect to be about FY29. So so I think from like they all are equally important and they all have different aspects of business which they’re solving for us. You know, Rajasthan is more from an from a diversification story and Omramshu is more from just making sure that we are able to grow in our home market.
Naveen Sahadev
Great. Just again clarification, Nimble is a 3 million ton clinker unit. Correct. And 5 million ton ranking of this 3 million ton clinker name. But a grinding unit will be at nimble only 3 million ton and Haryana is 2 million ton which is what we are trying is that breakup. Okay. Right. And yeah, so, so for this entire 5 million ton plant, what is the you know, broad capex that we have finalized so far as in how should one look at the cost or you would rather give it at a later stage.
Tushar Bhajanka
So I think the cost that we have and that may change. And so you know, I think the broad cost that we have taken out is about 2500. 2400 to 2500 for the clinker plant and the integrated branding unit along with the grinding unit in Hyana. But that estimate may be a bit premature so that with that flexibility you can take that number.
Naveen Sahadev
Yeah, no, and the reason I’m asking is because at 2500, you know, ballpark at a 5 million ton, that cost comes to more like $55 for a greenfield project. You know, peers have not really, you know, delivered it at such low cost. And that’s my question. If one could, 2500 is a realistic number or it is More closer to 3,000 crore is what I wanted.
Tushar Bhajanka
I feel this number, I feel that this number is realistic, you know, because we just put up a kiln of about that size right now and we were able to put it up in about 1200 crores. So even if I take the greenfield cost and even if I take, if, even if I take the cost of integrated vending unit, I think we should be able to manage in that much. But I’ll again do the working and then probably, you know, can give you a further clarification in the next call.
Naveen Sahadev
Sure, sure. And from a timeline point of view, it’s Q3 this year. I mean, let’s say by December of 26 we place all the orders. So we should be targeting commissioning. You said in one and a half year thereafter. Is that what you said? By end of FY20. How should one look at it?
Tushar Bhajanka
You know, we will start a commissioning by quarter three of this year of the. Sorry, of the next year, which is December around of this calendar year. And I think from there it will take about 18 to 22 months. So it’s. If we calculate then that will be basically around September of FY28. Sorry, of. Of 28. Yeah. So. So that is what we are, you know, thinking because it will take at least 18 months from when we start the ground building.
Naveen Sahadev
My last question, sir. So for the full year this year, the volume guidance. In the first question that you answered, did you say our volume guidance for this year remained intact at 5.3 million tons for 26?
Tushar Bhajanka
Yes, I think about 5.3 million tons remains intact. And it also has.
Naveen Sahadev
The reason why I asked is because 5.3 will imply flat volumes year on year in Q4. So that’s where I was checking. Are we saying that Q4 will see flattish kind of volumes year on year or could see some.
Tushar Bhajanka
Yeah, no, I think, I think there is some confusion because I think the number that we’re talking about probably, you know, so I’ll have to get some clarity about it because I think they’ve also included the clinker sales volumes in it. Right. But what I can say about Q4 is that we’ll see a 10 to 12% growth in Q4 as well. YoY. So in terms of cement volumes, the cement volumes will be coming out about 8 to 10% in Q4 as well. So and the number, yeah, the right estimate of Q4, you know, in terms of the absolute number for the entire year, I will probably be able to write that down in the presentation that we put up online.
Naveen Sahadev
We’ll certainly look forward to your presentation, sir. And thank you for answering all the questions. Thank you. Thank you. Thank you.
operator
Thank you. The next question is from Uttam Kumar Srimad from Access Securities. Please go ahead.
Uttam Kumar Srimal
Yes, my question pertains to Chilcher Unit since the children will get commissioned in this. In this quarter. So Filter is basically also nearest to Bangladesh also. So we are also thinking of exporting cement to Bangladesh.
Tushar Bhajanka
No, right now we are not considering that because, you know, I think the transportation to Bangladesh is a bit tricky. You know, there is no direct road which connects Bangladesh and Silchar side. And normally in rainy season, you know, barges are used to transport and that is also not perennial, the rivers. So we are not right now planning to sell in Bangladesh from Silchar. And also Bangladesh has a customer custom duty on cement which is almost, I mean there’s almost like 2000 rupees per ton of customs. So I mean there’s no economic sense of sending cement to Bangladesh anywhere.
Uttam Kumar Srimal
Okay, what was the capacity utilization or Siliguri plant this quarter?
Tushar Bhajanka
This quarter our utilization of ratio is about 60% and I think we’ll be able to utilize our plant in Q4 at about 70 to 75%.
Uttam Kumar Srimal
Okay. Okay. That’s all from my side. Thank you.
Tushar Bhajanka
Thank you.
operator
Thank you. The next question is from Milan Raginwar from Bob Capital Markets. Please go ahead.
Milind Raginwar
Hi, thank you for this opportunity. Just confirming future gu. We are expecting by what would be the time frame for Filter and Ghorad, the revised one.
Tushar Bhajanka
So the timeline for Filter is this month. I think by end of the month we will be commissioning a plant. So between 20th to 27th is when we think of commissioning the plant and would be, you know, I think we have deferred Jarat and we have preferred to put in Bihar rather than Jarat. So Jarat may come along with the Clinker plant in Umranshu.
Milind Raginwar
So as of now Jarat remains replaced by Bihar.
Tushar Bhajanka
Yeah.
Milind Raginwar
So there is no GU now in Jorah, right?
Tushar Bhajanka
No. So there will be a GU which will come along with the plant, but not right now. It will take about three years, three and a half years. Because right now since the silic capacity coming up, I think we’ll have sufficient capacity in Northeast to serve Northeast markets.
Milind Raginwar
Okay. So in that case we will have 9, 9 9.6 long capacity in in Northeast on the Jiu side. I mean including Jiu, that is a total cement capacity. Is that in fair assumption?
Tushar Bhajanka
Yeah. So we’ll be 9.7. And 7.7 in North KC.
Milind Raginwar
Correct. And this will be backed by about 6.1 million ton of clinker.
Tushar Bhajanka
Yeah, yeah. So this is broadly. In broadly clinker backed this capacity.
Milind Raginwar
And so so then the Bihar Gu we will be backing by the existing clinker only or it will only come after the Umrang to plan.
Tushar Bhajanka
So we will be putting up the Bihar plant before Umrang Sho also because it will take lesser time than Umrang Shu and it will help us utilize the clinkers of the existing units faster. And you know, with Umranshu we will be putting the Jarat plant.
Milind Raginwar
Okay. So till that time Bihar will be fed by Megharay. Is that a fair assumption?
Tushar Bhajanka
Yes. And that will also help us utilize it faster.
Milind Raginwar
Okay. Okay. That is it. From my side. Thank you.
operator
Yeah, thank you. Thank you. We have one last question. We take the last question from Shravan Shah from Dolat Capital. Please go ahead.
Shravan Shah
Hi sir. This clinker sell whatever we are selling 5,6% of the total volume. So this will continue for even next year also.
Tushar Bhajanka
Yeah, I think we do expect that clinker that whatever we sold in quarter C, that’s kind of a volume to be sold every quarter.
Shravan Shah
Okay. Okay. So. So currently if I look at nine months, our CC ratio broadly is 1.32 versus normally we have closer to 1.5. So it is that the in the fourth quarter we will catch up and on a full year basis the broadly 1.5cc ratio that remains.
Tushar Bhajanka
Yeah. I think right now our clinker ratio is about 67.5% which is. I mean if I convert in the way it’s one divided by 67 1.48. It’s coming to be about 1.48 only.
Shravan Shah
Okay, okay, okay. Got it. Okay. And in short, third quarter broadly, if we have to look at northeast versus east for us in terms of profitability still it will be the east would be a 5, 600 rupees that the number which we used to have the similar still is there.
Tushar Bhajanka
Yeah. I think the EBITDA per ton that we earn is east is about 600 to 700 rupees. And I think with some price betterment, I think it can reach to about 800 rupees.
Shravan Shah
Okay, okay, okay, got it. But, but, but post the Rajasthan expansion So if you can direction difficult to predict right now but still directionally till what level are we comfortable? Obviously because Rajasthan once it the volume will start the EBITDA pattern definitely will not be as like as northeast but roughly are we, are we looking at kind of a 800-900-that’s the kind of a profitability pattern that we are looking for the Rajasthan.
Tushar Bhajanka
Yeah. So I think our modeling in the steady state expects it to be more than thousand thousand because it also depends on how you where you put a of your plants and how efficient your plants are. So our expectation in the long run is about thousand unstable loop. Initially of course the EBITDA will be low because we’ll be ramping up and spending on branding as well. But the EBITDA per ton and could be lower because of that.
Shravan Shah
And there also we will be having a incentive in Rajasthan also.
Tushar Bhajanka
Yes, you will be having an incentive, a capital subsidy incentives as per the policy of the Rajasthan government
Shravan Shah
which would. Be roughly on an annual basis or part on any broad, broad idea.
Tushar Bhajanka
That we are happy to. It is about 23% of the apex as a capital subsidy. So not a gst.
Shravan Shah
Okay. Okay, got it. Sufficient. Thank you. Thank you. And all the best.
Tushar Bhajanka
Thank you.
operator
Thank you. We have one last question in queue. It’s from Siddharth Mehrotra from Kotak Securities. Please go ahead.
Siddharth Mehrotra
Hi sir, thanks for the opportunity. So just wanted to sort of get your views on the upcoming capacity expansion in North. So I mean I was just looking at the numbers. If we add in your 5 MTP expansion as well. I’m looking at almost a 50, 55 MPP expansion in just the north region. Are we sort of going to see a very aggressive supply situation in that geography? And if yes, how are we going to counter the incumbents already who have a legacy system there? So that’s sort of just wanted to get your broad thoughts on that, sir.
Tushar Bhajanka
Yeah, So I think northern markets, I think over time have basically, you know, broadly maintained a decent utilization. Right. So I understand that there’s there are two, three companies like gsw, Dalmia and other companies which are entering north now. And that may lead to excess capacity. But I think the tendency of north has been, you know, north have generally had more decorum than other areas in, in the mainland India. Right. So so I think in our strategy is quite simple. We’re not entering with a very large capacity actually we have an integrated plant of 3 million and shortly after we commission that we’ll be commissioning a grinding unit in Haryana.
Right. So the capacity that we enter is not huge. And what we would target to do is to maintain and you know, to create a brand like how we have created our brand in Northeast and we sell higher than any other brand in Northeast despite being the highest volume, you know, players in Northeast. We would want the same kind of a branding and patience in terms of marketing in north as well. So that is how we plan to go about it and you know, I mean, yeah. And just make sure that we are able to position ourselves through branding and technical services and other things at a good price band compared to our competitors.
Siddharth Mehrotra
Understood, sir. So we definitely will not be compromising our margins just to sell volumes in that geography, if that understanding is correct. Right sir.
Tushar Bhajanka
Yes. I think more important, like especially if you’re entering a new area, it is more important important. I mean it is of course tempting to sell more volumes, but it comes at the, at the cost of putting yourself at a lower price band. Right. So we’ll have to make sure and have the have the patience and the willpower to create a brand in the long run and not and discounting and selling and just trying to get done with the volume is not the answer to that.
Siddharth Mehrotra
Got it, sir. And just one last question. If I can squeeze in, sir, what is the cost of our limestone in the northern region, Sir, Are they legacy mines? Are the newer mines?
Tushar Bhajanka
So you know, so that I think we have an option mine. You know, the average premium or the option mine is about 57. This is, this is for nimble but we are also looking at legacy mines. So we’re confident that we’ll probably be able to lock one or two legacy mines. If we do that then of course our cost for the initial 10 years will be zero auction price because they are legacy mines. So I think that is what we’re trying to do. I think by the next call I’ll have better clarity and probably we would have locked the mind and then I think I can talk more about it.
Siddharth Mehrotra
Great, sir. That would be good. Thanks a lot for your time, sir. Thank you.
operator
Thank you very much. That was the last question in queue. I would now like to hand the conference over to Mr. W.E.B. verwal from Philip Capital India Private Limited. Closing comments.
Vaibhav Agarwal
Yeah, thank you. I just had a couple of questions. So first thing, were there any one offs in the cost apart from the creator in, in the Q3?
Manoj Agarwal
Yeah. What you are saying,
Vaibhav Agarwal
were there any. One offs in the cost items in. Q3 apart from
Manoj Agarwal
5 PR donation? Is there okay. 1. Of course is there
Vaibhav Agarwal
okay. And this Donation is to any political party or. Hello. Okay. And apart from that there’s no other ones, right?
Tushar Bhajanka
No, no, no, no.
Vaibhav Agarwal
Okay. And the second thing was I just wanted to know that Tusharji mentioned on the call about a thousand rupees steady state guidance on in north operations. So when I met you, we had discussed that you, you had a kind of highlighted that but 1300-1500 would be your sustainable EBITDA even after your expansions. That is your forecast then. So this thousand rupees you are mentioning as on date or you are mentioning as once you enter Slightly, slightly confused. Also wanted to clarify that.
Tushar Bhajanka
So the question that am I expecting 1300 or thousand in the long run? Yeah, so. So I mean, you know, I mean it really depends. Like I think the question which was asked earlier if we’re operating mines versus option mines. So I think the answer just really depends on all those things. I think in the next call we’ll be in a better position to answer. I mean ideally in the 30 state. I think all the cement companies should be earning 1200 given the investment that we make. But I think, you know, I think for our case, depending on the legacy mine we’ll be able to better explain what we’re to able.
Vaibhav Agarwal
So just want to clarify. So your earlier guidance which when, when you, when I interviewed you and which you gave up 130015 EBITDA pattern on sustainable basis for Star 7 as whole. That holds on, right? That is your expectation as of now.
Tushar Bhajanka
I mean if you’re talking about Rajasthan or are we talking about not overall.
Vaibhav Agarwal
Overall I’m saying Star Cement as a whole. So the question was asked to you was what was the dilution you were expecting profitability once you enter in new markets that time you answered that.
Tushar Bhajanka
Yeah, I think you know, going in the future I think we do expect like 1300-1400 to be the range for car cement. I thought you’re asking specifically.
Vaibhav Agarwal
No, no, I’m asking. So I was asking after, after the North. So if you’re Saying north is 1100 rupees EBITDA per ton. So broadly your guidance of 13 or 15 holds on. Or that that is a kind of. Okay, that’s that’s what my question was. Thanks, thanks. Thanks a lot. And on behalf of Philip Capital India Private Limited I like to thank the manage management for the call and also many joining the call. Thank you very much. Sir. You now conclude the call Thank you. .
Tushar Bhajanka
Thank you.
operator
Thank you very much. With that we conclude today’s conference. Thank you for joining us ladies and gentlemen, you may now disconnect your lines.