Sagar Cements Ltd Q1 FY26 Earnings Results – 20% rise in Revenue

Sagar Cements is engaged in the business of manufacture and sale of cement. Presenting below are its Q1 FY26 earnings.

 

Q1 FY26 Earnings Summary

• Consolidated Revenue: ₹671 crore, up 20% year-over-year (YoY) from ₹561 crore in Q1 FY25.

• Net Profit (PAT): ₹7.49 crore, compared with a loss of ₹32.20 crore in Q1 FY25.

• Volume: Increased 11% YoY, driven by higher government spending and growth in the construction and housing sectors.

• EBITDA Margin: Expanded sharply to 18% from 8% YoY due to improved realizations and cost efficiencies.

• Operating Profit: EBITDA per ton doubled YoY to ₹849 from ₹364 due to favorable price and operational performance.

• Cost Efficiency: Raw material cost per ton declined 50.6% YoY; power and fuel cost per ton was stable; freight costs increased moderately but overall opex per ton fell 8.5% YoY.

• Capacity Utilization: Approximately 55% during the quarter.

• Debt to Equity Ratio: 0.86x, up slightly from 0.74x YoY.

• Blended Cement Share: 52% of total sales.

• Capex: ₹360 crore ongoing with expansion and installation of 6 MW solar plant at Jeerabad facility.

 

Key Management Commentary & Strategic Highlights

• Joint Managing Director Reekan Reddy noted a robust start to the year encouraged by volume growth and better pricing environment.

• The company focuses on cost reduction, operational efficiency, and enhanced use of renewable energy to drive sustainable margin expansion.

• Sagar Cements is actively engaged in ramping up capacity and expects improved profitability and margins going forward as new plants come online.

• Market positioning remains strong with well-distributed sales and a sizable share of blended cement.

• Guidance remains positive with capacity and operational improvements expected to support long-term growth and returns.

 

 

Q4 FY25 Earnings Summary

• Revenue: ₹658 crore (slightly lower QoQ but up YoY).

• Profit: Net losses reported continuously prior quarters turned around in Q1 FY26.

• Operational Metrics: Strengthening volume trends and price realizations, with increased focus on renewables and cost efficiencies.

• Capex Activities: Significant investment in plant upgrades and renewable energy installations continued.

 

To view the company’s previous earnings, click here