Sagar Cements is engaged in the business of manufacture and sale of cement. Presenting below are its Q1 FY26 earnings.
Q1 FY26 Earnings Summary
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Consolidated Revenue: ₹671 crore, up 20% year-over-year (YoY) from ₹561 crore in Q1 FY25.
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Net Profit (PAT): ₹7.49 crore, compared with a loss of ₹32.20 crore in Q1 FY25.
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Volume: Increased 11% YoY, driven by higher government spending and growth in the construction and housing sectors.
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EBITDA Margin: Expanded sharply to 18% from 8% YoY due to improved realizations and cost efficiencies.
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Operating Profit: EBITDA per ton doubled YoY to ₹849 from ₹364 due to favorable price and operational performance.
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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.
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Capacity Utilization: Approximately 55% during the quarter.
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Debt to Equity Ratio: 0.86x, up slightly from 0.74x YoY.
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Blended Cement Share: 52% of total sales.
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Capex: ₹360 crore ongoing with expansion and installation of 6 MW solar plant at Jeerabad facility.
Key Management Commentary & Strategic Highlights
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Joint Managing Director Reekan Reddy noted a robust start to the year encouraged by volume growth and better pricing environment.
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The company focuses on cost reduction, operational efficiency, and enhanced use of renewable energy to drive sustainable margin expansion.
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Sagar Cements is actively engaged in ramping up capacity and expects improved profitability and margins going forward as new plants come online.
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Market positioning remains strong with well-distributed sales and a sizable share of blended cement.
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Guidance remains positive with capacity and operational improvements expected to support long-term growth and returns.
Q4 FY25 Earnings Summary
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Revenue: ₹658 crore (slightly lower QoQ but up YoY).
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Profit: Net losses reported continuously prior quarters turned around in Q1 FY26.
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Operational Metrics: Strengthening volume trends and price realizations, with increased focus on renewables and cost efficiencies.
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Capex Activities: Significant investment in plant upgrades and renewable energy installations continued.
To view the company’s previous earnings, click here