Star Cements Ltd is engaged in manufacturing and selling of Cement Clinker & Cement. It sells its products across north-eastern and eastern states in India. It is the largest cement manufacturer in North-east India.
Q2 FY26 Earnings Results:
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Revenue from Operations: ₹810.94 crore, up 26.4% YoY from ₹641.55 crore, but down 11.1% QoQ due to monsoon-related seasonality.
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Net Profit After Tax (PAT): ₹71.95 crore, a massive 1,153.5% YoY jump due to a low base in Q2 FY25 (₹5.74 crore), but a 26.9% QoQ decline.
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Operating Profit (PBDIT excl OI): ₹190.16 crore; margin at 23.45% (up from 14.90% YoY but down 158 bps sequentially).
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PAT margin: 8.76% (vs 10.76% in Q1 FY26 and only 0.88% in Q2 FY25).
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Consolidated revenue: ₹814.4 crore; consolidated PAT: ₹71.94 crore.
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Employee costs: ₹71.49 crore, up due to wage inflation and expansion.
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Interest expenses: ₹11.06 crore, up YoY.
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Depreciation: ₹90.22 crore, reflecting capitalisation of a new grinding unit.
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Board approved a fundraising plan of up to ₹1,500 crore to fund future expansion.
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Non-current borrowings have increased due to capacity expansion.
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Operating cash flow turned strongly positive in H1 FY26.
Management Commentary & Strategic Insights:
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Management highlighted robust sales in North East India, price discipline, and ongoing demand from infrastructure.
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Noted margin pressure sequentially due to rising energy/input costs and competitive market.
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Emphasis on cost control, premiumization, and further expansion, with a strong pipeline for new projects and capacity increases.
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Seasonality (monsoon) was a major factor in the sequential revenue and margin dip.
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Continued focus on disciplined capital allocation, technology, and achieving volume guidance of 12-15% growth for FY26.
Q1 FY26 Earnings Results:
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Revenue: ₹913.8 crore, up 21.5% YoY.
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PAT: ₹98.16 crore, up 216.7% YoY and 12% QoQ.
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Cement sales volume: 12.22 lakh tons, up 5.9% YoY.
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EBITDA: ₹230 crore, margin above 25%.
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EPS: ₹2.40 vs ₹0.80 YoY.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.