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Sagar Cements revenue increased by 5.3% YoY

ICICIdirect Research 28 Jul 2026 DISCLAIMER

News: Sagar Cements revenue increased by 5.3% YoY (-10.3% QoQ) to Rs 706.1 crore as volume growth of 12.5% YoY (-12.3% QoQ) was negated by decline in realisation (-6.4% YoY, +2.3% QoQ). Total cost/ton increased by 2.5% YoY (+2.4% QoQ), mainly on account of higher RM cost, power and fuel costs and other costs. EBITDA/ton decreased by 47% YoY (+1.3% QoQ) to Rs 451/ton. Subsequently, EBITDA came at Rs 72.4 crore (-40.4% YoY, -11.2% QoQ). On PAT level, the company reported a loss of Rs 28.1 crore as against net profit of Rs 7.5 crores in Q1FY26

View: Volume growth remained healthy during the quarter led by improvement in capacity utilisation (~63% in Q1FY27 vs ~56% in Q1FY26). However, overall operational performance was impacted due to lower realisation and higher costs. We believe that operational performance is likely to be impacted in near term due to cost pressure led by geo-political uncertainties but expected to recover from H2FY27. Going ahead, volume growth visibility remains healthy led by further ramp-up of existing capacities (including subsidiary Andhra Cements which is also running at ~41% utilisation) and capacity expansion schedule (total capacity is expected to reach 11.75 mtpa by FY27E from 11 mtpa at present). Management also guides 7 mtpa of total volume for FY27E which implies ~15% YoY growth. With focus on operational efficiency measures and positive operating leverage, overall profitability is expected to improve

Impact: Neutral

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