Orient Cement (ORIENTCEM) Q2 25/26 earnings summary

Executive summary

• Achieved highest-ever quarterly cement sales volume at 16.6 million tons, up 20% YoY, with revenue at INR 9,174 crore, up 21% YoY, and market share rising to 16.6%.

• Profit after tax surged 364% YoY to INR 2,302 crore, aided by a significant tax provision reversal; EPS rose 267% to INR 7.2.

• Company remains debt-free with net worth at INR 69,493 crore and maintains healthy cash flows to support ongoing capex.

• Integration of Penna, Sanghi, and Orient Cements completed or underway, boosting profitability and operational synergies.

• Ambuja Cements Limited acquired a controlling stake in a subsidiary, raising its stake to 72.66% as of June 18, 2025.

Financial highlights

• EBITDA reached INR 1,761 crore, up 58% YoY, with EBITDA per ton at INR 1,060, up 32% YoY, and margin at 19.2%.

• PAT at INR 2,302 crore, up 364% YoY, including a one-time tax write-back of INR 1,836 crore.

• Cost of sales reduced by 5% YoY, driven by operational efficiencies and group synergies.

• EPS (diluted) for Q2 FY'26 rose 267% YoY to INR 7.15.

• Revenue from operations for Q2 FY26 was ₹64,332.34 lacs, up from ₹54,402.52 lacs in Q2 FY25.

Outlook and guidance

• Targeting cement capacity of 155 million tons and clinker capacity of 96 million tons by FY 2028, with debottlenecking at low capex.

• Cost per ton targeted to reduce to INR 4,000 by March 2026 and INR 3,650 by March 2028.

• Green power share to reach 60% by FY 2028, reducing power cost per unit from INR 6 to INR 4.5.

• Double-digit volume and revenue growth expected to continue, with premium cement and market share expansion.

• The company adopted the reduced corporate tax rate under Section 115BAA, resulting in a reversal of deferred tax liability.