Sagar Cements (502090) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw revenue growth of 20% year-over-year, driven by an 11% increase in sales volume and a favorable pricing environment, with industry growth supported by infrastructure activity and government spending.

• Operating EBITDA rose 160% year-over-year to ₹12,145 lakhs, with margins improving to 18% from 8% in Q1 FY25.

• Profit after tax reached ₹749 lakhs, reversing a loss of ₹3,220 lakhs in Q1 FY25.

• Ongoing cost optimization initiatives include freight reduction, clinker factor lowering, plant upgrades, and increased renewable energy usage.

• Modernisation and capacity expansion projects are progressing on schedule, with a focus on green energy and operational efficiency.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was ₹67,066 lakhs (INR 671 crore), up 20% year-over-year from ₹56,060 lakhs (INR 561 crore).

• EBITDA rose to ₹12,145 lakhs (INR 121 crore) from ₹4,700 lakhs (INR 47 crore) year-over-year; EBITDA margin improved to 18% from 8%.

• EBITDA per ton reached ₹851, and profit after tax was ₹749 lakhs (INR 7 crore).

• Net realization per ton increased 13% year-over-year to ₹4,698.

• Basic and diluted EPS (consolidated) for Q1 FY26 was ₹0.57, versus ₹(2.46) in Q1 FY25.

Outlook and guidance

• FY26 volume guidance maintained at 6 million tons, with potential revision in Q3; FY27 volume target set at 7 million tons.

• EBITDA per ton guidance is a minimum of ₹600 for the year, with Q1 at ₹851 and expectations of maintaining above ₹600 for the rest of the year.

• Price regime expected to be flat to slightly negative, with seasonal corrections factored in.

• Green energy share expected to rise to 20-23% in FY27 after new projects come online.

• Continued focus on cost efficiency, operational performance, and renewable energy integration.