Sagar Cements (502090) Q1 26/27 earnings summary

Executive summary

• Achieved 13% YoY volume growth and 5% YoY revenue increase in Q1 FY27, driven by higher volumes and stable realizations, despite operational disruptions from heatwaves and election-related labor shortages.

• EBITDA declined 40% YoY to ₹7,242 lakhs, with margins pressured by elevated input costs, especially energy, fuel, and packaging.

• Net loss after tax for Q1 FY27 was ₹2,810 lakhs (consolidated), compared to a profit of ₹749 lakhs in Q1 FY26.

• Board approved unaudited standalone and consolidated financial results for Q1 ended June 30, 2026, with an unmodified limited review report.

Financial highlights

• Consolidated revenue from operations for Q1 FY27 was ₹70,607 lakhs, up from ₹67,066 lakhs in Q1 FY26; sales volume was 1.61 MnT, up 13% YoY.

• EBITDA per tonne for Q1 stood at INR 451, down 47% YoY; EBITDA margin at 10% (down 800 bps YoY).

• Net realization per ton was ₹4,396, down 6% YoY; average freight per ton stable YoY at ₹858.

• Gross debt as of June 30, 2026, was ₹1,70,360 lakhs; net worth at ₹1,833 crore; cash and bank balances at ₹105 crore.

• Standalone net loss for Q1 FY27 was ₹289 lakhs; basic and diluted EPS (consolidated) was ₹(2.15).

Outlook and guidance

• Targeting ~7 million tonnes of volume for FY 2027, excluding clinker sales, with double-digit volume growth expected for FY 2027 and FY 2028.

• EBITDA per tonne guidance for FY 2027 is INR 500–550, assuming stable prices and cost-saving initiatives.

• Input cost pressures expected to ease as geopolitical tensions normalize; cost optimization measures to support margins.

• Deferred tax assets and liabilities have been remeasured based on projected future taxable income and new tax regime, impacting profit and loss.