Star Cement (540575) Q1 26/27 earnings summary

Executive summary

• Q1 FY 2027 saw muted performance due to floods in Assam, reduced government subsidies, and higher costs, impacting both volumes and profitability.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, were approved by the Board on August 7, 2026.

• Cement sales volumes grew modestly year-over-year, but EBITDA and PAT declined due to higher costs and lower incentives.

• Management expects demand recovery and double-digit growth in Q3 and Q4 as pent-up demand is released post-floods.

• The Board re-appointed four key directors for a further three-year term effective April 1, 2027, subject to shareholder approval.

Financial highlights

• Consolidated revenue from operations for Q1 FY27 was ₹57,630.88 lakhs, up from ₹54,473.50 lakhs in Q1 FY26.

• Standalone revenue for Q1 FY27 was ₹94,288.89 lakhs, with net profit after tax at ₹7,390.90 lakhs.

• EBITDA declined to INR 203 crore from INR 230 crore, mainly due to reduced subsidy, higher packing material costs, and shutdown expenses.

• PAT dropped to INR 74 crore from INR 98 crore year-over-year.

• Earnings per share (consolidated, basic and diluted) for Q1 FY27 stood at ₹0.59, compared to ₹0.60 in Q1 FY26.

Outlook and guidance

• FY 2027 cement volume growth guidance revised down to 8%-9% from earlier 11%-12% due to ongoing floods and muted demand in H1.

• Clinker sales expected to be flat or decline by 5%-10% year-over-year.

• Management expects cost pressures to ease in H2, with fuel costs projected to decline to INR 1.45 per kg in Q2 and further in Q3/Q4.

• The company and a subsidiary opted for a concessional income tax rate from April 1, 2026, affecting tax comparability with prior periods.

• EBITDA per ton for the year expected to be INR 1,500–1,600, with Q2 temporarily lower due to shutdown and monsoon impacts.