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 per tonne for Q1 stood at INR 451, with a 40% YoY decline in EBITDA due to elevated input costs and margin pressure from higher energy, fuel, and packaging expenses.

• Net loss after tax for Q1 FY27 was ₹2,810 lakhs, 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 statutory auditors issuing an unmodified limited review report.

Financial highlights

• Consolidated revenue from operations for Q1 FY27 was ₹70,607 lakhs, up 5% YoY; sales volume was 1.61 MnT, up 13% YoY.

• EBITDA: ₹7,242 lakhs, down 40% YoY; EBITDA margin at 10% (down 800 bps YoY); operating EBITDA per tonne: ₹451, down 47% YoY.

• Net realization per ton: ₹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; debt-equity ratio at 0.78:1; net worth stood at INR 1,833 crore.

• Standalone and consolidated net losses for Q1 FY27 were ₹289 lakhs and ₹2,810 lakhs, respectively.

Outlook and guidance

• Targeting 7 million tonnes of sales volume for FY27, excluding clinker sales, with double-digit volume growth expected for FY27 and FY28.

• EBITDA per tonne guidance for FY27 is INR 500–550, assuming stable prices and cost-saving initiatives.

• Expectation of easing input cost pressures as geopolitical tensions normalize; Q2 expected to see higher maintenance and inventory costs, but Q3 and Q4 should offset these impacts.

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