Sagar Cements (502090) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue rose 17% YoY to ₹70,536 lakh and sales volume increased 26% to 1.71 MnT; operating EBITDA fell 12% to ₹4,531 lakh and net loss widened to ₹5,154 lakh.

• H1 FY27 revenue rose 11% to ₹1,41,143 lakh and volume grew 19% to 3.32 MnT; operating EBITDA declined 32% to ₹11,773 lakh and net loss was ₹7,964 lakh.

• Management said margins had bottomed and expects H2 improvement; FY27 EBITDA guidance is ₹350–375 crore, with FY27 volume guidance of ~7 MnT.

Financial highlights

• Q2 operating revenue was ₹70,536 lakh versus ₹60,186 lakh YoY; operating expenses increased 20% to ₹66,005 lakh.

• Q2 loss before tax was ₹6,872 lakh versus ₹4,651 lakh; loss after tax was ₹5,154 lakh versus ₹4,417 lakh.

• H1 operating EBITDA was ₹11,773 lakh versus ₹17,278 lakh; H1 loss after tax was ₹7,964 lakh versus ₹3,668 lakh.

• Standalone Q2 revenue was ₹44,432 lakh and net loss was ₹2,058 lakh; standalone H1 revenue was ₹91,613 lakh and net loss was ₹2,347 lakh.

• Results included a one-time Mineral Bearing Lands Cess provision reversal credit of ₹868.30 lakh consolidated and ₹750.26 lakh standalone.

Outlook and guidance

• FY28 volume target is 8–8.25 MnT; planning assumes EBITDA near ₹650 per ton and ~₹500 crore at that volume.

• H2 utilization is projected at 65%–70%; next year's target is also 65%–70%, subject to demand.

• H2 demand recovery, renewable power, logistics optimisation and plant efficiencies are expected to support gradual margin improvement.

• Andhra is expected to reach operational break-even in H2 FY27, or by Q1 next year if not achieved this year.

• Gudipadu's 0.25 MnT cement capacity expansion is planned by FY28, with proposed capex of ₹45 crore.