Sagar Cements (502090) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 revenue declined 7% year-over-year to INR 658 crore, while sales volume rose 5% to 1.61 MnT; FY25 revenue fell 10% to INR 2,258 crore with flat annual volumes at 5.51 MnT.

• Q4 FY25 consolidated EBITDA margin dropped to 6% (down from 10% YoY), with EBITDA per tonne at INR 218; loss after tax for the quarter was INR 73 crore.

• Operational profitability improved sequentially due to higher volumes and lower input prices, but realizations remained under pressure.

• Board approved audited standalone and consolidated results for Q4 and FY25; auditors issued unmodified opinions.

Financial highlights

• Q4 FY25 consolidated EBITDA at INR 37 crore, down 46% YoY; FY25 EBITDA at INR 141 crore, down 43% YoY.

• Q4 FY25 loss after tax of INR 73 crore (vs. profit of INR 11.58 crore YoY); FY25 loss after tax of INR 216.68 crore.

• EBITDA per tonne for Q4 FY25 was INR 218; management expects this to improve to INR 500 as cost savings and price hikes take effect.

• Exceptional item of INR 27 crore recognized for recovery of fuel and power cost adjustment from Andhra government for FY23 and FY24.

• Gross debt as of March 31, 2025, stood at INR 1,428 crore; net worth at INR 1,794 crore; debt-equity ratio at 0.63:1; cash and bank balances at INR 164 crore.

Outlook and guidance

• FY26 volume guidance is 6.0–6.3 million tonnes, aligning with industry growth of 6–8%.

• Management prioritizes margin over volume, expecting EBITDA per tonne to reach INR 500 or higher, supported by cost reductions and price increases.

• CapEx for FY26 is planned at INR 350–360 crore, mainly for Andhra plant upgrades and maintenance; Dachepalli plant expansion to be completed by end-FY26.

• Green power share targeted to reach 20–25% by FY26 exit and 30–35% by FY27, with a long-term goal of 50% by 2030.