Star Cement (540575) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 delivered record operational and financial performance, with highest ever EBITDA, strong profit growth, and increased sales volumes, supported by subsidies and new product launches.

• Commercial production of AAC blocks and construction chemicals began in Guwahati in June 2025.

• Interim dividend of ₹1 per share declared for FY 2025-26, payable by September 7, 2025.

• Expansion projects in Silchar and Jorhat are progressing, with Silchar commissioning expected by Q4 FY26 and Jorhat by Q3 FY27.

• The company is targeting 20 million ton capacity by FY30, with further expansion in Rajasthan and evaluation of Bihar opportunities.

Financial highlights

• Q1 FY26 consolidated revenue was ₹91,199.25 lakhs, up 24% year-over-year, with standalone revenue at ₹54,473.50 lakhs.

• EBITDA rose to ₹230 crore, nearly doubling year-over-year, with EBITDA per ton at ₹1,774.

• Profit after tax increased to ₹98 crore, up 508% YoY, with consolidated net profit at ₹9,843.88 lakhs.

• Sales volume grew 12.4% YoY to 12.96 lakh tons.

• Q1 incentives booked at ₹62 crore, with full-year guidance of ₹230–250 crore.

Outlook and guidance

• Management maintains volume guidance of 5.4–5.5 million tons for FY26, with growth expected post-monsoon.

• CapEx guidance is INR 820 crore for FY26 and INR 600 crore for FY27, with total planned CAPEX of INR 800 crore for FY26.

• Premium cement sales targeted to reach 18% by year-end, up from current 12%.

• State subsidy of ₹150 crore+ approved, with disbursement expected in Q2 FY26.

• Targeting cement capacity of 12 MTPA by FY27 through ongoing expansions.