Star Cement (540575) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 delivered record operational and financial performance, with highest ever EBITDA, PBT, and PAT for a second quarter and 20% YoY sales volume growth despite demand deferment ahead of GST rate reduction.

• Expansion projects are underway, targeting 10 MTPA cement capacity by FY26, with Silchar commissioning expected by January and strategic entry into North India.

• Premium sales ratio improved to 14.1% of trade sales in Q2 FY26, up from 10.6% YoY.

• The company is leveraging state incentives, especially in Bihar and North India, to enhance profitability and market reach.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were approved by the Board on November 4, 2025.

Financial highlights

• Q2 FY26 revenue was INR 811 crore (₹81,100 lakhs), up from INR 632 crore (₹63,200 lakhs) year-over-year, with a 26% YoY increase in cement and clinker sales.

• Q2 EBITDA rose to INR 194 crore, nearly doubling YoY, and PAT increased to INR 71 crore, up 1154% YoY.

• H1 FY26 revenue was INR 1,723 crore, EBITDA INR 424 crore, and PAT INR 169 crore, all showing strong growth over the prior year.

• Gross cash accruals increased 83% YoY to ₹161 crore.

• Earnings per share (EPS) for Q2 FY26 stood at ₹0.38 (standalone) and ₹0.14 (consolidated).

Outlook and guidance

• FY26 volume guidance remains at 5.4-5.5 million tonnes, with 12% volume growth expected next year.

• EBITDA per ton guidance is INR 1,500-1,550, with incentives expected to contribute INR 180-190 crore for the year.

• CapEx for FY26 is projected at INR 710-720 crore, mainly for Silchar, solar plant, and land acquisitions.

• Silchar unit (2 MTPA) to be commissioned by Q4 FY26; North India expansion to add 4-5 MTPA grinding capacity.

• The Board has initiated a process to raise up to ₹1,500 crore through various modes, pending shareholder approval.