Star Cement (540575) Q2 26/27 earnings summary

Executive summary

• Q2 consolidated revenue increased YoY while EBITDA, PAT and EPS declined; cement sales rose despite subdued demand in key Northeast markets.

• Management expects stronger H2 volumes and is advancing a 6 Mt northern expansion; the board declared a ₹1/share interim dividend and deferred the proposed ₹1,500 crore fund raise.

Financial highlights

• Consolidated Q2 revenue from operations was ₹83,103.41 lakh vs ₹81,094.03 lakh YoY; EBITDA was INR 164 crore vs INR 194 crore, and PAT was ₹3,957.71 lakh vs ₹7,106.48 lakh.

• Consolidated H1 revenue was ₹1,77,392.30 lakh vs ₹1,72,293.28 lakh; EBITDA was INR 367 crore vs INR 424 crore, and PAT was ₹11,348.61 lakh vs ₹16,922.94 lakh.

• Standalone Q2 revenue was ₹55,124.04 lakh vs ₹52,167.13 lakh and PAT was ₹1,897.76 lakh vs ₹1,535.19 lakh; H1 revenue was ₹1,12,754.92 lakh vs ₹1,06,640.63 lakh and PAT was ₹4,273.41 lakh vs ₹3,954.14 lakh.

• Non-cement revenue was INR 22 crore in Q2; full-year target is ~INR 100 crore.

Outlook and guidance

• H2 cement volume growth expected at 12%-13% YoY; October growth exceeded 12%, with the FY volume growth target of 7%-8% maintained.

• Management expects H2 Northeast industry growth of 7%-8%, its own growth to be double-digit, and West Bengal growth in the high teens.

• Management expects previously communicated FY EBITDA guidance to be achieved; fuel cost is expected near INR 1.5 in Q3-Q4, with INR 1.45 targeted by March.

• Silchar cost savings are expected from Q4 as railway and power connections improve; capacity target is ~18 Mt next year and over 20 Mt by 2030-31.

• Pipeline projects are expected to proceed despite the fund-raise deferral, funded through internal accruals and/or bank borrowings; interim dividend payable within 30 days, with 13 Nov 2026 as record date.