Star Cement (540575) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw strong operational and financial performance, with significant growth in production, sales, and profitability year-over-year.

• Board approved unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2025.

• Expansion plans are progressing, with new projects in Rajasthan, Haryana, Bihar, and Assam, targeting both capacity growth and market diversification.

• Interim dividend of ₹1 per equity share declared for FY 2025-26, to be paid by March 8, 2026.

• Promoter reclassification approved for 29 members of 'Chamaria Group' from 'Promoter & Promoter Group' to 'Public' category.

Financial highlights

• Q3 revenue was INR 880 crore (₹88,000.34 lakhs) consolidated, up from INR 719 crore YoY; nine-month revenue reached INR 2,603 crore (₹1,99,218.89 lakhs) vs. INR 2,111 crore YoY.

• Q3 EBITDA (excluding exceptional items) was INR 207 crore, up from INR 107 crore YoY; nine-month EBITDA was INR 631 crore vs. INR 321 crore YoY.

• Consolidated Q3 net profit: ₹7,492.10 lakhs; consolidated nine-month net profit: ₹24,532.59 lakhs.

• Per-ton EBITDA improved to INR 1,600 in Q3 (vs. INR 1,000 YoY) and INR 1,677 for nine months (vs. INR 1,005 YoY).

• Q3 included a one-off INR 5 crore political donation in costs.

Outlook and guidance

• FY26 volume guidance remains at 5.3 million tons, with Q4 expected to see 8%-10% YoY cement volume growth.

• No upward revision to volume guidance despite strong Q3 growth.

• Freight costs expected to normalize in Q4 after a one-off increase in Q3 due to a strike and logistics disruptions.

• Depreciation guidance is INR 30 crore per month, expected to remain stable.

• Group continues to monitor regulatory changes, especially regarding new Labour Codes, and will update estimates as needed.