Star Cement (540575) Q3 25/26 earnings summary

Executive summary

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

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

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

• Expansion plans are underway, focusing on new capacity in Rajasthan, Haryana, Bihar, and Assam, with a total CapEx of INR 4,800 crore over the next 3-4 years.

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

Financial highlights

• Q3 consolidated revenue was ₹88,000.34 lakhs, up from ₹71,900 lakhs year-over-year; nine-month consolidated revenue reached ₹1,99,218.89 lakhs, up from ₹2,11,100 lakhs.

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

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

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

• Q3 included a one-off INR 5 crore political donation and a ₹552.03 lakh exceptional item due to Labour Code changes.

Outlook and guidance

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

• No upward revision to volume guidance despite 21% Q3 growth.

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

• Management expects steady profitability and per-ton EBITDA in the INR 1,300-1,500 range for the group, with North operations targeting INR 1,000-1,100 per ton in steady state.

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