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Earnings Call Transcript

Sagar Cements Earnings Call Transcript: Key Takeaways

Management maintains a confident stance on 13% volume growth despite input cost headwinds. While Q1 saw seasonal and election-related labor disruptions, commissioning of new capacity and waste heat recovery systems are expected to drive H2 margins.

Highlights
Revenue growth5% YoY growth driven by higher volumes; realizations broadly stable.
MarginsQ1 moderated due to energy costs; expansion expected from H2 efficiencies.
Demand visibilityStrong visibility in AP/Telangana/MP; H2 looks robust post-election.
Management confidenceBalanced; optimistic on demand but cautious on near-term input inflation.

Growth

Q1 revenue rose 5% YoY, led by 13% volume growth; realization remained broadly stable with marginal sequential improvement.

Outlook

Targeting 7 million tons volume in FY27 with EBITDA/ton guidance of ₹500–550.

Risks

High fuel and packaging costs (up ₹100/ton) and potential delays in the generic GO for Vizag land monetization.

Last quarter's promises, checked

Delivered

  • Volume target ~6 MT → delivered 6.1 MT (= BEAT)
  • Commission 2.8MW WHRS by May 2026 → delivered May 12, 2026 (= BEAT)
  • Andhra unit turnaround → delivered near breakeven in Q4 (= BEAT)

Partly delivered

  • Volume growth 15-16% (7MT) → delivered 13% in Q1 (= PARTIAL)
  • Vizag land monetization → awaiting generic GO (= PARTIAL)

Missed

  • Net debt target ₹1,300Cr → delivered ₹1,550Cr+ (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: SAGCEM. Summary written with AI assistance from the document.

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Sagar Cements Ltd: key numbers

Share price
₹152.64
Market cap
₹1,995 Cr
Revenue (annual)
₹2,650 Cr
Net profit (annual)
₹-11.07 Cr
P/E (TTM)
-56.4×Sector 33.0×
Promoter holding
48.33%+0.00% QoQ
FII holding
1.61%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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Financial Results

Sagar Cements Q4 FY26 Results: Turns Profitable, Net Profit ₹100 Cr

Sagar Cements Ltd reported revenue from operations of ₹787 Cr (+19.6% YoY) and net profit of ₹100 Cr for Q4 FY26.

Key figure
Net profit ₹100 Cr