Sagar Cements Ltd

Meeting Details

• Date: 28 July 2026; group analyst meeting recording (virtual).
• Event: Analyst meeting for Q1 FY27 unaudited results.
• Mode: virtual call; recording available.

Participants

• Key company participant: Company Secretary.

Purpose

• Recording of Q1 FY27 unaudited standalone and consolidated results discussion with analysts.

Additional Notes

• Recording available; link provided in filing (no URLs).

Subject

• Unaudited standalone and consolidated Q1 FY27 results for quarter ended 30 June 2026.

Financial Highlights

• Revenue from operations ₹70,607 lakh; up 5% YoY.
• Sales volume 16,06,209 MT; up 13% YoY.
• Consolidated EBITDA ₹7,242 lakh; margin 10%.
• PAT consolidated: loss ₹2,810 lakh.
• Net debt ₹1,59,887 lakh; net debt/equity 0.78.
• Net worth ₹1,83,280 lakh; cash ₹10,473 lakh.
• Gross debt ₹1,70,360 lakh; long-term ₹1,43,381.

Debt & Liquidity

• Working capital ₹26,979 lakh.
• Cash & bank balance ₹10,473 lakh; down 3% YoY.
• Net worth ₹1,83,280 lakh; down 2% YoY.

Operational Performance

• Production 16,30,407 MT; sales 16,06,209 MT; capacity utilization ~63%.
• EBITDA per ton consolidated ₹451; margin 10%.
• Standalone EBITDA ₹3,489 lakh; margin 24%.

Capex & Capacity Expansion

• FY27 capex budget ₹326 crore; Q1 FY27 actual ₹94 crore.
• Gudipadu: 0.25 MnT expansion; capex ₹45 crore.
• Jeerabad: 0.50 MTPA expansion completed Jun 10, 2026; ₹120 crore.
• Dachepalli clinker capacity to 2.31 MnT; commissioned Oct 23, 2025.
• WHRS 4.35 MW installed at Gudipadu; commissioned Jun 18, 2026.
• Syngas/AFR at Mattampally; Q2 FY27 timeline; RDF pre-processing 200–250 TPD.

ESG & Sustainability

• Net-Zero targets validated by SBTi; 2050 value-chain objective.
• Double Materiality Assessment completed; CSRD-aligned.

Management Commentary

• Volume growth 13% in Q1 FY27; FY27 volume guidance ~7 million MT.
• Pricing realized: broadly stable to marginally improved QoQ.
• Cost pressures from energy, fuel and packaging; offset by price increases.
• Expect input costs to ease as geopolitical tensions normalise.

Financial highlights (Consolidated)

• Revenue from operations ₹70,607 Lacs, up 5% YoY.
• Sales volume 16,06,209 MT, up 13% YoY.
• OP EBITDA ₹7,242 Lacs; EBITDA margin 10%.
• PAT loss ₹2,810 Lacs.
• Plant utilization around 63%.
• Net debt ₹1,59,887 Lakh; long-term debt-equity 0.78x.

Capex and capacity updates

• Remaining 1.55 MW WHRS commissioned at Gudipadu.
• 50 MTPA capacity expansion at Jeerabad completed.
• Gudipadu 0.25 MTPA capacity expansion planned by FY28; capex ₹45 Cr.
• FY27 capex budget: ₹326 Crores.
• Jeerabad expansion funded ₹74 Cr via debt; balance from internal accruals.
• RDF AFR facility at Mattampally: 200–250 TPD; 5,000 MT/month commitment.
• Agreement signed with Hydro Engineers Ltd; timeline Q2 FY27.
• Syngas and biochar project at Mattampally; timeline Q2 FY27.
• Green power share: ~21.92% in Q1 FY27.
• Net-zero targets validated by SBTi; FY2050 target.

Debt and valuation metrics

• Net debt increased to ₹1,59,887 Lakh YoY.
• Net worth declined to ₹1,83,280 Lakh; debt-equity 0.78x.

Financial results approved

• Unaudited standalone results for quarter ended June 30, 2026 approved.
• Unaudited consolidated results for quarter ended June 30, 2026 approved.
• Limited Review Reports on standalone and consolidated results taken on record; opinions unmodified.
• Audit Committee reviewed results prior to Board approval.

Major corporate actions

• OFS of ACL shares completed; ACL holding reduced to 75%.
• Board approved Scheme of Amalgamation: ACL to merge into Sagar Cements; effective April 1, 2026; subject to approvals.
• Scheme requires approvals from stock exchanges, SEBI, shareholders, creditors, and NCLT.

Taxation and regulatory notes

• Tax: Group elected to tax under Section 115BAA; deferred tax assets/liabilities remeasured.

Standalone results

• Standalone revenue from operations: ₹47,181 lakh; YoY +8.3% vs ₹43,575 lakh.
• Total income: ₹48,040 lakh; up ~8.5% YoY.
• PBT: ₹(363) lakh; tax ₹(74) lakh; net loss ₹(2,119) lakh.
• EPS: Basic and diluted ₹(0.22).
• Power & fuel cost ₹15,031 lakh; freight ₹8,882 lakh; total expenses ₹48,403 lakh.
• Company operates a single reportable cement and cement-related products segment.

Consolidated results

• Consolidated revenue from operations: ₹70,607 lakh; total income ₹70,845 lakh; YoY +5.3%.
• PBT: ₹(3,659) lakh; tax ₹(849) lakh; net loss ₹(2,810) lakh.
• EPS: Basic and diluted ₹(2.15).
• Total expenses ₹74,504 lakh; subsidiaries include Andhra Cements Limited and Sagar Cements (M) Private Limited.
• ACL OFS reduced stake to 75% from 90% via sale of 1,38,25,821 equity shares.

Corporate actions & compliance

• Amalgamation scheme: Andhra Cements Limited to merge into Sagar Cements; effective Apr 1, 2026; approvals pending.
• Limited Review: unmodified for standalone and consolidated results.
• Board approved results on July 27, 2026; ACL OFS executed to meet MPS.
• Quarter ended 30 June 2026; board meeting date 27 July 2026.

Business & scope

• Single cement and cement-related products segment.

Meeting Details

• Date: 27 July 2026; venue: Registered Office, Jubilee Hills, Hyderabad; time not disclosed.

Key Agenda Items

• Consider unaudited standalone and consolidated financial results for Q1 ended 30 June 2026.

Other Notes

• Trading window will remain closed for 48 hours after the results announcement.