Saurashtra Cement Ltd

Financial highlights

• Standalone revenue from operations for quarter ended 30 Jun 2026: Rs 4,567.45 crore; YoY +7.8%.
• Standalone cement revenue: Rs 4,337.247 crore; paints: Rs 230.203 crore.
• Consolidated revenue from operations for quarter ended 30 Jun 2026: Rs 4,264.15 crore.
• Consolidated cement revenue: Rs 4,033.947 crore; paints: Rs 230.203 crore.
• Standalone EPS: Rs 0.83 (basic and diluted).
• Board approved unaudited standalone and consolidated results for Q1 FY27 with Limited Review.
• Two reportable segments: Cement & Cement related products; Paints.
• Quarter ended 30 June 2026; subsidiary Agrima Consultants International Limited included in consolidated results.

Regulatory outcome

• SEBI granted exemption from 3(2) and 5 of SAST for indirect acquisition.
• Acquirer is Mehta Family Trust; Target is Saurashtra Cement Limited.
• Exemption valid for one year from the order date; completion within period.
• Acquirer to file SEBI report within 21 days of completion.
• No change in control or public shareholding; internal family reorganization.
• Exemption addresses succession planning; non-commercial transaction respecting public shareholders.

Transaction structure

• Indirect acquisition would amount to 24.04% voting rights via Galaxy and Omna.
• Galaxy holds 14.57%; Omna 9.46% of the target.
• Total promoter group stake remains 66.62% post-transaction.
• Public shareholding remains 33.38%; no change in total equity capital.
• Target’s issued share capital is INR 1,11,28,72,800 across 11,12,87,280 shares.

Tax appellate order update

• NFAC appellate order u/s 250 dated 13 July 2026 partly allows the company’s appeal for AY 2019-20.
• There is no additional financial impact on the company due to this order.
• The company will file a second appeal before the Income Tax Appellate Tribunal, Rajkot.
• Order date: 13 July 2026.

Tax appellate update

• NFAC order dated 10 July 2026 partly allowed the company's appeal for AY 2020-21.
• Order receipt date: 11 July 2026.
• No material financial or operational impact expected.
• Company to file second appeal before the ITAT, Rajkot.

Tax appellate update

• Appellate order under Sec 250 by CIT Appeals NFAC dated 10 July 2026 partially allows the company's appeal.
• Date of receipt of order: 11 July 2026.
• No additional financial impact on the company due to the order.
• Company to file second appeal before ITAT, Rajkot.

• Dematerialisation requests for the quarter ended 30 June 2026 were processed and confirmed to the depositories.
• Securities dematerialised have been listed on the stock exchanges where the previously issued securities are listed.
• Physical certificates for dematerialisation were mutilated and cancelled; depository name substituted as registered owner within prescribed timelines.

Financial Performance 📊

• Consolidated revenue from operations for Q3 FY26: ₹410.19 crore, up from ₹385.64 crore YoY.
• Total income for Q3 FY26: ₹414.81 crore, increased from ₹390.40 crore YoY.
• Total expenses for Q3 FY26: ₹423.47 crore, up from ₹408.01 crore YoY.
• Net loss before tax for Q3 FY26: ₹15.29 crore vs. loss of ₹17.61 crore YoY.
• Net loss after tax for Q3 FY26: ₹10.35 crore vs. loss of ₹11.03 crore YoY.
• EPS (basic and diluted) for Q3 FY26: -₹0.93 vs. -₹0.99 YoY.

Segment Performance & Financials

• Cement segment revenue: ₹391.63 crore; Paints segment revenue: ₹18.56 crore for Q3 FY26.
• Cement segment loss before finance cost: ₹6.39 crore; Paints segment loss: ₹5.68 crore for Q3 FY26.
• Finance cost for Q3 FY26: ₹3.22 crore, increased from ₹2.16 crore YoY.
• Cement segment assets: ₹1453.65 crore; Paints segment assets: ₹103.92 crore as of Dec 31, 2025.
• Cement segment liabilities: ₹584.53 crore; Paints segment liabilities: ₹30.50 crore as of Dec 31, 2025.

Exceptional Items & Risks ⚠️

• Exceptional items include ₹6.56 crore statutory impact of new Labour Codes and ₹8.98 crore write-back of service tax provision.
• Labour Codes implementation impact recognized as exceptional item; company monitoring further regulatory clarifications.

Corporate & Governance

• Board approved unaudited standalone and consolidated Q3 & 9M FY26 results on Feb 9, 2026.
• Consolidated results include wholly owned subsidiary Agrima Consultants International Limited.
• Auditor's review reports issued with no material misstatements noted.

Business Model & Segments

• Business segments: Cement and cement-related products, and paints.