Sagar Cements Reports Q1 FY27 Results; Volume Rises 13% While Operating Margins Moderate Amid Input Costs

Sagar Cements Reports Q1 FY27 Results; Volume Rises 13% While Operating Margins Moderate Amid Input Costs​

Sagar Cements Limited has released its un-audited Standalone and Consolidated financial results for the first quarter of Fiscal Year 2027 (Q1 FY27). The company reported a significant increase in sales volume, though operating profitability saw a decline due to elevated input costs across energy and fuel, amidst geopolitical tensions.

The company achieved a consolidated sales volume of 16,06,209 metric tons (MT) for Q1 FY27, marking a 13% year-on-year (YoY) increase. Revenue from Operations stood at ₹ 70,607 Lacs, reflecting a 5% growth compared to the same quarter in the previous year.

Operational performance metrics showed that operating EBITDA for Q1 FY27 was ₹ 7,242 Lacs, resulting in an operational EBITDA margin of 10%, which is down from 18% in Q1 FY26. The company recorded a loss after tax of ₹ 2,810 Lacs, contrasting with a profit of ₹ 749 Lacs reported in Q1 FY26.

Financial Performance Snapshot (Consolidated)​

The financial results highlight fluctuations across key income and expense lines:


In per-ton analysis for the consolidated segment, Op. EBITDA stood at ₹ 451, which is a decrease of 47% compared to ₹ 851 per ton in Q1 FY26. Net Realization per Ton was ₹ 4,396, down 6% year-on-year (YoY).

Operational Commentary and Cost Pressures​

Mister Sreekanth Reddy, Joint Managing Director, commented on the results, noting that the company delivered healthy volume growth despite temporary disruptions caused by heatwaves and election related labour shortages. He stated that demand across key markets remained resilient, maintaining confidence in achieving a FY27 volume guidance of approximately 7 million MT.

On the pricing front, realization was described as broadly stable to marginally improved sequentially, though the quarter started positively but momentum softened towards the close.

Operationally, EBITDA per tonne stood at ₹ 451 for Q1 FY27. Profitability and margins moderated due to elevated input costs across energy, fuel, and packaging, which were impacted by geopolitical tensions in West Asia. While price increases partially offset cost inflation, they were insufficient to mitigate the impact. The company plans continuous focus on cost optimization through Waste Heat Recovery Systems (WHRS) and increasing green energy usage.

Capacity Expansion and Capex Highlights​

The company provided updates on its capital expenditure (Capex) activities across various plants. Key milestones included:

• Jeerabad Plant: Commissioning of the expansion of cement grinding capacity at the Jeerabad plant was completed on June 10, 2026. The total CapEx for this expansion amounted to ₹ 120 crore, financed through debt of ₹ 74 crore and the remainder from internal accruals.
• Dachepalli Plant: Construction of a 6-stage preheater was successfully completed at the Dachepalli Plant in Andhra Cements. Following trial runs, the plant commissioned on October 23, 2025, boosting clinker capacity from 1.85 MnT to 2.31 MnT.
• Gudipadu Expansion: The company proposed an expansion of cement capacity at the Gudipadu plant by 0.25 MnT by FY28, with a planned CapEx budget of ₹ 45 crore for this project.

ESG and Strategic Initiatives​

Sagar Cements continues to focus on its environmental goals, having successfully commissioned the remaining 1.55 MW WHRS out of a total installed capacity of 4.35 MW at Gudipadu. The company is also making progress in decarbonization efforts. Gross Scope 1 and 2 GHG emissions were reported to be 644 kg CO2/MT Cementitious, aiming for a reduction of 18.8% per tonne by FY2030 from a FY2023 base year.

Regarding technology, the company is moving forward with an Integrated Biochar and Gasification Units project at its Mattampally Cement Plant, which will utilize Syngas as an alternative fuel in process and provide biochar to farmers.

SAGCEM Stock Price Movement​

Sagar Cements Limited shares gained on Monday, closing at ₹183.15 after rallying 3.64% from its previous session’s close. The equity saw robust trading action, with 101,734 shares transacted as the stock finished the day significantly higher.