Sagar Cement reports that its revenue from operations increased by 19.6 per cent to INR5.60bn (US$68.83m) in the 1QFY25-26, supported by strong price hikes in India’s southern market and various incentive schemes.
The company reported a pretax profit of INR239m in the 1QFY25-26, compared with a pretax loss of INR475.5m recorded in the YoY period.
Operating EBITDA surged 160.1 per cent YoY to INR1.21bn in 1Q25. EBITDA margin stood at 18 per cent in the 1QFY25-26, the same as the YoY period. During the quarter, sales volume jumped 11.3 per cent to 1,427,639t from 1,127,902t recorded in 1QFY24-25.
As of 30 June 2025, the company's net debt stood at INR13.74bn.
Sreekanth Reddy, the joint managing director of the company, said, "We have started the year on a strong note, as can be seen from our financials. Volumes for the quarter grew by 11 per cent on a YoY basis, driven by pickup in government spending, the construction sector, and the housing sector. In addition to higher volumes, the quarterly performance was also aided by a better pricing environment. The combination of which resulted in revenue growth of 20 per cent (YoY) for the quarter.
“Our modernisation plans at the Andhra Cements Dachepalli unit are progressing as per schedule. We are confident of achieving our target volume of approximately 6Mta in FY25-26. The board of one of the subsidiaries, Sagar Cements (M), has given approval to take up the expansion of cement grinding capacity from 1Mta to 1.5Mta and, as part of green energy initiatives, to establish a 6MW solar power plant, involving a capex of around INR1.40bn.
“In conclusion, we believe our enhanced capacities position us strongly to capitalise on the growing demand from the infrastructure and real estate sectors in the coming years. Additionally, our continued focus on diversifying revenue streams and expanding our regional presence is expected to further strengthen the company's overall profitability profile."
