Sagar Cements announced that its subsidiary, Andhra Cements Limited, has successfully expanded its cement grinding capacity at the Sri Durga Cement Works plant in Andhra Pradesh. The facility’s capacity has increased from 1.82 MTPA to 3.00 MTPA, with commercial operations now fully commenced.

Group capacity reaches 11.75 MTPA

The expansion at the Dachepalli facility in Palnadu District significantly boosts the production capabilities of the group. With the commissioning of these new operations in Andhra Cements, the total group cement manufacturing capacity stands at 11.75 MTPA. This development follows a letter dated January 24, 2024, regarding the project's progress.

Regulatory disclosure

The completion of the expansion and commencement of commercial operations were reported to the National Stock Exchange of India Ltd and BSE Limited under Regulation 30 of the SEBI (LODR) Regulations, 2015. The disclosure was signed by J. Raja Reddy, Company Secretary, on September 28, 2026. Andhra Cements is a wholly owned subsidiary of Sagar Cements Limited.

Andhra Cements reported a widening net loss of ₹3,595 lakh for the first quarter of FY27 (Q1FY27), ending June 30, 2026. The result reflects a 74% increase in losses compared to the ₹2,061 lakh net loss recorded in Q1FY26, signaling persistent operational challenges despite a robust 43% year-on-year growth in revenue from operations to ₹14,217 lakh.

The Board of Directors approved the unaudited financial results at a meeting held on July 27, 2026. The statutory auditors carried out a limited review of the financial results for the quarter. The filing was submitted to the National Stock Exchange of India Ltd and BSE Limited under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

The company’s total income from operations rose significantly to ₹14,217 lakh in Q1FY27, up from ₹9,953 lakh in the same period last year. However, this revenue growth was insufficient to offset cost pressures, leading to a pre-tax loss of ₹4,777 lakh, compared to ₹2,052 lakh in Q1FY26. The post-tax loss stood at ₹3,595 lakh, while total comprehensive income mirrored this figure at ₹3,595 lakh.

Earnings per share (EPS) declined to ₹(3.90) from ₹(2.24) in the previous year’s quarter. The paid-up equity share capital remained unchanged at ₹9,217 lakh, while reserves (excluding revaluation reserve) stood at ₹(1,143) lakh as per the audited balance sheet of the previous year.

What the Numbers Show

The divergence between top-line growth and bottom-line performance highlights margin compression issues. Despite generating over ₹4,000 lakh more in operational income than the prior year, the company’s pre-tax loss more than doubled. This suggests that input costs or other operational expenses have risen at a faster rate than revenue, eroding any potential benefit from increased sales volume. The consistent negative reserves further indicate accumulated historical losses that continue to weigh on the balance sheet.