Andhra Cements has released its audited financial results for the fiscal year ended March 31, 2026. The Board of Directors approved the results at a meeting held on May 13, 2026, with statutory auditors issuing an unmodified opinion on the financial statements. For the full year, the company reported a net loss of ₹6,716 lakh, a significant reduction from the net loss of ₹15,211 lakh recorded in the previous year. Revenue from operations for FY26 stood at ₹44,249 lakh, compared to ₹27,405 lakh in FY25, while total income rose to ₹45,239 lakh from ₹28,154 lakh in the prior year.

Annual Financial Performance

The company's total expenses for the year increased to ₹60,887 lakh from ₹44,979 lakh in the previous year. Key cost components included power and fuel expenses of ₹17,783 lakh, freight and forwarding expenses of ₹9,929 lakh, finance costs of ₹9,799 lakh, and depreciation and amortisation expenses of ₹8,445 lakh. The loss before tax for the year was ₹15,648 lakh, narrower than the loss of ₹17,451 lakh reported in the preceding year. A deferred tax gain of ₹8,932 lakh was recognised during the year, contributing to the reduction in net loss. The following table summarises the key annual financial metrics:

Quarterly Results

In the quarter ended March 31, 2026, Andhra Cements reported a net profit of ₹4,852 lakh, reversing from a net loss of ₹4,991 lakh in the same quarter of the previous year. Revenue from operations for the quarter surged to ₹15,485 lakh from ₹8,947 lakh in Q4 FY25, while total income for the quarter stood at ₹16,254 lakh. The loss before tax for Q4 stood at ₹4,080 lakh, narrowing from ₹4,991 lakh in the same period of the previous year. A deferred tax gain of ₹8,932 lakh was recorded during the quarter, driving the swing to profitability. The basic and diluted earnings per share for the quarter were recorded at ₹5.26.

Balance Sheet Highlights

As at March 31, 2026, total assets stood at ₹1,42,006 lakh, up from ₹1,14,441 lakh in the previous year. Non-current assets increased to ₹1,23,073 lakh from ₹1,01,784 lakh, driven by a rise in property, plant and equipment to ₹95,941 lakh from ₹75,864 lakh, and growth in deferred tax assets to ₹21,890 lakh from ₹12,961 lakh. Total equity stood at ₹8,074 lakh, compared to ₹14,455 lakh in the prior year, reflecting the accumulated losses. Non-current borrowings rose to ₹1,01,216 lakh from ₹69,853 lakh, while total current liabilities stood at ₹28,454 lakh.

Cash Flow Summary

For the year ended March 31, 2026, net cash used in operating activities was ₹2,515 lakh, compared to net cash generated of ₹5,955 lakh in the previous year. Net cash used in investing activities amounted to ₹24,833 lakh, primarily on account of capital expenditure of ₹22,624 lakh on property, plant and equipment. Net cash generated from financing activities was ₹27,350 lakh, supported by proceeds from non-current borrowings of ₹37,154 lakh. Cash and cash equivalents at the end of the year stood at ₹21 lakh, compared to ₹19 lakh at the beginning of the year.

Qualified Borrowings

Pursuant to the SEBI Circular dated October 19, 2023, Andhra Cements disclosed details of its qualified borrowings for the financial year ended March 31, 2026. Outstanding qualified borrowings increased from ₹576.51 crores at the start of the year to ₹705.56 crores at the end of the year. Incremental qualified borrowings during the year amounted to ₹144.47 crores, while borrowings by way of issuance of debt securities were nil. The company's credit rating stood at IND BBB & IND A3+, with a rating watch with developing implications.

Corporate Developments

The Board of Directors, at their meeting on March 30, 2026, accorded in-principle approval for the amalgamation of the company with its holding company, Sagar Cements Limited, subject to necessary approvals under Sections 230 and 232 of the Companies Act, 2013. Separately, the parent company conducted an Offer for Sale of 1,38,25,821 equity shares of face value ₹10 each on various dates through the stock exchange mechanism to meet the Minimum Public Shareholding norms, reducing its stake in Andhra Cements from 90.00% to 75.00%. The company also opted to be taxed under Section 115BAA of the Income-tax Act, 1961 during the year, resulting in the remeasurement of deferred tax assets and liabilities at applicable rates.

Andhra Cements Limited , a subsidiary of Sagar Cements Limited, has submitted its related party transaction (RPT) disclosures for the second half-year ended 31st March 2026 to the stock exchanges on 13th May 2026. The filing, made in compliance with SEBI Listing Obligations and Disclosure Requirements (LODR) regulations, covers 20 transactions across multiple counterparties. The total value of transactions during the reporting period stands at 24,642.31.

Key Transactions with Holding Company — Sagar Cements Limited

The largest share of related party transactions during the period involved Sagar Cements Limited, the holding company of Andhra Cements. These transactions span interest payments, sale of goods or services, reimbursement of expenses, and interest expense on corporate guarantee. The following table summarises these transactions:

All transactions with Sagar Cements Limited were approved by the audit committee, with ratification confirmed at the meeting held on 13th May 2024.

Transactions with Promoter Group Companies

Andhra Cements also disclosed transactions with two promoter group companies during the reporting period. BV Consulting Services Private Limited was the counterparty for an interest payment, while Panchavati Polyfibres Limited was involved in a purchase of goods or services transaction.

Transactions with Directors and Key Managerial Personnel

The disclosure also covers transactions with directors and key managerial personnel, primarily comprising rent payments and sitting fees. Additionally, remuneration and other long-term employment benefits were disclosed for the Company Secretary.

Audit Committee Approval and Compliance

All 20 related party transactions disclosed in the filing were approved and ratified by the audit committee. The audit committee meeting at which ratification was approved was held on 13th May 2024. The total value of all transactions during the reporting period aggregates to 24,642.31. The disclosure was signed by G. Tirupati Rao, Company Secretary (M. No. F2818), and submitted to both the National Stock Exchange of India Ltd and BSE Limited in accordance with applicable SEBI LODR regulations.