Mangalam Cement shareholders approved a significant increase in borrowing capacity during the company’s 50th Annual General Meeting held on August 21, 2026. The resolution raises the borrowing limit from ₹2,000 crore to ₹3,000 crore.

The meeting, conducted via video conferencing, also saw the adoption of audited financial statements for FY26 and the declaration of a final dividend of ₹1.50 per equity share. A total of 73 members representing 1,13,38,915 shares attended the proceedings.

Voting Results

Official voting results filed with exchanges confirm that all resolutions were approved by shareholders with the requisite majority. The total number of shares on record as of August 14, 2026, was 27,497,298. Votes polled represented 58.36% of outstanding shares.

Promoter and Promoter Group shareholders voted in favour of all resolutions with 100% support. Public institutional investors showed strong backing for ordinary resolutions but voted against special resolutions related to borrowing limits and director re-appointment at a rate of approximately 4.83%.

The highest dissent was recorded on the special resolution to increase borrowing limits and the ordinary resolution for director re-appointment, where 141,991 votes (0.88%) were cast against. All other resolutions received near-unanimous support.

Key Resolutions Passed

The Board placed several ordinary and special resolutions before the members. The most material outcome was the approval to enhance borrowing limits under Section 180(1)(c) of the Companies Act, 2013. This special resolution allows the company to access an additional ₹1,000 crore in debt financing.

Shareholders also approved authority to create charges or mortgages on company assets up to ₹3,000 crore. Additionally, consent was granted for loans and guarantees involving directors under Section 185 of the Companies Act, 2013. The remuneration of cost auditors M/s J. K. Kabra & Co. for FY27 was ratified.

Governance and Compliance

Shri Anshuman Vikram Jalan, Chairman, presided over the meeting. The quorum was established with sufficient shareholding representation. Statutory auditors M/s Singhi & Co and secretarial auditors M/s Pinchaa & Co were present to oversee compliance.

The Company Secretary confirmed that all notices and financial statements had been circulated via email to registered members. E-voting facilities remained open for 15 minutes post-meeting to allow additional participation.

Mangalam Cement reported a net profit of ₹18.07 crore for the quarter ended June 30, 2026, down 44% year-on-year from ₹32.26 crore in Q1FY26, as rising operational costs and finance expenses squeezed margins despite stable revenue. The decline highlights increasing pressure on profitability in the cement sector, with EBITDA margins contracting sharply to 11.72% from 16.60% in the prior year period.

The Board of Directors approved the unaudited financial results at a meeting held on August 8, 2026, pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company published the results in ‘Financial Express’ (English) all editions and in ‘Rajasthan Patrika’ (Hindi) Kota edition on August 9, 2026, in compliance with Regulation 47 of the SEBI Listing Regulations. Statutory auditors Singhi & Co. conducted a limited review of the financial statements in accordance with Standard on Review Engagements (SRE) 2410 issued by the Institute of Chartered Accountants of India.

Financial Performance Overview

Revenue from operations stood at ₹455.22 crore, broadly in line with ₹451.74 crore in Q1FY26, reflecting a marginal 1% increase. Total income grew slightly to ₹465.82 crore from ₹462.37 crore, as other income remained flat at ₹10.61 crore. However, total expenses increased significantly to ₹442.18 crore from ₹413.22 crore in the previous year, squeezing margins. Finance costs rose to ₹18.27 crore from ₹16.51 crore, contributing to the pressure on pre-tax profits. Depreciation and amortization expenses also increased to ₹22.07 crore from ₹20.15 crore.

The following table summarizes the key financial metrics for the quarter:

EBITDA and Margin Contraction

The EBITDA performance underscores the operational pressure faced during the quarter. EBITDA declined to 534M rupees from 752M rupees year-on-year, representing a significant erosion in operating earnings. Correspondingly, the EBITDA margin contracted sharply to 11.72% from 16.60% in the same period last year, reflecting the impact of rising costs outpacing revenue growth. The key EBITDA metrics are summarized below:

Key Operational and Tax Developments

The company recognized no exceptional items in Q1FY27. The tax expense structure saw significant changes — current tax was ₹7.26 crore, while deferred tax credit stood at ₹1.69 crore, resulting in a total tax expense of ₹5.57 crore. In contrast, Q1FY26 had a current tax of ₹8.73 crore and a deferred tax charge of ₹8.15 crore, leading to a higher total tax outflow of ₹16.88 crore despite higher profits. This shift in deferred tax accounting contributed to the net profit being less severely impacted than the profit before tax.

Basic and diluted earnings per share (EPS) were reported at ₹6.57, down from ₹11.73 in the same quarter last year. The paid-up equity share capital remained unchanged at ₹27.50 crore. The company operates in a single reportable segment: cement. Management noted that the figures for the quarter ended March 31, 2026, are balancing figures between audited full-year results and previously published nine-month unaudited figures.

What the Numbers Show

The divergence between the 52% drop in profit before tax and the 44% decline in net profit highlights the impact of deferred tax credits on the bottom line. The EBITDA margin contraction of nearly 489 basis points year-on-year points to structural cost pressures, with rising finance costs and depreciation outpacing revenue growth as key contributors. While the reduced effective tax burden provided some cushion to the net profit figure, the combination of margin compression and higher operating expenses reflects a challenging operating environment for the company during the quarter.