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.

Mangalam Cement has commenced the supply of solar power from its newly commissioned 15.17 MW (AC) / 22 MW (DC) captive solar plant in Barmer, Rajasthan, marking a significant step in its renewable energy strategy. The Short-Term Open Access (STOA) for power evacuation became effective on August 6, 2026, enabling immediate supply to the company’s operations. This development is expected to reduce overall power costs and increase the share of renewable energy in the company’s total power mix, supporting long-term sustainability goals and operational efficiency.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, following an earlier intimation dated September 5, 2024. In that earlier filing, Mangalam Cement informed stock exchanges about the execution of a Power Purchase Agreement (PPA) and a Share Subscription and Shareholders' Agreement (SSSHA) to acquire a captive equity stake in Suryadeep RJ-1 Projects Private Limited. The project operates under the Captive Open Access model, allowing the company to procure solar power directly from the dedicated generation facility.

The solar power plant was developed on a Build-Own-Operate (BOO) basis by Suryadeep RJ-1 Projects Private Limited. Located in the Barmer District of Rajasthan, the facility utilizes Group Captive Generation Mechanism protocols to deliver clean energy to Mangalam Cement. The commissioning date aligns with the effective date of the STOA approval, ensuring seamless integration into the company’s energy infrastructure without operational delays.

Pawan Kumar Thakur, Company Secretary & Compliance Officer at Mangalam Cement Limited, signed the disclosure filed with both the National Stock Exchange of India Ltd. and BSE Limited. The filing confirms that all regulatory requirements for open access solar photovoltaic (PV) plants have been met, allowing for uninterrupted power evacuation and supply.

Strategic Impact on Energy Costs

The commissioning of this facility represents a tangible shift toward sustainable operations for Mangalam Cement. By securing a dedicated source of renewable energy through the captive open access route, the company mitigates exposure to volatile grid electricity prices. The expected financial impact includes a direct reduction in power procurement costs, while the operational impact involves a higher proportion of green energy in the total power mix. This aligns with broader industry trends where cement manufacturers are increasingly investing in captive renewable energy projects to meet environmental standards and improve cost structures.