Sagar Cements Turns Profitable; Targets 7 MT Volumes

Sagar Cements has released its audited standalone and consolidated financial results for the fourth quarter and full year ended March 31, 2026. The company reported a net profit of ₹4,361 lakhs in Q4 FY26, reversing a net loss of ₹3,017 lakhs in Q4 FY25. For the full year FY26, standalone revenue from operations stood at ₹1,76,830 lakhs against ₹1,56,664 lakhs in FY25, while net profit was ₹3,357 lakhs compared to a net loss of ₹8,548 lakhs in FY25.

Standalone Financial Performance

On a standalone basis, revenue from operations for Q4 FY26 was ₹52,991 lakhs, compared to ₹40,313 lakhs in Q4 FY25. Basic and diluted earnings per share (face value ₹2 each) for FY26 stood at ₹2.57, compared to a loss of ₹6.54 per share in FY25. The following table summarises key standalone financial metrics (figures in ₹ lakhs unless otherwise stated):

Metric:	Q4 FY26	Q3 FY26	Q4 FY25	FY26	FY25
Revenue from Operations:	52,991	45,984	40,313	1,76,830	1,56,664
Total Income:	57,520	46,720	40,819	1,83,329	1,59,327
Total Expenses:	55,718	50,230	42,913	1,83,007	1,71,061
Net Profit/(Loss):	4,361	(3,017)	(1,326)	3,357	(8,548)
Basic EPS (₹):	3.34*	(2.31)*	(1.01)*	2.57	(6.54)

*Not annualised

Consolidated Financial Performance

On a consolidated basis, the Group reported revenue from operations of ₹78,696 lakhs for Q4 FY26, compared to ₹65,804 lakhs in Q4 FY25. The consolidated net profit for Q4 FY26 stood at ₹10,005 lakhs, against a net loss of ₹7,305 lakhs in Q4 FY25. For the full year FY26, consolidated revenue from operations was ₹2,65,002 lakhs versus ₹2,25,764 lakhs in FY25. The consolidated net loss for FY26 narrowed significantly to ₹73 lakhs from a net loss of ₹21,668 lakhs in FY25.

The following table summarises key consolidated financial metrics (figures in ₹ lakhs unless otherwise stated):

Metric:	Q4 FY26	Q3 FY26	Q4 FY25	FY26	FY25
Revenue from Operations:	78,696	59,054	65,804	2,65,002	2,25,764
Total Income:	79,815	59,237	66,152	2,67,157	2,27,907
Total Expenses:	82,477	66,620	72,689	2,79,463	2,53,543
Net Profit/(Loss):	10,005	(7,305)	(6,410)	(73)	(21,668)
Basic EPS (₹):	7.65*	(5.59)*	(4.90)*	(0.06)	(16.58)

*Not annualised

Operational Highlights and Guidance

During the earnings call held on May 14, 2026, management highlighted that total volumes for the year stood at 6.1 million tonnes, growing by 11% year-on-year. EBITDA per tonne for Q4 FY26 stood at ₹445 as against ₹218 per tonne in Q4 FY25. Power and fuel costs were ₹1,422 per tonne, while freight costs stood at ₹848 per tonne. Looking ahead, the company expects volumes to be in the range of 7 million tonnes for FY27, supported by government-led infrastructure spending and stable rural demand.

Key Corporate Developments

The Board approved an Offer for Sale (OFS) of equity shares of subsidiary Andhra Cements Limited (ACL), reducing Sagar Cements' shareholding from 90.00% to 75.00% and generating proceeds of ₹8,764 lakhs. The Board accorded in-principle approval for the amalgamation of Andhra Cements Limited with Sagar Cements Limited. Additionally, the Board approved the establishment of a new division, Superfine Building Materials, to focus on high-performance materials derived from GGBS and fly ash. The company also commissioned 2.8 megawatts of the Waste Heat Recovery System at its Gudipadu plant on May 12, 2026.

Balance Sheet Highlights

As at March 31, 2026, the consolidated total assets of the Group stood at ₹4,50,527 lakhs. Total equity increased to ₹1,86,092 lakhs. Gross debt stood at ₹1,672 crores, with a net worth of ₹1,861 crores and a debt-equity ratio of 0.74:1. Cash and bank balances were ₹107 crores.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.30%	-0.16%	-0.23%	-15.60%	-23.70%	+4.03%

Sagar Cements has successfully commissioned a 2.80 MW Waste Heat Recovery Power System (WHRS) at its cement manufacturing plant located in Gudipadu village, Ananthapur District, Andhra Pradesh. The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and was communicated to the stock exchanges on 14th May, 2026.

WHRS Commissioning Details

The commissioned system pertains to the AQC (Air Quenching Cooler) boiler and represents a partial commissioning of the company's total planned WHRS capacity at the Gudipadu facility. The following table summarises the key parameters of the project:

Parameter:	Details
Commissioned Capacity:	2.80 MW (AQC boiler)
Total Project Capacity:	4.35 MW
Balance Capacity:	1.55 MW (Preheater boiler)
Facility Location:	Gudipadu village, Ananthapur District, Andhra Pradesh
Expected Balance Commissioning:	June 2026
Disclosure Regulation:	Regulation 30, SEBI (LODR) Regulations, 2015
Disclosure Date:	14th May, 2026

Balance Capacity and Next Steps

The remaining 1.55 MW of capacity, which relates to the preheater boiler, is expected to be commissioned by June 2026, as communicated in the regulatory filing. This follows the company's earlier letter dated 28th March, 2025, which had previously apprised the exchanges of the WHRS project at the Gudipadu plant.

About the Gudipadu Facility

The Gudipadu plant is one of Sagar Cements' multiple manufacturing facilities across India. The company operates cement plants across Telangana, Andhra Pradesh, and Odisha, and holds multiple international certifications including ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, and ISO 50001:2018. The WHRS installation at Gudipadu reflects the company's efforts towards energy efficiency at its manufacturing operations.

The regulatory disclosure was signed by J. Raja Reddy, Company Secretary of Sagar Cements, and submitted to both the National Stock Exchange of India Ltd. and BSE Limited.