Sahyadri Industries Limited reported a net profit of ₹26.52 crore for the quarter ended June 30, 2026, marking a sharp 146% year-on-year increase from ₹10.77 crore in Q1FY26. Revenue from operations climbed 21% to ₹258.42 crore, reflecting sustained demand in its core building material segment. EBITDA for the quarter stood at ₹41.7 crore, up 92.2% year-on-year, with the EBITDA margin improving to 16.0% from 10.2% in the previous year. The Board of Directors, meeting on August 12, 2026, declared an interim dividend of ₹2.50 per equity share, signaling confidence in the company’s cash generation and operational efficiency.

The unaudited financial results were reviewed by the Audit Committee and approved by the Board in compliance with Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory Auditors Joshi Apte & Co. issued an unmodified limited review report on the statements. The interim dividend is payable to shareholders appearing on the Register of Members as of the record date, August 21, 2026, with payment scheduled for September 8, 2026.

Financial Performance Highlights

Total income stood at ₹261.25 crore, up from ₹216.09 crore in the corresponding period last year. Total expenditure increased to ₹225.75 crore from ₹201.60 crore, primarily due to higher cost of materials consumed, which rose to ₹128.81 crore from ₹118.65 crore. Employee benefits expense remained stable at ₹12.05 crore, while finance costs decreased marginally to ₹0.54 crore from ₹1.07 crore.

Segment-Wise Breakdown

The Building Material segment remains the primary growth engine, contributing ₹256.20 crore to segment revenue, a 21% increase from ₹212.25 crore in Q1FY26. Segment profit for this division surged to ₹33.22 crore from ₹13.86 crore. The Power Generation segment saw revenue rise to ₹4.84 crore from ₹4.16 crore, with segment profit improving to ₹1.73 crore from ₹1.51 crore, reversing a loss position seen in the previous quarter.

What the Numbers Show

The disproportionate rise in net profit compared to revenue growth indicates significant operating leverage. While revenue grew by 21%, profit before tax expanded by 145%. This divergence suggests that fixed costs were absorbed more efficiently as volume increased, or that mix-shifts towards higher-margin products occurred within the Building Material segment. Additionally, the reduction in finance costs contributed positively to the bottom line, although the primary driver remains operational efficiency in the core business.

Operational Updates and Outlook

Commenting on the results, Satyen Patel, Managing Director of Sahyadri Industries Limited, stated that the business delivered robust performance despite geopolitical challenges impacting exports. Capacity utilization improved to 103% in Q1 FY27, up from 93% in Q1 FY26. Patel noted that historically, Q1 is a strong quarter for the company and the industry. The growth outlook for the roofing sector in FY27 remains positive, subject to geopolitical situations, forex volatility impacting export markets, and imported raw material costs.

Expansion Plans and Regulatory Updates

Sahyadri Industries is advancing its capacity expansion strategy with two key projects. The company is setting up a new unit in Odisha for manufacturing Asbestos Corrugated Sheets with a capacity of 1,20,000 MT. Simultaneously, activities have begun for a Non-Asbestos Cement Boards plant in Maharashtra with a capacity of 72,000 MT; land acquisition for this project is currently in process.

The filing notes that the Government of India consolidated multiple labour legislations into four Labour Codes effective November 21, 2025. In accordance with Ind AS 19, the company recognized a one-time provision of ₹64.50 lakhs as an exceptional item in FY26 results. The impact of detailed rules under the New Labour Codes will be evaluated as they are notified.

sahyadri industries has announced a final dividend of INR 1.5 per equity share for the financial year 2025-26. The dividend, subject to shareholder approval at the upcoming Annual General Meeting, applies to shares with a face value of INR 10 each. The record date to determine shareholder eligibility has been set for August 7, 2026.

The Board of Directors approved the dividend recommendation during its meeting on May 9, 2026. The payout is scheduled for September 9, 2026. The 32nd Annual General Meeting of the company will be convened to approve the final dividend for the financial year.

The following table outlines the key details of the corporate action:

The intimation was submitted to the stock exchanges in compliance with Regulation 42 of the SEBI (LODR) Regulations, 2015.