Saurashtra Cement has re-appointed M. S. Gilotra as Managing Director for a one-year term effective from January 1, 2027, to December 31, 2027. The appointment requires shareholder approval at the upcoming annual general meeting.

The Board of Directors approved the re-appointment on August 24, 2026, based on the recommendation of the Nomination and Remuneration Committee. Mr. Gilotra, aged 76, brings over four decades of experience in the cement industry to the role.

Leadership Profile

Mr. Gilotra is a Mechanical Engineering graduate from BITS Pilani. He previously spent 21 years with Associated Cement Companies Ltd. (ACC) in senior leadership roles, overseeing plant operations and project execution. He has been associated with Saurashtra Cement’s Board since June 1995.

Currently serving as Managing Director, he oversees day-to-day operations and provides strategic leadership. His previous term ran from January 1, 2024, to December 31, 2026, as approved at the AGM held on August 17, 2023.

Regulatory Disclosures

The company disclosed that Mr. Gilotra is not debarred from holding office by SEBI or the Ministry of Corporate Affairs. He is not related to any other director or promoter of the company.

Saurashtra Cement reported a sharp decline in profitability for the first quarter of FY27, with standalone net profit dropping 45% year-on-year to ₹92.0 million, despite an 8% increase in revenue from operations. The Board of Directors approved the unaudited financial results on August 6, 2026, revealing that rising operational costs significantly compressed margins during the quarter ended June 30, 2026. This divergence between top-line growth and bottom-line contraction highlights intensifying cost pressures within the cement sector.

Financial Performance Overview

The company’s revenue from operations grew to ₹456.7 million in Q1FY27, up from ₹423.6 million in the corresponding quarter of the previous year. However, this top-line growth was offset by a steep contraction in operating efficiency. Standalone EBITDA fell 40% to ₹208.0 million compared to ₹347.0 million in Q1FY26, leading to an EBITDA margin compression to 4.55% from 8.2%. Consolidated net profit also declined to ₹91.3 million from ₹168.5 million year-on-year.

Segment-Wise Analysis

The cement segment remained the primary profit driver, generating segment revenue of ₹433.7 million, up 7.5% from ₹403.4 million in Q1FY26. However, the segment result before finance costs and tax decreased to ₹243.4 million from ₹333.1 million, indicating margin pressure within the core business. Conversely, the paints segment recorded a higher loss of ₹93.6 million compared to ₹41.8 million in the prior year quarter. Total segment assets stood at ₹16,513.2 million, reflecting capital intensity in the cement operations.

Cost Dynamics and Taxation

Operating expenses rose sharply, particularly in stores and repairs (₹382.7 million vs ₹281.5 million) and employee benefit expenses (₹283.4 million vs ₹297.4 million). Finance costs increased to ₹29.5 million from ₹26.2 million. Current tax expense was ₹32.4 million, while deferred tax credit of ₹4.1 million provided some relief against the current tax liability. The subsidiary, Agrima Consultants International Limited, contributed a negligible loss of ₹0.07 million, which management stated was not material to the group.

What the Numbers Show

The divergence between revenue growth and profit decline highlights significant cost inflation impacting Saurashtra Cement’s operational leverage. While sales volume or pricing likely supported the 8% revenue uptick, the inability to pass on increased input costs—evident in the soaring stores and repairs and stable yet high employee costs—eroded profitability. The paints segment’s widening losses further weighed on the bottom line, suggesting ongoing challenges in achieving breakeven in this diversified unit.