Shree Digvijay Cement Q1 Results: Net profit drops 50% YoY to ₹6.83 crore
Shree Digvijay Cement Company's Q1FY26 results show a 50% YoY net profit decline to ₹6.83 crore despite 72% revenue growth to ₹337.27 crore. EBITDA per ton fell to ₹500 due to high sub-contracting and finance costs, though sales volume surged to 6.06 lakh tons.
*this image is generated using AI for illustrative purposes only.
Shree Digvijay Cement Company reported a 50% year-on-year decline in standalone net profit for the quarter ended June 30, 2026, dropping to ₹6.83 crore from ₹13.79 crore in Q1FY25. The profit contraction occurred despite a 72% surge in revenue from operations to ₹337.27 crore, highlighting significant margin compression caused by rising input and logistics costs amid global geopolitical uncertainties.
The Board of Directors approved the unaudited financial results at its meeting held on July 24, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to limited review by M/s. BSR and Co., the statutory auditors of the company. The figures for the quarter ended March 31, 2026, are balancing figures between audited full-year data and published year-to-date figures.
Operational Performance
Sales volume for Shree Digvijay Cement Company Limited (SDCCL) rose sharply to 6.06 lakh tons in Q1FY26, compared to 3.59 lakh tons in the same period last year. This volume growth was primarily driven by cement sold under the Brand Usage, Supply and Distributorship Agreement with Hi-Bond Cement (India) Private Limited. The company sold 249,343 metric tons manufactured at the Hi-Bond plant during the quarter, a substantial increase from 29,928 metric tons in the preceding quarter ended March 2026.
| Particulars | Q1FY26 | Q1FY25 | Change |
|---|---|---|---|
| Sales Volume (lacs tons) | 6.06 | 3.59 | +68.8% |
| Revenue from Operations (₹ lacs) | 33,727 | 19,595 | +71.9% |
| EBITDA (₹ lacs) | 3,028 | 2,519 | +20.2% |
| EBITDA per Ton (₹) | 500 | 701 | -28.7% |
| Net Profit (₹ lacs) | 683 | 1,379 | -50.5% |
Financial Metrics
Revenue from operations stood at ₹33,727 lakh, up from ₹19,595 lakh in Q1FY25. EBITDA grew moderately by 20.2% to ₹3,028 lakh, but EBITDA per ton declined significantly to ₹500 from ₹701, indicating that cost inflation outpaced revenue growth on a per-unit basis. Profit before tax fell to ₹915 lakh from ₹1,852 lakh, while total tax expenses decreased to ₹232.66 lakh from ₹473.11 lakh.
Sub-contracting costs for purchased cement emerged as a major expense driver, rising to ₹12,091.51 lakh from nil in Q1FY25, reflecting the increased reliance on third-party manufacturing under the Hi-Bond agreement. Finance costs also increased substantially to ₹1,162.97 lakh from ₹57.95 lakh in the prior year period.
What the Numbers Show
The divergence between volume growth and profitability underscores the impact of external cost pressures. While the company successfully expanded its market presence through the Hi-Bond partnership, driving sales volume up nearly 69%, the inability to pass on all cost increases resulted in a 28.7% drop in EBITDA per ton. This suggests that operational leverage has been offset by higher variable costs, particularly in sub-contracting and finance charges, which together accounted for a significant portion of the expense base.
Consolidated segment-wise data reveals that the cement business generated segment revenue of ₹33,726.73 lakh with a segment result of ₹2,078.15 lakh. Total comprehensive income for the consolidated group was ₹660.51 lakh, compared to ₹1,319.21 lakh in Q1FY25. Paid-up equity share capital increased slightly to ₹14,791.50 lakh following the allotment of 45,000 equity shares under the Employees Stock Options Scheme - 2019.
Historical Stock Returns for Shree Digvijay Cement Company
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.10% | +0.65% | -1.99% | -0.94% | -16.33% | -22.72% |
How sustainable is the current margin compression given the rising sub-contracting costs, and what pricing strategies might SDCCL adopt to protect EBITDA per ton?
What is the long-term strategic outlook for the Brand Usage Agreement with Hi-Bond Cement, and does it signal a permanent shift toward asset-light manufacturing for SDCCL?
How will the significant increase in finance costs impact the company's debt servicing capabilities and future capital expenditure plans for capacity expansion?
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