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 ₹33,727 lakh, highlighting significant margin compression caused by rising input and logistics costs amid global geopolitical uncertainties. While sales volume nearly doubled, EBITDA per ton fell sharply to ₹500 from ₹701, indicating that cost inflation outpaced pricing power.

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. Amit Arora, CEO & Managing Director, stated that management remains confident in the company's long-term growth potential, supported by strong operational capabilities and disciplined capital allocation.

Operational Performance

Sales volume for Shree Digvijay Cement Company Limited 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.

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. 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.

Shree Digvijay Cement Company reported a sharp divergence in its Q1FY27 standalone results on July 24, 2026, with revenue surging 71% year-on-year while profitability metrics contracted significantly due to margin compression. The company posted revenue from operations of ₹337.27 crore for the quarter ended June 30, 2026, compared to ₹195.95 crore in the corresponding period of FY25. This top-line growth was primarily volume-driven, with sales jumping to 6.06 lakh tons from 3.59 lakh tons in Q1FY26. Despite the robust demand, net profit after tax (PAT) declined by 50.5% to ₹6.83 crore from ₹13.79 crore, as rising input and logistics costs stemming from geopolitical uncertainties eroded operating margins.

The Board of Directors approved the unaudited standalone and consolidated financial results in a meeting held on July 24, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were subsequently published in the Financial Express and uploaded to the company’s website, complying with Regulation 47 and Regulation 46 of SEBI LODR respectively. The company’s CEO and Managing Director, Amit Arora, stated that despite external challenges disrupting global supply chains, the company maintained operational stability and expanded its market presence.

Operational and Financial Performance

The primary driver of the mixed performance was the inability of operating margins to keep pace with volume-led revenue growth. While absolute EBITDA expanded to ₹30.28 crore from ₹25.19 crore in Q1FY26, the EBITDA per ton fell sharply to ₹500 from ₹701. This indicates that input costs, logistics, or energy expenses rose disproportionately to sales prices during the quarter. The company attributed these pressures to geopolitical uncertainties that disrupted global supply chains.

Standalone profit before tax stood at ₹9.15 crore in Q1FY27, down significantly from ₹18.52 crore in Q1FY26. The basic earnings per share (EPS) halved to ₹0.46 from ₹0.93 in the previous year’s first quarter. Consolidated figures mirrored the standalone trends, with consolidated revenue at ₹338.35 crore and consolidated net profit at ₹6.82 crore.

What the Numbers Show

The data reveals a classic margin squeeze scenario where volume growth is not translating into proportional profit growth. In Q1FY26, the net profit margin was approximately 7.04%. In Q1FY27, this margin dropped to roughly 2.02%. This compression suggests that the company faced significant headwinds in passing on increased costs to customers. However, the substantial increase in sales volume, partly aided by the Brand Usage, Supply and Distributorship Agreement with Hi-Bond Cement (India) Private Limited, demonstrates strong market execution. During the quarter, the company sold 249,343 MT of cement manufactured at the Hi-Bond plant, compared with 29,928 MT in the quarter ended March 2026. Investors should monitor whether this margin contraction is a temporary cyclical issue or a structural shift in the company’s cost dynamics.

Key Financial Highlights

• Volume Surge: Sales volume increased by 68.8% YoY to 6.06 lakh tons.
• Revenue Growth: Standalone revenue jumped to ₹337.27 crore from ₹195.95 crore in Q1FY26.
• Margin Pressure: EBITDA per ton declined to ₹500 from ₹701, impacting overall profitability.
• Profit Decline: Standalone net profit fell to ₹6.83 crore from ₹13.79 crore YoY.
• Strategic Execution: Management emphasized disciplined capital allocation and supply chain management as key pillars for long-term value creation.