Star Cement has been declared the preferred bidder for the Boro Lakhindong (West Block) limestone mine in Assam, securing access to a critical raw material resource. The company emerged successful in the e-auctions conducted by the Government of Assam for the mining lease located in District Dima Hasao. This development strengthens the company's resource base in the northeastern region of India.

Key Details of the Boro Lakhindong Limestone Mine Acquisition

The following table outlines the key parameters of the mine bid:

Strategic Significance

Securing the Boro Lakhindong limestone mine positions Star Cement with access to a sizeable limestone reserve in the northeastern region of India. Limestone is a primary raw material in cement manufacturing, and the 207.822 million tonnes of resources associated with this 123-hectare mine represent a substantial addition to the company's resource portfolio. The mine's location in Assam aligns with the company's operational presence in the northeastern market.

Star Cement reported a 60% year-on-year increase in EBITDA to INR 944 Cr for FY26, compared to INR 589 Cr in the previous year, driven by strong operational performance. The company disclosed its financial results for the fourth quarter and year ended March 31, 2026, alongside its capital expenditure and expansion strategy in an investor presentation. For FY27, the company estimates a total CAPEX of approximately INR 700 Cr, which includes operational expenditure.

Financial Performance

The company achieved its highest ever annual EBITDA in FY26. For the quarter ended March 31, 2026 (Q4 FY26), EBITDA stood at INR 318 Cr, a 19% increase from INR 268 Cr in Q4 FY25. Profit after tax for the full year rose to INR 390 Cr from INR 169 Cr in FY25. Revenue from the sale of cement and clinker for FY26 was INR 3,776 Cr, up from INR 3,163 Cr in the previous year.

Expansion and CAPEX Plans

Star Cement is planning to fund all future expansion through internal accruals and debt financing, targeting a Net Debt/EBITDA ratio below 1.5x to maintain fiscal prudence. The estimated INR 700 Cr CAPEX for FY27 encompasses operational costs. The company is fast-tracking expansion in Bihar and Rajasthan, with an integral target to complete land acquisition within the next 4-5 months.

Operational Highlights

Sales volume for Q4 FY26 grew 13% year-on-year to 17.33 lac tons. The Cachar Grinding Unit was commissioned on February 19, 2026, contributing to the high demand in the quarter. Green energy share reached 33.8% in Q4 FY26, with Waste Heat Recovery Systems (WHRS) contributing 27.4% to the total power mix.