Star Cement Limited reported mixed financial results for the first quarter ended June 30, 2026, with revenue rising but profitability contracting due to reduced subsidies and higher input costs. The company hosted a conference call with investors on August 10, 2026, led by Managing Director and CEO Tushar Bhajanka and CFO Manoj Agarwal, to discuss the unaudited standalone and consolidated financial results.

Financial Performance

Total revenue for the quarter stood at ₹902 crore, compared to ₹847 crore in the same period last year. EBITDA declined to ₹203 crore from ₹230 crore in Q1 FY26, driven by reduced subsidy benefits, increased packing material costs, and shutdown expenses associated with one of its kilns. Profit after tax (PAT) fell to ₹74 crore from ₹98 crore in the prior year period.

On a per-ton basis, EBITDA was ₹1,497, down from ₹1,774 per ton in Q1 FY26. Management noted that excluding a one-time hit of approximately ₹40 crore due to GST rate changes on subsidies (reduction from 28% to 18%), the operational performance remained resilient.

Volume Growth & Market Conditions

Management revised its full-year FY27 cement volume growth guidance downward to 8-9%, from an earlier estimate of 11-12%. This revision was primarily attributed to anticipated lower volumes in Q2 due to severe floods in Assam. In July alone, Q2 FY27 volume degrowth stood at approximately 12%. However, management expressed confidence in recovering lost ground in September, noting that last year’s September numbers were adversely affected by GST revisions.

In terms of production, the company produced 9.10 lakh tons of clinker against 8.90 lakh tons in Q1 FY26. Cement production rose to 13.08 lakh tons from 12.31 lakh tons in the same period last year. Sales volumes for cement were 13.02 lakh tons versus 12.22 lakh tons previously, while clinker sales were 0.52 lakh tons compared to 0.74 lakh tons.

Geographically, Northeast sales accounted for 8.71 lakh tons against 8.67 lakh tons in Q1 FY26. Outside Northeast sales grew more significantly to 4.31 lakh tons from 3.55 lakh tons. The blend mix consisted of approximately 15% OPC and the remainder PPC. Trade share stood at about 80%, with premium sales contributing 15.9% of overall sales.

Cost Metrics & Operational Efficiency

Fuel costs emerged as a key pressure point, rising to ₹1.55/Kcal in Q1 from ₹1.33/Kcal in Q4 FY26. This increase was largely due to supply chain disruptions where Coal India allocations were diverted to power plants, forcing the company to purchase higher-priced spot contracts. The fuel mix in Q1 comprised 45% FSA, 30% spot coal contracts, and biomass. Management expects fuel costs to ease to approximately ₹1.45/Kcal in Q2, with further reductions anticipated in H2 FY27 as regular FSA rakes resume.

Packing material costs also increased due to international geopolitical tensions affecting PP bag prices. Despite these pressures, management indicated that prices have remained broadly stable, with only marginal increases of ₹2-3 per bag in Northeast and West Bengal markets, and around ₹10 per bag in Bihar.

Capital Expenditure & Expansion Plans

Star Cement outlined a significant multi-year capital expenditure roadmap, primarily focused on its Rajasthan and North projects. The CapEx breakdown remains unchanged:

The total estimated capex for the North region expansion, including the Nimbol clinker plant (3 million tons grinding, 3.3 million tons clinker) and Jhajjar project (2 million tons), is approximately ₹2,700 crore (₹2,900 crore including GST). In Q1 FY27, the company spent approximately ₹93 crore on capex.

The Rajasthan plant is expected to receive Environmental Clearance by September or October 2026, with ground work commencing between mid-October and November. Commissioning is targeted for Q1 FY29 or Q4 FY28. Additionally, the company is evaluating potential brownfield expansion in West Bengal’s Siliguri plant, pending the release of the state’s new industrial policy expected around August 15, 2026. This could potentially redirect some capex planned for Bihar.

Building Solutions Division

On the non-cement business front, the company aims to achieve ₹150 crore in non-cement revenue from its building solutions division (AAC and RMC) on an annualized run rate basis by Q4 FY27. Management clarified that this figure represents revenue, not EBITDA. While current demand has been sluggish, the company is increasing RMC plants and focusing on AAC to reach this target.

What the Numbers Show

The divergence between revenue growth (+6.5%) and PAT decline (-24.5%) highlights the sensitivity of Star Cement’s margins to regulatory changes and input cost volatility. The ₹40 crore hit from GST-related subsidy reductions underscores the significant role government incentives play in the company’s bottom line. With outstanding incentives from Assam totaling ₹130 crore and a revised annual subsidy estimate dropping from ₹145 crore to ₹115 crore due to payout structuring changes, future profitability will depend heavily on operational efficiency gains, such as the upcoming railway siding in Silchar and wagon tippler in Siliguri, which are projected to yield savings of ₹150 per ton.

Conference Call Access Details

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary Debabrata Thakurta signed the intimation. Participants joined via universal access numbers provided by ICICI Securities.

Star Cement Limited shareholders have approved a significant leadership restructuring through a postal ballot concluded on August 09, 2026. The resolutions, passed with overwhelming support, see Tushar Bhajanka appointed as Managing Director and Chief Executive Officer (CEO) for a three-year term starting May 22, 2026. Concurrently, Prem Kumar Bhajanka’s role was elevated from Managing Director to Vice Chairman & Managing Director, marking a strategic shift in the company’s executive hierarchy.

The voting process was conducted under Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with remote e-voting facilitated by National Securities Depository Limited (NSDL). The cut-off date for determining voting rights was July 03, 2026, when the company had 63,472 members holding 404,180,417 equity shares. The e-voting window opened on July 11, 2026, at 9:00 a.m. IST and closed on August 09, 2026, at 5:00 p.m. IST. MKB & Associates, appointed by the Board as the scrutinizer, certified the process as fair and transparent in its report dated August 10, 2026.

All three resolutions required special majority approval. The first resolution concerned the payment of remuneration and incentive to Tushar Bhajanka in his capacity as Deputy Managing Director from April 01, 2026, to May 21, 2026. This resolution received 98.65% support from votes polled. The second resolution, approving his change in designation and re-appointment as MD & CEO until May 21, 2029, garnered 99.06% approval. The third resolution, regarding Prem Kumar Bhajanka’s designation change, secured 99.90% support.

Voting Results Breakdown

The following table details the voting outcomes across different shareholder categories for all three special resolutions:

What the Numbers Show

The voting data reveals a distinct divergence between promoter and institutional shareholder sentiment regarding Tushar Bhajanka’s remuneration. While promoters voted unanimously in favor, public institutional investors opposed the remuneration package by 31.29%, indicating potential concerns over compensation structures despite supporting his broader appointment. However, institutional opposition softened significantly for the re-appointment resolution (21.65% against) and nearly vanished for Prem Kumar Bhajanka’s designation change (1.74% against), suggesting that while pay terms were debated, the leadership succession plan itself enjoys broad cross-sectional support. Non-institutional retail investors remained consistently aligned with management across all items, with support exceeding 99.8% in each case.