Andhra Cements Limited , a subsidiary of Sagar Cements Limited, has announced a significant upgrade to its manufacturing capabilities. The company has successfully installed and commenced operations of a new 6-stage preheater at its plant in Sri Durga Cement Works, Dachepalli Mandal, Palnadu District, Andhra Pradesh.

Capacity Expansion

The installation of the new 6-stage preheater is part of a broader modernization and expansion project aimed at enhancing the company's production capacity. Key highlights of the expansion include:

This substantial increase in both clinker and cement production capabilities positions Andhra Cements to meet growing market demands more effectively.

Project Timeline and Progress

The company disclosed that the 6-stage preheater commenced operations on October 23, 2025. While this crucial component is now operational, Andhra Cements noted that cement mill works are still in progress at the plant.

Financial Performance

In conjunction with this operational update, Andhra Cements also released its unaudited financial results for the quarter and half-year ended September 30, 2025. Key financial highlights include:

Despite the increase in revenue, the company continues to face challenges, as evidenced by the widening losses.

Strategic Initiatives

Andhra Cements is actively pursuing strategies to improve its financial position:

1. Rights Issue: The company's board has approved a proposal to raise up to ₹18,000.00 lakhs through a rights issue to existing shareholders.

2. Asset Optimization: Plans are underway to sell unused land parcels, with the sale expected to be completed in the current financial year 2025-26.

These initiatives demonstrate Andhra Cements' commitment to strengthening its financial foundation while expanding its operational capabilities.

The installation of the new 6-stage preheater marks a significant milestone in Andhra Cements' growth strategy. As the company continues to navigate challenging market conditions, this capacity expansion could play a crucial role in its efforts to improve performance and market position in the coming quarters.

Andhra Cements Limited , a subsidiary of Sagar Cements Limited, has reported a significant increase in net loss for the first half of the fiscal year 2025-26. The company's financial performance shows continued challenges in the cement manufacturing sector.

Financial Performance

Andhra Cements reported a net loss of ₹41.92 crore for the quarter ended September 30, 2025, compared to a loss of ₹34.88 crore in the same period last year. For the six-month period, the company's net loss widened to ₹71.54 crore from ₹58.47 crore in the previous year.

Here's a breakdown of the key financial metrics:

All figures in ₹ crore

Operational Highlights

Despite the increase in revenue, the company's expenses have outpaced income growth, leading to wider losses. The total expenses for the quarter stood at ₹120.36 crore, significantly higher than the revenue generated.

Strategic Moves

Andhra Cements has decided to sell unused land parcels, which have been classified as assets held for sale. This move is expected to be completed in the current financial year 2025-26 and could potentially help in improving the company's financial position.

Market Context

The cement industry continues to face challenges, including rising input costs and competitive pressures. Andhra Cements' performance reflects these sector-wide issues, as evidenced by the widening losses despite increased revenue.

Looking Ahead

While the company has seen an increase in revenue, the mounting losses indicate ongoing operational challenges. The decision to sell unused land parcels may provide some financial relief, but the company will need to address its cost structure and operational efficiency to improve its bottom line in the coming quarters.

Investors and stakeholders will be closely watching how Andhra Cements navigates these challenges and implements strategies to return to profitability in the competitive cement market.