Andhra Cements has released its third-quarter financial results, showing continued losses as the cement manufacturer faces ongoing operational challenges. The company reported a net loss that was marginally higher compared to the same period in the previous year.

Financial Performance Overview

The company's Q3 financial performance reflects persistent difficulties in achieving profitability. The latest results indicate a slight deterioration in the company's bottom line compared to the corresponding quarter of the previous fiscal year.

Year-on-Year Comparison

The financial data reveals that Andhra Cements' net loss increased by ₹0.30 crores when compared to the same quarter of the previous year. This represents a 0.69% increase in losses, indicating that the company's financial challenges have persisted into the current fiscal period.

The marginal widening of losses suggests that while the company has not achieved profitability, the deterioration has been relatively contained. The cement industry's performance is typically influenced by factors such as raw material costs, demand patterns, and competitive dynamics.

Current Financial Position

The Q3 results demonstrate that Andhra Cements continues to operate at a loss, with the company unable to turn around its financial performance in the near term. The consistency of losses across comparable quarters indicates ongoing structural challenges that the company needs to address to achieve sustainable profitability.

Andhra Cements Limited has disclosed that its promoter, Sagar Cements Limited, has successfully completed the sale of 71,48,978 equity shares through an Offer for Sale (OFS) mechanism. The transaction, conducted on January 09 and 12, 2026, represents a significant divestment by the parent company to meet regulatory compliance requirements.

Transaction Overview

The OFS involved the sale of equity shares with a face value of ₹10.00 each, representing 7.76% of Andhra Cements' total issued and paid-up equity share capital. The transaction was structured across two days, with January 09, 2026 designated as T Day for non-retail investors only, and January 12, 2026 as T+1 Day for retail investors and non-retail investors carrying forward their unallotted bids.

Shareholding Pattern Changes

The divestment has resulted in a substantial reduction in Sagar Cements' ownership of Andhra Cements Limited. Prior to the transaction, Sagar Cements held a dominant position in its subsidiary company.

Regulatory Framework and Compliance

The OFS was conducted in strict accordance with SEBI's comprehensive framework for share sales through stock exchange mechanisms. The transaction followed SEBI circular no. SEBI/HO/MRD2/PoD-2/P/CIR/P/2024/00181 dated December 30, 2024, along with revised guidelines from both BSE and NSE for OFS segment operations.

Key regulatory aspects include:

• Compliance with Regulation 29(2) of SEBI Takeover Regulations
• Adherence to minimum public shareholding requirements
• Proper disclosure mechanisms to stock exchanges
• Structured bidding process for different investor categories

Company Structure and Operations

Andhra Cements Limited operates with its registered office and works located at Durga Cement Works, Durgapuram, in Palnadu District, Andhra Pradesh. The company maintains additional manufacturing facilities including the Vizag Unit at Visakhapatnam and corporate offices in Hyderabad. With a total equity share capital of 9,21,72,140 shares valued at ₹92,17,21,400, the company remains a significant entity in the cement sector.

The transaction represents a strategic move by Sagar Cements to optimize its shareholding structure while ensuring compliance with regulatory requirements for public shareholding in listed subsidiaries.