Sahyadri Industries Limited , a pioneer in building solutions, has announced its financial results for the second quarter of fiscal year 2026, demonstrating resilience in the face of seasonal headwinds. The company reported significant year-on-year growth in total income and profit after tax, despite facing margin pressures due to external factors.

Financial Highlights

*Includes other income

Key Performance Insights

Sahyadri Industries demonstrated strong top-line growth in Q2FY26, with total income rising by 18.3% year-on-year to Rs 126.30 crores. This growth came despite the traditionally softer second quarter, which is affected by the nationwide monsoon. The company's profit after tax surged by 40.4% to Rs 2.70 crores in the same period.

However, the company faced margin pressures due to external factors. The EBITDA margin declined to 8.2% in Q2FY26 from 9.6% in the corresponding quarter of the previous year. This compression was attributed to two main factors:

1. A stronger US dollar leading to higher imported fiber costs
2. Delayed withdrawal of the monsoon affecting overall sales

For the first half of FY26, the company reported a 5.5% increase in total income to Rs 342.40 crores. However, PAT for H1FY26 decreased by 6.5% to Rs 13.50 crores compared to the same period last year.

Operational Performance

The capacity utilization for H1FY26 stood at 73%, indicating room for growth as demand picks up. This metric suggests that the company has the potential to increase production without significant additional capital expenditure in the near term.

Management Commentary

Mr. Satyen Patel, Managing Director of Sahyadri Industries Limited, commented on the results: "Despite these seasonal headwinds, we delivered a resilient operational performance across key financial metrics. In Q2, total income grew by 18.3% YoY and PAT surged by 40.4% YoY. Looking ahead, we will continue to optimize our capacities and maintain a strong focus on cost control measures to enhance operational efficiencies."

Expansion Plans

Sahyadri Industries is actively pursuing expansion strategies to strengthen its market position:

1. A new manufacturing unit in Orissa for asbestos corrugated sheets with a capacity of 120,000 MTPA and a capex of Rs 95 crores.
2. Another unit in Maharashtra for non-asbestos cement boards with a capacity of 72,000 MTPA and a similar capex of Rs 95 crores.

These expansions aim to cater to unrepresented markets in Eastern and Northern India, as well as to bolster the company's presence in Western India and export markets.

Outlook

While the company faces short-term challenges due to seasonal factors and global economic conditions, its strategic expansions and focus on operational efficiencies position it well for future growth. The management's emphasis on capacity optimization and cost control measures is expected to help navigate the current headwinds and capitalize on the growing demand for building materials in India.

Investors and stakeholders will be watching closely to see how Sahyadri Industries leverages its expanded capacity and navigates the evolving market conditions in the coming quarters.

Sahyadri Industries Limited , a key player in the building materials sector, has announced its unaudited financial results for the second quarter of fiscal year 2026, ending September 30, 2025. The company reported a decline in both revenue and profitability compared to the previous quarter.

Financial Highlights

The company's total income for Q2 FY26 stood at ₹126.34 crores, marking a significant decrease from ₹216.09 crores in the previous quarter. This represents a quarter-on-quarter decline of 41.5%. The net profit saw a sharp drop, falling to ₹2.71 crores from ₹10.77 crores in Q1 FY26, a decrease of 74.8%. Consequently, the earnings per share also declined from ₹9.84 to ₹2.48.

Segment Performance

Sahyadri Industries operates in two primary segments:

1. Building Material
2. Power Generation

The building material segment, which is the company's core business, reported revenue of ₹122.16 crores for Q2 FY26, down from ₹212.25 crores in the previous quarter. The power generation segment contributed ₹5.74 crores, compared to ₹4.16 crores in Q1 FY26.

Expansion Plans

Despite the quarterly dip in financial performance, Sahyadri Industries is moving forward with its expansion plans:

1. A new unit in Odisha for manufacturing Asbestos Corrugated Sheets with a capacity of 1,20,000 MT is in progress.
2. Another unit in Maharashtra for Non Asbestos Cement Boards with a capacity of 72,000 MT is in the planning stages, with land acquisition currently underway.

These expansion efforts indicate the company's long-term growth strategy and confidence in market demand for its products.

Management Review

The financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors in their meeting held on October 31, 2025. The company's statutory auditors have carried out a limited review of the financial results and issued an unmodified review report.

Balance Sheet Overview

As of September 30, 2025, Sahyadri Industries reported:

• Total Assets: ₹498.36 crores
• Total Equity: ₹390.44 crores
• Total Liabilities: ₹107.92 crores

The company maintains a strong equity position, with a total equity to total assets ratio of approximately 78.3%.

Conclusion

Sahyadri Industries faced a challenging quarter with reduced revenue and profitability. However, the company's ongoing expansion plans suggest a strategic focus on long-term growth. Investors and market watchers will likely keep a close eye on how these expansion efforts translate into future financial performance and market position in the building materials sector.