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.

Sahyadri Industries , a prominent player in the asbestos-based roofing sector, has released its financial results for the first quarter, revealing a mixed performance amidst ongoing market challenges.

Financial Performance

The company reported a total income of Rs. 216.10 crores for Q1, marking a marginal decline of 0.80% year-over-year (YoY) but a significant increase of 41.60% quarter-on-quarter (QoQ). Despite the challenging market conditions, Sahyadri Industries managed to maintain its revenue stability compared to the same period last year.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at Rs. 21.70 crores, reflecting a 12.70% decrease YoY but a 56.70% increase QoQ. The EBITDA margin compressed to 10.10% from 11.40% in the previous year, indicating some pressure on profitability.

Profit after tax (PAT) experienced a 13.80% YoY decline to Rs. 10.80 crores. However, on a quarter-on-quarter basis, PAT showed a substantial improvement, rising by 152.20%.

Operational Highlights

Sahyadri Industries demonstrated operational resilience by improving its capacity utilization to 93% in Q1, up from 89% in the same quarter of the previous year. This improvement in utilization rates reflects the company's efforts to optimize its production capabilities despite market headwinds.

Market Challenges and Outlook

The company faced several challenges during the quarter, including:

1. Early onset of monsoon, particularly in May, which impacted sales.
2. Subdued demand in the roofing segment.
3. Elevated input costs, especially for imported asbestos fiber.
4. Supply chain disruptions and increased freight charges.
5. Depreciation of the Indian rupee, affecting import-related expenses.

Despite these challenges, Sahyadri Industries' management remains cautiously optimistic about the future. During the earnings conference call, CEO and CFO Tuljaram Maheshwari stated, "We anticipate that despite ongoing challenges, the future presents a path to recovery driven by good monsoon, stabilizing global supply chains, diversification of the sourcing base, improved price realization and sustained demand for asbestos-based roofing sheets, particularly in the rural housing and infrastructure projects."

Future Plans and Guidance

The company has outlined its plans for capacity expansion, with a Rs. 100 crore investment in a new facility in Palghar. This expansion is now targeted for completion in Q4 and is expected to add approximately Rs. 125 crores to the company's revenue once fully operational.

Looking ahead, Sahyadri Industries anticipates an 8-10% growth in topline, with expectations of improving margins. The management also expressed optimism about the potential of their non-asbestos business, particularly in fireproof and waterproof products, which they believe could see significant growth in the coming years.

As Sahyadri Industries navigates through these challenging times, the company's focus on operational efficiency, capacity expansion, and product diversification may play crucial roles in its future performance and market position.