Sanghi Industries announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing a widened quarterly loss despite revenue growth. The cement manufacturer's financial performance reflects ongoing operational challenges while showing signs of revenue recovery.

Financial Performance Overview

The company's quarterly financial metrics demonstrate mixed results with revenue growth offset by increased losses:

The company's revenue from operations increased to ₹275.00 crore in Q3FY26 from ₹258.96 crore in Q3FY25, representing a growth of 6.19%. Other income also rose significantly to ₹8.61 crore from ₹4.15 crore in the corresponding quarter.

Nine-Month Performance Shows Improvement

For the nine-month period ended December 31, 2025, Sanghi Industries demonstrated stronger performance:

The nine-month revenue surge of 27.12% to ₹805.31 crore indicates improved operational momentum, while the reduced net loss of ₹307.34 crore compared to ₹381.46 crore in the previous year shows better cost management.

Expense Analysis and Operational Challenges

The company faced significant expense pressures during the quarter, with total expenses rising to ₹399.00 crore from ₹323.33 crore year-on-year. Key expense categories included:

• Power and fuel expenses increased to ₹202.25 crore from ₹173.02 crore
• Depreciation expenses rose substantially to ₹95.26 crore from ₹36.51 crore
• Finance costs decreased to ₹51.58 crore from ₹58.16 crore
• Other expenses increased to ₹55.58 crore from ₹51.14 crore

Notably, the company benefited from favorable inventory changes, recording a positive impact of ₹73.12 crore compared to ₹46.73 crore in the previous year.

Board Appointments and Corporate Developments

The Board of Directors approved the appointment of Mr. Rohit Soni as Additional Director (Non-Executive and Non-Independent) effective January 31, 2026. Mr. Soni brings extensive financial leadership experience, currently serving as Chief Financial Officer of the Cement business and previously holding CFO positions at Adani New Industries Limited and Adani Energy Solutions Limited.

Investor Communication and Transparency

Sanghi Industries has submitted the audio recording of its analysts and investors call for Q3FY26 results to BSE and NSE. The company filed the submission on January 31, 2026, making the recording available on its website at www.sanghicement.com . This follows the company's earlier communication dated January 13, 2026, regarding the quarterly results presentation.

Ongoing Legal Matters

The company continues to face litigation with the Chief Commissioner of State Tax, Government of Gujarat, regarding electricity duty exemption under the Electricity Duty Act. During the nine-month period, Sanghi Industries received ₹40.00 crore from erstwhile promoters against indemnity claims, recorded as exceptional income. The company has made provisions totaling ₹43.90 crore for the principal portion of disputed electricity duty and maintains contingent liability of ₹181.65 crore toward interest for the dispute period.

Capital Structure and Share Information

The company maintains a paid-up equity share capital of ₹258.33 crore, consisting of shares with a face value of ₹10 each. The earnings per share for the quarter stood at ₹(4.47) compared to ₹(3.75) in the corresponding quarter of the previous year.

Sanghi Industries operates exclusively in the cement and cement-related products business with sales in the domestic market. The company recently shifted its registered office from Telangana to Adani Corporate House in Ahmedabad, Gujarat, effective January 10, 2025.

Adani Cement, a subsidiary of the Adani Group, has taken a significant step towards decarbonizing cement production by partnering with Coolbrook to deploy the world's first commercial RotoDynamic Heater™ (RDH™) technology. This groundbreaking initiative will be implemented at the Boyareddypalli Integrated Cement Plant in Andhra Pradesh, India, marking a pivotal moment in the global cement industry's efforts to reduce carbon emissions.

Key Highlights of the Partnership

• Technology: Coolbrook's RotoDynamic Heater™ (RDH™) technology
• Location: Boyareddypalli Integrated Cement Plant, Andhra Pradesh, India
• Expected CO₂ Reduction: ~60,000 tonnes annually, with potential to increase 10-fold
• Power Source: Adani Cement's renewable energy portfolio
• Target Temperature: Around 1000°C for hot gas delivery

Impact on Cement Production

The RDH™ system aims to decarbonize the calcination phase, which is traditionally the most fossil fuel-intensive stage of cement production. By providing clean heat for drying and enhancing alternative fuels, the technology is expected to significantly increase the substitution of fossil fuels with sustainable alternatives.

Adani Cement's Sustainability Goals

Vinod Bahety, CEO of Adani Group's Cement Business, emphasized the significance of this deployment: "This is a major leap towards achieving our net-zero goals. By integrating such cutting-edge electrification solutions into our cement production, we are accelerating the shift away from fossil fuels, reducing emissions at scale, enhancing the utilization of clean energy sources, and setting a new standard for low-carbon cement manufacturing."

Future Plans and Scalability

Adani Cement and Coolbrook have identified multiple opportunities for deploying RotoDynamic Technology across Adani's industrial operations. The companies aim to launch at least five additional projects within the next two years, demonstrating the scalability and potential for replication of this technology in the cement industry.

Industry Impact

This deployment positions Adani Cement at the forefront of India's efforts to become a global clean manufacturing cement hub. It also aligns with Adani Cement's broader sustainability initiatives, including its status as one of only four large-scale cement companies globally with Science Based Targets initiative (SBTi)-validated net-zero targets.

Joonas Rauramo, CEO of Coolbrook, stated, "Our mission is to make RotoDynamic Technology a new industry standard for decarbonizing hard-to-abate sectors. Together, we're redefining how cement is produced - cleaner, more efficient, and ready for a net-zero future."

As the cement industry continues to grapple with its significant carbon footprint, Adani Cement's pioneering deployment of the RDH™ technology sets a new benchmark for sustainable cement production. This initiative not only advances Adani's own sustainability goals but also paves the way for broader adoption of clean technologies in the global cement sector.