Sanghi Industries Limited , a prominent player in the Indian cement sector, has reported its financial results for the second quarter ended September 30. The company's performance shows a mixed picture, with significant revenue growth accompanied by a continued net loss.

Financial Highlights

Sanghi Industries reported a substantial 88% year-on-year increase in revenue from operations, reaching Rs 284.93 crore in Q2, up from Rs 151.50 crore in the same quarter last year. This growth is particularly noteworthy given the challenging market conditions.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant improvement, rising to Rs 24.90 crore from Rs 3.10 crore in the previous year, marking a 703% increase. This indicates enhanced operational efficiency despite ongoing challenges.

However, Sanghi Industries continued to face headwinds, reporting a net loss of Rs 116.55 crore for the quarter. While this represents a 40% reduction from the loss of Rs 195.68 crore in Q2 of the previous fiscal year, it underscores the persistent challenges in the sector.

Operational Performance

The company's cement capacity utilization remained steady at 36%, unchanged from the previous quarter. Cement sales volume stood at 0.6 million tonnes, reflecting the impact of adverse weather conditions on operations.

Sanghi Industries attributed the low capacity utilization to heavy monsoon conditions and flood-like situations during the quarter. Despite these challenges, the management expressed optimism, projecting a capacity utilization of 70-75% for the remaining part of the fiscal year.

Strategic Initiatives and Future Outlook

During Q2, Sanghi Industries undertook strategic maintenance activities:

1. Scheduled maintenance of kiln line II
2. Rehabilitation of a 15km thermal power plant transmission line

These initiatives are expected to enhance operational efficiency in the coming quarters.

The company's Board of Directors has approved a merger scheme with Ambuja Cements Limited, with a shareholder meeting scheduled for November 20. This potential merger could significantly alter Sanghi Industries' market position and operational capabilities.

Legal and Financial Developments

Sanghi Industries is currently engaged in ongoing litigation with Gujarat's Chief Commissioner of State Tax regarding electricity duty exemption. In a positive development, the company received Rs 40 crore as an indemnification claim from erstwhile promoters related to this dispute.

Conclusion

While Sanghi Industries continues to navigate challenging market conditions, the significant growth in revenue and EBITDA suggests improving operational metrics. The company's strategic maintenance activities and potential merger with Ambuja Cements indicate a focus on long-term growth and efficiency. Investors and market watchers will be keenly observing how these initiatives translate into financial performance in the coming quarters.

Sanghi Industries Limited (SIL) has announced a crucial equity shareholders meeting scheduled for November 20, 2025, to consider a significant corporate action - a Scheme of Arrangement with Ambuja Cements Limited. This development marks a potential major shift in the Indian cement industry landscape.

Key Meeting Details

• Date and Time: November 20, 2025, at 11:00 AM IST
• Mode: Video Conferencing (VC) / Other Audio-Visual Means (OAVM)
• Purpose: To consider and potentially approve the Scheme of Arrangement between Sanghi Industries (transferor company) and Ambuja Cements (transferee company)

Legal Framework

The meeting follows orders from the National Company Law Tribunal (NCLT), Ahmedabad Bench, dated September 26, 2025, and October 9, 2025. This aligns with the provisions of Sections 230-232 of the Companies Act, 2013, which govern mergers and acquisitions in India.

Public Notifications

SIL has ensured wide dissemination of the meeting notice:

• Published in Indian Express (All editions) in English on October 15, 2025
• Published in Gujarati in Financial Express (Ahmedabad edition) on October 16, 2025

Implications for Shareholders

This meeting is crucial for SIL's equity shareholders as it involves a potential transfer/merger arrangement with Ambuja Cements, a significant player in the Indian cement market. Shareholders will have the opportunity to voice their opinions and vote on this strategic move.

Corporate Governance and Transparency

In line with regulatory requirements, SIL has made the meeting details, including the Scheme and Explanatory Statement, available on various platforms:

• Company's website: www.sanghicement.com
• Stock exchanges: NSE ( www.nseindia.com ) and BSE ( www.bseindia.com )
• Central Depository Services (India) Limited: www.evotingindia.com

Voting Process

To ensure maximum participation, SIL is providing:

• Remote e-voting facility
• E-voting during the meeting

The cut-off date for determining voting rights is set as November 14, 2025.

Industry Impact

This potential merger between Sanghi Industries and Ambuja Cements could significantly alter the competitive landscape of the Indian cement industry. It may lead to increased market consolidation and potentially affect pricing dynamics in the sector.

As the cement industry plays a crucial role in India's infrastructure development, the outcome of this meeting and the proposed merger will be closely watched by industry analysts, investors, and policymakers alike.