Shankara Building Products Limited (SBPL) has reported robust quarterly results for Q2H1FY26, marking a significant improvement from the previous year's performance. The company achieved substantial growth in its steel business, with volumes reaching 2.52 lakh tonnes, representing a 31% year-over-year increase.

Revenue Growth

The company's steel revenue saw a notable rise to ₹1,526.00 crore, indicating a 28% year-over-year growth. This marks a substantial improvement from the revenue decline reported in the previous year.

EBITDA Performance

Despite the significant growth in volumes and revenue, Shankara Building Products maintained its EBITDA margin at 3.03%, demonstrating consistent operational efficiency.

Demerger Implementation

The company has successfully completed the implementation of its demerger plan, separating its marketplace business (SBL) from manufacturing operations (SBPL). This strategic move aims to create focused business units, with trading approval currently pending.

Financial Performance

Outlook

The strong performance in steel volumes and revenue, coupled with the successful demerger implementation, positions Shankara Building Products for potential growth in the coming quarters. The company's ability to maintain its EBITDA margin while achieving significant growth is a positive indicator for its operational efficiency.

Investors and analysts may monitor how the company capitalizes on its focused business structure and whether it can sustain this growth trajectory in the future.

Note: The company's board of directors approved these results, although the specific date of the board meeting was not provided in the given information.

Shankara Building Products has undergone a significant change in its shareholding structure as Franklin Templeton Mutual Fund completely divested its stake in the company. The mutual fund giant sold its entire holding of 1,052,838 shares, representing 4.34% of the company's total equity, through open market transactions on October 9, 2025.

Transaction Details

The stake sale was executed entirely through the Franklin India Small Cap Fund scheme. Following this transaction, Franklin Templeton's holding in Shankara Building Products has reduced to zero from its previous 4.34% stake.

Company Information

Shankara Building Products, a player in the building materials sector, has its shares listed on both the National Stock Exchange of India and BSE Limited. The company's total equity share capital stands at 24,249,326 shares.

Regulatory Compliance

In compliance with SEBI regulations, specifically Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, Franklin Templeton Mutual Fund has duly disclosed the details of this transaction. The disclosure, dated October 10, 2025, provides a comprehensive breakdown of the stake sale, including pre-sale and post-sale holdings.

This move by Franklin Templeton could potentially impact the stock's trading dynamics and might be of interest to other institutional investors and market participants tracking the building materials sector.