Star Cement Limited , a prominent player in the Northeast Indian cement market, has reported strong financial results for the second quarter of fiscal year 2026, ending September 30, 2025. The company has also unveiled plans for strategic expansion, including a new grinding unit in Bihar.

Financial Highlights

Star Cement's performance in Q2 FY26 showed significant improvement across key metrics:

The company's cement sales volume grew to 10.73 lakh tons from 9.62 lakh tons in the same quarter last year, while clinker sales increased to 1.01 lakh tons from 0.15 lakh tons.

Expansion Plans

Star Cement has announced several expansion initiatives:

1. Bihar Grinding Unit: The company plans to set up a 2 million ton grinding unit in Begusarai, Bihar, taking advantage of the state's 300% SGST benefit policy.

2. Silchar Project: The company expects to commission its Silchar project within the next three months.

3. Rajasthan Plant: Star Cement is considering a 4 million ton capacity plant in Rajasthan's Nimbol area.

4. Future Expansion in Assam: The company has acquired land and mining permissions for future expansion in Umrangso, Assam.

Market Performance

Star Cement reported strong performance in its key markets:

• Northeast India: Sales volume reached 7.64 lakh tons, up from 7.49 lakh tons in the same quarter last year.
• Outside Northeast: Sales volume increased to 3.09 lakh tons from 2.13 lakh tons.

The company's product mix comprised approximately 16% OPC (Ordinary Portland Cement) and 84% PPC (Portland Pozzolana Cement).

Other Developments

• Star Cement booked ₹56.00 crores in incentives during the quarter.
• The company expects fuel costs to remain stable at ₹1.25 per kcal for the next five months due to existing coal stock.
• A solar power plant of about 42 MW is being set up in Assam.

Future Outlook

Star Cement's Deputy Managing Director, Mr. Tushar Bhajanka, expressed optimism about the company's growth trajectory. He stated, "The market is growing at about 8%-9%, which is a bit higher than the market outside [Northeast]. We expect significant demand to come from upcoming infrastructure projects, particularly the dam and hydro projects in Arunachal Pradesh."

The company aims to reach a capacity of 18-20 million tons by FY29-FY30, indicating a strong focus on long-term growth and market expansion.

With its robust financial performance and strategic expansion plans, Star Cement appears well-positioned to capitalize on the growing demand in its core markets while exploring new growth opportunities in other regions.

Star Cement , a prominent player in the Indian cement industry, has recently shared its ambitious multi-year business guidance, outlining a roadmap for substantial growth and expansion. The company has set forth a series of targets spanning from fiscal year 2026 to 2030, demonstrating its commitment to long-term strategic planning and shareholder value creation.

FY2026 Projections

For the fiscal year 2026, Star Cement has provided a comprehensive outlook:

These projections suggest a strong focus on operational efficiency and profitability enhancement.

Growth Trajectory and New Revenue Streams

Looking beyond FY2026, Star Cement has outlined further growth plans:

• FY2027 Volume Growth: The company projects a 12% increase in volume.
• New Product Revenue: Anticipates ₹80-90 crores from diversified offerings including:
  • AAC blocks
  • Construction chemicals
  • Ready-mix concrete (RMC)

This diversification strategy indicates Star Cement's intent to expand its product portfolio and tap into complementary market segments.

Long-Term Capacity Expansion

In a bold move signaling confidence in market demand, Star Cement has announced plans to significantly scale up its production capacity:

• Target Capacity: 18-20 million tons
• Timeline: By fiscal years 2029-30

This ambitious expansion plan, if realized, would position Star Cement as a major force in the Indian cement sector.

Recent Financial Performance

While the company focuses on future growth, it's also important to note its recent financial performance. According to the latest LODR data, Star Cement conducted a conference call with investors and analysts on November 6, 2025, to discuss its unaudited standalone and consolidated financial results for the second quarter and half-year ended September 30, 2025. The audio recording of this call is available on the company's website, providing transparency and detailed insights into its current financial position.

Conclusion

Star Cement's multi-year business guidance reflects a strategic approach to growth, balancing near-term operational targets with long-term capacity expansion. The company's focus on diversifying its product range while simultaneously planning for substantial capacity increase demonstrates a comprehensive strategy to enhance its market position in the Indian cement industry.

Investors and market watchers will likely keep a close eye on Star Cement's progress towards these ambitious targets, particularly in light of evolving market conditions and the cyclical nature of the cement industry. As the company moves forward with its plans, its ability to execute on these projections will be crucial in determining its future success and market valuation.