Mangalam Cement Limited, a prominent player in the Indian cement industry, has taken a significant step towards enhancing its global procurement capabilities. The company's Board of Directors has approved the establishment of a branch office in Dubai, United Arab Emirates, primarily focused on purchasing key raw materials such as Pet Coke and Coal.

Strategic Decision for Raw Material Procurement

The decision to open a branch office in Dubai was made during a board meeting held on November 8, 2025. This move is expected to streamline Mangalam Cement's access to critical raw materials, potentially optimizing its supply chain and cost structure.

Board Meeting Highlights

The board meeting, which commenced at 12:15 PM (IST) and concluded at 2:40 PM (IST), covered several important agenda items:

1. Approval of the Dubai branch office proposal
2. Review and approval of the unaudited financial results for the quarter and half-year ended September 30, 2025

Financial Performance Overview

While the primary focus of the announcement was the new Dubai office, the board meeting also included a review of the company's recent financial performance. Here's a snapshot of Mangalam Cement's financial results for the quarter ended September 30, 2025:

The company's performance shows a year-on-year improvement, with a significant increase in net profit compared to the same quarter in the previous fiscal year.

Implications of the Dubai Office

The establishment of a branch office in Dubai is a strategic move that may offer several advantages to Mangalam Cement:

1. Direct Access to Global Markets: Dubai's strategic location provides easier access to international markets for raw materials.
2. Potential Cost Optimization: Direct procurement may lead to better pricing and terms for essential materials like Pet Coke and Coal.
3. Supply Chain Efficiency: A dedicated office for procurement may streamline the supply chain process, potentially reducing lead times and improving inventory management.

Looking Ahead

This expansion into Dubai signals Mangalam Cement's proactive approach to managing its raw material needs in an increasingly global market. As the company moves forward with this initiative, stakeholders will be keen to observe how this strategic decision impacts the company's operational efficiency and financial performance in the coming quarters.

Mangalam Cement Limited has informed the National Stock Exchange of India (NSE) and BSE Limited about this development, in compliance with regulatory requirements. The company continues to focus on strengthening its position in the cement industry through strategic initiatives and operational improvements.

Mangalam Cement Ltd. has delivered a remarkable financial performance in the second quarter, showcasing substantial growth across key metrics. The company's net profit skyrocketed by 509%, reaching ₹201 million compared to ₹33 million in the same period last year.

Financial Highlights

The company's revenue grew to ₹3.94 billion, marking a 9.75% increase from ₹3.59 billion in the corresponding quarter of the previous year. This growth in revenue indicates strong demand for Mangalam Cement's products and effective sales strategies.

Profitability and Operational Efficiency

Mangalam Cement demonstrated significant improvement in its profitability metrics:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a substantial increase of 41.86%, rising to ₹427 million from ₹301 million year-over-year.
• The EBITDA margin expanded by 242 basis points, reaching 10.81% compared to 8.39% in the same quarter last year. This improvement suggests enhanced operational efficiency and better cost management.

Quarterly Performance Trend

Analyzing the company's recent quarterly performance:

• Net Profit: The current quarter's net profit of ₹201 million represents a significant improvement from the previous quarter's ₹169 million, indicating a positive growth trajectory.
• Revenue: While the quarterly revenue of ₹3.94 billion shows a slight decrease from the previous quarter's ₹4.62 billion, it still represents a year-over-year growth.

Outlook

The robust financial results reflect Mangalam Cement's resilience and adaptability in a challenging market environment. The substantial increase in net profit and improved EBITDA margin indicate the company's focus on operational excellence and cost optimization strategies.

As the construction and infrastructure sectors continue to recover, Mangalam Cement appears well-positioned to capitalize on growing demand. However, investors should monitor factors such as raw material costs and industry competition, which could impact future performance.

This strong quarterly performance sets a positive tone for Mangalam Cement, potentially boosting investor confidence in the company's growth prospects for the remainder of the fiscal year.