Sagar Cements Limited has announced a significant corporate financing decision, with its Board of Directors approving an inter-corporate loan facility for its subsidiary company. The cement manufacturer disclosed this development as part of its regulatory compliance obligations under securities market regulations.

Board Meeting Outcome

The Board of Directors of Sagar Cements Limited, during their meeting, accorded approval for providing an inter-corporate loan facility to Andhra Cements Limited, the company's subsidiary. The loan arrangement includes specific parameters and conditions that align with corporate governance requirements.

Regulatory Compliance

The announcement was made pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015, which requires listed companies to disclose material events and information that could impact investor decisions. The disclosure ensures transparency in corporate actions and maintains compliance with securities market regulations.

The loan approval remains contingent upon obtaining necessary regulatory approvals as may be required under applicable laws and regulations. This conditional structure ensures that the transaction proceeds only after meeting all regulatory requirements and obtaining requisite permissions from relevant authorities.

Corporate Structure Impact

This inter-corporate loan facility represents a strategic financial arrangement between the parent company and its subsidiary. Such arrangements are common in corporate structures where parent companies provide financial support to subsidiaries for operational requirements, expansion activities, or working capital needs.

The loan facility strengthens the financial relationship between Sagar Cements Limited and Andhra Cements Limited, potentially supporting the subsidiary's operational activities and business requirements. The substantial amount of ₹125.00 crores indicates the significance of this financial arrangement within the company's overall corporate strategy.

Sagar Cements Limited announced its unaudited consolidated and standalone financial results for the third quarter and nine months ended December 31, 2025. The cement manufacturer reported mixed performance with revenue growth but continued operational losses during the quarter.

Consolidated Financial Performance

The company's consolidated operations showed revenue growth despite increased quarterly losses. Total income for Q3FY26 reached ₹592.37 crores compared to ₹568.69 crores in Q3FY25, representing a 4.16% increase.

The company's total expenses increased to ₹666.20 crores in Q3FY26 from ₹632.92 crores in Q3FY25. Major expense components included power and fuel expenses of ₹231.87 crores, freight and forwarding expenses of ₹123.64 crores, and cost of materials consumed at ₹123.98 crores.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, the company demonstrated significant improvement in financial performance. The consolidated net loss reduced substantially to ₹100.78 crores from ₹143.63 crores in the corresponding period of the previous year.

Standalone Operations

The standalone financial results showed improved performance with reduced losses. For Q3FY26, the standalone net loss was ₹13.26 crores compared to ₹24.26 crores in Q3FY25, representing a 45.34% improvement.

For the nine-month standalone period, the net loss was ₹10.04 crores compared to ₹55.31 crores in the previous year, showing an 81.84% improvement.

Corporate Developments

Several significant corporate actions took place during and after the reporting period:

• The company completed the final redemption of 1,500 Non-Convertible Debentures worth ₹1,154 lakhs to International Finance Corporation on May 28, 2025
• Post reporting date, the Investment Committee approved an Offer for Sale of up to 75 lakh equity shares of subsidiary Andhra Cements Limited
• The company executed the OFS of 71.49 lakh equity shares on January 9 and 12, 2026, reducing its shareholding in Andhra Cements Limited from 90% to 82.24%

Operational Highlights

The company operates in the manufacture and sale of cement and cement-related products as a single reportable business segment. The financial results include the parent company Sagar Cements Limited and its subsidiaries Sagar Cements (M) Private Limited and Andhra Cements Limited.

The results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on January 21, 2026. The statutory auditors B S R and Co issued an unmodified conclusion for the limited review of the quarterly and nine-month results.