Sagar Cements Limited (SCL), a prominent player in the cement industry, has announced a partial withdrawal of its application for promoter reclassification. This development comes as an update to the company's earlier communication dated August 19, 2023, regarding the reclassification of certain promoters under SEBI regulations.

Key Points of the Announcement

• Partial Withdrawal: Sagar Cements has withdrawn its request to reclassify M/s. Panchavati Polyfibres Limited from the 'Promoter/Promoter Group' category to the 'Public' category.

• Continued Pursuit: The company will continue to pursue the reclassification of Mr. P. V. Narasimha Reddy from the 'Promoter' category to the 'Public' category.

• Regulatory Compliance: The reclassification process is being conducted in accordance with Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Background and Context

The original application, submitted in August 2023, sought to reclassify two entities:

1. Mr. P. V. Narasimha Reddy
2. M/s. Panchavati Polyfibres Limited

This recent decision to partially withdraw the application demonstrates Sagar Cements' strategic approach to its shareholding structure and compliance with regulatory requirements.

Company's Statement

In its communication to the stock exchanges, Sagar Cements stated, "The Company shall keep the stock exchanges informed of any further developments in this regard." This commitment to transparency aligns with the company's obligations as a listed entity.

Implications for Investors

While the partial withdrawal of the reclassification application may not have immediate operational impacts, it reflects the company's ongoing efforts to optimize its shareholding structure. Investors and market observers will likely be keen to follow the progress of Mr. P. V. Narasimha Reddy's reclassification, which remains under consideration.

Sagar Cements Limited continues to maintain its position as a significant player in the cement industry, with manufacturing facilities across multiple locations in India, including Telangana, Andhra Pradesh, and Odisha.

As this situation develops, stakeholders are advised to stay tuned for further updates from the company regarding the ongoing reclassification process and any potential impacts on the company's governance structure.

Sagar Cements Limited , a prominent player in the Indian cement industry, has reported a robust financial performance for the first quarter of fiscal year 2026. The company's strategic focus on profitability and operational efficiency has yielded positive results, despite the challenges in the cement sector.

Financial Highlights

• Revenue surged by 20% to ₹671.00 crore, compared to ₹561.00 crore in the same quarter last year.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant improvement, reaching ₹121.00 crore, up from ₹47.00 crore in Q1 FY25.
• EBITDA margins expanded to 18% from 8% in the corresponding quarter.
• The company achieved an EBITDA per tonne of ₹851.00.
• Profit After Tax (PAT) stood at ₹7.00 crore for the quarter.

Operational Performance

• Sagar Cements reported an 11% year-on-year volume growth.
• The company's various plants operated at different utilization levels:

Cost Management

• Power and fuel costs remained stable at ₹1,450.00 per tonne, compared to ₹1,470.00 per tonne in Q1 FY25.
• Freight costs saw a slight increase to ₹860.00 per tonne from ₹844.00 per tonne in the same period last year.

Financial Position

• Gross debt as of June 30, 2025, stood at ₹1,556.00 crore, with ₹1,179.00 crore as long-term debt.
• The company's net worth on a consolidated basis was ₹1,802.00 crore.
• The debt-equity ratio is at 0.65:1.
• Cash and bank balances were reported at ₹182.00 crore.

Expansion and Future Outlook

• The modernization of Andhra Cement's Dachepalli unit is progressing as scheduled, with commissioning expected by September-October 2025.
• Sagar Cements (M) Private Limited, a subsidiary, has approved the expansion of cement grinding capacity from 1 million to 1.5 million tonnes.
• The company plans to establish a 6-megawatt solar power plant with a capex of ₹140.00 crore.
• Management expects overall volumes to reach around 6 million tonnes for the fiscal year.
• The company anticipates a minimum EBITDA of ₹600.00 per tonne going forward.

Market and Pricing Dynamics

Sreekanth Reddy, Joint Managing Director, commented on the market conditions, stating, "The industry witnessed healthy volume growth, supported by a pickup in infrastructure activities, driven by government spending and improving demand from individual house builders." He also noted that key input prices, particularly power and fuel, remained largely stable.

Regarding pricing, the company observed an increase of ₹50.00 to ₹55.00 per bag in Andhra Pradesh and Telangana markets from March to June, with other markets also showing positive trends.

Incentives and Future Projections

The company received ₹34.00 crore in incentives during the quarter, with an additional ₹12.00 crore expected in the coming quarters. For FY27, Sagar Cements anticipates receiving about ₹23.00 crore in incentives.

In conclusion, Sagar Cements' strong Q1 FY26 performance reflects its resilience and strategic positioning in the cement industry. With ongoing expansion plans and a focus on cost efficiency, the company appears well-prepared to capitalize on the anticipated growth in infrastructure and real estate development in the coming years.