Saurashtra Cement Limited has received a notice for an Income Tax Appeal hearing scheduled for 3 February 2026, as disclosed in a regulatory filing dated 12 December 2025. The hearing will be conducted before the Income Tax Appellate Tribunal regarding appeals filed by the Income Tax Department.

Appeal Background and Details

The Income Tax Department has filed appeals against appellate orders passed under Section 250 by the Commissioner of Income Tax (Appeals) that were previously decided in favor of Saurashtra Cement Limited. The appeals relate to transfer pricing adjustments made by the Assessing Officer for multiple assessment years.

Previous Favorable Decisions

The transfer pricing adjustments made by the Assessing Officer for assessment years 2016-17 to 2018-19 and 2020-21 to 2021-22 have been deleted by the Commissioner of Income Tax (Appeals). This decision was made after considering written submissions and the decision of the Supreme Court involving identical issues, resulting in the matter being decided in favor of the company.

Financial Impact Assessment

The company has indicated that the financial impact of any future demand on this issue will be determined only after the decision of the appeals by the Income Tax Appellate Tribunal. Currently, the issues stand decided in favor of Saurashtra Cement Limited based on the Commissioner's orders and Supreme Court precedent.

Regulatory Compliance

The disclosure has been made pursuant to Regulation 30 read with Para B of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also uploaded this information on its website in compliance with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11 November 2024.

Company's Response

Saurashtra Cement Limited has confirmed that it will undertake the necessary assessment and represent its appeal on the scheduled hearing date. The company will continue to monitor developments and provide updates as required under regulatory obligations.

Saurashtra Cement Limited (SCL) has reported a significant improvement in its financial performance for the second quarter of fiscal year 2026, with reduced losses and increased revenue compared to the same period last year.

Financial Highlights

The company's unaudited financial results for Q2 FY26 reveal the following key metrics:

*EBITDA calculated as Net Loss + Finance Costs + Depreciation and Amortisation Expenses

Revenue Growth

Saurashtra Cement's revenue from operations saw a substantial increase of 30.16% year-over-year, rising from ₹29,627.90 lakhs in Q2 FY25 to ₹38,563.87 lakhs in Q2 FY26. This growth may be attributed to improved market conditions and potentially higher sales volumes or better pricing strategies.

Narrowed Losses

The company has managed to significantly reduce its net loss by 64.97%, from ₹3,149.51 lakhs in Q2 FY25 to ₹1,103.24 lakhs in Q2 FY26. This improvement indicates the effectiveness of cost management measures and operational efficiencies implemented by the company.

Segment Performance

SCL operates in two reportable segments:

1. Cement & Clinker
2. Paints

The cement and clinker segment, which forms the core of SCL's business, reported revenue of ₹37,092 lakhs in Q2 FY26, compared to ₹28,082 lakhs in Q2 FY25, marking a 32.08% increase.

The paints segment showed a decrease, with revenue falling from ₹1,546 lakhs in Q2 FY25 to ₹1,472 lakhs in Q2 FY26, a 4.79% decline.

Operational Efficiency

The company's EBITDA loss narrowed significantly from ₹1,669.53 lakhs in Q2 FY25 to ₹502.47 lakhs in Q2 FY26, representing a 69.90% improvement. This suggests that SCL has been successful in controlling its operational costs despite the challenging market environment.

Balance Sheet Position

As of September 30, 2025, Saurashtra Cement reported:

• Total Assets: ₹1,57,731 lakhs
• Total Equity: ₹95,289 lakhs
• Total Liabilities: ₹62,442 lakhs

The company maintains a healthy balance sheet with a debt-to-equity ratio of approximately 0.66, indicating a conservative financial structure.

Outlook

While Saurashtra Cement continues to face challenges, as evidenced by the ongoing losses, the significant improvement in financial performance suggests that the company's turnaround strategies may be gaining traction. The substantial revenue growth and narrowing losses point to potentially improving market conditions and effective management initiatives.

Investors and market observers will likely keep a close watch on SCL's performance in the coming quarters to see if this positive trend continues and translates into profitability.

Note: All figures are based on standalone financial results as reported by the company.