Shares of Sagar Cements Limited surged 6.47% or ₹11.52 to ₹189.48 on the NSE on May 14, touching an intraday high of ₹197.99, after the Hyderabad-based cement manufacturer reported a dramatic quarterly turnaround — swinging from a net loss of ₹70.77 crore in Q4 FY25 to a net profit of ₹87.60 crore in Q4 FY26, a swing of over ₹158 crore at the bottom line in a single year.
The stock opened sharply higher from its previous close of ₹177.96 and is among the top gainers on the NSE in early trade. Market capitalisation stands at approximately ₹2,470 crore. The stock carries no P/E ratio as the full-year position remains a marginal loss, and pays no dividend. Average daily volume is approximately 68,380 shares.
What did Sagar Cements report in Q4 FY26?
Revenue from sales rose 19.59% year-on-year to ₹786.96 crore from ₹658.04 crore in Q4 FY25 — a strong top-line print driven by higher realisations and volume growth in the cement market. The operating performance was the standout metric: EBITDA margin expanded to 10.36% from 5.60% in Q4 FY25 — a near-doubling of operating profitability in a single year reflecting the dual benefit of higher revenues and moderating input costs, particularly coal and petcoke, which have eased from their elevated 2023-24 levels.
Profit before depreciation and tax came in at ₹39.64 crore against a loss of ₹7.01 crore in Q4 FY25 — a complete reversal at the pre-depreciation level. Profit before tax remained negative at ₹26.62 crore due to depreciation and interest charges from the company’s expanded asset base, but narrowed significantly from a loss of ₹65.37 crore in Q4 FY25 — a 59% improvement. The reported net profit of ₹87.60 crore versus a loss of ₹70.77 crore reflects the benefit of deferred tax credits and other below-the-line items that brought the reported bottom line into positive territory.
Full-year FY26 performance
For the full year ended March 2026, Sagar Cements reported revenue of ₹2,650.02 crore, up 17.38% from ₹2,257.64 crore in FY25. The full-year net loss narrowed dramatically to ₹11.07 crore from ₹209.79 crore in FY25 — a 94.7% reduction in the annual loss, placing the company on the cusp of full-year profitability. Full-year OPM improved to 11.02% from 6.25% in FY25 — a 477 basis point expansion that represents the most meaningful improvement in the company’s operating cost structure in several years. PBDT for the full year came in at ₹116.59 crore against a loss of ₹25.61 crore in FY25.
What is driving the turnaround?
Sagar Cements’ recovery reflects the broader cement sector dynamics in South India. Input cost moderation — particularly in coal, petcoke, and slag — has significantly improved manufacturing cost per tonne across the industry. Sagar’s operational leverage is becoming visible as higher volumes spread fixed costs across a larger revenue base. The combination of volume growth, better realisations in the Andhra Pradesh and Telangana markets, and input cost tailwinds has compressed the operating loss cycle and brought the company to the threshold of sustained profitability.
With OPM at 10.36% in Q4 and full-year OPM at 11.02%, Sagar Cements is approaching the 12-14% range that most South Indian cement players target as a normalised operating margin — suggesting further margin improvement is possible if volume growth continues and input costs remain benign.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult a registered financial advisor before making any investment decisions. Business Upturn does not hold any position in the securities mentioned.