Shares of Sagar Cements Ltd declined over 2% today even though the company reported a strong set of Q1FY26 results, marking a return to profitability after four consecutive quarters of losses. Investors appeared to book profits after the stock rallied in recent sessions on expectations of improved earnings.
For the quarter ended June 2025, revenue rose nearly 20% YoY to ₹671 crore, driven by price hikes in southern markets and additional incentives. The company posted a net profit of ₹7.5 crore, compared to a net loss of ₹32.2 crore in the same quarter last year, despite a 2% rise in finance costs.
EBITDA more than doubled to ₹121.8 crore from a year ago, while margins improved to 8.4% from 5.6%. EBITDA per tonne stood at ₹851 — the highest in four years — up from ₹356 a year ago and ₹218 in the previous quarter. This performance came despite a 10% increase in power and fuel costs and a 9% increase in other expenses.
Additionally, the board of its subsidiary, Sagar Cements (M) Pvt Ltd, approved an expansion of cement grinding capacity from 1 MTPA to 1.5 MTPA. The company also announced plans for a 6 MW solar power plant, with a capex of about ₹140 crore, as part of its green initiatives.
At the time of writing, Sagar Cements shares were trading at ₹264.21, down 2.08% on the NSE.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
