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Andhra Cements Ltd

| Quarterly Financial Results Q3 FY 2025–26

BEARISH SENTIMENT

Report Source

⬤21st Jan 26

Summary : Andhra Cements reported significant losses for Q3/9M FY26, with negative EPS, despite regulatory compliance and an unmodified review.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Cost of materials consumed: 1,986 lakhs (Q3 FY26), 4,039 lakhs (9M FY26).
  2. Employee benefits expense: 431 lakhs (Q3 FY26), 1,269 lakhs (9M FY26).
  3. Finance costs: 2,633 lakhs (Q3 FY26), 6,778 lakhs (9M FY26).
  4. Depreciation and amortisation expenses: 2,345 lakhs (Q3 FY26), 5,734 lakhs (9M FY26).
  5. Power and fuel expense: 5,583 lakhs (Q3 FY26), 10,685 lakhs (9M FY26).
  6. Freight and forwarding expense: 2,622 lakhs (Q3 FY26), 6,182 lakhs (9M FY26).
  7. Other expenses: 1,364 lakhs (Q3 FY26), 3,995 lakhs (9M FY26).
  8. Revenue from operations: 11,026 lakhs (Q3 FY26), 28,764 lakhs (9M FY26).
  9. Other income: 57 lakhs (Q3 FY26), 221 lakhs (9M FY26).
  10. Paid up equity share capital: 9,217 lakhs (as of March 31, 2025).
  11. Other equity: 5,238 lakhs (as of March 31, 2025).
  12. Parent company (Sagar Cements Limited) reduced its stake in ACL.
  13. The financial results are presented on a standalone basis.

Corporate Overview

  1. Andhra Pradesh (Durgapuram, Visakhapatnam), Telangana (Hyderabad).
  2. Manufacture and sale of cement and cement related products.
  3. Formal communication of financial results and board approvals.
  4. Single reportable business segment.

Risk Factors

  1. Significant and continuous net losses.
  2. High finance costs impacting profitability.
  3. Negative earnings per share.
  4. Dependence on power and fuel costs.

Key Drivers

  1. Regulatory compliance for public shareholding.
  2. Unmodified auditor's review conclusion.
  3. Parent company stake reduction for MPS.
  4. Potential for future cost recovery.

Auditor’s Report

  1. Unmodified conclusion on the limited review for the quarter and nine months ended December 31, 2025.
  2. Predecessor auditors also expressed unmodified review/audit conclusions for prior periods.

Board Commentary

  1. Compliance with Regulation 33 of SEBI (LODR) Regulations 2015.
  2. Andhra Pradesh Electricity Regulatory Commission orders for FPPCA recovery.
  3. Parent company (Sagar Cements Limited) conducted an Offer for Sale (OFS) of 7,148,978 equity shares to meet Minimum Public Shareholding (MPS) requirements, reducing its stake from 90% to 82.24%.

Corporate Governance

  1. Audit Committee reviewed the unaudited financial results.

Management Discussion & Analysis

Performance Drivers

  1. Fuel and power cost adjustments impacting financial results.