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Sagar Cements Ltd

| Quarterly Financial Results Q3 FY 2025–26

BEARISH SENTIMENT

Report Source

⬤21st Jan 26

Summary : Sagar Cements reported increased revenue but continued net losses due to rising expenses and regulatory adjustments.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Total expenses (9M FY26): 1,96,986 lakhs (vs 1,80,854 lakhs 9M FY25).
  2. Consolidated Power and fuel expense (9M FY26): 60,258 lakhs (vs 55,953 lakhs 9M FY25).
  3. Consolidated Freight and forwarding expense (9M FY26): 36,183 lakhs (vs 32,002 lakhs 9M FY25).
  4. Consolidated Cost of materials consumed (9M FY26): 34,018 lakhs (vs 29,837 lakhs 9M FY25).
  5. Consolidated Revenue from operations (9M FY26): 1,86,306 lakhs (vs 1,59,960 lakhs 9M FY25).
  6. Standalone Revenue from operations (9M FY26): 1,23,839 lakhs (vs 1,10,680 lakhs 9M FY25).
  7. Consolidated Paid up equity share capital (Dec 31, 2025): 2,614 lakhs.
  8. Consolidated Other equity (March 31, 2025): 1,69,667 lakhs.
  9. Consolidated results include Parent, Sagar Cements (M) Private Limited, and Andhra Cements Limited.
  10. Consolidated Net Loss (9M FY26): (10,078) lakhs; Standalone Net Loss (9M FY26): (1,004) lakhs.
  11. OFS of ACL shares did not impact consolidated financial results.

Corporate Overview

  1. Registered Office: Hyderabad, Telangana.
  2. Factories in Telangana, Andhra Pradesh, and Odisha.
  3. Significant increase in power and fuel expenses.
  4. Rising cost of materials and freight.
  5. Engaged in manufacture and sale of cement and cement related products.
  6. Formal and factual, expressing pleasure in forwarding results.
  7. Operates as a single reportable business segment as per Ind AS 108.

Risk Factors

  1. Persistent net losses impacting profitability.
  2. Escalating power and fuel expenses.
  3. Rising material and freight costs.
  4. Past regulatory fuel cost adjustments.

Key Drivers

  1. Revenue from operations showed growth.
  2. Net loss reduced year-on-year.
  3. Successfully redeemed and delisted NCDs.
  4. Ensured subsidiary's public shareholding compliance.

Auditor’s Report

  1. Unmodified conclusion for limited review of Q3/9M FY26 consolidated and standalone results.
  2. Unmodified audit opinion for year ended March 31, 2025 consolidated and standalone results.

Board Commentary

  1. Exceptional item related to fuel and power cost adjustment.
  2. Compliance with SEBI (LODR) Regulations 2015.
  3. Meeting Minimum Public Shareholding (MPS) for Andhra Cements Limited.

Corporate Governance

  1. Audit Committee reviewed financial results.
  2. Board of Directors approved financial results.
  3. Investment Committee approved Offer for Sale.

Management Discussion & Analysis

Future Strategy

  1. Approved Offer for Sale (OFS) of Andhra Cements Limited shares to meet Minimum Public Shareholding (MPS).

Operational Focus Areas

  1. Ensuring compliance with MPS for subsidiary Andhra Cements Limited.

Performance Drivers

  1. Fuel and power costs significantly impact profitability.
  2. Regulatory orders for true-up of past fuel costs.

Risk Control Measures

  1. OFS of ACL shares to achieve regulatory compliance for MPS.

Critical Risks

  1. Volatility and increases in fuel and power costs.
  2. Regulatory adjustments for past expenses.