Sagar Cements Ltd-$ — Q1 FY27 earnings call
Summary generated by AI from the official transcript Sagar Cements Ltd-$ filed with BSE on 30 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Sagar Cements reported around 13% volume growth in Q1 FY27 with revenue up 5% year-on-year, while EBITDA per tonne moderated to ₹451 due to elevated energy, fuel and packaging costs linked to geopolitical tensions in West Asia. The company reported a loss after tax of ₹28 crore for the quarter and completed capacity expansions at Jeerabad and a partial waste heat recovery commissioning at Gudipadu. Management discussed pricing trends across southern and other states, an ongoing land monetisation at Vizag pending government approval, and cost outlook for the remainder of the year.
Numbers mentioned
Volume growth: around 13% (Q1 FY27)
p. 3
“we delivered a healthy volume growth of around 13% during the quarter, reflecting resilient demand across our key markets and disciplined execution by our teams”
Sreekanth Reddy, page 3 of the filed PDF · View the filing
Revenue growth: 5% year-on-year (Q1 FY27)
p. 3
“revenue increased by 5% year-on-year, driven primarily by higher volumes, while realisations remained broadly stable”
Sreekanth Reddy, page 3 of the filed PDF · View the filing
EBITDA per tonne: ₹451 (Q1 FY27)
p. 3
“the EBITDA per tonne for the quarter stood at ₹451”
Sreekanth Reddy, page 3 of the filed PDF · View the filing
Power and fuel cost: ₹1,484 per tonne (Q1 FY27)
p. 4
“Power and fuel cost stood at ₹1,484 per tonne as against ₹1,450 per tonne reported during Q1 FY 2026”
Sreekanth Reddy, page 4 of the filed PDF · View the filing
Freight cost: ₹858 per tonne (Q1 FY27)
p. 4
“Freight cost for the quarter stood at ₹858 per tonne as against ₹860 per tonne during Q1 FY 2026”
Sreekanth Reddy, page 4 of the filed PDF · View the filing
Loss after tax: ₹28 crore (Q1 FY27)
p. 4
“Loss after tax for the quarter stood at ₹28 crore”
Sreekanth Reddy, page 4 of the filed PDF · View the filing
Gross debt: ₹1,704 crore (as on 30th June 2026)
p. 4
“the gross debt as on 30th June 2026 stood at ₹1,704 crore, out of which ₹1,434 crore as a long-term debt and the remaining constitutes the working capital”
Sreekanth Reddy, page 4 of the filed PDF · View the filing
Net worth: ₹1,833 crore (as on 30th June 2026)
p. 4
“The net worth of the company on a consolidated basis as on 30th June, 2026 stood at ₹1,833 crore”
Sreekanth Reddy, page 4 of the filed PDF · View the filing
Debt equity ratio: 0.78:1 (as on 30th June 2026)
p. 4
“Debt equity ratio stands at 0.78:1”
Sreekanth Reddy, page 4 of the filed PDF · View the filing
Cash and bank balances: ₹105 crores (as on 30th June 2026)
p. 4
“Cash and bank balances at ₹105 crores as on 30th June, 2026”
Sreekanth Reddy, page 4 of the filed PDF · View the filing
Mattampally plant utilisation: 65% (Q1 FY27)
p. 4
“Mattampally plant operated at 65% utilisation while Gudipadu, Bayyavaram, Jeerabad, Jajpur, and Dachepalli plants operated at 79%, 67%, 96%, 50%, and 42% respectively during the quarter”
Sreekanth Reddy, page 4 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Sales volume — approximately 7 million tons · FY 2027
stated firmly by Sreekanth Reddy
p. 3
“We remain confident of achieving volumes of approximately 7 million tons in FY 2027, supported by our expanding market presence and ongoing operational initiatives”
Sreekanth Reddy, page 3 of the filed PDF · View the filing
EBITDA per tonne — ₹500 to ₹550 · FY 2027
stated conditionally by Sreekanth Reddy
p. 15
“We did indicate earlier. Yeah, we are expecting anywhere between ₹500 to ₹550 EBITDA per tonne for the current year.”
Sreekanth Reddy, page 15 of the filed PDF · View the filing
Volume growth next year — double-digit · FY 2028
stated as an aspiration by Sreekanth Reddy
p. 5
“I think even this year it's a double-digit growth. And for next year also, we are expecting something similar in terms of a percentage.”
Sreekanth Reddy, page 5 of the filed PDF · View the filing
Land monetisation proceeds — ₹150 crore · current year
stated conditionally by Sreekanth Reddy
p. 8
“We hope to get ₹150 crore of realisation in the current year”
Sreekanth Reddy, page 8 of the filed PDF · View the filing
Land monetisation proceeds FY28 — ₹200 crore · FY 2028
stated as an aspiration by Sreekanth Reddy
p. 11
“Yeah, another ₹200 crore should be the numbers.”
Sreekanth Reddy, page 11 of the filed PDF · View the filing
Andhra Cements capacity utilisation — 60% to 70% · coming years
stated as an aspiration by Sreekanth Reddy
p. 15
“we believe that Andhra might operate anywhere between 60% to 70% for the coming years, despite very high competitive intensity in the neighbourhood”
Sreekanth Reddy, page 15 of the filed PDF · View the filing
CapEx plans — no major CapEx except operational maintenance of ₹30-40 crore per year · up to end of 2028
stated firmly by Sreekanth Reddy
p. 13
“we are not having any CapEx plans for next couple of years. So, except for the operational maintenance, which is roughly around ₹30 crore to ₹40 crore per year, we do not have any CapEx plan up to end of 2028, for sure.”
Sreekanth Reddy, page 13 of the filed PDF · View the filing
South region demand growth — 8% to 10% · FY 2027
stated conditionally by Sreekanth Reddy
p. 10
“we believe that South demand should be anywhere between 8% to 10% for the year”
Sreekanth Reddy, page 10 of the filed PDF · View the filing
Cement cost inflation — ₹100 per tonne · full year
stated conditionally by Sreekanth Reddy
p. 11
“If trends remain where they are, we expect an ₹100 kind of a cost inflation.”
Sreekanth Reddy, page 11 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the 7 million tonne guidance excludes clinker sales and that they would revert with exact clinker volumes later.
Answered by Sreekanth Reddy
Asked by Shravan Shah: What clinker sale volumes are expected in Q2 and full year, separate from the 7 million tonne guidance?
p. 4
“So, the 7 million tonne is excluding the clinker sale.”
Sreekanth Reddy, page 4 of the filed PDF · View the filing
Management said they expect fuel and other cost inflation of about ₹100 per tonne but expect it to be offset, and reiterated guidance of ₹500-₹550 EBITDA per tonne rather than ₹600.
Answered by Sreekanth Reddy
Asked by Shravan Shah: What cost inflation per tonne is expected in Q2 and is the full-year EBITDA per tonne guidance of ₹600 still achievable?
p. 5
“What we have indicated and what we remain committed is around ₹500 to ₹550 EBITDA per tonne.”
Sreekanth Reddy, page 5 of the filed PDF · View the filing
Management said prices have remained largely flat from March to July with a small realisation improvement.
Answered by Sreekanth Reddy
Asked by Shravan Shah: Are current prices stable versus Q1 averages?
p. 6
“See I think in the markets from March exit to July, it has been flat.”
Sreekanth Reddy, page 6 of the filed PDF · View the filing
Management said they are awaiting a generic government order before they can begin monetising the land.
Answered by Sreekanth Reddy
Asked by Shravan Shah: What is the status of the Vizag land sale?
p. 6
“We are only waiting for the final Government approval.”
Sreekanth Reddy, page 6 of the filed PDF · View the filing
Management attributed the cost gap to higher variable electricity costs at Andhra due to lack of waste heat recovery, and reaffirmed the ₹550 EBITDA per tonne target as achievable.
Answered by Sreekanth Reddy
Asked by Rajesh Ravi: Why does Andhra's cost structure appear higher than Mattampally's, and can ₹550-₹600 EBITDA per tonne still be achieved for the full year including clinker sales?
p. 8
“₹550 is definitely doable, as I mentioned to you.”
Sreekanth Reddy, page 8 of the filed PDF · View the filing
Management said July demand trends look similar to Q1, with labour shortages easing.
Answered by Sreekanth Reddy
Asked by Sarthak Sancheti: How has demand fared in July given the delayed monsoon?
p. 10
“I think July, we have to wait. We are yet to conclude the month.”
Sreekanth Reddy, page 10 of the filed PDF · View the filing
Management said they cannot control input cost inflation itself but can manage usage efficiency, and are factoring in inventory cover until mid-October and an anticipated ₹100 cost hike.
Answered by Sreekanth Reddy
Asked by Sarthak Sancheti: What levers does the company have if the West Asia crisis further escalates and drives up power and fuel costs?
p. 11
“I don't think we have ability to control the inflation. We only have ability to control the quantity of usage.”
Sreekanth Reddy, page 11 of the filed PDF · View the filing
Management confirmed ₹150 crore from land sale is factored in for the current year, with another ₹200 crore expected the following year.
Answered by Sreekanth Reddy
Asked by Parth Bhavsar: Does the projected net debt reduction from ₹1,565 crore to ₹1,159 crore factor in land monetisation proceeds?
p. 11
“Yes. ₹150 crore is what we have pencilled in for the current year.”
Sreekanth Reddy, page 11 of the filed PDF · View the filing
Management said ongoing capex of about ₹240 crore this year is absorbing cash flow, so it has not yet been fully incorporated into the debt reduction profile.
Answered by Sreekanth Reddy
Asked by Avinash Nahata: Given expected operating cash flow generation, why isn't more debt reduction reflected in the profile alongside the land sale proceeds?
p. 13
“No, not yet. Because there are some ongoing CapEx. For the current year, there is ₹240 odd crore of CapEx, which is ongoing, which should spread over this year and next year.”
Sreekanth Reddy, page 13 of the filed PDF · View the filing
Management attributed the smaller increase partly to inventory they held.
Answered by Sreekanth Reddy
Asked by Harsh Jain: Why did the company see only a ₹100 per tonne cost increase versus larger increases reported by peers?
p. 14
“We had some inventory also with us.”
Sreekanth Reddy, page 14 of the filed PDF · View the filing
Risks flagged
Heat wave impact on construction activity during the quarter
p. 3
“growth during the quarter was temporarily impacted by heat wave across several parts of the country, which in turn affected the construction activity to a certain extent”
Sreekanth Reddy, page 3 of the filed PDF · View the filing
Election-related labour shortages affecting execution
p. 3
“election-related labour shortages in parts of Eastern and Southern India that led to a short-term execution challenges”
Sreekanth Reddy, page 3 of the filed PDF · View the filing
Pricing momentum moderated due to competitive intensity
p. 3
“pricing momentum moderated towards the end of the quarter amid competitive intensity and regional market dynamics”
Sreekanth Reddy, page 3 of the filed PDF · View the filing
Elevated input costs from geopolitical tensions in West Asia
p. 3
“profitability and margins moderated during Q1 due to elevated input prices across the energy, fuel, and packaging amid the geopolitical tensions in West Asia”
Sreekanth Reddy, page 3 of the filed PDF · View the filing
Seasonal cost pressure and maintenance shutdowns expected in Q2
p. 8
“Q2 definitely, as you are aware, it's seasonally a difficult quarter because most of the operational metric would be under stress because of rains and shutdown”
Sreekanth Reddy, page 8 of the filed PDF · View the filing
Competitive intensity limiting price increases despite cost inflation
p. 9
“Unfortunately, most of the industry players are losing patience. Competitive intensity sometimes flares up, but prices are bound to go up.”
Sreekanth Reddy, page 9 of the filed PDF · View the filing
High competitive intensity in Andhra Cements' neighbourhood
p. 15
“despite very high competitive intensity in the neighbourhood”
Sreekanth Reddy, page 15 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.