Sagar Cements Ltd-$ — Q4 FY26 earnings call
Summary generated by AI from the official transcript Sagar Cements Ltd-$ filed with BSE on 20 May 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 full-year volumes of 6.1 million tonnes with quarterly and full-year volume growth of 8% and 11% respectively, alongside quarterly revenue growth of 20%. EBITDA per tonne for Q4 FY26 rose to ₹445 from ₹218 a year earlier, and profit after tax for the quarter stood at ₹100 crores. Management discussed rising pet coke and coal costs linked to the West Asia crisis, progress on the Andhra Cements amalgamation, and the launch of a new Superfine Building Materials division.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Total volumes: 6.1 million tonnes (FY26)
p. 3
“Our total volumes for the year stood at 6.1 million tonnes, broadly in line with our expectation, reflecting steady execution despite a dynamic operating environment.”
Sreekanth Reddy, page 3 of the filed PDF · View the filing
Volume growth: 8% (quarter) and 11% (full year) (Q4 FY26 and FY26)
p. 3
“We also closed the year on a strong note with volumes for both quarters and the full-year growing by 8% and 11%, respectively.”
Sreekanth Reddy, page 3 of the filed PDF · View the filing
Revenue growth: 20% (Q4 FY26)
p. 3
“which supported the top line growth of 20% during the quarter.”
Sreekanth Reddy, page 3 of the filed PDF · View the filing
EBITDA per tonne: ₹445 (Q4 FY26)
p. 3
“our EBITDA per tonne for the quarter stood at ₹445 as against ₹218 per tonne reported during Q4 FY '25.”
Sreekanth Reddy, page 3 of the filed PDF · View the filing
Power and fuel cost: ₹1,422 per tonne (Q4 FY26)
p. 3
“Power and fuel cost stood at ₹1,422 per tonne as against ₹1,406 per tonne reported during Q4 FY '25.”
Sreekanth Reddy, page 3 of the filed PDF · View the filing
Freight cost: ₹848 per tonne (Q4 FY26)
p. 3
“Freight cost for the quarter stood at ₹848 per tonne as against ₹822 per tonne during Q4 FY '25.”
Sreekanth Reddy, page 3 of the filed PDF · View the filing
Profit after tax: ₹100 crores (Q4 FY26)
p. 4
“Profit after tax for the quarter stood at ₹100 crores.”
Sreekanth Reddy, page 4 of the filed PDF · View the filing
Gross debt: ₹1,672 crores (as on 31st March 2026)
p. 4
“the gross debt as on 31st March 2026 stood at ₹1,672 crores, out of which ₹1,379 crores 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: ₹1,861 crores (as on 31st March 2026)
p. 4
“The net worth of the company on a consolidated basis as on 31st March 2026 stood at ₹1,861 crores.”
Sreekanth Reddy, page 4 of the filed PDF · View the filing
Debt equity ratio: 0.74:1 (as on 31st March 2026)
p. 4
“Debt equity ratio stands at 0.74:1.”
Sreekanth Reddy, page 4 of the filed PDF · View the filing
Cash and bank balances: ₹107 crores (as on 31st March 2026)
p. 4
“Cash and bank balances were ₹107 crores as on 31st March 2026.”
Sreekanth Reddy, page 4 of the filed PDF · View the filing
Mine bearing lands expense: ₹7.5 crores (FY26)
p. 6
“There is a Mine bearing lands expense close to ₹7.5 crores we considered during the current year.”
K. Prasad, page 6 of the filed PDF · View the filing
District Mineral Foundation expense: ₹3.24 crores (Q4 FY26)
p. 6
“there is one District Mineral Foundation expense, which is related to one of the subsidiaries that is Sagar Cements (M) Private Limited that's close to ₹3.24 crores now we considered during the quarter.”
K. Prasad, page 6 of the filed PDF · View the filing
MP asset incentives spent so far: close to ₹65-odd crore
p. 15
“Close to that number, close to ₹65-odd crore we did receive.”
Sreekanth Reddy, page 15 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.
Volumes — around 7 million tonnes · FY27
stated as an aspiration by Sreekanth Reddy
p. 3
“Based on this, we expect our volumes to be in the range of around 7 million tonnes for FY '27.”
Sreekanth Reddy, page 3 of the filed PDF · View the filing
Pending WHRS commissioning — 1.55 megawatts relating to the preheater boiler · end of June 2026
stated firmly by Sreekanth Reddy
p. 4
“The balance capacity of 1.55 megawatts relating to the preheater boiler is expected to be commissioned by end of June 2026.”
Sreekanth Reddy, page 4 of the filed PDF · View the filing
Cement-level cost impact from pet coke/coal price rise — ₹100 to ₹150 per tonne
stated conditionally by Sreekanth Reddy
p. 5
“At cement level, it should definitely add close to ₹100 to ₹150 on the current kind of a blend for us.”
Sreekanth Reddy, page 5 of the filed PDF · View the filing
Superfine Building Materials margin — 30% margin minimum
stated as an aspiration by Sreekanth Reddy
p. 11
“But what we do except is off of 30% kind of a margin as a minimum in that business line.”
Sreekanth Reddy, page 11 of the filed PDF · View the filing
EBITDA per tonne — close to ₹600 · current financial year
stated conditionally by Sreekanth Reddy
p. 18
“I think in the current year itself, we should be very close to ₹600 because the significant improvement for us has come from the cost itself Mr. Rajat.”
Sreekanth Reddy, page 18 of the filed PDF · View the filing
Total budgeted EBITDA — ₹580 crore · FY27
stated conditionally by Sreekanth Reddy
p. 23
“From a budget perspective, we have pencilled in ₹580 crore, which is ₹100 more than what we have achieved last year.”
Sreekanth Reddy, page 23 of the filed PDF · View the filing
Total CapEx pending for ongoing projects — ₹190 crores
stated firmly by Sreekanth Reddy
p. 22
“Yes, ₹190 crores is the total CapEx that is pending for three ongoing projects, but there is undrawn credit.”
Sreekanth Reddy, page 22 of the filed PDF · View the filing
Andhra expansion CapEx completion — before this September
stated firmly by Sreekanth Reddy
p. 19
“Andhra's expansion should be completed before this September.”
Sreekanth Reddy, page 19 of the filed PDF · View the filing
Vizag land monetisation proceeds — ₹350 crores · 18 to 24 months
stated conditionally by Sreekanth Reddy
p. 24
“So that is the reason why we pencilled in the entire ₹350 crore spread over 18 to 24 months with bulk of it around ₹150 crore to be received in the first year and the rest in the next six to eight months, the balance to be received Mr. Rajesh.”
Sreekanth Reddy, page 24 of the filed PDF · View the filing
Madhya Pradesh incentives — ₹25 crore to ₹30 crore · coming year
stated conditionally by Sreekanth Reddy
p. 14
“The only incentives which we have been receiving consistently is from our Madhya Pradesh asset, where we expect anywhere between ₹25 crore to ₹30 crore for the coming year, Mr. Satyam, from the Madhya Pradesh asset.”
Sreekanth Reddy, page 14 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 inventories cover them until mid-Q2, with an estimated ₹100-150 per tonne cement-level cost increase if prices persist.
Answered by Sreekanth Reddy
Asked by Rajat Setiya: What is the expected cost impact from the West Asia crisis and pet coke price increase?
p. 5
“But we expect things to shape up better and fairly quickly, but we have inventories all the way up to middle of Q2, Vibha.”
Sreekanth Reddy, page 5 of the filed PDF · View the filing
CFO attributed this largely to one-off Mine Bearing Lands and District Mineral Foundation expenses totaling about ₹11.5 crores.
Answered by K. Prasad
Asked by Rajat Setiya: Why did other expenses rise 28% quarter-on-quarter?
p. 6
“Both put together close to ₹11.5crores, of the expenses we considered in the current quarter.”
K. Prasad, page 6 of the filed PDF · View the filing
Management explained the increase was due to unsecured promoter debt and accelerated solar investments rather than operational issues, and expects debt paydown going forward.
Answered by Sreekanth Reddy
Asked by Rajat Setiya: Why did net debt rise more than earlier guided, and what gives confidence in next year's debt plan?
p. 18
“But having said that, yeah, from here on, we expect debt to be paid out fairly quickly with the operating income.”
Sreekanth Reddy, page 18 of the filed PDF · View the filing
Management said some clinker sales may continue during ramp-up, subject to clinker pricing.
Answered by Sreekanth Reddy
Asked by Rajesh Ravi: Will Jeerabad continue clinker sales in FY27 after the grinding expansion?
p. 10
“But we do expect some amount of clinker sale as the grinding unit is likely to ramp up in a phased fashion.”
Sreekanth Reddy, page 10 of the filed PDF · View the filing
Management attributed the drag to Andhra Cements' underperformance, now improving with completed capex and a new preheater.
Answered by Sreekanth Reddy
Asked by Kamlesh Bagmar: Why have standalone margins remained subdued despite industry consolidation benefits?
p. 15
“I'm sure you would appreciate, I think the Andhra has been a significant drag on us in terms of performance.”
Sreekanth Reddy, page 15 of the filed PDF · View the filing
Management cited extended credit terms in a difficult market, elevated fuel prices requiring more stocking, and business expansion.
Answered by Sreekanth Reddy
Asked by Parth Bhavsar: What drove the increase in working capital days, especially payables?
p. 20
“I think when market situation is very, very difficult sir, the credit days and everything gets extended.”
Sreekanth Reddy, page 20 of the filed PDF · View the filing
Management indicated pending CapEx of ₹190 crores for three ongoing projects, funded partly through lease finance and debt repayment.
Answered by Sreekanth Reddy
Asked by Rajesh Ravi: What is the FY27 CapEx and cash flow outlook?
p. 22
“Yes, ₹190 crores is the total CapEx that is pending for three ongoing projects, but there is undrawn credit.”
Sreekanth Reddy, page 22 of the filed PDF · View the filing
Risks flagged
Rising pet coke and coal prices due to the West Asia crisis increasing input costs
p. 5
“But as it stands, the pet coke prices are on an increasing trend from what it used to be close to around $120 is already hovering around $136 to $140 on a CIF basis.”
Sreekanth Reddy, page 5 of the filed PDF · View the filing
Demand moderation due to labour shortages and unseasonal rains
p. 3
“However, momentum moderated towards the later part of the quarter due to labour shortages, during the festive season and the impact of the unseasonal rains.”
Sreekanth Reddy, page 3 of the filed PDF · View the filing
Inability to sustain price increases in central and eastern markets
p. 13
“It's slightly negative bias in the central as well as in the eastern markets for us.”
Sreekanth Reddy, page 13 of the filed PDF · View the filing
Volume slowdown due to elections affecting labour availability
p. 7
“Though there is some amount of slowdown because of the elections, the labourers out go they are coming back, we expect things to start stabilising before end of this month.”
Sreekanth Reddy, page 7 of the filed PDF · View the filing
Additional miscellaneous cost increases including bags, explosives, and diesel
p. 16
“So we are factoring around ₹225 to ₹250 per tonne kind of a price increase on account of both fuel and as well as miscellaneous expenditure.”
Sreekanth Reddy, page 16 of the filed PDF · View the filing
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