SAGCEMBSESagar Cements Ltd-$MediumNeutral
Announced Wed, 20 May · 15:14 IST

Earnings Call Transcript Q4 and FY 2026 financial results

Mgmt Guided Margin ImprovementCfo Debt Reduction RoadmapInvestor Communications View source PDF

SAGCEM · price

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AI summary

Sagar Cements reported Q4 FY2026 with volumes growing 8% YoY and full-year volumes at 6.1 million tonnes (11% growth), achieving 20% revenue growth. EBITDA per tonne improved significantly to ₹445 in Q4 FY26 from ₹218 in Q4 FY25, with quarterly PAT at ₹100 crores. The company guided for FY27 volumes of 7 million tonnes (15-16% growth). Management flagged rising fuel costs due to geopolitical tensions, expecting ₹225-250 per tonne cost increase (pet coke up from $120 to $136-140), with inventory covering till mid-Q2. Cost savings from new WHRS (2.8 MW commissioned), Andhra plant efficiencies, and Jeerabad expansion expected to improve EBITDA per tonne to ₹600. A new Superfine Building Materials division was launched targeting 30%+ margins in advanced GGBS products (priced at ₹30,000/tonne vs current ₹2,500-3,000). Gross debt stood at ₹1,672 crores with debt-equity at 0.74:1.

Likely market impact

Strong operational improvement with EBITDA per tonne doubling year-on-year. Cost pressures from fuel and logistics are a concern but management guided on achieving ₹600/tonne EBITDA through efficiency gains. Volume guidance of 7 million tonnes represents healthy 15% growth. Debt levels remain elevated at ₹1,672 crores but are being addressed through land monetization (₹350 crore expected from Vizag).