Andhra Cements revenue jumps 43%, but loss widens to ₹36 cr
Top-line growth failed to offset ₹31.94 cr in finance costs and higher depreciation. The company reiterated its planned merger with Sagar Cements.
— 1 earlier story on Andhra Cements Ltd. →What's new
- Revenue from operations rose 43% to ₹142.17 crore
- Net loss widened to ₹35.93 crore from ₹29.62 crore
- Finance costs of ₹31.94 crore and depreciation drove the deeper loss
Why this matters
Andhra Cements' 13.81 debt-to-equity ratio means interest costs will keep bleeding earnings until the proposed merger with Sagar Cements closes. The 43% revenue growth shows demand is there, but the company can't translate it into profit under its current capital structure.
What we're watching
- Progress on the 29:98 swap-ratio merger with Sagar Cements
- Whether finance costs ease as debt is restructured post-merger
- Any debt reduction or capital infusion plan in the interim
The full read
Andhra Cements grew top-line by 43% to ₹142.17 crore in Q1, but the bottom line tells a different story. Net loss widened to ₹35.93 crore from ₹29.62 crore a year ago, driven by ₹31.94 crore in finance costs and higher depreciation. With a debt-to-equity ratio of 13.81, the interest burden is structural — not cyclical. Revenue growth alone won't fix it. The company's only credible exit is the merger with Sagar Cements, announced in June at a 29:98 swap ratio. Until that closes, every quarter will look like this: more sales, more red ink.
Questions answered
- Why did Andhra Cements' loss widen despite strong revenue growth?
- Finance costs of ₹31.94 crore and depreciation more than offset the 43% revenue gain. The company has a debt-to-equity ratio of 13.81, so interest alone is a massive burden.
- What is the status of the merger with Sagar Cements?
- The board reiterated the earlier-announced merger at a swap ratio of 29 Sagar shares for every 98 Andhra shares. No new terms were disclosed in this quarterly filing.
- How does this quarter compare to the previous quarter (Mar 2026)?
- In Mar 2026 quarter, revenue was ₹155 crore and net profit was ₹49 crore. The June quarter saw lower revenue and a swing to loss, indicating seasonality or operational strain.
- What is Andhra Cements' debt level?
- The trailing debt-to-equity ratio stands at 13.81, indicating very high leverage. Finance costs of ₹31.94 crore absorb a large portion of revenue.
Andhra Cements Ltd.
Latest quarter · Jun 2026
Strength & growth
Story so far
All notes on ACL →- 27 Jul 2026 · 1:54 PM IST Andhra Cements revenue jumps 43%, but loss widens to ₹36 cr
- 53d ago Andhra Cements to merge into Sagar Cements at 29:98 swap ratio