Star Cement Ltd. (STARCEMENT) — Tipsheet

Star Cement wins preferred bid for Assam limestone block with 207.8 MT reserves

Tipsheet Editorial — Wed, 24 Jun 2026 11:24:13 GMT

The 123-hectare Boro Lakhindong West Block strengthens captive supply for the company's northeast operations and supports its ₹1,500 crore capex plan.

What’s new

Star Cement declared preferred bidder for a 123-hectare limestone block in Assam.
The block holds an estimated 207.822 million tonnes of limestone.
Strengthens captive raw material supply for northeast cement operations.

Why it matters

Securing 207.8 MT of limestone ensures long-term raw material security for Star Cement's growing northeast footprint. With a ₹1,500 cr capex plan and a market cap of ₹8,567 cr, this reserve backs the company's capacity expansion strategy. The stock's P/E of 21.8x is not demanding if execution holds.

What we’re watching

Final grant of the mining lease by Assam government.
Impact on input costs and margins given captive limestone.
Next phase of capex allocation for northeast.

The full read

Star Cement has secured the preferred bid for a 123-hectare limestone block in Assam containing 207.822 million tonnes of limestone. This is a strategic win. The mid-cap cement maker has been ramping up capex, most recently ₹1,500 crore, to expand its northeast footprint. The reserve, once the lease is granted, will provide captive raw material for years and potentially lower input costs. In the latest March quarter, Star Cement reported sales of ₹1,174 crore and net profit of ₹147 crore, with a trailing ROE of just 5.9%. The challenge now is to convert the reserve into production quickly and integrate it with existing plants. The stock trades at 21.8x trailing earnings, which is reasonable if the expansion delivers.

Primary source: BSE · NSE

Star Cement plans ₹600-700 cr capex this year as subsidies drop ₹40-50 cr

Tipsheet Editorial — Wed, 27 May 2026 16:35:48 GMT

Volume growth guidance of 10-12% for FY27 must offset a subsidy cut and near-term coal inflation. New plants are planned for Bihar, Haryana, and Rajasthan.

What’s new

Star Cement guided for 10-12% cement volume growth in FY27.
Subsidies will fall by ₹40-50 crore from last year's ₹184 crore.
Fuel costs are expected to rise ₹0.10-0.15 per GCV in the first half due to coal shortages.

Why it matters

The company is funding expansion with a tight subsidy outlook and cost pressure. The ₹40-50 crore subsidy cut is a direct earnings headwind that volume growth must cover. If coal costs don't normalize in the second half as promised, margins will be squeezed.

What we’re watching

Whether volume growth hits the high end of the 10-12% guide.
Actual coal supply conditions in the second half of the year.
How the ₹1,500 cr FY28 capex is funded.

The full read

Star Cement is spending ₹600-700 crore this year and ₹1,500 crore next year on new plants in Bihar, Haryana, and Rajasthan. To pay for it, management guided for 10-12% volume growth. The funding picture is tightening. Subsidies will drop by ₹40-50 crore from last year's ₹184 crore, a direct hit to other income. Fuel costs will rise ₹0.10-0.15 per GCV in the first half on coal shortages. The capex plan depends on two things: volume growth landing at the top of the guide, and coal costs normalizing in the second half as management expects.

Primary source: BSE · NSE

Star Cement cuts non-cement margin guidance by 60% and boosts capex to ₹1,500 cr

Tipsheet Editorial — Tue, 26 May 2026 17:10:32 GMT

The company slashed its target for the non-cement business within three months of setting it, and plans to spend ₹500 cr more on expansion than previously estimated.

What’s new

Non-cement business margin guidance cut from 20% to 7-8% with no fundamental cause cited.
FY28 capex raised to ₹1,500 cr from a prior estimate of ₹1,000 cr.
FY27 subsidy income set to fall ₹40-50 cr, with coal and West Asia costs pressuring margins.

Why it matters

Star Cement is revising core profitability assumptions for a new business line at the exact moment it is doubling down on capital spending. The margin cut removes a key part of the growth thesis for the non-cement segment, while the capex hike increases the balance-sheet commitment to capacity expansion. The gap between lower profitability and higher spending is the central tension for the stock.

What we’re watching

Whether the Rajasthan and Bihar plants commission on schedule in early FY29.
How coal and fuel costs evolve as the West Asia crisis persists.
Management's next explanation for the non-cement margin collapse.

The full read

Star Cement just told investors its new non-cement business will make 7-8 cents on the dollar, not 20 cents. That is a 60% cut to a margin target set only three months ago. The company offered no explanation for the change. At the same time, it plans to spend ₹1,500 crore on expansion in FY28, a 50% increase over the prior ₹1,000 crore estimate. The additional capital is for Rajasthan and Bihar plants still on track for early FY29. Management also flagged a ₹40-50 crore drop in subsidy income for FY27 and ongoing cost pressure from coal and the West Asia crisis. The numbers paint a difficult picture: lower profitability assumptions for a new venture, rising fuel costs, and a much bigger capital commitment. The initial non-cement thesis has collapsed. The expansion bet just got more expensive.

Primary source: BSE · NSE

Star Cement swings to ₹130 cr profit as board reshuffles top brass

Tipsheet Editorial — Fri, 22 May 2026 15:19:29 GMT

The company ended its standalone loss position, while Tushar Bhajanka takes the helm as MD and CEO.

What’s new

Standalone profit hit ₹130.27 cr, reversing a prior-year loss of ₹58.47 cr.
Revenue climbed 19.6% to ₹2,383.63 cr on higher volumes and better pricing.
Prem Kumar Bhajanka becomes Vice Chairman; Tushar Bhajanka starts a three-year term as MD and CEO.

Why it matters

Star Cement moved from operational losses to profit. Combining this performance jump with a clear management succession period suggests the company is finished with its recent earnings volatility.

What we’re watching

Whether volume gains hold up against regional competitive pressures.
The new leadership team's strategy for maintaining the current price realizations.
Capex updates to see if recent performance fuels further capacity growth.

The full read

Star Cement turned a corner in FY26. After losing ₹58.47 crore at the standalone level last year, the company posted a profit of ₹130.27 crore. Revenue growth of 19.6% to ₹2,383.63 crore provided the lift, powered by higher volume and better realizations. On a consolidated basis, the swing was sharper, with net profit more than doubling to ₹390.46 crore. The board also confirmed a succession path. Prem Kumar Bhajanka moves to the Vice Chairman and Managing Director role, and Tushar Bhajanka takes over as MD and CEO for a three-year term. The numbers are out and the management change is settled. The next task for Tushar Bhajanka is proving this profitability is a baseline, rather than just a recovery bounce.

Primary source: BSE · NSE