India Cements posts ₹26.6 cr profit on cost cuts, asset sales
Revenue flat at ₹1,019 cr, but lower power & fuel expenses and a ₹30 cr asset sale profit offset a ₹55 cr provision for old disputes.
— 2 earlier stories on The India Cements Ltd. →What's new
- Swung to net profit of ₹26.62 cr from loss of ₹7.53 cr YoY.
- Revenue unchanged at ₹1,019 cr; input cost savings drove earnings.
- Recorded ₹29.98 cr profit on asset sale and ₹55.26 cr provision for legacy disputes.
Why this matters
The turnaround is real but fragile. Revenue hasn't grown, and the profit includes one-time gains. Cement demand must pick up for margins to sustain.
What we're watching
- Cement demand trajectory — flat revenue suggests volume pressure.
- Whether the disputed liability provision closes old cases or signals fresh risks.
- Commercial paper issuance at 6.85% – cheapest access to funds in years.
The full read
India Cements swung to a net profit of ₹26.62 crore in Q1 FY27, compared with a loss of ₹7.53 crore a year ago. Revenue remained nearly flat at ₹1,019 crore. The real driver was a sharp drop in power, fuel, and freight expenses. However, the quarter also saw a ₹29.98 crore profit from asset sales and a ₹55.26 crore provision for disputed liabilities from prior years. The provision is a reminder that past issues are not fully settled. The company also raised ₹100 crore via commercial paper at 6.85%. Flat revenue. The net profit is a clear positive, but without top-line growth, the story is one of cost management rather than demand revival.
Questions answered
- How did India Cements swing to profit despite flat revenue?
- A sharp reduction in power, fuel, and freight expenses, along with a ₹29.98 crore profit on asset sales, more than offset the flat top line and a ₹55.26 crore provision for disputed liabilities.
- What were the exceptional items in the quarter?
- Exceptional items included a ₹29.98 crore profit on sale of assets and a ₹55.26 crore provision for disputed liabilities pertaining to earlier years.
- Why did the company issue commercial paper?
- The company issued ₹100 crore in commercial paper at a discount rate of 6.85% (CARE A1+), likely to manage working capital or refinance existing debt.
- How does this result compare to the same quarter last year?
- Revenue was nearly flat at ₹1,019 crore versus ₹1,025 crore. Net profit swung to ₹26.62 crore from a loss of ₹7.53 crore, driven by cost savings and asset sales.
- What is the company's debt level?
- Trailing debt-to-equity is 0.11, indicating low leverage. The commercial paper issuance adds short-term debt but at a low cost.
The India Cements Ltd.
Latest quarter · Jun 2026
Strength & growth
Story so far
All notes on INDIACEM →- 18 Jul 2026 · 1:16 PM IST India Cements posts ₹26.6 cr profit on cost cuts, asset sales
- 1d ago India Cements turnaround: capex triples to ₹2,000 cr, EBITDA target ₹1,000/ton
- 3d ago India Cements swings to ₹26.6 cr profit on lower costs, asset sale