Sagar Cements revenue up 5% but swings to net loss on cost pressure
Cement maker's Q1 revenue rose to ₹706 crore but net loss of ₹28.1 crore versus profit a year ago, as power and fuel costs pushed EBITDA down 40%. Volume grew 13% and capacity expansion at Jeerabad was commissioned.
— 5 earlier stories on Sagar Cements Ltd. →What's new
- Consolidated revenue up 5% to ₹706 crore in Q1 FY27
- Net loss of ₹28.1 crore vs profit of ₹7.5 crore a year ago
- EBITDA down 40% to ₹72.4 crore; per-tonne EBITDA dropped to half
- Volume up 13% to 1.6 million tonnes; FY27 guidance of ~7 mt
- Commissioned 0.5 MTPA expansion at Jeerabad and 4.35 MW WHRS at Gudipadu
Why this matters
Volume growth and capacity additions are positives, but the sharp margin compression reveals a tough pricing and cost environment. The commissioning of cost-saving initiatives may help margins in coming quarters, but near-term profitability remains under pressure.
What we're watching
- Utilization of new Jeerabad capacity and its impact on costs
- Trend in power and fuel costs in coming quarters
- Demand environment and pricing discipline in the region
The full read
Sagar Cements posted 5% revenue growth to ₹706 crore in Q1 FY27, but a sharp jump in power, fuel, and packaging costs sent the company to a net loss of ₹28.1 crore against a ₹7.5 crore profit a year ago. EBITDA slumped 40% to ₹72.4 crore, and per-tonne EBITDA dropped to ₹451, half the previous year's level. Volume, however, rose 13% to 1.6 million tonnes, and management guided for a full-year volume of around 7 million tonnes. On the positive side, Sagar commissioned a 0.5 MTPA expansion at Jeerabad and a 4.35 MW waste-heat recovery system at Gudipadu — both moves that could help claw back margins. The open question is whether cost pressures ease enough for the volume growth and new capacity to translate into restored profitability.
Questions answered
- Why did Sagar Cements swing to a net loss despite higher revenue?
- Higher power, fuel, and packaging costs drove a 40% drop in operating EBITDA, which more than offset the 5% revenue gain. Per-tonne EBITDA fell to ₹451, half of last year's level, leading to a consolidated net loss of ₹28.1 crore.
- How did volumes perform and what is the full-year guidance?
- Sales volume grew 13% year-on-year to 1.6 million tonnes. Management guided for full-year volume of around 7 million tonnes, implying continued growth momentum.
- What capacity additions were commissioned this quarter?
- Sagar Cements commissioned a 0.5 million tonne expansion at its Jeerabad plant and a 4.35 MW waste-heat recovery system at Gudipadu. Both are expected to strengthen profitability over time.
- How does this quarter compare to the previous quarter (Mar 2026)?
- In the March 2026 quarter, the company reported sales of ₹787 crore and net profit of ₹100 crore. The current quarter's revenue is lower sequentially, and profitability has reversed sharply.
- What is the company's debt level?
- Sagar Cements has a debt-to-equity ratio of 0.99, indicating a leveraged balance sheet. The margin pressure could strain debt servicing if sustained.
Sagar Cements Ltd.
Latest quarter · Jun 2026
Strength & growth
Story so far
All notes on SAGCEM →- 27 Jul 2026 · 6:45 PM IST Sagar Cements revenue up 5% but swings to net loss on cost pressure
- today Sagar Cements targets ₹500-550/tonne EBITDA by FY27
- 1d ago Sagar Cements swings to loss as Andhra subsidiary drags
- 25d ago Sagar Cements' credit rating cut one notch, but outlook turns stable
- 48d ago Sagar Cements adds 0.5 MTPA, lifting group capacity to 11 MTPA