Sagar Cements targets ₹500-550/tonne EBITDA by FY27
Management expects 7 mt volumes and margin recovery from current ₹451/tonne. Debt reduction and Vizag land sale are key near-term levers.
— 5 earlier stories on Sagar Cements Ltd. →What's new
- FY27 volume target of ~7 mt and EBITDA/ton of ₹500-550 disclosed on Q1 concall.
- Q1 volume up 13% YoY but EBITDA/ton at ₹451 hurt by higher energy and fuel costs.
- No major capex beyond ₹240 cr; focus on debt reduction and Vizag land monetisation.
Why this matters
Current EBITDA/ton is well below the FY27 target, implying a steep margin recovery is baked into management's plan. The guidance sets a benchmark for investors to judge whether cost pressures ease and the Vizag sale (₹150 cr expected) materialises.
What we're watching
- Vizag land sale: final government order pending for the expected ₹150 cr.
- Andhra Cements merger and its path to breakeven.
- Energy cost trajectory and its impact on margin recovery.
The full read
Sagar Cements has laid out a clear FY27 roadmap: 7 million tons of volume and ₹500-550 per tonne of EBITDA. That's a steep climb. The Q1 print was ₹451, squeezed by elevated energy, fuel, and packaging costs from West Asia tensions. Volumes rose 13% year-on-year, yet standalone net loss was ₹2.89 crore and consolidated loss attributable to parent hit ₹23.11 crore. Gross debt stands at ₹1,704 crore, and management has ruled out major new capex beyond ₹240 crore of ongoing work — a clear pivot to deleveraging and monetising the Vizag land for an expected ₹150 crore, though a final government order remains pending. The loss-making Andhra Cements subsidiary, which Sagar is merging, is showing improving unit-level EBITDA losses but still drags on group profitability. The FY27 guidance gives a concrete target against which every quarter must be judged; the margin gap from ₹451 to ₹500-550 is material and will test management's ability to recover energy cost pass-through and realise land sales.
Questions answered
- What volume and margin targets did Sagar Cements guide for FY27?
- Management guided for volumes of roughly 7 million tons and EBITDA per ton of ₹500-550 by FY27.
- How did the company perform in Q1 FY27?
- Q1 volume grew 13% year-on-year, but EBITDA per ton fell to ₹451 from elevated energy, fuel, and packaging costs. Standalone net loss was ₹2.89 crore and consolidated loss attributable to parent was ₹23.11 crore.
- What is the status of the Vizag land sale?
- Management expects ₹150 crore from the sale in the current financial year, but a final government order is still pending.
- How much debt does Sagar Cements have?
- Gross debt stood at ₹1,704 crore as of Q1 FY27. The company is prioritising debt reduction and has no major capex beyond ₹240 crore of ongoing work.
- Why is Andhra Cements dragging profitability?
- The subsidiary is loss-making, though unit-level EBITDA losses are improving. Sagar Cements is in the process of merging Andhra Cements with itself.
- What is the capex plan for the near term?
- No major capex is planned beyond roughly ₹240 crore of ongoing work. The focus remains on debt reduction and land monetisation.
Sagar Cements Ltd.
Latest quarter · Jun 2026
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Story so far
All notes on SAGCEM →- 28 Jul 2026 · 11:48 AM IST Sagar Cements targets ₹500-550/tonne EBITDA by FY27
- 1d ago Sagar Cements revenue up 5% but swings to net loss on cost pressure
- 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