Q2 Update: Sagar Cements Sees 17% Sales Growth, Loss Reduces to ₹42 Crore

Sagar Cements Ltd reported its Q2 FY26 results on Thursday, showing a narrowing of its net loss to ₹42.17 crore, down from ₹55.77 crore in the same quarter last year. The improvement comes on the back of higher revenue and increased sales volumes, signalling a gradual recovery in the company’s operations.

Sagar Cements manufactures a range of products, including Ordinary Portland Cement, Portland Pozzolana Cement, Portland Slag Cement, Composite Cement, Ground Granulated Blast-furnace Slag, and Sulphate Resistant Cement.

Revenue and Sales Performance

Revenue for Q2 FY26 grew 27% year-over-year to ₹601.8 crore, up from ₹475.1 crore in Q2 FY25. The company recorded an increase in sales volumes across multiple segments, with trade and non-trade sales rising 17% each, while blended sales increased by 13% during the same period.

The growth in sales volumes contributed to an improvement in operating performance. EBITDA for the quarter stood at ₹51.28 crore, compared to ₹19.98 crore in Q2 FY25, and the EBITDA margin improved to 8.52% from 4.21% year-over-year.

Operational Highlights

During the quarter, the company faced planned operational shutdowns. The Dachepalli plant kiln was temporarily shut for commissioning a new preheater, while the Mattampally plant kiln underwent maintenance in September 2025. These activities led to a reduction in clinker stocks, impacting profitability for the quarter.

The average freight per tonne increased slightly to ₹855, up 3% from Q2 FY25. Packed sales accounted for 68% of total sales, a small rise from 67% in the previous year. Other operating income declined due to a lower incentive income of ₹10.14 crore compared to ₹34.34 crore in Q1 FY26, reducing total revenue contributions from incentives by ₹24.2 crore.

Employee costs also increased following the completion of the FY26 appraisal process, effective from April 1, 2025. Employee costs per tonne rose to ₹295, up from ₹267 per tonne in Q2 FY25. Raw material costs were slightly higher at ₹812 per tonne, compared to ₹779 per tonne in the same quarter last year. Other costs, such as power, fuel, and freight, remained stable.

Market Performance

As of 12:09 PM on October 24, 2025, Sagar Cements share price stood at ₹232, down 3.85% on the BSE. The company, listed under BSE: 502090 and NSE: SAGCEM, has a market capitalisation of ₹3,039 crore.

The stock has a 52-week high of ₹300 and a low of ₹155, with a book value of ₹129, ROCE of -2.19%, and ROE of -10.3%. The dividend yield currently stands at 0.00%, and the face value of each share is ₹2.00.

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Conclusion

Despite operational challenges, Sagar Cements has improved its financial performance this quarter, driven by higher sales and revenue growth, while maintaining stable cost management across key areas.

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