Monday, August 24, 2026

Sagar Cements shares decline after it reports weak Q2 results but maintains volume guidance

Date:

Shares of Sagar Cements Ltd. declined on Friday, October 24, after the company reported a weak quarterly performance after market hours on Thursday.The weakness during the quarter was due to the shutdown-related and employee-related costs.

Sagar Cement’s kiln at the Dachepalli plant was shut down for the commissioning of a new pre-heater, while the kiln at the Mattampally plant underwent a maintenance shutdown in September 2025. Meanwhile, in the second quarter, the company also completed the employee appraisal process for the financial year 2026, effective from April 1, 2025.

It was another quarterly loss for Sagar Cements for the September period. However, the loss of ₹44.2 crore was narrower in comparison to the loss of ₹57 crore it reported during the same quarter last year.
The losses narrowed despite a 14% increase in other expenses to ₹76.4 crore, and a 28% jump in employee benefit expenses to ₹39.2 crore. Revenue for the quarter increased by nearly 27% to ₹602 crore.A positive from the earnings was the growth seen in the company’s sales volumes, which increased by 17.2% from last year to 1.36 MT. Despite the weakness in its financial performance, Sagar Cements has maintained its volume guidance of 6 MT for the full financial year.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) on a per tonne basis stood at ₹377, up from ₹172 in the same quarter last year, and lower than the ₹851 during the June quarter.

Net debt for the quarter also increased to ₹1,435 crore at the end of the September quarter, higher than the ₹1,374 crore and ₹1,264 crore at the end of the respective quarters in June and March.

Shares of Sagar Cements were down 0.5% at ₹241 apiece around 9.25 am on Friday. The stock has declined 9.7% in the past month.

Also Read: These defence stocks are likely to benefit from the latest ₹79,000 crore DAC approval

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