Star Cement Q1 FY27 Earnings Call — Analysis (NSE: STARCEMENT)
Star Cement reported Q1FY27 revenue of ₹902 Cr against ₹847 Cr YoY, but EBITDA fell to ₹203 Cr from ₹230 Cr and PAT to ₹74 Cr from ₹98 Cr as lower subsidy, higher packing costs and a kiln shutdown hit profitability; management also cut FY27 volume growth guidance to 8-9%.
Result quality: watch — Margin pressure. Management sentiment: neutral.
The take
Q1FY27 Revenue ₹902 Cr .
Results
Revenue ₹902 Cr vs ₹847 Cr YoY; EBITDA ₹203 Cr vs ₹230 Cr; PAT ₹74 Cr vs ₹98 Cr; EBITDA per ton ₹1,497 vs ₹1,774; cement volume 13.02 lakh tons vs 12.22 lakh tons.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue | ₹902 Cr | yoy · Q1FY27 · Q1FY27 vs Q1FY26 | |
| EBITDA | ₹203 Cr | yoy · Q1FY27 · Q1FY27 vs Q1FY26 | |
| Profit after tax | ₹74 Cr | yoy · Q1FY27 · Q1FY27 vs Q1FY26 | |
| EBITDA per ton | ₹1,497 | yoy · Q1FY27 · Q1FY27 vs Q1FY26 | |
| Cement sales volume | 13.02 lakh tons | yoy · Q1FY27 · Q1FY27 vs Q1FY26 | |
| Clinker sales volume | 0.52 lakh tons | yoy · Q1FY27 · Q1FY27 vs Q1FY26 |
Guidance
FY27 cement volume growth trimmed to 8-9% from 11-12%; clinker sales likely flat to down 5-10%; full-year EBITDA/t expected at ₹1,500-1,600; Rajasthan ground-breaking planned between mid-October and November 2026 with commissioning 18-20 months later.
Key themes
Flood-hit demand, revised volume guidance, North expansion
Operational commentary
- Rajasthan/North expansion: plant land purchased; public hearing end-August; EC expected first week of October; ground-breaking planned mid-October to November; 18-20 months to commissioning (Q4FY28/Q1FY29).
- Capex envelope: FY27 ~₹500 Cr, FY28 ~₹1,500 Cr; overall North capex ₹2,700 Cr ex-GST / ₹2,900 Cr including GST for Rajasthan (3 mt grinding/3.3 mt clinker) and Haryana Jhajjar (2 mt).
- Full-year FY27 cement volume growth cut to 8-9% from 11-12%; Q2 July volumes de-grew ~12% on Assam floods; management expects H2 catch-up.
- Northeast demand: Q1 NE volume broadly flat; management denied market-share loss to Dalmia and attributed weakness to Assam elections and monsoon.
- Assam subsidy: total ₹794 Cr now spread over 12 years; FY27 incentive expectation cut to ~₹115 Cr from ~₹145 Cr; outstanding receivable ~₹130 Cr.
- Grinding-unit optionality: West Bengal industrial policy expected around 15 August; management may redirect Begusarai Bihar grinding capex to brownfield Siliguri if West Bengal terms are favorable; decision deferred to next call.
- Logistics/cost initiatives: Silchar railway siding by October-November; Siliguri wagon tippler expected to save ₹150 per ton on Siliguri sales; EV adoption planned in 5-6 months.
- Non-cement building solutions: revenue target of ₹150 Cr annual run-rate by Q4FY27; green power share at 3% in Q1.
- Pricing: Northeast and West Bengal prices broadly flat, Bihar up about ₹10/bag; no major price cuts despite weak demand.
Analyst Q&A
Q. Full-year cement and clinker volume growth expectations versus the earlier 10-12% guidance.
Management revised FY27 cement volume growth to 8-9%; clinker sales may be stagnant or de-grow 5-10%; Q2 muted, but Q3/Q4 should see double-digit growth on pent-up demand.
Q. Rajasthan plant timeline and ramp-up expectation.
EC expected by end-September/October; ground work planned mid-October to November; commissioning 18-20 months later, implying Q4FY28 or Q1FY29.
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