Heidelberg Cem. Q1 FY26 Results (NSE: HEIDELBERG)
Signal: Margin pressure
The read
Cement demand volume growth of 3.6% and modest price improvement of ~1.5% were insufficient to offset a sharp 6.4% per-tonne cost hike (raw materials, power & fuel) linked to the West Asia situation, leading to a 418 bps EBITDA margin compression and 36.7% PAT decline – a clear cost-driven headwind quarter.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹628.1 Cr | 5.1% | |
| EBIT | ₹65 Cr | -24.4% | |
| Net profit | ₹30.5 Cr | -36.7% | |
| EPS | ₹1.36 | -36.2% | |
| EBIT margin | 10.6% |
P&L walk
Revenue grew 5.1% YoY to ₹6,281 Mio on volume (+3.6%) and price (+1.5%); cost per tonne rose 6.4% YoY driven by higher raw material, power and fuel costs due to West Asia situation, overwhelming the pricing gain and cutting EBITDA by 24.5% to ₹668 Mio; depreciation rose 21.5% YoY to ₹101 Mio (fresh capex going live); finance cost negligible; PAT fell 36.7% to ₹305 Mio; EPS ₹1.36 vs ₹2.13.
Segments
Single-segment cement manufacturer – no segment break; all results reflect standalone cement operations.
Key positives
- Revenue grew 5.1% YoY driven by both volume (+3.6%) and price (+1.5%) improvement – pricing power partially active.
- Cash balance robust at ₹4,726 Mio; net debt negligible (D/E 0.01).
- Received consent for a new grinding unit in MP, indicating expansion capex for future growth.
- Alternate fuel share at 12% and >50% power from non-grid sources – ESG progress.
Key concerns
- EBITDA fell 24.5% YoY and margin compressed 418 bps to 10.6% due to 6.4% per-tonne cost increase (raw materials, power & fuel) that outpaced revenue growth.
- PAT down 36.7% YoY – earnings quality hurt by input cost spike, not one-offs.
- EBITDA per tonne dropped 27.1% to ₹514 – a key profitability metric for cement companies.
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