Sagar Cements Q1 FY27 Results (NSE: SAGCEM)
Signal: Slipped to loss
The read
Consolidated Q1FY27 results reversed the prior quarter's strong profitability (Q4FY26 PAT ₹10,005 lakh) into a net loss of ₹2,810 lakh, as costs — particularly finance costs (+10.9% YoY), power & fuel (+6.7% YoY), and freight (+6.3% YoY) — grew well ahead of the 5.3% revenue increase. The Q4FY26 profit had been boosted by a large deferred tax credit (₹11,727 lakh), which was absent this quarter (credit narrowed to ₹849 lakh). The standalone business also swung to a loss, highlighting cement pricing/margin pressure. The pending merger of subsidiary Andhra Cements and the OFS to meet MPS are notable governance steps, but near-term profitability remains weak.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹706.07 Cr | 5.3% | -10.3% |
| EBIT | ₹-36.59 Cr | -253.1% | |
| Net profit | ₹-28.1 Cr | -475.2% | |
| EPS | ₹-2.15 | -477.2% | |
| EBIT margin | -5.2% |
P&L walk
Revenue grew modestly (+5.3% YoY) but total expenses rose 14.5% YoY, outpacing revenue and driving a consolidated pre-tax loss of ₹3,659 lakh vs. a profit of ₹2,390 lakh a year ago. Power & fuel (+6.7% YoY), freight (+6.3% YoY), and finance costs (+10.9% YoY) were the main cost headwinds. A deferred tax credit of ₹849 lakh partially offset the loss, bringing the net loss to ₹2,810 lakh (vs. ₹749 lakh profit). EPS swung to ₹-2.15 from ₹0.57.
Key positives
- Standalone finance costs reduced 11.4% YoY to ₹1,787 lakh, signalling some debt reduction or lower rates at the parent level.
- Revenue from operations grew 5.3% YoY on a consolidated basis and 8.3% YoY on a standalone basis, indicating steady demand despite a weak pricing environment.
Key concerns
- Consolidated net loss of ₹2,810 lakh vs. profit of ₹749 lakh YoY, driven by a 14.5% YoY rise in total expenses against revenue growth of only 5.3%.
- Finance costs jumped 10.9% YoY to ₹5,223 lakh, reflecting elevated debt at the group level.
- Power & fuel (+6.7% YoY) and freight (+6.3% YoY) both grew faster than revenue, compressing EBITDA margin.
- Other income (consolidated) fell sharply by 43.2% YoY to ₹238 lakh, reducing the non-operating buffer.
Research and educational content only. Not investment advice.